Econ Ch. 15

Which of the following is not a reason economies experience structural unemployment

job search

An increase in the minimum wage

Increases structural employment

The labor force participation rate is computed as

(Labor force/Adult population) *100

A firm may pay efficiency wages in an attempt to

All of the above are correct

Frictional unemployment can be the consequence of

All of the above are correct

Which of the following causes of unemployment is associated with a wage rate above the market equilibirum

All of the above are correct

Paying efficiency wages means that wages are

above equilibrium and profits are higher than otherwise

the bureau of Labor statistics paces people in the "employed" category if they

all of the above are correct

Which of the following is a source of frictional unemployment

changes in the composition of demand among industries or regions

The Bureau of Labor statistics produces data on unemployment and other aspects of the labor market from a regular survey of households called the

current population survey

The unemployment rate is computed as the number of unemployed

divided by the labor force, all times 100

The theory of efficiency wages provides a possible explanation as to why

firms may be inclined to keep their workers wages above the equilibrium level

Juanita decides to hire some additional workers for her vinyl sliding factory. Equilibrium wages is $14/hr. Efficiency wage theory suggests that its reasonable for Juanita to offer

more than $14/hr. so as to attract a better pool of applicants

When a union raises the wage above the equilibrium level, it

raises the quantity of labor supplied and reduces the quantity of labor demanded

Unemployment

reduces search effort which raises unemployment

Unemployment Insurance

reduces search effort which raises unemployment

Frictional unemployment is inevitable because

sectoral shifts are always happening

Unions contribute to

structural unemployment

Efficiency wages create a labor

surplus and so increase unemployment

Minimum wages create unemployment in markets where they create a

surplus of labor. Unemployment of this type is called structural

Unemployment data are collected

through a regular survey of about 60,000 households