Question
In: Economics
Currently, when a firm lays off a worker, the firm pays part of the worker’s unemployment...
Currently, when a firm lays off a worker, the firm pays part of the worker’s unemployment compensation (the rest of the money comes from the system’s general revenue). One suggested reform would require firms to pay all of the worker’s unemployment compensation. How will this reform affect the natural rate of unemployment? Explain your answer. Use the equation for the natural rate of unemployment to explain your answer
there is no additional detail to the problem.
equation= U/L = s/s+f
Solutions
Expert Solution
If the firms pay unemployment compensation to all the workers, then workers become lazy and do not search for new jobs in the market as they are getting minimum money for their subsistence. This would increase the proportion of structurally unemployment people in the market. s rises.
Natural rate of unemployment = s/(s+f)
Increase in s would raise the natural rate of unemployment.
Rahul Sunny answered 2 years agoRelated Solutions
Currently, when a firm lays off a worker, the firm pays part of the worker’s unemployment...
Currently, when a firm lays off a worker, the firm pays part of
the worker’s unemployment compensation (the rest of the money comes
from the system’s general revenue). One suggested reform would
require firms to pay all of the worker’s unemployment compensation.
How will this reform affect the natural rate of unemployment?
Explain your answer. Use the equation for the natural rate of
unemployment to explain your answer.
Is it rational for a laid-off worker to remain unemployed when the dollar amount of unemployment...
Is it rational for a laid-off worker to remain unemployed when
the dollar amount of unemployment benefits is greater than he or
she would earn from working? Explain briefly.
Under an unemployment insurance system that uses no experience rating, the cost to a firm in increased unemployment insurance taxes of laying off a worker would a. equal zero.
QUESTION 13Under an unemployment insurance system that uses no experience
rating, the cost to a firm in increased unemployment insurance
taxes of laying off a worker would a. equal zero.equal zero (0)equal the unemployment insurance benefits paid to the
worker.equal approximately 50 percent of the benefits paid to the
worker.equal approximately 50 percent of the worker’s previous
earnings.QUESTION 14Fifty million people were employed last month, and 2 percent of
the employed workers have become unemployed this month. The number
of...
1. Which type of firm would you rather work for? One who lays people off, or...
1. Which type of firm would you rather work for? One who lays
people off, or one that cuts everyone’s hours? Why? Think about the
tradeoffs involved. Please use marginal analysis in your reasoning,
and back up any claims you make with some documentation.
2. If a law was passed that required all firms to cut hours instead
of lay people off, so that everybody was guaranteed a job and only
hours worked fluctuated (instead of experiencing joblessness), what
do...
What are the entries when a customer pays off their old accounts receivable balance that was...
What are the entries when a customer pays off their old accounts
receivable balance that was already written off?
A complaint of sexual harassment by a part-time worker in a hardware business was upheld when...
A complaint of sexual harassment by a part-time worker in a
hardware business was upheld when the Tribunal found that the
employer had failed to take sufficient action in relation to the
employee's report of inappropriate behaviour. The alleged sexual
harassment included kissing, touching her breasts and leg,
persistent requests to have a drink outside work hours despite an
ongoing refusal, asking for cuddles, telephoning her at home and
making repeated unsolicited sexual remarks. Based on any four
ethical theories,...
A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from...
A firm is evaluating the alternative of manufacturing a part
that is currently being outsourced from a supplier. The relevant
information is provided below:
For in-house manufacturing:
Annual fixed cost
=
$75,000
Variable cost per part
=
$140
For purchasing from supplier:
Purchase price per part
=
$150
Using this information, find the best decision if the demand is
6,500 parts. Round your answers to the nearest dollar.
Total cost of production: $
Total cost of outsourcing: $
The best...
A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from...
A firm is evaluating the alternative of manufacturing a part
that is currently being outsourced from a supplier. The relevant
information is provided below:
For in-house manufacturing:
Annual fixed cost
=
$60,000
Variable cost per part
=
$100
For purchasing from supplier:
Purchase price per part
=
$180
Using this information, find the best decision if the demand is
6,500 parts. Round your answers to the nearest dollar.
What is the total cost of production: $
what is the total...
The research firm Gartner forecasts that blogging will peak in 2007, leveling off when the number...
The research firm Gartner forecasts that blogging will peak in
2007, leveling off when the number of people who maintain a
personal website reaches 100 million(!), but only about 20,000 blog
sites are visited by other than friends and family of the blogger.
Gartner analysts expect that the novelty value of the medium will
then wear off as most people who are interested in the phenomenon
have checked it out. But that is not keeping big firms like Boeing
and...
) Roberto works in a factory making electric cars. Currently, his firm pays him $35 per...
) Roberto works in a factory making electric cars. Currently,
his firm pays him $35 per hour and he works 35 hours per week. Each
hour he works he experiences disutility of effort from working
valued at $5 per hour. In addition, should Roberto lose his job the
government will pay him an unemployment benefit of $15 per hour,
for each hour he would otherwise work each week, for a maximum of
20 weeks. Prior to the coronavirus pandemic if...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What are the differences and similarities between Lean Design and DFM, DFA, and DFMA?
- IN JAVA Frank wants to take his wife, son, and daughter on a vacation next summer....
- for the longest time companies offered the employees who stayed with the company for many years...
- Explain at least three reasons why there are so many divisions / denominations in the Christian...
- COSC 1436 Programming Assignment : Skill Practice Assignment 3 Your skill practice assignment this week will...
- Waste elimination and process improvement can be applied to virtually any process. Identify a process at...
- Do you think the FASB should continue to require the Statement of Cash Flows or are...
ADVERTISEMENT