macro chap. 15

Unions contribute to

the natural rate of unemployment but not frictional unemployment.

Collective bargaining refers to

the process by which unions and firms agree on the terms of employment.

Violett quit her job because she was unhappy at work. Alexandra was laid off from her landscaping job because her company was downsizing. Who is eligible for unemployment insurance benefits?

Alexandra but not Violett

Which of the following is an explanation for the existence of frictional unemployment?

Job search

Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings but has not yet been offered one that best suits her tastes and skills. Sandy is

frictionally unemployed. Frictional unemployment can exist even in the long run.

In Belgium, Norway, and Sweden, the percentage of workers who belong to unions is

greater than it is in the United States.

Sectoral shifts in demand for output

increase unemployment due to job search.

Frictional unemployment is thought to explain relatively

short spells of unemployment, while structural unemployment is thought to explain relatively long spells of unemployment.

Evidence from research studies by economists

shows that increased unemployment benefits decrease the job search efforts of the unemployed.

Minimum wages create unemployment in markets where they create a

surplus of labor. Unemployment of this type is called structural