CH.30

Structural unemployment is more persistent in France than in the United States because:

French workers have less incentive to quickly seek a new position since their unemployment benefits are much higher.

How might changes in marginal tax rates on married couples affect labor force participation rates?

Lower marginal tax rates on married couples encourage higher labor force participation rates by the secondary income earner.

As the baby boomers retire, the United States labor force participation rate will:

decrease.

An unemployed person is one who:

does not have a job but is actively looking for one.

Creative destruction occurs at the level of the:

firm, industry, and entire economy.

Someone who recently moved to Florida because of its warmer climate will need to spend some time looking for a new job. This is an example of:

frictional unemployment.

Which two nations have a high percentage of older workers participating in the labor force?

Japan and the United States

Which of the following would the BLS define as a discouraged worker?

Mary, who was laid off last year and who was looking for a full-time job until last month

A country's total civilian noninstitutionalized adult population is 1 million, and 500,000 people in this country are working, with another 20,000 people looking for work. Which of the following statements about the labor force statistics in this country is accurate?

The employment rate is 96.15% and the labor force participation rate is 52%.

Which of the following is part of the labor force?

a person who was laid off and is now looking for work

During a typical nonrecession year, the duration for at least half of the unemployed is:

less than 14 weeks.

Frictional unemployment is caused by:

recessions

Higher unemployment benefits tend to:

reduce the unemployment rate.

When workers lose their jobs and become officially unemployed, the number of people in the labor force:

remains constant.

Oil shocks, the shift from manufacturing to service jobs, and the use of new technologies are reasons for _____ unemployment.

structural

Over the past few decades, the U.S. economy has switched from a primarily manufacturing economy to a service economy. Many individuals working in manufacturing positions lost their jobs, and many new jobs opened up in services. For those who lost jobs in manufacturing, this is an example of:

structural unemployment.

A worker repairing VHS cassette-tape players was laid off because most of his customers have started using DVD players. This worker is now:

structurally unemployed.