4. Sectoral shifts, frictional unemployment, and job searchesSuppose the world price of cotton rises substantially. The demand for labor among cotton-producing firms in Texas willThe demandfor labor among textile-producing firms in South Carolina, for which cotton is an input, will. The temporary unemployment resultingfrom such sectoral shifts in the economy is best described asunemployment.Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all thatapply.O Improving a widely used job-search website so that it matches workers to job vacancies more effectivelyO Taxing the price of placing a resume or posting a job opening on a job-search websiteO Extending the number of weeks for which unemployed workers are eligible for unemployment insurance benefits from the government

In economics, unemployment is further classified into different types due to the reason behind an…

Answered: 4. Sectoral shifts, frictional…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 5SCQ: Beginning in the 1970s and continuing for three decades, women entered the U.S. labor force in a big...

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Similar questions

If you an? out of school but working part time, are you considered employed or unemployed in U.S. labor statistics? If you are a full time student and working 12 hours a week at the college cafeteria are you considered employed or not in the labor force? If you are a senior citizen who is collecting social security and a pension and working as a greater at Wal-Mart are you considered employed or not in the labor force?
While unemployment is highly negatively correlated with the level of economic activity, in the real world it responds with a lag. In other wands, firms do not immediately lay off workers in response to a sales decline. They wait a while before responding. Similarly, firms do not immediately hire workers when sales pick up. What do you think accounts for the lag in response time?
Unemployment rates have been higher in many European countries in recent decades than in the United States. Is the main reason for this long-term difference in unemployment rates more likely to be cyclical unemployment or the natural rate of unemployment? Explain briefly.
Is it desirable to eliminate natural unemployment? Why or why not? Hint: Think about what our economy would look like today and what assumptions would have to be met to have a zero rate of natural unemployment.
A government passes a family-friendly law that no companies can have evening, nighttime, or weekend hours, so that everyone can be home with their families during these times. Analyze the effect of this law using a demand and supply diagram for the labor market: first assuming that wages are flexible, and then assuming that wages are sticky downward.
What happens to the labor force participation rate when employed individuals are reclassified as unemployed? What happens when they are reclassified as discouraged workers?
Predict how each of the following events will raise or lower the equilibrium wage and quantity of oil worker in Texas. In each case, sketch a demand and supply diagram to illustrate your answer. The price of oil rises. New all-drilling equipment is invented that is cheap and requires few workers to run. Several major companies that do not drill oil open factories in Texas, offering many well-paid jobs outside the oil industry. Government imposes costly new regulations to make oil-drilling a safer job.
What is frictional unemployment? Give examples of frictional unemployment.
What is the difference between being unemployed and being out of the labor force?
What term describes the remaining level of unemployment that occurs even when the economy is healthy?
The U.S. unemployment rate increased from 4.6 in July 2001 to 5.9 by June 2002. Without studying the subject in any detail, would you expect that a change of this kind is more likely to be due to cyclical unemployment or a change in the natural rate of unemployment? My?
What forces create the natural rate of unemployment for an economy?

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