Macro Final

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

Efficiency wages are below the equilibrium wage rate but still attract a sufficient number of workers.

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no

frictional unemployment

The Bureau of Labor Statistics counts discouraged workers as

out of the labor force. If the were counted as unemployed the unemployment rate would be higher.

Suppose that the adult population in the country of Atlantis is 115 million. If 80 million people are employed and 5 million are unemployed, then

30 million are not in the labor force.

cyclical unemployment

The deviation of unemployment from its natural rate

Strike

The process by which unions and firms agree on the terms of employment is called a strike.

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

a. efficiency wages b. minimum-wage laws c. unions d. job search ***

Paying efficiency wages means that wages are

above equilibrium, and profits are higher than otherwise.

Sirius has just finished high school and started looking for his first job, but has not yet found one. Other things the same, the unemployment rate

and the labor-force participation rate both increase.

When a union bargains successfully with employers, in that industry,

both wages and unemployment increase

Some individuals would like to have a job, but they have given up looking for a job after an unsuccessful search. These individuals are called

discouraged workers, and they are not classified by the Bureau of Labor Statistics as unemployed.

Gwen is an unpaid worker in her family's restaurant. The Bureau of Labor Statistics counts Gwen as

employed and in the labor force

From time to time, the demand for workers has risen in one region of the United States and fallen in another. This illustrates

frictional unemployment created by sectoral shifts

Efficiency wages

increase structural unemployment by keeping wages above equilibrium.

Frictional unemployment is

inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms.

Unemployment numbers reported by the Bureau of Labor Statistics are reported based on a

monthly survey of about 60,000 households.

The efficiency-wage theory of worker health is

more relevant for explaining unemployment in less developed countries than in rich countries.

unemployment insurance

reduces search effort which raises unemployment

Evidence indicates that the typical person who becomes unemployed will

soon find a job

Minimum wages create unemployment in markets where they create a

surplus of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S.