1. What conditions do you have to meet to count as an unemployed person? How is the unemployment rate defined?
2. Boris loses his job because his plant has temporarily shut down due to weak demand for its products. Is this an example of cyclical, frictional, or structural unemployment? What about Natasha who just graduated from Spy College and is looking for work? What about Bullwinkle who lost his magician's job at the circus because people don't go to circuses anymore because of the internet?
3. Is a falling unemployment rate always good economic news? Explain.
4. Why might a profit maximizing firm might pay its workers a higher than market wage; shouldn't they be trying to get workers as cheaply as possible?