1 Discouraged workers Which of the following statements corr

1) Discouraged workers

Which of the following statements correctly describe discouraged workers? (If none of the choices apply, leave all of the checkboxes blank.) Check all that apply.

They have given up on looking for a job.

They are full-time workers who would like to work only part-time.

They have not looked for a job in 4 weeks (or longer), but they would like a job and are available for work.

They are employed workers who want to earn higher wages.

The following table contains U.S. employment information from January 2011.

The Bureau of Labor Statistics has several measures of joblessness in addition to the official unemployment rate. One alternative is the U-4 measure of labor underutilization, which is calculated as follows:

The official unemployment rate and the U-4 measure of labor underutilization are two different measures of joblessness in the economy.

Excluding discouraged workers from the official unemployment rate may cause the official rate to (overstate/undwestate) the true extent of underemployment.

2)Types of unemployment

The three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics.

Identify each person in the table as structurally, frictionally, or cyclically unemployed.

Unemployment Type

Structural

Frictional

Cyclical

The following table shows data on frictional, cyclical, structural, and total unemployment for an economy.

True or False: This economy is currently at its natural rate of unemployment.

True

False

3) Sectoral shifts, frictional unemployment, and job searches

Suppose the world price of steel rises substantially. The demand for labor among steel-producing firms in Pennsylvania will (increase/drecrese) . The demand for labor among automobile-producing firms in Michigan, for which steel is an input, will (increase/decrease) . The temporary unemployment resulting from such sectoral shifts in the economy is best described as (cyclical,frictional/structural/seasonal) unemployment.

Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply.

Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks

Taxing the price of placing a resume or posting a job opening on a job-search website

Establishing government-run employment agencies to connect unemployed workers to job vacancies

The theory of efficiency wages

Why might some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor? Check all that apply.

A.Paying higher wages can reduce a firm\'s training costs.

B.Higher wages attract a more competent pool of workers.

C.Higher wages cause workers to shirk more of their responsibilities.

D.Paying higher wages increases worker turnover.

Civilian Population	Employed	Unemployed	Discouraged
(Persons 16 years old and over)	(Persons)	(Persons)	(Persons)
238,704,000	139,323,000	13,863,000	993,000

Which of the following groups are worse off as a result of the union action in the northern state? Check all that apply. Workers who find new jobs in the southern state All workers in the northern state Employers in the northern state Workers in the northern state employed at the union wage

1. Groups who are worseoff of union action are -

Workers who find new jobs in the southern state.

Employers in the northern state.

Discouraged workers

Statements that correctly describe discouraged workers are

They have given up looking for the job

They have not looked for a job in 4 weeks but they would like a job and are available for work.

Excluding discouraged workers from official unemployment rate would undestimate the true extent of underemployment.