Exam 9: Employment and Unemployment

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.It describes ________.

Which of the following statements is true?

As a firm hires more and more workers,________.

The impact of an increase in the wage rate on labor demand is represented by a(n)________ the demand curve for labor,assuming all else equal.

Everything else remaining unchanged,what is likely to happen to the demand curve for coffee workers if: a)the price of coffee falls? b)the wage rate of coffee workers increases? c)the price of coffee seeds increases? d)a new fertilizer that increases the productivity of coffee farmers is invented?

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 situation would result in these individuals no longer being part of the job search?

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

Which of the following statements correctly differentiates between unemployed workers and discouraged workers?

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 might the truck driver's employers want to pay higher wages even if the negotiations are not successful?

The following figure shows curves for labor demand and labor supply. -Refer to the figure above.Without interference,the labor market clears at wage ________.Wage rigidity would cause the quantity of labor demanded to ________ and the quantity of labor supplied to ________.

The following figure shows wage versus labor supply. -Refer to the figure above.Which of the statements below is NOT true if the supply of labor is equal to S₁ and the demand of labor is equal to D₂?

Which of the following explains why frictional unemployment exists in an economy?

How can technological innovations be a source of unemployment?

Which of the following statements is true?

The following table defines some population and employment statistics for two countries. -Refer to the table above.The labor force is bigger in which country?

Why is the labor demand curve downward-sloping?

Workers who are unemployed but are not actively looking for jobs are referred to as ________.

Suppose the labor market for industrial workers is in equilibrium.What will happen to the equilibrium wage and employment level if: a)the demand for industrial workers increases,everything else remaining unchanged? b)the supply of industrial worker decreases,everything else remaining unchanged? Illustrate the change in equilibrium in both cases with the help of suitable diagrams.

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 there unemployment in the driver market before a wage increase is negotiated?

If the quantity of labor demanded exceeds the quantity of labor supplied,________.