Exam 9: Employment and Unemployment

The following figure shows the labor demand curve, LD₁, and labor supply curve, LS₁, in a market. -Refer to the figure above.If the government fixes the minimum wage rate at $15,the unemployment in the market will be ________.

Frictional unemployment exists because ________.

Collective bargaining can ________.

Scenario: Truck drivers across the country are on strike in an effort to negotiate higher wages. Currently the labor market in this industry clears at WM and QM, as shown in the figure below. -Refer to the scenario above.Why is unemployment likely to increase if the negotiations are successful?

If the number of potential workers in an economy increases while the size of the labor force remains unchanged,________.

Downward wage rigidity ________.

Efficiency wages ________.

Which of the following statements is true?

An employed individual is one who ________.

The following figure shows the labor demand curve, LD₁, and labor supply curve, LS₁, in a market. -Refer to the figure above.If the government sets the minimum wage rate at $35,the unemployment in the market will be ________.

Scenario: Consider Country A with a population of 2 million people. In Country A, there are 1.5 million people employed; 0.3 million younger than 18, in school or retired; 0.1 million voluntarily unemployed; and 0.1 million people officially unemployed. -Refer to the scenario above.If the market clearing wage rate in Country A decreases,what is most likely to happen to the number of voluntarily unemployed people and the number of officially unemployed people?

The following table defines some population and employment statistics for two countries. -Refer to the table above.Assume there are 150 million students,elderly,or children in Sweet Country.There are about 11 million unemployed people.How many people are discouraged or are not looking for work even though they do not have a job and could work?

Any change that causes a decrease in the demand for labor at a given wage rate will be represented by a(n)________ the labor demand curve,assuming all else equal.

Scenario: Consider Country A with a population of 2 million people. In Country A, there are 1.5 million people employed; 0.3 million younger than 18, in school or retired; 0.1 million voluntarily unemployed; and 0.1 million people officially unemployed. -Refer to the scenario above.If country A is at a labor market equilibrium,which of the following should be the only reason that a person is officially unemployed?

What will happen to the demand curve for workers in steel mills if some technology that increases their productivity is introduced,assuming all else equal?

Which of the following groups of people is included in the labor force of a country?

Scenario: Suppose that professors pay their teaching assistants $10 an hour to grade papers for their classes, and then the professors sell the graded papers back to the students in their classes for $.75 a paper. The following table shows the number of papers graded in a given number of hours. -Refer to the scenario above.How many hours of labor should the professors employ to maximize their profits?

A downward movement along the labor demand curve occurs when ________,assuming all else equal.

The following table shows some labor statistics for four years. -Refer to the table above.Based on unemployment rates,which year appears to be a cyclical expansion?

The following figure shows wage versus labor demand. -Refer to the figure above.If there is an increase in the number of women in the labor market who have children and stay home with them instead of working,what will happen to the wage rate?