Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 24, Problem 5IAPA
To determine
To list:
The events that raises the real wage rate and the events that lowers the real wage rate.
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Comment on the following statement. Analyze from an economic standpoint. Do you agree or disagree?a) Rising productivity means that it takes fewer workers to produce a given level of output. Productivity increases are therefore a source of unemployment“.b) It is impossible that you are worse off with a wage increase than you were before it“.
In December 2021, a small island country has an adult population of 20,000. The number of employed is 9,000 and the number of unemployed is 1,000.
(a) Find the unemployment rate and the labor-force participation rate.
(b) In June 2022, a foreign bank opens a branch in the capital of the country and hires 700 students who graduated from college in May 2022. In July 2022, a local company decides to close its factory laying off 3,000 workers. 600 of them find jobs in other industries, 2,000 spend three months looking for a job but get discouraged and decide to stay home and wait for better economic conditions, and as of December 2022 the remaining 400 have not found a job yet but are actively searching. Find the official unemployment rate and the labor-force participation rate in December 2022 if the only change in the adult population during the year was the tragic loss of 200 non-working retirees and 10 crew members in a local plane crash.
1. Over the news, we have seen the exodus of unemployed migrant workers. They brought stories of struggles and sorrows on the future of their families. Most of the returning Overseas Foreign Workers (OFW) are the bread-winners of their families. Now they are unemployed they have to tighten their belts to make both ends meet. However, we have not heard much about the senior citizens who are the more vulnerable sector of society. With prices going up and a general advisory for them to refrain from going outside their quality of life is deteriorating. Therefore discuss what are the economic impacts of the current situation that posed problems/challenges to senior citizens.
Chapter 24 Solutions
Foundations of Economics (8th Edition)
Ch. 24 - Prob. 1SPPACh. 24 - Prob. 2SPPACh. 24 - Prob. 3SPPACh. 24 - Prob. 4SPPACh. 24 - Prob. 5SPPACh. 24 - Prob. 6SPPACh. 24 - Prob. 7SPPACh. 24 - Prob. 8SPPACh. 24 - Prob. 9SPPACh. 24 - Prob. 10SPPA
Ch. 24 - Prob. 11SPPACh. 24 - Prob. 1IAPACh. 24 - Prob. 2IAPACh. 24 - Prob. 3IAPACh. 24 - Prob. 4IAPACh. 24 - Prob. 5IAPACh. 24 - Prob. 6IAPACh. 24 - Prob. 7IAPACh. 24 - Prob. 8IAPACh. 24 - Prob. 9IAPACh. 24 - Prob. 1MCQCh. 24 - Prob. 2MCQCh. 24 - Prob. 3MCQCh. 24 - Prob. 4MCQCh. 24 - Prob. 5MCQCh. 24 - Prob. 6MCQCh. 24 - Prob. 7MCQCh. 24 - Prob. 8MCQ
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- 1) Additional labor productivity would be equivalent to a) it is not equivalent any of the choices.b) education and skills.c) additional output for additional input.d) GDP per number of active labor force.e) all of the choices are correctf) marginal productivity of the worker. 2. All of the following will cause unemployment except a) educational institutionsb) quality of graduatesc) government policiesd) use of modern technologye) stable prices 3. Having a higher income means having more money to buy food, but a) there are choices that must be made to get the proper value for food consumed.b) eating processed/manufactured foods do little for the economy.c) quality and quantity of foods must be chosen.d) prices increase when income increases.e) restaurants are far better to eat in than fast food.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_forwardAn unemployed person is A person who wants a to work but does not look for oneA person who is actively seeking a paid jobA university graduateA volunteer who does charity workarrow_forward
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