Exam 9: Employment and Unemployment

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.What is the marginal productivity of labor of the fifth hour of labor?

Unemployment normally arises when ________.

The following figure shows labor supply and demand curves. -Refer to the figure above.What is the appropriate label for curve A?

If the number of employed people in a country is 21 million and the number of unemployed workers in a country is 10 million,the size of the labor force in the country is equal to ________.

The figure below shows labor supply and labor demand curves. -Refer to the figure above.Assume that the market is at equilibrium at w₂ and Q₂.A minimum wage is imposed at w₁.How will this affect unemployment?

Which of the following is true of the natural rate of unemployment?

At a fixed level of worker productivity,________.

The slope of the labor demand curve can be attributed to the law of ________.

The figure below shows labor supply and labor demand curves. -Refer to the figure above.John's reservation wage is w₁ and Joy's reservation wage is w₂.Assume that a minimum wage is implemented at w₁.John and Joy are both unemployed.What is true about John and Joy?

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 downturn?

Downward wage rigidity arises when ________.

Which of the following statements is true?

The following table compares labor statistics for two countries. -Refer to the table above.In Country B,fewer and fewer high school graduates decide to go to college and instead start to work or look for work right after graduation.What can be said about the two countries' labor force participation rates?

Scenario: The labor market equilibrium for ski patrol positions at Bridge Bowls Resort is shown in the figure below. -Given the situation above,what circumstances would lead the wage rate to decrease from w*?

If the opportunity cost of working outside the home decreases,then ________ the labor supply curve is likely,assuming all else equal.

Which of the following statements is true?

Scenario: Jim, Pam, Michael, and Angela all worked for a paper company until the company went out of business. Jim was a salesman, Pam was a receptionist, Michael was the manager, and Angela was an accountant. Once the company went out of business, they all had to look for and consider other work opportunities. -Refer to the scenario above.Which of the following will not likely be a part of the job search process that these unemployed people go through?

Which of the following statements is true?

Scenario: Suppose an economy consists of only the following economic agents: 2 million full-time workers, 1 million part-time workers, 1 million people who have been laid off by their employers but are currently looking for employment, 1 million children aged 15 years or younger, and 2 million housewives not looking for jobs. -Refer to the scenario above.What is the number of unemployed workers in the economy?

Scenario: 100 people live in Country X, and 60 of these people are working full time. Tara and Jen have been able to find only part-time jobs. John, Peter, and Luna just had to close their coffee shop; and John and Peter are looking for a new business venture. Luna has inherited a large sum of money and feels that she does need to work anymore. Her sister Sara feels the same way. Four people in Country X are living in care facilities. Ten people are full-time students, and two of them currently are hoping to find a job. All other people are retirees or under the age of 16. -Refer to the scenario above.How many people in Country X are not considered to be potential workers?