Macroeconomics Ch.6

The value of marginal product of labor is the ____________________ generated by hiring an additional worker.

additional revenue

International trade leads to

lower wages and lower employment

The length of an unemployment spell is known as its__________.

Duration

Minimum wage laws are generally thought to__________unemployment.

increase

How do you calculate labor force participation rate?

(Labor Force/working-age population) x 100

How do I calculate labor force?

Add the unemployed people with the employed people.

What are the 2 stages of employment that do not get counted in the unemployment rate?

Involuntary part-time workers and discouraged workers

How do I calculate unemployment rate?

The # of unemployed people/the labor force

Reservation Price

The minimum level of compensation that leaves someone indifferent between working and not working.

How do I get the marginal product of adding another employee?

The output difference between say 4 workers and 3 is the marginal product.

People who say that they would like to have a job but have not made an effort in the past 4 weeks to get one are known as

discouraged workers

The labor force is known as the total number of __________ and ___________.

employed and unemployed

____-_____ technological change is defined as technological change that affects the marginal products of higher-skilled workers differently from those of lower-skilled workers

skill-biased

A period during which an individual is continuously unemployed is known as an....

unemployment spell