Exam 9: Employment and Unemployment

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.While these individuals are looking for other work,what type of unemployed are they?

The following table shows some labor statistics for four years. -Refer to the table above.Which year experienced the greatest growth in the labor force from the previous year?

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 average productivity of labor over the full 7 hours of labor?

Everything else remaining unchanged,what is likely to happen to the labor supply curve of female workers if: a)the opportunity cost of working outside the home decreases? b)there is an increase in the wage rate of female workers?

The figure below shows labor supply and labor demand curves. -Refer to the figure above.Assume that a shift in consumer preference causes the demand for a certain type of labor to shift downward.Assuming that there is downward wage rigidity,how will the quantity of labor demanded and the quantity of labor supplied change?

Consider the labor market for farm workers.Suppose an increase in the price of fertilizers reduces the demand for farm workers.What will be the impact of this change on employment levels in the market for farm workers in the following scenarios? a)There is no wage rigidity. b)There is downward wage rigidity. Explain your answers with the help of suitable diagrams.

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 the market clearing wage rate increases in Country A and now only 0.05 million people are voluntarily unemployed,but there are still only 1.5 million people working.What is the new 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.Who of the people listed below would be considered part of the work force in Country Y?

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 situations would lead to the person no longer being considered unemployed?

Which of the following statements is true?

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.What is the labor force participation rate in Country X?

Which of the following statements is true when wages are above the market-clearing wage?

The following figure shows two labor demand curves, LD₁ and LD₂, and two labor supply curves, LS₁ and LS₂. -Refer to the figure above.What is the equilibrium employment when the labor demand curve is LD₂ and the labor supply curve is LS₂?

The figure below shows labor supply and labor demand curves. -Refer to the figure above.If the wage rate is set at $5,how does the quantity of labor demanded relate to the quantity of labor supplied?

The following figure shows wage rate versus quantity of labor. -Refer to the figure above.Which of the following shifts would be representative of cyclical expansion?

Recessions are periods of ________.

Several people from a neighboring country migrated to Technoland when a war broke out in their homeland.How will this affect the labor market in Technoland if labor demand remains unchanged? Explain with a labor demand and labor supply diagram.

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.Which statement is true about Country Y?

The following figure shows two labor demand curves, LD₁ and LD₂, and two labor supply curves, LS₁ and LS₂. -Refer to the figure above.What is the equilibrium wage rate if the labor demand curve is LD₂ and the labor supply curve is LS₂?

If the number of unemployed workers in an economy is 4 million and the size of the labor force in the economy is 16 million,then the unemployment rate in the economy is ________.