Question

QUESTION 6

1. Unemployed people don't work, but having idle workers

   		facilitates matching workers's skills to the tasks to be performed on jobs
   		encourages worker exploitation
   		is a sure sign of demand deficiency
   		is a symptom of technology replacing workers

QUESTION 7

1. With general training and employment at will, wages ________ at a ________ rate over a worker's career.

   		increase; increasing
   		increase; decreasing
   		decrease; increasing
   		decrease; decreasing

QUESTION 8

1. 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.

   		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 9

1. Recent estimates suggest that every 1 percentage point decrease in the unemployment rate raises national output by

   		2 percentage points.
   		3 percentage points.
   		5 percentage points.
   		10 percentage points.

QUESTION 10

1. Which of the following is a reason that the unemployment rate may overstate the degree of economic hardship?

   		The employment rate can be rising at the same time the unemployment rate is rising.
   		The number of people classified as unemployed includes those not actively seeking work.
   		Job seekers may become discouraged and drop out of the labor force.
   		None of these

QUESTION 11

1. In practice, jobs are not exactly alike and can be located in very different places. When this happens, a compensating wage differential can be expected to arise to attract workers to the jobs with less desirable characteristics. Such a differential is in equilibrium when

   		all the workers are employed for the higher wage firm.
   		all the workers who are indifferent about the adverse conditions are employed at the firm offering the most adverse conditions.
   		each firm can obtain the quality and quantity of workers that it wants.
   		the wage rises enough so that the firm with the worst working conditions has an incentive to improve its conditions.

Answer 1

6.

A.

When there are idle workers in the organization, then there is the opportunity to match the workers' skills with the jobs to make a good match and increase workers' motivation.

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7.

B

When training takes place at will, then it goes slow and there is a high scope that training will be completed in longer time than expected. It causes decrease rate of wage increase.

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9.

B

There is a 3% increase in GDP with 1% decrease in unemployment rate. It is observed in the USA in recent time.

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10.

B

When labor force includes those who do not seek employment, then it overstates the unemployment rate. It shows the economy in more hardship than the real picture of the economy.

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11.

C

When compensating wage is paid to the workers, then wage in in equilibrium to the working condition and the nature of jobs. It creates equilibrium in the market.