Which of the following is likely to cause a decrease in the natural rate of unemployment?
A) an increase in the percentage of the working-age population receiving disability insurance
B) a decrease in the use of temporary workers
C) a growing percentage of young workers in the labor force
D) generous unemployment insurance benefits
A
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Refer to Exhibit 9-7. Which point is representative of the economy experiencing labor market shortages?
a. A
b. B
c. C
d. E
Why might governments choose to dispense with the market mechanism for directing development? What problems will arise?
What will be an ideal response?
Long-run equilibrium for firms in monopolistically competitive industries is similar to that for firms in perfect competition in that
A. price equals minimum possible average total cost. B. price equals marginal cost. C. marginal revenue equals average total cost. D. price equals average total cost.
If the supply of labor to a firm is perfectly elastic at the going wage rate established by the forces of supply and demand then
A. the wage rate has been decreasing. B. the firm can only hire additional units of labor by driving the wage rate up. C. full employment exists in the labor market. D. the firm is price taker.