1. Consider the classic competitive labor market.WSLDLWhich of the following statements is most accurate?If the actual wage is stuck above the equilibrium wage (perhaps via labor contracts) and then increasesfurther (with no shifts in demand and supply of labor), then the unemployment rate would increase.If the actual wage were stuck above the equilibrium wage, an increase in demand for labor (rightwardshift) would make the unemployment rate go higher.If the actual wage is stuck above the equilibrium wage, the wage will tend to rise further once thestickiness of wages is gone (perhaps due to labor contracts being up for renewal.O None of the other options.○ If the actual wage were stuck above the equilibrium wage, we would have a shortage of workers(excess demand for labor).

The scenario outlines a traditional competitive labor market in which the intersection of the demand…

Answered: 1. Consider the classic competitive…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

7.
Que A Explain the model of labor flows (bathtub model). Define the job separation and the job finding rates. How are these related to job creation and job destruction? How is thenatural rate of unemployment determined in the model? How does a rise in the job finding rate affect unemployment? An increase in the job separation rate?
2
10 DRAW A GRAPH. WITHOUT GRAPH THUMBS DOWN!Suppose the markup of goods prices over marginal cost is 2% and the wage-setting equation is W=P(1-u) with u being the unemployment rate.1. What is the Natural level on Unemployment?2. What is the real wage as determined by the price setting equation?3. If the markup increases to 2.5% due to an increase in the price of Oil what happens to the natural rate of employment? Explain briefly and graphically this change.
Which of the following statements are FALSE, all else being equal? Choose TWO The better the unemployment benefits, the lower the natural rate of unemployment. The higher unemployment rate in Europe is due to their weaker labour unions. If the technology of job search improves, the natural rate of unemployment decreases. O If there is an influx of large number of working-age migrants, the natural rate of unemployment increases.
2 Determine whether each of the following would be considered frictional, structural, seasonal, or cyclical unemployment. Please answer in the blank box. A A UPS employee who was hired for the Christmas season is laid off after Christmas A worker who is laid off due to reduced aggregate demand in the economy B A worker in a DVD rental store becomes unemployed as video-on-demand cable service becomes more popular A new college graduate is looking for employment
2. When would you expect cyclical unemployment to be rising? Falling? Labor r-. IAII ....
Which of the following questions does the official unemployment rate, U3. answer? What percentage of the working age population is classified as unemployed? How many workers are discouraged? O What percentage of the labor force is classified as unemployed? How many people in the economy are underemployed?
The Suppose the world price of tobacco falls significantly. The demand for labor among tobacco-producing firms in Kentucky will demand for labor among cigarette manufacturing firms in Virginia, which use tobacco as an input, will The temporary unemployment that results from sectoral shifts such as the ones describes above is best categorized as unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks Increasing the benefits offered to unemployed workers through the government's unemployment insurance program Establishing government-run employment agencies to connect unemployed workers to job vacancies
6. "You mi ght as well say that the unemployment rate would be zero if everyone just quit looking for work." Explain what the author means by this.
When does the amount of job-search unemployment increase? The amount of job-search unemployment increases when O A. the efficiency wage rate rises B. a demographic shock decreases the rate of entry into the working-age population O C. a prolonged structural slump occurs D. unemployment compensation decreases O O
QUESTION 29 The type of unemployment that fluctuates with the 'ups and downs' of the economy is called O a. Equilibrium unemployment. O b. Structural unemployment. O c. Cyclical unemployment. O d. Frictional unemployment.

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS