LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Question
Chapter 12, Problem 10P
(a)
To determine
Explain the discouraged workers in the
(b)
To determine
Explain mathematically if discouraged workers are treated as unemployed.
(c)
To determine
Explain mathematically that the unemployment rates are defined by the Bureau of Labor Statistics.
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Students have asked these similar questions
It is difficult for cyclically unemployed persons to find jobs because
(a) they typically do not meet the qualifications required for the available jobs
(b) the economy is in a recession
(c) they voluntarily quit their last jobs and employers may view them as unreliable
(d) trade unions militancy in wage negotiations
Q.1.4 Out of 20 million people in the population, 9 million people are in the labour forceand 3 million are unemployed, therefore the unemployment rate is: choose the correct answer(2)(a) 3 percent. (b) 15 percent. (c) 30 percent. (d) 33,3 percent.
1) Suppose the job separation rate (s) of an economy is 0.01 and the job findings rate (f) is 0.2. The
long run unemployment rate (u) is then 4.7%. Suppose the government is implementing a new law
that helps unemployed people find jobs sooner. Which of the following is the most likely outcome?
a) s increases and u decreases
b) s decreases and u increases
c) fincreases and u increases
d) f increases and u decreases
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Similar questions
- The stock of unemployed workers at any given time consists mostly of people who have short spells of unemployment. people who have long spells of unemployment. people who have been laid off from one employer and become employed by another. people who have searched for jobs, but who have become discouraged.arrow_forwardWhich of the following combinations would increase unemployment in an economy? Select one: a) High interest rate, low taxes b) Low interest rate, high taxes c) Low interest rate, low government spending d) High interest rate, low government spending e) Low interest rate, low taxesarrow_forwardWhat are THREE (3) conditions necessary for a person to be considered unemployed?arrow_forward
- What is the national definition of unemployment adopted in Afghanistan? The definition must specify (i) the working age group; (ii) maximum number of hours per week beyond which the person will no longer be consider unemployed; (iii) reference period (number of weeks or days) for looking for job; and (iv) working hours reference period for availability to start a job.arrow_forwardPrepare a line graph from the table below and answer the following question. (i)What trends do you observe in the unemployment rate? In economic growth? (ii) Identify the relationship between Economic Growth and Unemployment, if any. (positive, negative, no relationship) Use the data to justify your choice. (iii) Does the relationship observed in part 2 satisfy the economists' view of the relationship between economic growth and unemployment? Use references to support your answer. 2016 2017 2018 2019 2020 Unemployment rate 4.12 3.75 3.38 3.14 4.31 Economic growth rate 2.23 2.68 1.08 1.05 -4.57arrow_forwardIn one year, you meet 52 people who are each unemployed for one week and eight people who are each unemployed for the whole year. What percentage of the unemployment spells you encountered was short term, and what percentage of the unemployment you encountered in a given week was long term? 52% was short term; 13.3% was long term a. b. C. d. 52% was short term; 88.9% was long term 86.7% was short term; 13.3 was long term 86.7% was short term; 88.9 was long termarrow_forward
- Describe the different types of unemployment. Explain the type(s) of unemployment the U.S. experiences when the economy is (a) in the boom, (b) in the recession, and (c) during unprecedented times, such as natural disasters, pandemics, or war. Describe the impacts of unemployment benefits on unemployment. Identify a period of high unemployment and the government policies used to fight unemployment. Explain if the policies were effective in fighting unemployment. Describe how you would address unemployment.arrow_forwardDiscuss the four types of unemployment. Rank these from the least serious to the most serious and explain why. Discuss underemployment and discouraged workers and the impact in our economy. Is the unemployment rate the government reports accurate? Does this rate include all the social costs of unemployment? Can the government do anything to reduce unemployment?arrow_forwardSuppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. Extending the number of weeks for which unemployed workers are eligible for unemployment insurance benefits from the government Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks Establishing government-run employment agencies to connect unemployed workers to job vacanciesarrow_forward
- Economic On average, it takes 3 months for an unemployed person to find a job. A job lasts for 30 months on average. The labor force stays constant. Find the long-run (steady-state) unemployment ratearrow_forwardDoes the existence of unemployment insurance eliminate the economic costs of unemployment?arrow_forward(c) What is meant by zero unemployment? (d) Is 'zero unemployment' desirable? Explainarrow_forward
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