Macroeconomics
10th Edition
ISBN: 9781319105990
Author: Mankiw, N. Gregory.
Publisher: Worth Publishers,
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Chapter 7, Problem 3QQ
To determine
The application of theory of efficiency wages
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The following questions all relate to the labour market.
What is the participation rate? How does it affect unemployment (all else held constant)?
How does labour market flexibility affect unemployment? Give an example of a policy that increases labour market flexibility and explain how it does so.
What is the idea of "efficiency wages"? Give two reasons why "efficiency wages" might be paid?
I have two questions.
1. What are three reasons a worker's wage might be above the level that balances supply and demand?
2. Explain the difference between physical capital and human capital?
What does the term "family wage economy" mean based on Ruiz's chapter "The Flapper and the Chaperone"? (Only ONE answer is correct.)
A. It means that the economic survival of the family was based on all of the wages multiple family members earned; it was not just based on the husband or father's job.
B. It means that families worked together for the same company and employers gave the entire family one paycheck; people were not paid individually.
C. It means that the federal and state governments only imposed income taxes on the head of the household, not on wives or dependent children.
D. It means that families did not expect their teenage children to work; teenagers were expected to enjoy leisure time as often as possible.
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- Matt loses his job as a solar panel installer and cannot find another position with equivalent pay and benefits. As a result, he is still According to economists, which term best describes Matt? a. under employed O b. a discouraged worker O c. unemployed Od out of the labour forcearrow_forwardFill in the blanks in the below sentences: a. The flow of people into and out of employment, changing jobs and its duration determines the level of ---(a) ---- unemployment. b. An association of workers formed to protect and improve their rights and interests by collective bargaining is called a …….(b)…….. c. Changing patterns of demand in the economy affects the labor demand, and this results in ……..(c)… unemployment. d. Change of occupations of labor is called ……(d)… labor mobility. e. Labor mobility at micro-firm level is called ………(e)…. f. The ……..(f)…. sloped labor demand curve indicates diminishing marginal product of labor (so additional employment of labor corresponds to a less output in return). g. During the collective bargaining, a trade union maximizes its utility at the point where its utility function is …….(g)…… to the labor demand curve of the employer. h. The main power of trade unions comes from collective action of workers, namely threat of ……(h)….arrow_forward1) 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_forward
- Women’s rising labor force participation might either increase or reduce marriage rates. Explain why the effect could go either way.arrow_forwardA basic finding of labor economics is that workerswho have more experience in the labor force arepaid more than workers who have less experience(holding constant the amount of formal education).Why might this be so? Some studies have also foundthat experience at the same job (called job tenure) hasan extra positive influence on wages. Explain whythis might occurarrow_forwardAs more people from gen Z graduate from highschool and college and enter the work force this will cause _____ (increase/decrease/no change) we can except wages to _______ (fall/rise/stay the same) LAST QUESTION !!arrow_forward
- 16 Every economy comprises of people who are out of the labor force. “Out of the labor force” is an economic term that refers to _______. a. Children below the age of 14 b. People who are retired c. All of the options d. People who are not ready to workarrow_forwardTrue or False and explain why. In the labour market, it is assumed that workers are attempting to maximize their utility in monetary terms only.arrow_forwardThere are numerous causes of unemployment among the poor such as the disappearance of low-skill jobs, discrimination, and the economy itself. List at least three (3) ways that the state and federal government(s) help reduce poverty and unemployment.arrow_forward
- Why does the labor force participation rate of men decrease? The labor force participation rate of men decreases in part because _______. A. fewer men have a college degree B. families are looking more toward women to be the bread winner C. men are taking more responsibility for chores in the home D. some older men retire earlier and more younger men remain in schoolarrow_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_forwardAnswer the full quation . please as soon as possible : An increase in employee productivity due to government funding of technology training programs for employees will result 1- To decrease the demand for workers and therefore to increase unemployment rates2-For a decrease in the supply of labor, and therefore for a decrease in the number of employed persons3- For an increase in the demand for workers, and therefore for an increase in wages in the economy4- For an increase in the supply of labor and therefore for a decrease in the wage of equilibriumarrow_forward
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