Exam 15: Unemployment: Part A

Almost half of all spells of unemployment end when the unemployed person __________.

Give an historical example of an efficiency wage that was considered by the firm to be "one of the finest cost-cutting moves we ever made."

Explain how the following apparently contradictory statement can be true: Most spells of unemployment are short,and most unemployment observed at any given time is long-term.

Provide a definition of the natural rate of unemployment.

Minimum wage laws,labor unions,and efficiency wages all generate unemployment by what common mechanism?

In terms of duration,how does cyclical unemployment differ from structural unemployment?

In the town of Gotham the adult population is 560 thousand,the number unemployed is 25 thousand,and 185 thousand are not in the labor force.Calculate the unemployment rate.

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Following the recession of 2001,there was a month in which employment and the unemployment rate both rose.Assuming the computations were correct,how is it possible for both to have increased?

Figure 28-7 -Refer to Figure 28-7.If the minimum wage is equal to $125,what is the quantity of labor supplied,the quantity of labor demanded,and number unemployed?

A labor union is similar to a ----------.

The table below uses data for the year 2003 provided by the Bureau of Labor Statistics and adjusted to be comparable to U.S.data.All values are in thousands.Fill in the blank entries in the table.

The Internet may reduce frictional unemployment because it __________.

Some degree of unemployment is __________ in a complex economy.

Do economists believe that labor unions are good or bad for the U.S. economy?

How does the government measure the economy's rate of unemployment?

Why have labor-force participation rates for women in the United States increased since World War II while labor-force participation rates for men have decreased?

Briefly describe how labor unions can affect wages in non-unionized industries.

Briefly summarize the advantages and disadvantages of unemployment insurance.

List the four ways to explain unemployment in the long run.