Econ quiz study guide (ch 28)

Collective bargaining refers to

the process by which unions and firms agree on the terms of employment.

Labor unions

are similar to cartels.

Public policy

can reduce both frictional unemployment and the natural rate of unemployment.

Table 28-4The following data is about the labor market in the city of Productionville. ​ Wage (Dollars per hour) Quantity Demanded (Units) Quantity Supplied (Units) 86,00016,00079,00014,000612,00012,000515,00010,000418,0008,000 ​ ​ Refer to Table 28-4. If the local government imposed a minimum wage of $4 in Productionville, how many people would be unemployed?

0

Table 28-3 ​ Civilian labor force100 millionPersons unemployed 15 weeks or longer1.6 millionJob losers and persons who have completed temporary jobs (excludes job leavers)3.1 millionTotal unemployed6.2 millionTotal unemployed plus discouraged workers7.0 millionTotal unemployed plus all marginally attached workers8.1 millionTotal unemployed plus all marginally attached workers plus total employed part-time for economic reasons9.2 million ​ Refer to Table 28-3. What is the U-1 measure of labor underutilization?

1.6%

Table 28-1Sample Population ​ PersonStatusAllenUnpaid stay-at-home dad. Has not looked for a job in several yearsBenCollege presidentAllisonPart-time welder. Actively looking for full-time workBrittanySelf-employed full-time wedding singerCathyFull-time physician's assistantCalvinRetired finance professor. Last applied for work 10 weeks agoDianeLaid-off fork-lift operator expecting to be recalledDavidWorks for a bicycle store. Age 70EvelynManager of health food storeEliMuseum guard. Was not at work last week due to illnessFloraHas never been employed. Looked for a job last weekFrankFired from job as an investment banker. Last looked for work three weeks ago ​ Refer to Table 28-1. How many in the sample are in the labor force?

10

Table 28-4The following data is about the labor market in the city of Productionville. ​ Wage (Dollars per hour) Quantity Demanded (Units) Quantity Supplied (Units) 86,00016,00079,00014,000612,00012,000515,00010,000418,0008,000 ​ ​ Refer to Table 28-4. If the local government imposed a minimum wage of $7 in Productionville, how many people would be unemployed?

5,000

Which of the following is an example of an efficiency wage?

An above-equilibrium wage offered by a firm to attract a more talented pool of job applicants

Wanda quit her job because she was unhappy at work. Arnold was laid off from his landscaping job because his company was downsizing. Who is eligible for unemployment insurance benefits?

Arnold but not Wanda

Which of the following is not a cause of the decline in the U.S. men's labor-force participation rate over the past several decades?

With more women employed, there are fewer jobs now available to men.

When a minimum-wage law forces the wage to remain above the equilibrium level, the result is

a surplus of labor and a shortage of jobs.

The unemployment rate is computed as the number of unemployed

divided by the labor force, all times 100.

Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings but has not yet been offered one that best suits her tastes and skills. Sandy is

frictionally unemployed. Frictional unemployment can exist even in the long run.

Right-to-work laws

give workers in a unionized firm the right to choose whether to join the union.

The theory of efficiency wages explains why

it may be in the best interest of firms to offer wages that are above the equilibrium level.

Frictional unemployment is inevitable because

sectoral shifts are always happening.

The labor-force participation rate measures the percentage of the

total adult population that is in the labor force

The labor-force participation rate measures the percentage of the

total adult population that is in the labor force.