tut3

Wages in excess of their equilibrium level help explain

• structural unemployment but not the natural rate of unemployment.

• the natural rate of unemployment but not structural unemployment.

• both structural unemployment and the natural rate of unemployment.

• neither structural unemployment nor the natural rate of unemployment.

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

• Efficiency wages increase worker health and therefore increase worker productivity.

• Efficiency wages decrease worker turnover and therefore decrease hiring and training costs.

• Efficiency wages decrease worker shirking and therefore increase worker productivity.

• Efficiency wages decrease a country's natural rate of unemployment and therefore increase its standard of living.

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

• Cemal, a full-time student who is not looking for work

• Halim, who is on temporary layoff

• Zeynep, who has retired and is not looking for work

• All of the above are correct.

Who is not included in the labor force by the Bureau of Labor?

• Kawarnari, who is on temporary layoff

• Zeynep, who has retired and is not looking for work

• Izumi, who does not have a job, but has applied for several in the last week

• None of the above is correct.

A person who is counted as unemployed by the Bureau of Labor Statistics

• is also in the labor force.

• must have recently looked for work or be on temporary layoff.

• be at least 16 years old.

• All of the above are correct.

The labor-force participation rate tells us the fraction of the population that

• is able to participate in the labor market.

• has ever been employed.

• has chosen to participate in the labor market.

• has chosen not to participate in the labor market.

The labor-force participation rate is computed as

• (Employed / Adult Population) * 100.

• (Employed / Labor Force) * 100.

• (Labor Force / Adult Population) * 100.

• (Adult Population / Labor Force) * 100.

Refer to Table 28-2. How many people were employed in Wrexington in 2009?

• 9,600

• 10,600

• 11,000

• 11,200

Which of the following is not correct?

• Most people who become unemployed will soon find jobs.

• In an ideal labor market, wages would adjust to ensure that all workers are always fully employed.

• The unemployment rate occasionally falls to zero.

• There are always some workers without jobs, even when the overall economy is doing well.

Meredith 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. Every time she shows up for an interview, there are more people looking for work than their are openings. Someone waiting in line with her tells her it has been that way for a long time.

• 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.