Describe the principal costs of unemployment. Are there any benefits to unemployment?
What will be an ideal response?
The costs of unemployment are the loss of output because of idle resources and the personal or psychological cost faced by unemployed workers and their families. There are benefits from unemployment: (1 ) unemployed workers engage in useful activities, such as searching for a better job match or acquiring new skills; and (2 ) increased leisure time. But the benefits are likely to be small compared to the costs.
You might also like to view...
An explanation for the productivity slowdown from 1974 through 1995 is
A) measurement problems. B) an increase in labor quality. C) creative destruction. D) a decline in oil prices.
When the Keynesian-cross model is in equilibrium, income equals output and aggregate expenditure equals output
a. True b. False Indicate whether the statement is true or false
The more dangerous of two jobs currently pays $3 more per hour. The jobs are equivalent in all other respects. If labor is migrating from the higher-risk job to the lower-risk job, then
a. the equilibrium compensating wage differential is less than $3 per hour b. the wage rate will drop for the more dangerous job c. the wage rate will rise for the less dangerous job d. the equilibrium compensating wage differential is greater than $3 per hour e. equilibrium is unattainable in the two labor markets
Which of the following is NOT one of the components of aggregate demand?
What will be an ideal response?