Chapter 15 econ

All else equal, which of the following would increase the unemployment rate? (i) an increase in the number of women who return to work after being stay-at-home mothers (ii) a preference among older men to retire early (iii) an increase in the maximum number of weeks for which someone can receive government unemployment benefits (iv) an increase in the number of previously unemployed women who stop looking for work and become discouraged workers

(ii) and (iii) only

Minimum-wage laws, unions, and efficiency wages contribute to

both structural unemployment and the natural rate of unemployment

When a union raises the wage above the equilibrium level,

both the quantity of labor supplied and unemployment rise.

An increase in the minimum wage

decreases the quantity of labor demanded but increases the quantity of labor supplied.

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

employed and in the labor force.

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has

gradually decreased.

Michael decides to hire some additional workers for his roofing company. The equilibrium wage is $17 per hour. Efficiency wage theory suggests that it is reasonable for Michael to offer

more than $17 per hour in order to attract a better pool of applicants.

A person who is counted as "unemployed" by the Bureau of Labor Statistics

must have recently looked for work or be on temporary layoff, is also in the labor force, must be at least 16 years old

If a union raises the wage in its industry above equilibrium, then there is an increase in

structural unemployment which is part of the natural rate of unemployment.

Efficiency wages create a labor

surplus and so increase unemployment.

Which of the following does not help reduce frictional unemployment?

unemployment insurance

Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment. What is the labor-force participation rate?

93.3%

Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment. What is the unemployment rate?

10.7%

Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment. What is the total labor force?

28 million

Allen: Unpaid stay at home dad. Has not looked for a job in several years. Ben: College president Allison: Part-time welder. Actively looking for full time work. Brittany: Self-employed full-time wedding singer Cathy: Full-time physician's assistant. Calvin: Retired finance professor. Last applied for work 10 weeks ago. Diane: Laid-off fork-lift operator expecting to be recalled David: Works for a bicycle store. Age 70. Evelyn: Manager of health food store. Eli: Museum guard. Was not at work last week due to illness. Flora: Has never been employed. Looked for a job last week. Frank: Fired from job as an investment banker. Last looked for work three weeks ago. How many in the sample are unemployed?

3

Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment. How many people are unemployed?

3 million

Which of the following correctly identifies lines A and B?

Line A is the unemployment rate, and line B is the natural rate of unemployment.

Measuring unemployment is the job of the

Bureau of Labor Statistics.

People who are in the process of changing jobs voluntarily are included in which of the following types of unemployment?

Frictional unemployment

efficiency wages

May increase productivity, may improve worker health, will increase unemployment