Econ chapter 28

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not in the labor force category

those who fit neither of the first two categories ex- full time student or homemaker

employed part time for economic reasons

those who want and are available for full time work but have had to settle for a part time schedule

long run problem and short run problem

2 categories of unemployment

unemployment insurance

a government program that partially protects workers' incomes when they become unemployed

union

a worker association that bargains w employers over wage, benefits, and working conditions

efficiency wages

above-equilibrium wages paid by firms to increase worker productivity

public training programs

aim to ease the transition of workers from declining to growing industries and to help disadvantaged groups escape poverty

sectoral shifts

changes in the composition of demand among industries or regions

National Labor Relations Board

enforces workers' right to unionize

conspiracy in restraint of trade

firms that sell a common product agree to set and high price for that product

right to work laws

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

10 percent

how many US manufacturing jobs are destroyed every year?

3 percent

how many workers leave their jobs in a typical month?

unemployed category

includes those who were not employed, were available for work, and had tried to find employment during the previous 4 weeks

employed category

includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member's business

discouraged workers

individuals who would like to work but have given up looking for a job

labor force participation rate

labor force/adult population x 100

kramer lifestyle

men not working

reasons for an above-equilibrium wage

minimum wage laws unions efficiency wages

true

most people who become unemployed will soon find jobs

labor force

number of employed + number of unemployed

unemployment rate

number of unemployed/labor force x 100

frictional unemployment

often the result of changes in the demand for labor amount different firms

marginally attached workers

persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past

Wagner Act of 1935

prevents employers from interfering when workers try to organize unions and requires employers to bargain with unions in good faith

false

t or f: all unemployment ends with the job seeker finding a job

true

t or f: almost half of all spells on unemployment end when the employed person leaves the labor force

true

t or f: better paid workers are more productive because they eat a better diet and are healthier

true

t or f: employment can rise in one region while it falls in another

true

t or f: frictional unemployment is inevitable

true

t or f: high wages make workers want to keep their jobs so they work harder

true

t or f: higher wages lead to better quality workers

true

t or f: if wage is kept above the equilibrium level the result is unemployment

false

t or f: most job search takes place WITH the intervention of the government

true

t or f: most spells of unemployment are SHORT

false

t or f: most spells of unemployment observed at any given time is SHORT term

false

t or f: newly hired workers are MORE productive than experienced workers

true

t or f: the more a firm pays its workers the less often its workers will choose to leave

true

t or f: the unemployment rate never falls to zero

false

t or f: the worker health theory is relevant in the US and other rich countries

false

t or f: unemployment insurance DECREASES the amount of unemployment

false

t or f: unions workers earn 10 to 20 percent LESS than non union workers

cyclical unemployment

the deviation of unemployment from its natural rate

natural rate of unemployment

the normal rate of unemployment around which the unemployment rate fluctuates

strike

the organized withdrawal of labor from a firm by a union

collective bargaining

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

job search

the process of matching workers w appropriate jobs

cyclical unemployment

the year to year fluctuations in unemployment around its natural rate

frictional unemployment

unemployment that occurs when people take time to find a job that is best suit their tastes and skills

structural unemployment

unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one quantity of labor supplied exceeds the quantity demanded


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