Exam 2: Labor Supply

Of the 500,000 people (age 16+) in a particular country, 300,000 people are in the labor force.Of these, 240,000 are employed and 60,000 are unemployed.Of the 200,000 workers not in the labor force, 20,000 want jobs but have given up looking for one.What is the unemployment rate if discouraged workers are counted as being unemployed?

Of the 500,000 people (age 16+) in a particular country, 300,000 people are in the labor force.Of these, 240,000 are employed and 60,000 are unemployed.What is the labor force participation rate?

What is the budget line for consumption (C) and leisure (L) if a person faces a constant wage of $10 per hour, there are 168 hours in the week to work, and she receives non-labor income of $220 per week?

How does the presence of an underground labor market bias the government's calculation of the labor force participation rate?

Who is not counted in the U.S.labor force?

All of the following represent an increase in non-labor income except for:

How does the labor force participation rate of women compare to that of men?

According to the substitution effect, an increase in the wage rate will lead the worker to

According to the substitution effect, in response to an increase in her wage a person will

According to the added worker effect, what happens during a recession?

Which of the following statements did not reflect the U.S.labor market in the early 2000s?

When the tax rate on wages falls (so that the take-home wage or effective wage increases), the budget line

Assuming consumption and leisure are normal goods, hours worked will fall when the wage increases if

Why might it be wrong to include self-proclaimed discouraged workers in calculations of the unemployment rate?

Due to the added worker effect, the labor force participation rate

The single most important phenomenon in the U.S.labor market in the second half of the 20^th century was

What would a person do if the market wage is less than his or her reservation wage?

An increase in non-labor income while holding the wage rate constant

Which one of the following conclusions is not supported by the intertemporal substitution hypothesis?

Due to the discouraged worker effect, the labor force participation rate