Econ 2030 Chapter 6 Flashcards Quizlet PDF

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1/17/2019

Econ 2030 Chapter 6 Flashcards | Quizlet

Econ 2030 Chapter 6

20 terms

Peter_Robbins

Terms in this set (20) Which of the following

d) none of the above

is considered out of the labor force? a) those individuals who have started searching for employment for the first time b) those who worked full time, but in a family business c) those temporarily laid off who will soon be recalled d) none of the above e) the unemployed Which of the following

e) none of the above

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individuals would be considered unemployed? a) an individual who is not working and is not looking for work b) all of the above c) an individual who works only part-time d) an individual who works full-time in a family business, but is not paid e) none of the above Use the information

b) 9.1%.

provided below to answer the following questions. The non-institutional civilian population is 250 million, of which 100 million are employed and 10 million are unemployed. Based on the information above, the unemployment rate is a) 11.1%

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b) 9.1%. c) 10%. d) 4%. e) 6.6%. Use the information

e) 44%

provided below to answer the following questions. The non-institutional civilian population is 250 million, of which 100 million are employed and 10 million are unemployed. Based on the information above, the labor force participation rate is a) 90.1%. b) 36%. c) 40%. d) 66%. e) 44% The reservation wage is

b) none of the above

a) the lowest wage firms https://quizlet.com/137381459/econ-2030-chapter-6-flash-cards/

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are allowed by law to pay workers b) none of the above c) the wage offer that will end a labor-strike. d) the wage that ensures a laid-off individual will wait for re-hire, rather than find another job. e) the wage that an employer must pay workers to reduce turnover to a reasonable level. In the wage setting

c) the extent to which firms mark up prices over their

relation W = PeF(u,z),

marginal cost

the variable z does NOT include which of the following variables? a) the minimum wage b) all of the above c) none of the above d) unemployment benefits c) the extent to which firms mark up prices over their marginal cost https://quizlet.com/137381459/econ-2030-chapter-6-flash-cards/

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In the wage-setting

Econ 2030 Chapter 6 Flashcards | Quizlet

c) unemployment benefits decrease.

relation, the nominal wage tends to decrease when a) the price level increases. b) all of the above c) unemployment benefits decrease. d) the unemployment rate decreases. e) the minimum wage increases. Labor productivity is

c) the ratio of output to employment

represented by which of the following? a) capital per worker b) the ratio of output to the labor force c) the ratio of output to employment d) workers per unit of capital e) the ratio of output to population The price setting

c) 1.

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Econ 2030 Chapter 6 Flashcards | Quizlet

equation is represented by the following: P = (1+m)W. When there is perfect competition, we know that m will equal a) P. b) W. c) 1. d) none of the above e) W/P. The natural level of

c) the economy is operating at the unemployment rate

output is the level of

consistent with both the wage-setting and price-setting

output that occurs

equations.

when a) the goods market and financial markets are in equilibrium. b) the unemployment rate is zero. c) the economy is operating at the unemployment rate consistent with both the wage-setting and pricesetting equations. d) the markup (m) is zero.

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e) there are no discouraged workers in the economy. Suppose we wish to

a) an upward sloping line.

examine the determinants of the equilibrium real wage and equilibrium level of employment (N). In a graph with the real wage on the vertical axis, and the level of employment on the horizontal axis, the wage-setting relation will now be

a) an upward sloping line. b) a downward sloping line. c) a curve that first slopes upward, then downward. d) a vertical line. e) a horizontal line. The natural level of

c) a reduction in unemployment benefits

employment (N) will increase when which of the following occurs?

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a) an increase in the actual unemployment rate b) none of the above c) a reduction in unemployment benefits d) an increase in the markup of prices over costs e) all of the above Suppose workers and

a) the nominal wage will increase by exactly 5%.

firms expect the overall price level to increase by 5%. Given this information, we would expect that

a) the nominal wage will increase by exactly 5%. b) the nominal wage will increase by less than 5%. c) the real wage will increase by less than 5%. d) the real wage will increase by 5%. e) the nominal wage will https://quizlet.com/137381459/econ-2030-chapter-6-flash-cards/

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increase by more than 5% Suppose the actual

c) a movement along the WS and the PS curves.

unemployment rate increases. This will cause a) none of the above b) an upward shift in the WS curve. c) a movement along the WS and the PS curves. d) an upward shift in the PS curve. e) a downward shift in the WS curve. Suppose the aggregate

a) A

production function is given by the following: Y = AN. Given this information, we know that labor productivity is represented by the following: a) A b) 1/A c) N/Y

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d) 1/N Based on our

c) an increase in the equilibrium real wage.

understanding of the labor market model presented in Chapter 6, we know that an increase in the minimum wage will cause a) a reduction in the natural rate of unemployment. b) both B and C c) an increase in the equilibrium real wage. d) a reduction in the equilibrium real wage. Suppose that increased

e) an upward shift in the PS curve

international trade makes product markets more competitive in the U.S. Given this information, we would expect to observe which of the following? a) a downward shift in the WS curve b) an upward shift in the WS curve

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c) none of the above d) a downward shift in the PS curve e) an upward shift in the PS curve Based on price setting

b) no change in the real wage.

behavior, we know that an increase in the unemployment rate will cause a) an upward shift of the PS curve. b) no change in the real wage. c) a reduction in the real wage. d) an increase in the real wage For this question,

d) an increase in the natural level of output

assume that Y = N. Based on our understanding of the labor market model presented in Chapter 6, we know that a reduction in the markup will cause a) a reduction in the natural level of https://quizlet.com/137381459/econ-2030-chapter-6-flash-cards/

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employment. b) a reduction in the natural level of output. c) no change in the natural level of output. d) an increase in the natural level of output For this question,

c) a reduction in the natural level of output.

assume that Y = N. Based on our understanding of the labor market model presented in Chapter 6, we know that an increase in the minimum wage will cause a) an increase in the natural level of output. b) no change in the natural level of output. c) a reduction in the natural level of output. d)an increase in the natural level of employment.

YO U M I GH T A LS O LI K E. ..

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40 terms

40 terms

ECON 2030 Quiz 6

Econ Exam 2

40 terms

80 terms

Macro Econ Test 2

Intermediate Macro Test #2

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