Econ Ch. 15
Which of the following is not a reason economies experience structural unemployment
job search
An increase in the minimum wage
Increases structural employment
The labor force participation rate is computed as
(Labor force/Adult population) *100
A firm may pay efficiency wages in an attempt to
All of the above are correct
Frictional unemployment can be the consequence of
All of the above are correct
Which of the following causes of unemployment is associated with a wage rate above the market equilibirum
All of the above are correct
Paying efficiency wages means that wages are
above equilibrium and profits are higher than otherwise
the bureau of Labor statistics paces people in the "employed" category if they
all of the above are correct
Which of the following is a source of frictional unemployment
changes in the composition of demand among industries or regions
The Bureau of Labor statistics produces data on unemployment and other aspects of the labor market from a regular survey of households called the
current population survey
The unemployment rate is computed as the number of unemployed
divided by the labor force, all times 100
The theory of efficiency wages provides a possible explanation as to why
firms may be inclined to keep their workers wages above the equilibrium level
Juanita decides to hire some additional workers for her vinyl sliding factory. Equilibrium wages is $14/hr. Efficiency wage theory suggests that its reasonable for Juanita to offer
more than $14/hr. so as to attract a better pool of applicants
When a union raises the wage above the equilibrium level, it
raises the quantity of labor supplied and reduces the quantity of labor demanded
Unemployment
reduces search effort which raises unemployment
Unemployment Insurance
reduces search effort which raises unemployment
Frictional unemployment is inevitable because
sectoral shifts are always happening
Unions contribute to
structural unemployment
Efficiency wages create a labor
surplus and so increase unemployment
Minimum wages create unemployment in markets where they create a
surplus of labor. Unemployment of this type is called structural
Unemployment data are collected
through a regular survey of about 60,000 households
