Exam 9: Employment and Unemployment

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.Suppose that,given the numbers in the initial scenario,20 percent of the people reported as officially unemployed are actually only looking for jobs with wages above the market clearing wage rate.What is the true unemployment rate,given this information?

In a frictionless labor market,________.

Which of the following is likely to shift the labor supply curve to the left,assuming all else equal?

Which of the following is likely to shift the demand curve for workers on rice farms to the right,assuming all else equal?

Which of the following is likely to shift the demand curve for engineers rightward,assuming all else equal?

Which of the following statements is true of minimum wages?

________ increase workers' productivity and improve the profitability of a firm.

The impact of a decrease in the wage rate on labor supply will be represented by ________,assuming all else equal.

The following table shows some labor statistics for four years. -Refer to the table above.Which year had the highest unemployment rate?

Scenario: The unemployment rate in Country Y is 6 percent, and the labor force is equals about 200 million people. -Refer to the scenario above.Why might policy makers in Country Y most likely introduce policies that require unemployed workers to participate in job training programs?

The following figure shows curves for labor demand and labor supply. -Refer to the figure above.If a minimum wage law is imposed at WL,the market clearing quantity of labor will change from ________ to ________.

International trade generally ________.

The following table defines some population and employment statistics for two countries. -Refer to the table above.Due to technological changes,older workers have

Explain the differences between frictional unemployment and structural unemployment.

As the wage rate increases,the ________,assuming all else equal.

Unemployment that arises when there is a mismatch between the quantity of labor demanded and the quantity of labor supplied is referred to as ________.

The following table defines some population and employment statistics for two countries. -Refer to the table above.If coal mines across Sweet Country were closed suddenly,and most laid-off workers felt that their skills would not allow them to find new jobs,what is likely to happen?

What is downward wage rigidity?

The potential adult labor force includes the ________.

________ are a part of the potential labor force of a country.