Exam 28: Unemployment and Its Natural Rate

Eric was laid off two months ago. He has not searched for other work because he is expecting to be recalled to work. The Bureau of Labor Statistics counts Eric as

Most spells of unemployment are short. About half of unemployment spells end with an exit from the labor force.

The introduction of a union into an industry

The efficiency-wage theory of worker health is more relevant for less developed countries than rich countries.

Figure 28-6 -Refer to Figure 28-6. What type of unemployment is measured by the differences between lines A and B?

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then employment will decrease by

Causes of the decline in the U.S. men's labor-force participation rate over the past several decades include young men now staying in school longer than their fathers and grandfathers did, older men now retiring earlier and living longer, and more fathers now staying at home to raise their children.

Which of the following is correct?

Figure 28-7 -Refer to Figure 28-7. If the minimum wage increases from $100 to $125, how many additional workers will be unemployed?

Which of the following is not a commonly-cited explanation for the dramatically increasing labor-force participation rates for women from 1950 to the present?

Which of the following is not correct?

Explain how the following apparently contradictory statement can be true: Most spells of unemployment are short, and most unemployment observed at any given time is long-term.

The unemployment that results from the process of matching workers and jobs is called structural unemployment.

Minimum-wage laws are one reason there is always some unemployment in the U.S. economy.

Efficiency wages contribute to

Most spells of unemployment are short, and most unemployment observed at any given time is short-term.

Minimum-wage laws matter most for the least skilled and least experienced members of the labor force, such as teenagers.

Which of the following is not correct?

Table 28-6 -Refer to Table 28-6. What is the U-4 measure of labor underutilization?

If unions were formed in more industries, the supply of labor in other industries would