Exam 10: Unemployment and Its Natural Rate

People who report being not in the labor force but who, in fact, want to work but have given up trying to find a job after an unsuccessful search cause the reported unemployment rate to be lower than it would otherwise be.

Workers searching for jobs that best suit them is most closely associated with

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called frictional unemployment.

The unemployment rate equals the percentage of the adult population that is unemployed.

A firm might offer efficiency wages in order to reduce shirking.

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually increased.

Figure 28-4 -Refer to Figure 28-4. If 6,000 workers are unemployed, then the minimum wage must be

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had remained steady.

If changing consumer preferences increase the demand for satellite radios and decrease the demand for video cassette recorders, the economy will likely exhibit

All else equal, which of the following would increase the unemployment rate? I an increase in the number of women who return to work after being stay-at-home mothers Ii a preference among older men to retire early Iii an increase in the maximum number of weeks for which someone can receive government unemployment benefits Iv) an increase in the number of previously unemployed women who stop looking for work and become discouraged workers

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no frictional unemployment.

Structural unemployment is often thought to explain relatively long spells of unemployment.

Suppose that some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were employed?

Table 28-8 Below is data about the labor market in the state of Northwoods. -Refer to Table 28-8. If the state government imposed a minimum wage of $9, how many people would be unemployed?

An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had decreased.

Figure 28-3 -Refer to Figure 28-3. If unemployment is 2,000 workers, then the minimum wage must be

Unpaid stay­at­home fathers are included in the Bureau of Labor Statistics' "unemployed" category.

If people who report being unemployed are not, in fact, trying hard to find a job, then the reported unemployment rate will be biased upward.

Suppose that an anti-smoking campaign in Moscow, Russia, is successful so that Muscovites smoke less and chew gum more. Tobacco companies lay off workers, while chewing gum manufacturers employ more workers. This is an example of