chapter 8 unemployment quiz
If an unemployed person quits looking for work, then, eventually the unemployment rate
and the labor force participation rate decrease
Evidence from research studies by economists
shows that increased unemployment benefits decrease the job search efforts of the unemployed.
structural unemployment
unemployment that occurs when workers' skills do not match the jobs that are available
cyclical unemployment
year-to-year fluctuations of unemployment around its natural rate
Efficiency wages
increase productivity but increase unemployment
frictional unemployment
A type of unemployment caused by workers voluntarily changing jobs and by temporary layoffs; unemployed workers between jobs.
An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?
both do
suppose that a large number of people who used to work or seek no longer do either. Other things the same, this makes
both the number of people unemployed and in the labor force fall
An increase in the minimum wage
increases structural unemployment
suppose that garbage collectors and landscaper workers have no unions. Now suppose that garbage collectors form unions. What does this do to landscaping workers?
labor supply increases, and wages decrease
Minimum wages create unemployment in markets where they create a
surplus of labor. (structural unemployment)
in the long run the unemployment rate equals
the natural rate of unemployment