Labour Market

Unemployment and employment rates are representative of the economic situation

• True

• False

• True for the unemployment rate, but false for the employment rate

• True for the employment rate, but false for the unemployment rate

How do we classify discouraged workers?

• They are part of the labour force, but not unemployed

• They are unemployed, but not part of the labour force

• They are unemployed and part of the labour force

• None of the above

When there is labour surplus...

• Quantity supplied for labour is higher than quantity demanded

• There is a downward pressure on wages

• Unemployment is usually too high

• All of the above

Nominal wages are adjusted with respect to inflation

• True

• False

Common European employment target for 2020

• 75% activity rate

• 75% unemployment rate

• 25% unemployment rate

• 75% of people between 20 and 64 y/o working

Major problems regarding employment for Spain (more than one answer may be correct)

• Youth unemployment

• Excessive R&D expenditure

• Long-term unemployment

• Public employment services

• Employment subsidies