You Are an Employee of the Bureau of Labor Statistics

question 102

Essay

You are an employee of the Bureau of Labor Statistics involved in the monthly survey of households used to estimate the unemployment rate. In each of the following cases, classify the individual as frictionally, structurally, or cyclically unemployed. Explain your classification.
(a) There has been a general economic slowdown. Because of weak demand, Andy Capp has lost his job at the docks.
(b) Phil McCafferty, a newly qualified dental school graduate, is looking for a place to set up practice.
(c) Coal miner Ned Ludd is thrown out of work by the introduction of a more mechanized production process.
(d) Latosha Hogan, a computer programmer with a large bank, quit her job two months ago in search of a better- paid programming position. She is still looking.

---

Definitions:

Financial Statements

These are records that provide an overview of a company's financial condition in both short and long term. They include the balance sheet, income statement, and cash flow statement.

Lease Alternative

This term could refer to the option of leasing as opposed to purchasing an asset, often evaluated to determine the most cost-effective method of acquiring the asset.

Commitment To Finance

A lender's promise to provide funds under specified conditions to a borrower for a particular transaction.

After-Tax Cost

The actual cost of an investment or loan after considering the effects of taxes on its profitability or expense.