FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 23: Unemployment

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

The amount of unemployment that the economy normally experiences is known as

A) The natural rate of unemployment.
B) Cyclical unemployment.
C) Efficiency wage unemployment.
D) Frictional unemployment.

E) B) and D)
F) A) and B)

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Efficiency wages are

A) Lower than market wages paid by employers to increase profitability.
B) Higher than market wages paid by employers to increase productivity.
C) Government-determined minimum wages set to protect workers from unfair employers.
D) Negotiated by unions when officials are interested in trimming work forces.

E) A) and D)
F) C) and D)

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

The natural rate of unemployment is

A husband who chooses to stay home and take care of the household is

Paying efficiency wages tends to increase worker turnover because workers can get continually higher wages if they change employer often.

If wages were always at the competitive equilibrium, there would be absolutely no unemployment.

Why might a favourable change in the European economy, such as technological improvement or a decrease in the price of imported oil, be associated with an increase in frictional unemployment?

Table 2. The figures in the table below are taken from the statistics office in a fictional country called Exland. $\begin{array}{|l|r|}\hline \text { Number of workers employed } & 8,400 \\\hline \text { Frictional unemployment } & 250 \\\hline \text { Structural unemployment } & 350 \\\hline \text { Cyclical unemployment } & 600 \\\hline \text { Discouraged workers } & 400 \\\hline \text { Adult population } & 12,000 \\\hline\end{array}$ Refer to table 2. How large is the labour force in Exland?

Markus is a low-skilled worker who washes dishes in a local restaurant. He is worried about a proposed increase in the minimum wage because price

Which of the following types of unemployment will exist even if the wage is at the competitive equilibrium?

Table 2. The figures in the table below are taken from the statistics office in a fictional country called Exland. $\begin{array}{|l|r|}\hline \text { Number of workers employed } & 8,400 \\\hline \text { Frictional unemployment } & 250 \\\hline \text { Structural unemployment } & 350 \\\hline \text { Cyclical unemployment } & 600 \\\hline \text { Discouraged workers } & 400 \\\hline \text { Adult population } & 12,000 \\\hline\end{array}$ Refer to table 2. What is the unemployment rate in Exland?

If unemployment insurance were so generous that it paid laid off workers 95 per cent of their regular salary,

A minimum wage law tends to

If, for any reason, the wage is held above the competitive equilibrium wage,

Why have labour-force participation rates for women in Europe increased while labour-force participation rates for men have decreased?

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Table 1: Statistics from a fictional country ? $\begin{array}{|l|c|}\hline & \text { Numbers in millions } \\\hline \text { Total population } & 195.4 \\\hline \text { Adult population } & 139.7 \\\hline \text { Number of unemployed } & 5.7 \\\hline \text { Number of employed } & 92.3 \\\hline\end{array}$ Refer to table 1. The labour force participation rate is

Table 1: Statistics from a fictional country ? $\begin{array}{|l|c|}\hline & \text { Numbers in millions } \\\hline \text { Total population } & 195.4 \\\hline \text { Adult population } & 139.7 \\\hline \text { Number of unemployed } & 5.7 \\\hline \text { Number of employed } & 92.3 \\\hline\end{array}$ Refer to table 1. The labour force is

Table 1: Statistics from a fictional country ? $\begin{array}{|l|c|}\hline & \text { Numbers in millions } \\\hline \text { Total population } & 195.4 \\\hline \text { Adult population } & 139.7 \\\hline \text { Number of unemployed } & 5.7 \\\hline \text { Number of employed } & 92.3 \\\hline\end{array}$ Refer to table 1. The unemployment rate is

To negotiate a higher wage rate, a union cannot