Exam 10: Unemployment and Its Natural Rate

Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. Other things the same, the unemployment rate

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

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called

Minimum-wage laws matter most for the least skilled and least experienced members of the labor force, such as teenagers.

The Bureau of Labor Statistics is part of the U.S. Department of

Within the U.S. population, blacks of prime working age ages 25-54) have similar rates of unemployment than whites of prime working age ages 25-54), regardless of gender.

According to the theory of efficiency wages, it may be profitable for firms to keep wages high even in the presence of a surplus of labor.

Efficiency wages, minimum-wage laws, and unions all keep wages

Unemployment insurance

The amount of unemployment varies little over time and across countries.

Which of the following is a source of frictional unemployment?

Scenario 28-1 Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment. -Refer to Scenario 28-1. How many people are unemployed?

If a union and a firm cannot reach an agreement on the terms of employment, then the union can organize a withdrawal of labor from the firm, called a strike.

Wages in excess of their equilibrium level help explain

Efficiency wages contribute to

Table 28-4 2010 Labor Data for Adults ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult male labor force in Meditor?

Some degree of unemployment is inevitable in a complex economy.

In the U.S., it is illegal for employers to interfere when workers try to organize unions.

The natural rate of unemployment I is the economy's desirable level of unemployment. Ii cannot be affected by economic policy. Iii is typically constant over time.

Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?