Chapter 8 Study Prep Quizzes

(Scenario: Employment in Youville) The country of Youville is made up of 10,000 people. Of this population, 1,000 residents are below the age of 16 and 2,000 have given up looking for work. Currently, 500 people are unemployed but are actively looking for work; 2,500 work part time, and the remaining number are fully employed. What is the unemployment rate in Youville?

(Scenario: Employment in Youville) The country of Youville is made up of 10,000 people. Of this population, 1,000 residents are below the age of 16 and 2,000 have given up looking for work. Currently, 500 people are unemployed but are actively looking for work; 2,500 work part time, and the remaining number are fully employed. Suppose the number of workers who had given up looking for work start looking for work. What happens to the unemployment rate?

Two primary goals for macroeconomists are:

(Scenario: Employment Rate) In a group of ten people, there are three retirees, two part time workers, two discouraged workers, one unemployed worker, and two full time workers. For this group, the unemployment rate is:

(Scenario: Employment Rate) In a group of ten people, there are three retirees, two part time workers, two discouraged workers, one unemployed worker, and two full time workers. For this group, the labor force participation rate is:

(Scenario: Employment Rate) In a group of ten people, there are three retirees, two part time workers, two discouraged workers, one unemployed worker, and two full time workers. For this group, if the discouraged workers became active job searchers, then the:

To be classified as unemployed, a worker must:

Unemployment rates tend to:

The presence of discouraged workers causes the:

Low unemployment rates are often:

Sally works twenty hours a week for an accounting firm. She would like to work full time and expects that she will in the future. Sally is a(n):

Unemployment rates tend to decrease when:

Looking at past data, one usually finds that when the unemployment rate has increased, the annual growth rate of real GDP has:

The sum of frictional and structural unemployment make up the:

Structural changes in an economy as well as changes in consumer tastes are reasons for:

Frictional unemployment:

Structural unemployment occurs when:

An effective minimum wage can lead to:

Labor unions that are effective at achieving wage rates:

An efficiency wage:

The natural rate of unemployment changes when:

The natural rate of unemployment:

In a particular labor market, the demand for labor is given by W = 20 - (1/100)L and the supply of labor is given by W = 4 + (1/100)L where W is the wage rate, and L is the number of workers. What is the equilibrium wage and number of workers in this market?

In a particular labor market, the demand for labor is given by W = 20 - (1/100)L and the supply of labor is given by W = 4 + (1/100)L where W is the wage rate, and L is the number of workers. Suppose government decides to impose a minimum wage of $15 in this market. What effect will this minimum wage have on the market?

Amy just graduated from college. She recently quit her part time job to focus on finding a full time job which uses her skills she has acquired in college better. Amy is considered:

A binding minimum wage results in:

Analysts believe that generous unemployment benefits in Europe are associated with: