Question

QUESTION 33

1. The level of frictional unemployment is determined by

   		the flows of people into and out of employment.
   		the duration of the spells of unemployment.
   		the level of excess demand.
   		technological changes

2 points   

QUESTION 34

1. Employment contracts for the majority of American workers take the form of

   		formal documents precisely specifying in advance the obligations of each party
   		oral agreements that can be legally enforced when necessary.
   		a broad set of informal understandings between each party.
   		collective bargaining agreements made between an employer and a union.

2 points   

QUESTION 35

1. Suppose that the compensating differential associated with working in a noisy workplace is

   $500 per year. This $500 payment can be interpreted as

   		the amount sufficient to attract any worker to the noisy environment.
   		the amount that the marginal worker is willing to pay for a quiet environment.
   		the minimum amount necessary to attract a worker to the noisy environment
   		the most that any worker would pay for a quiet work environment.

2 points   

QUESTION 36

1. Demand deficient unemployment results from

   		a general slowdown in business activity.
   		real wages being inflexible downward
   		changes in the skills required of workers.
   		Both a and b

Answer 1

Answer-33. Correct option is 'A'

The level of frictional unemployment is determined by the flows of people into and out of employment. People are frictionally unemployed when they are between jobs and searching for new jobs.

Answer-34. Correct option is 'D'

Employment contracts for the majority of American workers take the form of collective bargaining agreements made between an employer and a union. A collective bargaining agreement (CAB) is a written legal contract between an employer and a union representing the employees. The CAB is the result of an extensive negotiation process between the parties regarding topic such as wages, hours and terms and conditions of employment.

Answer-35. Correct option is 'B'

Suppose that the compensating differential associated with working in a noisy workplace is $500 per year. This $500 payment can be interpreted as the amount that the marginal worker is willing to pay for a quiet environment.

Answer-36. Correct option is 'D'

Demand deficient unemployment results from a general slowdown in business activity and real wages being inflexible downward. When there is a reduction in demand for the company's product or dervices, they will most likely cut back on their production, making it unnecessary to retain a wide workforce with the organization. In effect, workers are laid off. Downward inflexible wages prevents that form happening quickly when there is insufficient demand for workers.