Exam 10: Unemployment and Its Natural Rate

The amount of unemployment that a country typically experiences is a determinant of its standard of living.

Minimum wages create unemployment in markets where they create a

The Bureau of Labor Statistics' "employed" category includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member's business.

How are discouraged workers counted in the unemployment rate?

If outsiders had more say in union contracts then it is likely that union wages would be

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to

Critics of unions argue that unions cause the allocation of labor to be inefficient and inequitable.

A typical American worker covered by unemployment insurance receives 50 percent of his former wages for 52 weeks.

Table 28-6 -Refer to Table 28-6. What is the U-6 measure of labor underutilization?

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

Data on unemployment indicate that most people who become unemployed will soon find jobs.

Data show that at least 20 percent of U.S. manufacturing jobs are destroyed every year.

Give a few examples of how sectoral shifts temporarily cause unemployment.

Efficiency wages create structural unemployment.

Figure 28-7 -Refer to Figure 28-7. If the minimum wage increases from $100 to $125, how many additional workers will be unemployed?

Most U.S. workers have wages well above the legal minimum, so minimum-wage laws do not prevent the wage from adjusting to balance supply and demand.

Suppose there are a large number of men who used to work or seek work who now no longer do either. Other things the same, this makes

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be unemployed?

It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.