Exam 9: Unemployment and Its Natural Rate

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws. (Hint: Who is likely to get paid more?)

Which cause of unemployment is associated with a wage rate above the market equilibrium level?

Some people are counted as out of the labour force because they have made no serious or recent effort to look for work. However, some of these people may want to work even though they are too discouraged to make a serious effort. If these persons were counted as unemployed instead of out of the labour force, how would the labour statistics change?

What happened in Quebec in 1997 that led to a continued rise in the labour force participation rate for women?

Which statement best defines collective bargaining?

Tara has just finished school, but she is going to roam around the country awhile before she starts looking for work. Which statement best characterizes the changes that occur in labour statistics?

Statistics Canada uses data from each province's unemployment insurance agency to compute unemployment statistics.

Why have labour-force participation rates for women in Canada increased since World War II while labour-force participation rates for men have decreased?

Which term refers to unemployment that is the result of a well-functioning economy that rewards innovation and new ideas?

Who would be included in the labour force?

How is unemployment data collected?

What determines the period for which an unemployed person can collect EI benefits?

According to the theory of efficiency wages, firms operate more efficiently if they can pay wages that are below the equilibrium level.

David is a stockbroker. He has had several job offers, but he has turned them down because he thinks he can find a firm that better matches his tastes and skills. Paul is a lawyer. He has looked for work for some time, but no law firms are hiring. Which of the following best describes the nature of their unemployment?

Chris is looking for work after school, but everywhere he fills out an application he is told that so have lots of others. Marco has an accounting degree. Several firms have made him offers, but he thinks he might be able to find a firm where his talents could be put to better use. Which category of unemployment do Chris and Marco belong to?

What is a possible effect of unions?

Figure 9-1 This figure shows the effect of a minimum-wage law. -Refer to Figure 9-1. If there was no minimum wage and then the government instituted a minimum wage of $6, what would happen to employment in this market?

Why did Henry Ford decide to pay $5 per day to his workers?

What is a rough estimate of the natural rate of unemployment in Canada?

Last year, a government reported an increase in the number of people who were employed and an increase in the unemployment rate. Which statement would best explain the report?