MRU30.1: Video Activity: The Economics of Choosing the Right Career

Suppose that in Southlandia, frictional unemployment is 2%, structural unemployment is 3%, and cyclical unemployment is 4%. What is the natural rate of unemployment in Southlandia?

5% (You add the 3% + 2% = 5%) (frictional unemployment+structural unemployment=natural rate of unemployment)

What impact has technology had on wages?

It has made wages rise more at the top but has held wages down for other jobs.

What's the good news that this video opens with?

People with postgraduate degrees are earning more than ever before.

Which one of the following is NOT one of the factors affecting the supply and demand for labor that Professor Cowen discusses in the video?

Tax and retirement policy

Globalization has led to _______, which tends to raise wages for _______.

bigger markets in which to sell goods and services; high-skilled labor

For high-skilled labor, computers appear to be a _______; for low-skilled labor, computers may be a _______.

complement; substitute

Jonathan is currently enrolled in college full-time; however, he works part-time at a restaurant on weekends to earn some spending cash. Jonathan would be considered:

employed

Occupational licensing is:

good for incumbent workers but bad for new workers looking to enter an industry.

The number of startups in the U.S. economy:

has been declining every decade since the 1980s.

Professor Cowen refers to the percentage of taxi drivers with college degrees to make the point that:

people are graduating from college without the right skills to get the best jobs.

Professor Cowen summarizes this lecture by saying that the labor market is more about _______ than ever before.

skills

Older jobs relied on manufacturing technology and modern jobs rely on computing technology. This demonstrates that:

technology has affected the supply and demand for different kinds of labor.