Answered: Link the below reasons for the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Link the below reasons for the existence of unemployment (left) with the relevant type of unemployment and unemployment theory (right): 1. Job seekers need time to learn about and find available jobs. This explains why unemployment and job vacancies are observed to coexist. a. Frictional unemployment the Job search model. b. Structural unemployment efficiency wage theory. c. Seasonal unemployment seasonal variation in the demand for workers (in certain sectors). d. Cyclical & seasonal unemployment reasons for downward wage rigidity. e. Cyclical unemployment the Job search model. f. Structural unemployment the Sectoral Shifts hypothesis. g. Cyclical unemployment Intertemporal Substitution hypothesis. 2. Unemployed job seekers might not have the skills in demand by employers. a. Frictional unemployment the Job search model. b. Structural unemployment efficiency wage theory. c. Seasonal unemployment seasonal variation in the demand for workers (in certain sectors). d. Cyclical & seasonal unemployment reasons for downward wage rigidity. e. Cyclical unemployment the Job search model. f. Structural unemployment the Sectoral Shifts hypothesis. g. Cyclical unemployment Intertemporal Substitution hypothesis. 3. With procyclical wages & positive wage elasticity of labour supply, some workers might voluntarily stop working during a recession. a. Frictional unemployment the Job search model. b. Structural unemployment efficiency wage theory. c. Seasonal unemployment seasonal variation in the demand for workers (in certain sectors). d. Cyclical & seasonal unemployment reasons for downward wage rigidity. e. Cyclical unemployment the Job search model. f. Structural unemployment the Sectoral Shifts hypothesis. g. Cyclical unemployment Intertemporal Substitution hypothesis. 4. Workers who are risk averse might prefer a job package with [stable income & variable hours] over one with [stable hours & variable income]. As a result, employers lay off workers during a recession rather than reduce wages of all their workers. a. Frictional unemployment the Job search model. b. Structural unemployment efficiency wage theory. c. Seasonal unemployment seasonal variation in the demand for workers (in certain sectors). d. Cyclical & seasonal unemployment reasons for downward wage rigidity. e. Cyclical unemployment the Job search model. f. Structural unemployment the Sectoral Shifts hypothesis. g. Cyclical unemployment Intertemporal Substitution hypothesis.