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Exam 29: Unemployment

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Question 21

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Public policy

A) can reduce both frictional unemployment and the natural rate of unemployment.
B) can reduce frictional unemployment,but it cannot reduce the natural rate of unemployment.
C) cannot reduce frictional unemployment,but it can reduce the natural rate of unemployment.
D) cannot reduce either frictional unemployment or the natural rate of unemployment.

E) All of the above
F) B) and C)

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Question 22

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Monique is the newly appointed CEO of a company that manufactures external hard drives on an assembly line.Her staff has told her that the output the firm produces,given the number of workers employed,indicates that some workers may be shirking.According to efficiency wage theory,what should she do?

A) pay all workers more than the equilibrium wage rate
B) pay all workers below the equilibrium wage rate to make up for the loss from shirking
C) make sure that workers are getting paid exactly the equilibrium wage rate
D) pay bonuses to workers who report the shirking of other workers

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

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Question 23

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Suppose that some people are counted as unemployed when,to maintain unemployment compensation,they search for work only at places where they are unlikely to be hired.If these individuals were counted as out of the labor force instead of as unemployed,then

Efficiency wages

Most spells of unemployment are

Table 29-3 2010 Labor Data for Adults (age 16 and older) in Meditor $\begin{array} { | l | l | } \hline \text { Males not in labor force } & 45 \text { million } \\\hline \text { Females not in labor force } & 35 \text { million } \\\hline \text { Males unemployed } & 5 \text { million } \\\hline \text { Females unemployed } & 5 \text { million } \\\hline \text { Males employed } & 85 \text { million } \\\hline \text { Females employed } & 65 \text { million } \\\hline\end{array}$ -Refer to Table 29-3.What is the adult population in Meditor?

Most spells of unemployment are short,and most unemployment observed at any given time is long term.How can this be?

More than one-third of the unemployed are recent entrants into the labor force.

Economists would predict that,other things the same,the more generous unemployment compensation a country has,

Table 29-3 2010 Labor Data for Adults (age 16 and older) in Meditor $\begin{array} { | l | l | } \hline \text { Males not in labor force } & 45 \text { million } \\\hline \text { Females not in labor force } & 35 \text { million } \\\hline \text { Males unemployed } & 5 \text { million } \\\hline \text { Females unemployed } & 5 \text { million } \\\hline \text { Males employed } & 85 \text { million } \\\hline \text { Females employed } & 65 \text { million } \\\hline\end{array}$ -Refer to Table 29-3.What is the adult female labor-force participation rate in Meditor?

The natural rate of unemployment is the desirable rate of unemployment for an economy.

Measuring the amount of unemployment in the economy is a straightforward task.

The labor-force participation rate tells us the fraction of the population that

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

Table 29-3 2010 Labor Data for Adults (age 16 and older) in Meditor $\begin{array} { | l | l | } \hline \text { Males not in labor force } & 45 \text { million } \\\hline \text { Females not in labor force } & 35 \text { million } \\\hline \text { Males unemployed } & 5 \text { million } \\\hline \text { Females unemployed } & 5 \text { million } \\\hline \text { Males employed } & 85 \text { million } \\\hline \text { Females employed } & 65 \text { million } \\\hline\end{array}$ -Refer to Table 29-3.What is the adult male labor force in Meditor?

Table 29-2 2009 Labor Data for Baltivia $\begin{array} { | l | l | } \hline \text { Number of adults } & 20,000 \\\hline \text { Number of adults who are paid employees } & 8,000 \\\hline \text { Number of adults who work in their own businesses } & 1,600 \\\hline \text { Number of adults who are unpaid workers in a family member's business } & 1,000 \\\hline \text { Number of adults who were temporarily absent from their jobs because of an earthquake } & 400 \\\hline \text { Number of adults who were vaiting to be recalled to a job from which they had been laid off } & 200 \\\hline \begin{array} { l } \text { Number of adults who do not have a job, are available for work, and have tried to find a job } \\\text { within the past four weeks }\end{array} & 1,400 \\\hline \begin{array} { l } \text { Number of adults who do not have a job, are available for work, but have not tried to find a job } \\\text { within the past four weeks }\end{array} & 780 \\\hline \text { Number of adults who are fill-time students } & 3,000 \\\hline \text { Number of adults who are homemakers or retirees } & 3,620 \\\hline\end{array}$ -Refer to Table 29-2.What was Baltivia's labor-force participation rate in 2009?

If unions were formed in more industries,the supply of labor in other industries would

In the absence of right-to-work laws,workers

Suppose that telemarketers are not unionized.If they unionize,then the supply of labor in other sectors of the economy will

An increase in the minimum wage