Econ 111 (Chapter 9)

¡Supera tus tareas y exámenes ahora con Quizwiz!

According to​ Costco's CEO, Jim​ Sinegal: ​"Paying good wages and keeping your people working for you is good business...Imagine that you have​ 120,000 loyal ambassadors out there who are constantly saying good things about Costco. It has to be a significant advantage for​ you." What is​ Costco's CEO referring​ to?

Efficiency wages

Which of the following describes actual trends in the U.S. labor force participation​ rate?

The labor force participation rate of adult women has risen since 1950.

The figure on the right shows unemployment rates for demographic groups. The adult unemployment rates apply to persons aged 20 and over who are in the labor force. The teenage unemployment rates apply to persons aged 16 to 19 who are in the labor force. Note that people identified as Hispanic may be of any race. ​ Use the figure to determine which one of the following statements is​ true:

The unemployment rate of black adults is approximately twice that of white adults.

Which of the following is an example of a worker experiencing cyclical​ unemployment?

a freightliner employee that got laid off because of the recession of 2007-2009

Which of the following policies would reduce structural​ unemployment?

a job retraining program

Structural unemployment is the result of

a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs.

Cyclical unemployment is the result of

a slowdown in the economy.

A full−time student who is not working is categorized as

not in the labor force.

In August​ 2015, the U.S. unemployment rate was highest for

African Americans.

Why is the unemployment​ rate, as measured by the Bureau of Labor​ Statistics, an imperfect measure of the extent of joblessness in the​ economy?

It fails to account for illegal activities. Discouraged workers are not considered unemployed. Underemployed people are considered employed. It does not account for inaccurate responses to the Current Population Survey. A: All of the above

An unemployment insurance program has which of the following​ effects?

It increases the amount of time spent searching for a job.

Since​ 1948, which of the following best describes the trend in the labor force participation rate

It is decreasing for men and increasing for women.

Which one of the following accurately describes the relationship between frictional unemployment and job​ search?

People are said to be frictionally unemployed when they are between jobs and searching for new jobs.

Sarah is a full−time student who is not looking for work. What kind of unemployment is Sarah​ experiencing?

Sarah is not experiencing unemployment of any​ kind, because she is not currently part of the labor force.

The government of a country is considering increasing the minimum hourly wages by 10 percent. Economists argue that this is going to have a negative effect on employment in the long term. Which of the​ following, if​ true, would strengthen the​ economists' viewpoint?

Several research studies have concluded that increases in the minimum wage are likely to reduce school enrolment among teenagers.

Which of the following would increase the unemployment​ rate?

an increase in unemployment insurance payments

An efficiency wage is

an​ above-market wage paid by a firm to maximize worker productivity.

Which of the following policies would reduce frictional​ unemployment?

building an on−line job database that helps workers find jobs

Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to understate the true extent of​ joblessness?

discouraged workers

Which of the following is an example of cyclical​ unemployment?

during a recession, aircraft assemblers are laid off but expected to be recalled as the economy improves

The labor force equals the number of people

employed plus unemployed.

A student who just graduated from college but has not found a job would most likely be

frictionally unemployed.

Which of the following would decrease the unemployment​ rate?

government aid to retrain unemployed workers

An advantage of the establishment survey over the household survey of the labor market is that the establishment survey

is based on actual​ payrolls, rather than on unverified answers.

The unemployment rate equals the number of unemployed divided by the​ ________ , all times 100.

labor force

The United States has​ ________ social insurance​ programs, and generally has a​ ________ unemployment​ rate, as compared to Canada and Western Europe.

less​ generous; lower

Using a broader measure of the unemployment rate where discouraged workers and​ part-time workers who wished to work full time were counted as​ unemployed, the BLS estimates the unemployment rate in August 2015 would have​ ________ compared to the measured unemployment rate.

more than doubled

Emma is a road construction worker. During the winter​ months, Emma finds it more difficult to get work. The unemployment Emma experiences in the winter is

seasonal

People who lost their jobs as hand−drawn animators because of the popularity of computer−generated 3D animation are examples of persons who are suffering

structural unemployment.

A headline on an article in the New York Times was​ "Unemployed in Europe Stymied by Lack of Technology​ Skills." ​ The unemployed workers referred to in the headline are likely to be

structurally unemployed because there is a mismatch between the skills of workers and the requirements of jobs.

In​ 2015, JP Morgan Chase announced that it was laying off​ 5,000 employees. The​ laid-off employees who were not able to find jobs at another bank due to a permanent decline in demand in the banking industry would be considered

structurally unemployed.

Why do economists believe that setting a goal of zero percent unemployment is not feasible or​ desirable? Creating a goal of zero percent unemployment for an economy is not feasible nor is it desirable because

the economy needs some​ short-term unemployment in order to allow for better matching of jobs with workers that possess the proper skill sets.

Frictional unemployment is the result of

the search process of matching workers with jobs.

According to the​ text, economists consider full employment to occur when

the unemployment rate consists of only frictional and structural unemployment.

Jack lost his job six months​ ago, and​ he's been actively looking for a new job ever since. The Bureau of Labor Statistics would classify Jack as

unemployed.

A politician makes the following​ argument: ​ "The economy would operate more efficiently if frictional unemployment were eliminated.​ Therefore, a goal of government policy should be to reduce the frictional rate of unemployment to the lowest possible​ level." Eliminating all frictional unemployment

will not be good for the economy since the presence of frictional unemployment increases economic efficiency.

In​ 1914, Henry Ford increased the wage he paid workers in his car factory in​ Dearborn, Michigan to​ $5 per day. This wage was more than twice as much as other car manufacturers were paying. Ford was quoted as​ saying: ​"The payment of five dollars a day for an​ eight-hour day was one of the finest​ cost-cutting moves we ever​ made." Giving workers a raise can result in overall lower costs for a firm if

workers are motivated by higher wages to work harder.

Discouraged workers are

workers who have stopped looking for work because they believe there are no jobs for them.

What are the three main kinds of​ unemployment?

​structural, frictional, and cyclical


Conjuntos de estudio relacionados

Communication: asking and giving help

View Set

Unit 3 Fundamentals Documenting, Reporting, ....

View Set

Chapter 12 Musculoskeletal Medications

View Set

Regulation 4 Partnership Interest 1 of 4

View Set