Economics Glossary: Key Terms in Labor Market and Inflation, Quizzes of Managerial Economics

Download Economics Glossary: Key Terms in Labor Market and Inflation and more Quizzes Managerial Economics in PDF only on Docsity! TERM 1 Labor Force DEFINITION 1 The sum of employed and unemployed workers in the economy. TERM 2 Unemployment Rate DEFINITION 2 The percentage of the labor force that is unemployed.Number of Unemployed Labor Force x 100= Unemployment Rate TERM 3 Discouraged Workers DEFINITION 3 People who are available for work but have not looked for a job during the previous four weeks because they believe no jobs are available for them. TERM 4 Labor Force Participation Rate DEFINITION 4 The percentage of the working-age population in the labor force. Labor force Working-Age Population x 100= Labor Force Participation TERM 5 Frictional Unemployment DEFINITION 5 Short-term unemployment that arises from the process of matching workers with jobs. TERM 6 Structural Unemployment DEFINITION 6 Unemployment arising from a persistent mismatch between skills and attributes of workers and the requirements of the jobs. TERM 7 Cyclical Unemployment DEFINITION 7 Unemployment cause by a business cycle recession. TERM 8 Natural Rate of Unemployment DEFINITION 8 The normal rate of unemployment, consisting of frictional unemployment plus structural unemployment. TERM 9 Efficiency Wage DEFINITION 9 A higher-than-market wage that a firm pays to increase worker productivity TERM 10 Price Level DEFINITION 10 A measure of the average prices of goods and services in the economy.