Macro

For you to be considered out of the labor force, you can be

• a full-time student

• a full-time retiree

• a full-time volunteer

• any of the above

When an individual quits job and decides to stay at home for a while, the

labor-force participation rate

• decreases

• increases

• stays the same

• may increase or decrease

The main policy goal of unemployment insurance is to reduce the

• Search effort of the unemployed

• Income uncertainty that workers face

• Role of unions in wage setting

• Amount of frictional unemployment

Merideth is looking for work as a computer programmer. Although her prospects are good she hasn’t yet taken a job. Julie is looking for work in a steel mill, but there aren’t many job ads for steel workers and every time she shows up for an interview, there are many more people than openings

• Meredith and Julie are both frictionally unemployed

• Meredith and Julie are both structurally unemployed

• Meredith is frictionally unemployed, and Julie is structurally unemployed

• Meredith is structurally unemployed, and Julie is frictionally unemployed

An effective minimum wage...

• creates a wage ceiling for labor

• is lower than the equilibrium price for labor

• results in unemployment

• increases the quantity of labor demanded by employers

Strong minimum wage regulations

• are favored by owners of supermarkets

• are favored by owners of fast-food restaurants

• encourage markets to adjust to change

• discourage markets from adjusting to change

What happens to workers in unions

• They’re able to gain benefit from collective bargaining

• They’re not received their interests

• They’re not protected

• They get a bonus amount from employers

In unions, employers bargain with employees over….

• Wages

• Benefits

• Working conditions

• All of the above

Which of the following is NOT a benefit of applying the efficiency wage theory?

• Higher turnover

• Lower training costs

• Higher quality of employees

• More applicants

Why a firm may pay efficiency wages? (You can choose multiple answers)

• Worker Health

• Worker Turnover

• Worker Quality

• Worker Effort