Question

1. Frictional unemployment is inevitable because

	a.	there is a federal minimum-wage law in the U.S.
	b.	sectoral shifts are always happening.
	c.	some people do not want to be employed.
	d.	unions are very popular in the U.S. 2. Table 28-7 Below is data about the labor market in the city of Productionville. Wage Quantity Demanded Quantity Supplied $8 6,000 16,000 $7 9,000 14,000 $6 12,000 12,000 $5 15,000 10,000 $4 18,000 8,000 Refer to Table 28-7. If the local government imposed a minimum wage of $5 in Productionville, how many people would be unemployed? a. 2,000 b. 5,000 c. 0 d. 3,000 3. There is a clear consensus among economists that unions are a. good for the economy because they result in higher wages for most workers. b. good for the economy because they are a necessary antidote to the market power of employers. c. bad for the economy because they are cartels and therefore detrimental to an efficient allocation of resources. d. None of the above is correct; there is no clear consensus among economists about whether unions are good or bad for the economy. 4. Job search a. is one reason economies always experience some unemployment. b. is the process of matching workers with appropriate jobs. c. would not be a problem if all workers and all jobs were the same. d. All of the above are correct. Show me how to solve the problem.

Answer 1

1) Frictional unemployment occurs when the workers move from one job to another due to sectoral shifts in the economy

Option(B)

2) The market is in equilibrium at wage =$6 where QD=QS =12000

when a minimum wage of $5 is imposed then there will be no effect on the market as to be binding the minimum wage should be set above the equilibrium price and not below it.

Option(C)

3) There is no clear consensus among economists about whether unions are good or bad for the economy as they have their advantages and disadvantages.

Option(D)

4) Due to job search,people remain unemployed for a certain time period and job search helps the employers to match the workers with the job according to their skill and if everyone has equal skills and every job requires the same skillset then it won't be a problem.

Option(D)