Exam 9: Unemployment and Its Natural Rate

Sally is on a temporary summer layoff from the public school where she works as an administrator.If Sally participates in the Statistics Canada survey,how will she be classified?

Who is considered unemployed?

How often is data on unemployment reported?

Which of the following best defines gross job creation?

How do sectoral shifts in the economy affect unemployment?

Some people are unemployed because they are searching for a very specific job.How are these people best classified?

Dan decides to hire some additional workers for his golf cart factory.The equilibrium wage is $15 per hour.What does efficiency wage theory suggest is a reasonable wage for Dan to offer?

If an unemployed person quits looking for work,other things equal,which statement best describes the changes in the labour statistics?

What would we predict if a country increases its unemployment compensation?

Dawn is the CEO of a corporation that hires nonunion labour.According to the theory of efficiency wages,if she decides to pay her workers more than the competitive equilibrium wage,what is most likely to happen?

In a labour demand and supply diagram,show the effects of the following events.In each case,discuss the changes in the equilibrium wage and employment. a.an increase in the wage income tax b.a new trade agreement that allows for foreign competition in the Canadian food sector (Hint: Consider how the elasticity of demand for food changes.How does that affect the elasticity of demand for labour in the food sector?)

Even though most spells of unemployment are short,most unemployment results from long-term unemployment.

Which group has the highest unemployment rate in Canada?

What determines the period for which an unemployed person can collect EI benefits?

Emma`s contract position just finished and she is looking for another job,but has not yet found one.Which pair of categories does Anna now belong to?

Figure 9-1 This figure shows the effect of a minimum-wage law. -Refer to the Figure 9-1.If there was no minimum wage and then the government instituted a minimum wage of $6,what would happen to employment in this market?

Suppose that some people report themselves as unemployed when,in fact,they are working in the underground economy.If these persons were counted as employed,how would the labour statistics change?

Which group has the highest labour-force participation rate in Canada?

What is the most likely result of efficiency wages?

The unemployment rate is defined as the percentage of the labour force that is unemployed.The labour-force participation rate is the percentage of the adult population that is either employed or unemployed.