Practice Ch 9 Questions Flashcards
(16 cards)
In order to be considered unemployed, a person must be:
-Not working
-Actively seeking work
-Willing and able to work
Who of the following would classified as out of the labor force?
A. A person with a part-time job.
B. A person with a full-time job.
C. A person willing to work who had looked for a job in the last week.
D. A person willing to work who had not looked for a job in two months.
D. A person willing to work who had not looked for a job in two months.
Susan Suarez would like to work forty hours per week, but can only find twenty hours per week of work. In the official employment statistics, Susan is classified as:
A. employed.
B. unemployed.
C. out of the labor force.
D. underemployed.
A. employed
The labor force equals the number of people:
A. employed.
B. aged of 16 years and older.
C. employed and unemployed.
D. employed, unemployed or counted as discouraged workers.
C. employed and unemployed
An increase in the unemployment rate can be the result of either _____ or _____ holding the other factors constant.
A. more unemployed workers; more people in the labor force
B. more unemployed workers; fewer people in the labor force
C. more employed workers; more people in the labor force
D. fewer unemployed workers; more people in the labor force
B. more unemployed workers; fewer people in the labor force
Which of the following are possible reasons why a country may have a higher unemployment rate?
- The country could be in a recession and have higher cynical unemployment
- The country could have higher (and binding) minimum wages
- The country could have more generous unemployment benefits
- Many firms in the country have elected to pay efficiency wages.
- A greater percentage of the country’s workers could be unionized..
Classify each of the following situations as either frictional, structural, or cyclical unemployment.
a. Maria has started looking for work after taking time off to have a baby.
b. Juan left high school without graduating and can’t find any jobs he is qualified for.
c. Rohit had a job working on Wall Street but lost his job during the financial crisis.
d. Adam has just arrived in a new city and is looking for work.
e. Max wants to work as an air steward, but because the airline industry is heavily unionized there are very few jobs available.
f. Jada has just lost her job in a Web startup that was affected by a downturn in the economy.
A. Frictional
B. Structural
C. Cynical
D. Frictional
E. Structural
F. Cynical
Assuming that you know the following information about the job-seekers in a nation:
2.6% of the Labor force is currently in-between jobs.
2.5% of the Labor force is made up of workers with the wrong skills for the current labor market.
3.3% of the Labor force has been laid-off from work due to a current recession.
Based on this information, the natural rate of unemployment is
and the actual rate of unemployment is
Natural Rate: Frictional + Structural
2.6+2.5= 5.1
Actual rate: 2.6+2.5+3.3=8.4
Depression and lost self esteem are examples of the ______ costs of unemployment, while the lost income and tax revenue are examples of the ______ costs of unemployment.
social; psychological
economic; social
economic; psychological
psychological; economic
psychological; economic
As the real wage decreases, the quantity of labor demanded ______ and the quantity of labor supplied _______.
A. increases; increases
B. increases; decreases
C. decreases; decreases
D. decreases; increases
B. increases; decreases
All other things equal, when the wage increases:
A. the supply of labor increases.
B. the supply of labor decreases.
C. the demand for labor decreases.
D. the quantity of labor supplied decreases.
E. the quantity of labor demanded decreases.
E. the quantity of labor demanded decreases.
The labor supply curve:
A. shows the relationship between the total quantity of labor supplied by all workers in the economy and the wage rate.
B. shows that, all things being equal, more workers will want to work when wages are higher and less will want to work when wages are lower.
C. has a positive slope.
D. All of these are true.
D
Holding other factors constant, if oil prices rise relative to the prices of other products, then the real wages of oil workers will ______ and employment of oil workers will _____.
A. increase; increase
B. increase; decrease
C. decrease; not change
D. decrease; increase
A. increase; increase
The introduction of a new technology that increases the productivity of labor will:
A. increase the supply of labor.
B. decrease the supply of labor.
C. increase the demand for labor.
D. decrease the demand for labor
C. increase the demand for labor.
Initially, workers in the shoe industry and the computer industry earn the same wage. Reductions in trade barriers give domestic consumers access to cheaper shoes produced abroad, so domestic shoe prices fall. At the same time, foreign consumers purchase more computers, raising the relative price of computers. As a result of these changes, wages in the shoe industry ______ and wages in the computer industry ______.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
C. decrease; increase
How would each of the following likely affect the real wage and employment of unskilled workers on an automobile plant assembly line?
a. Demand for the type of car made by the plant increases.
- The real wage and employment increase.
- The real wage decreases and employment increases.
- The real wage and employment decrease.
- The real wage increases and employment decreases.
b. A sharp increase in the price of gas causes many commuters to switch to mass transit.
- The real wage decreases and employment increases.
- The real wage increases and employment decreases.
- The real wage and employment decrease.
- The real wage and employment increase.
c. The workers unionize.
- The real wage decreases and employment increases.
- The real wage increases and employment decreases.
- The real wage and employment decrease.
- The real wage and employment increase.
A. 1
B. 3
C. 2
