Principles of Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134421193
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 1.2P
Sub part (a):
To determine
Labor force participation, labor supply, and
Sub part (b):
To determine
Labor force participation, labor supply, and unemployment.
Sub part (c):
To determine
Labor force participation, labor supply, and unemployment.
Sub part (d):
To determine
Labor force participation, labor supply, and unemployment.
Sub part (e):
To determine
Labor force participation, labor supply, and unemployment.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Which of the following could shift the labor supply curve and increase employment?
Â
a.
increased federal funding for education
Â
b.
increased spending on training
Â
c.
an increase in income tax rates
Â
d.
an increase in the number of firms
Â
e.
a decrease in income tax rates
Consider an economy with two labor markets: one for manufacturing workers and one for service workers. Suppose initially that neither is unionized.
Which of the following will happen to the manufacturing labor market if manufacturing workers formed a union? Check all that apply.
The wage of manufacturing workers will fall.
The demand for manufacturing workers will remain unchanged.
The supply of manufacturing workers will increase.
Some manufacturing workers will become unemployed.
Which of the following describes the effect of the changes in the manufacturing labor market on the market for service workers, which is
not unionized? Check all that apply
The wage of service workers will fall.
The supply of service workers will remain unchanged.
The demand for service workers will remain unchanged.
There will be an increase in employment in the service sector.
Consider an economy with two labor markets: one for manufacturing workers and one for service workers. Suppose initially that neither is unionized.
Which of the following will happen to the manufacturing labor market if manufacturing workers formed a union? Check all that apply.
The wage of manufacturing workers will fall.
The demand for manufacturing workers will remain unchanged.
The supply of manufacturing workers will increase.
Some manufacturing workers will become unemployed.
Which of the following describes the effect of the changes in the manufacturing labor market on the market for service workers, which is
not unionized? Check all that apply.
The wage of service workers will fall.
The supply of service workers will rise.
The demand for service workers will fall.
There will be an increase in employment in the service sector.
Chapter 13 Solutions
Principles of Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (12th Edition)
Knowledge Booster
Similar questions
- In June 2009, at the trough of the Great Recession, the Bureau of Labor Statistics announced that of all adult Americans, 140,196,000 were employed, 14,729,000 were unemployed, and 80,729,000 were not in the labor force. a) What was the size of the labor force in 2009? Show your work. b) What was the labor-force participation rate in 2009? Show your work. c) What was the unemployment rate in 2009? Show your work.arrow_forwardAssume that the economy is in a recession and demand for labor is falling. Assume that wages are sticky. Draw a supply and demand graph that represents the labor market. Draw a graph that depicts what has happened to our demand and supply curves in the labor market, including our new equilibrium price and quantity of labor. Will the market experience an increase or a decrease in unemployment? Make sure you clearly label your graph, all of its components, and any curve shifts are clearly marked with the beginning and ending curves (you can use 0 and 1 or 1 and 2 to designate the first and the second curves).arrow_forwardDescribe the two possible effects that an increase in the wage rate can have on labor supply. Which effect do you expect to dominate under normal circumstances?arrow_forward
- Suppose the minimum wage in this economy is $8.70 per hour. An unemployed worker is defined as someone who is willing to work at the prevailing wage but is unable to find employment. Because the minimum wage lies above the equilibrium wage, it is binding, which means it is also the prevailing wage. If the wage is not allowed to fall below $8.70 per hour, the size of the unskilled labor force is workers are considered unemployed. The unemployment rate is defined as the percentage of unemployed workers in the labor force: Unemployment Rate = Unemployed Labor Force x 100 At a minimum wage of $8.70 per hour, the unemployment rate among unskilled workers is approximately workers, and unskilled 4arrow_forwardThe graph shows the market for orange pickers in Florida. What is the equilibrium wage rate and the equilibrium quantity of pickers employed? If Florida introduces a minimum wage of $3.00 an hour, how many orange pickers are employed and how many are unemployed? The equilibrium wage rate of orange pickers is $4.50 an hour and the equilibrium quantity of orange pickers employed is 3000. If Florida introduces a minimum wage of $3.00 an hour, pickers are employed and pickers are unemployed. 7.50- 6.00- 4.50- 3.00- 1.50- Wage rate (dollars per hour) 1500 2250 3000 Quantity (pickers) 3750 S D 4500 oarrow_forwardThe rate of job separations in the economy is 0.013 (1.3 percent) and rate of job finding is 0.25 (25 percent). a) If the economy has 500 workers in the labor force, calculate the unemployment rate and the number of unemployed in the steady state. b) If the rate of job separations is 1 percent, what happens to the unemployment rate and the number of unemployed in the steady state? c) If labor force suddenly increases by 20 workers who are seeking work (and the rate of job separations remains at 1 percent), what is the immediate change in the unemployment rate? What is the new steady-state unemployment rate? Draw a graph on how unemployment rate evolves in time.arrow_forward
- After World War II, social norms relating to women’s participation in the labor force relaxed and women were more likely to be employed outside the home. We would expect to see the labor supply curve:  Not shift, but move downward along the curve.  shift left.  shift right.  Not shift, but move upward along the curve.arrow_forwardIdentify two reasons why a wage might rise above the market equilibrium,and describe their effect on the labor market.arrow_forwardEconomists use labour-market data to evaluate how well an economy is using its most valuable resource— its people. Two closely watched statistics are the unemployment rate and the employment-population ratio. Explain what happens to each of these in the following scenarios. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing? a. An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs. b. After an unsuccessful search, some of the laid-off workers quit looking for new jobs. c. Numerous students graduate from college but cannot find work. d. Numerous students graduate from college and immediately begin new jobs. e. A stock market boom induces newly enriched 60-year-old workers to take early retirement. f. Advances in healthcare prolong the life of many retireesarrow_forward
- How does the amount of unemployment created by an increase in the minimum wage depend on the elasticity of labor demand? Do you think an increase in the minimum wage will have a greater unemployment effect in the fast-food industry or in the lawn-care/landscaping industry?arrow_forwardThe graph shows the market for apple pickers in New England. Question Viewer what is the equilibrium wage rate and the equilibrium quantity of pickers employed? If the New England states introduce a minimum wage of $7.00 an hour, how many apple pickers are employed and how many are unemployed? The equilibrium wage rate of apple pickers is $10.50 an hour and the equilibrium quantity of apple pickers employed is 7000. If the New England states introduce a minimum wage of $7.00 an hour, pickers are employed and pickers are unemployed. 17.50- 14.00- 10.50- 7.00- 3.50+ Wage rate (dollars per hour) 3500 5250 7000 Quantity (pickers) 8750 S D 10500 Uarrow_forwardEconomists use labor-market data to evaluate how well an economy is using its most valuable resource— its people. Two closely watched statistics are the unemployment rate and the employment–population ratio (calculated as the percentage of the adult population that is employed). Explain what happens to each of these in the following scenarios. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing?  Situations unemployment rate employment–population ratio More meaningful one a. An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs    b. After an unsuccessful search, some of the laid-off workers quit looking for new jobs.    c. Numerous students graduate from college but cannot find work.    d. Numerous students graduate from college and immediately begin new jobs.    e. A stock market boom induces newly enriched 60-year-old workers to take early retirement.…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning