Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 20, Problem 5PA
Sub part (a):
To determine
The changes in
Sub part (b):
To determine
The changes in unemployment rate and employment population ratio and the economy.
Sub part (c):
To determine
The changes in unemployment rate and employment population ratio and the economy.
Sub part (d):
To determine
The changes in unemployment rate and employment population ratio and the economy.
Sub part (e):
To determine
The changes in unemployment rate and employment population ratio and the economy.
Sub part (f):
To determine
The changes in unemployment rate and employment population ratio and the economy.
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Economists 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.…
Economists 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).
Indicate what happens to the unemployment rate and the employment–population ratio in each of the following scenarios.
Scenario
Effect On...
UNEMPLOYMENT RATE
EMPLOYMENT POPULATION RATION
Many previously laid-off workers find jobs in new startup firms as the economy expands.
(DECREASE, INCREASE OR STAY THE SAME)
(DECREASE, INCREASE OR STAY THE SAME)
After an unsuccessful search, some laid-off workers decide to go back to school as full-time students.
(DECREASE, INCREASE OR STAY THE SAME)
(DECREASE, INCREASE OR STAY THE SAME)
As a result of an economic boom, many students drop out of school and start working as soon as they become adults.
(DECREASE,…
Economists 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 retirees
Chapter 20 Solutions
Essentials of Economics (MindTap Course List)
Ch. 20.1 - Prob. 1QQCh. 20.2 - Prob. 2QQCh. 20.3 - Prob. 3QQCh. 20.4 - Prob. 4QQCh. 20.5 - Prob. 5QQCh. 20 - Prob. 1CQQCh. 20 - Prob. 2CQQCh. 20 - Prob. 3CQQCh. 20 - Prob. 4CQQCh. 20 - Prob. 5CQQ
Ch. 20 - Prob. 6CQQCh. 20 - Prob. 1QRCh. 20 - Prob. 2QRCh. 20 - Prob. 3QRCh. 20 - Prob. 4QRCh. 20 - Prob. 5QRCh. 20 - Prob. 6QRCh. 20 - Prob. 7QRCh. 20 - Prob. 1PACh. 20 - Prob. 2PACh. 20 - Prob. 4PACh. 20 - Prob. 5PACh. 20 - Prob. 6PACh. 20 - Prob. 7PACh. 20 - Prob. 8PACh. 20 - Prob. 9PACh. 20 - Prob. 10PA
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