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10 Cards in this Set
- Front
- Back
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1.____________ unemployement is the type that increases during recessions.
(a) Frictional. (b) Structural. (c) Cyclical. (d) Natural. |
Cyclical
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2. If the price in the economy decreases, the labor_______curve will _______.
(a) demand; increase (b) demand; decrease (c) supply; increase (d) supply; decrease |
Demand; decrease
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3. The government intorduces a "guranteed living standard" program, a plan whereby all citizens, whether they work or not, recieve a check equal to twice the poverty line. We would predict that the
(a) labor demand curve will shift right and the wage will increase. (b) labor demand curve will shift left and the wage will decrease. (c) labor supply curve will shift right and the wage will decrease. (d) labor supply curve will shift left and the wage will increase. |
labor supply curve will shift left and the wage will increase.
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4. The _______ explanation is not included among the "sticky wage" theories of unemployment.
(a) social contract (b) efficiency wage (c) relative-wage (d) explicit contract |
(b)Efficiency Wage
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5. During a recession, workers in the contrution industry are laid off becasue of an outsopken agreement between employers and workers. This is consistent with the _______ explanation of unemployment.
(a) social contract (b) efficiency wage (c) relative-wage (d) explicit contract |
(a)Social Contract
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6. During a recession, workers in the contruction industry in the North East are laid off becasue they are unwilling to accept a wage cut unless they know that similar workers elsewhere are also experiencing such cuts. This is consistent with the _______ explanation of eunemployment.
(a) social contract (b) efficiency wage (c) relative-wage (d) explicit contract |
(c)relative-wage
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7. Marley and Scrooge find that the costs of screening, hiring and training workers is substantial. to reduce labor turnover, they pay higher-than-average wages. their behavior is consistent with the ________ explanation of unemployement.
(a) minimum wage (b) efficiency wage (c) imperfect information (d) cost effectiveness |
(b)Efficiency Wage
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8. If, due to imperfect information. firms set the wage above the market-clearing level,
(a) wages will decrease rapidly, as unemployed workers seek jobs. (b) wages will not fall, as many workers will be available at that wage. (c) the government will set a minimum wage to prevent unemployment. (d) wages may adjust slowly because of the complexity of the labor market. |
(d)Wages may adjust slowly because of the complexity of the labor market.
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9. The natural rate of unemployment is the sum of
(a) frictional and cyclical unemployment. (b) frictional and structural unemployment. (c) cyclical and structural unemployment. (d) frictional, cyclical, and structural unemployment. |
(b) frictional and structural unemployment.
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10. Currently, the unemployment rate is greater than the natural rate of unemployment. In the long run, the natural rate will be attained if policymakers
(a) increase the money supply. (b) decrease the money supply. (c) do nothing. (d) do all of the above. |
(d) do all of the above.
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