Exam 9: Unemployment and Its Natural Rate

Over the past 50 years, which region of Canada generally has had the highest unemployment rates?

What does the natural unemployment rate include?

Who would be counted as unemployed according to official statistics?

Which of the following best defines gross job destruction?

Which statement is characteristic of the natural rate of unemployment?

How is the unemployment rate computed?

What would be the most likely effect of an increase in the world price of oil, which would create a sectoral shift?

-Refer to Table 9-1. What is the adult male labour force in Bolivar?

Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labour force instead of as unemployed, how would the labour statistics change?

Ed is on a temporary winter layoff from the canal system where he works as a lock master. If Ed participates in the Statistics Canada survey, how will he be classified?

The unemployment rate is defined as the percentage of the labour force that is unemployed. The labour-force participation rate is the percentage of the adult population that is either employed or unemployed.

Consider these facts: (1) Some people who are employed or who are not making a serious effort to find employment will report themselves as unemployed. (2) Some people who want to find work will be counted as out of the labour force. How do these facts affect the reported unemployment rate?

What might increase the natural rate of unemployment?

What is most likely to cause frictional unemployment?

Which statement ranks categories from smallest to largest according to recent Canadian statistics?

In 2019, Mark opens up a new vehicle detailing business and creates six additional jobs in his company. If net employment growth in 2019 was 2 percent, what was a likely explanation for this?

-Refer to Table 9-1. What is the adult population in Bolivar?

Suppose the labour market in the house cleaning industry in Quebec City can be described by the following demand and supply equations: LD = 400 - 10w and LS = 40 + 20w. a) Calculate the equilibrium wage and employment if the market is free. b) Suppose the Cleaners' Union, of which all cleaning workers must be members, requires that employers provide workers with high-tech protection equipment, which increases the employers' cost of labour by approximately $2 per hour. However, most workers think that this equipment is not necessary, because their regular, inexpensive outfit does about the same job. Calculate the equilibrium wage and employment under the new equipment requirement. c) Draw a graph to show the effect of the requirement.

Right-to-work laws allow striking union members to be permanently replaced.

Cynthia is collecting unemployment insurance benefits. To continue to receive her benefits, she must be looking for work; however, she only applies at places where she is unlikely to be hired because she doesn't really want to work. People like Cynthia make the reported unemployment rate less than the true rate of unemployment.