Exam 28: The Natural Rate of Unemployment

Job-search unemployment is different from unemployment arising from minimum-wage laws, unions and efficiency wages because in the former case, workers are searching for the jobs that best suit them, while in the latter, workers are waiting for jobs to open up.

Graph 28-1 -A union is:

If the adult population is 18.01 million, and the participation rate is 65.4%, what is the total amount of the labour force?

Which of the following does not cause unemployment?

Most spells of unemployment are:

The main reason for the fall in union membership is that more people are educated and able to manage their own wages.

Graph 28-1 -The government has introduced the minimum wage law. The minimum wage is set at W₁ as shown in Graph 28-1. After introducing the minimum wage law, the quantity of labour supplied is _______

Which of the following is the correct statement?

Job search:

Which of the following causes of unemployment would most likely be affected by more accessible information about job opportunities?

Which of the following causes of unemployment is not associated with an excess supply of labour?

Which of the following statements is correct about minimum wages?

Fred decides to hire some additional mechanics to work in his expanded automotive business. The going wage is $16 per hour. Efficiency-wage theory suggests that Fred should offer:

Wages at a rate greater than the minimum level can:

The labour-force participation rate:

Why is job-search unemployment inevitable?

Economists and policymakers should focus on solving problems of short-term unemployment, since long-term unemployment will be resolved eventually.

The percentage of employees that have joined unions in Australia has fallen over the past 60 years.

Graph 28-1 -In Graph 28-1, without a minimum wage law, the equilibrium market wage is:

Students are regarded as employed in studies and are recorded as unemployed, but not in the labour force.