Exam 28: The Natural Rate of Unemployment

The population of country X is 20 million, the labour force participation is 60 per cent and the unemployment rate is five per cent.What is the labour force? How many people are unemployed in the economy?

The official unemployment rate is calculated as:

Which of the following contributes to the natural rate of unemployment?

Explain how a government policy encouraging a parent to stay at home with their young children would reduce unemployment.

In 2010 in Australia, 11.1497 million people were employed, and 0.629 million people were unemployed.The adult population was 18.014.150 million.Therefore, the labour force was:

Effective collective bargaining will:

Who of the following would NOT be considered unemployed?

Using the definition of unemployment, which of the following individuals would be unemployed?

Which of the following statements is an example of moral hazard?

In a country with 20 million people aged 15 years and older, 12 million in the labour force, and 11.4 million employed, what is the unemployment rate?

Cyclical unemployment refers to:

According to the theory of efficiency wages:

Structural unemployment is associated with general downturns in the economy.

In a growing economy that is experiencing technological change and sectoral shifts, unemployment is most likely:

A minimum wage, set above the market equilibrium wage, will create an excess supply of labour.

Firms may find it profitable to pay wages above the equilibrium level in order to give workers an incentive to avoid shirking their responsibilities.

The theory of efficiency wages explains why:

If an unemployed person stops looking for work, then, ceteris paribus:

Economists and policymakers must equally consider the problems of short-term unemployment and long-term unemployment in the economy.

Students are regarded as employed in studies and are recorded as unemployed, but not in the labour force.