Explain how the existence of discouraged workers alters the extent to which the official unemployment provides an accurate measure of the use of labor resources
What will be an ideal response?
Discouraged workers are those individuals who have decided to stop searching for employment because they have become "discouraged" about employment opportunities. At some point, these individuals will no longer be considered as part of the labor force. The existence of discouraged workers will cause the official unemployment rate to provide an under-estimate of the underutilization of labor.
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The two-country, multi-product model differs from the two-country, two-product model in that, in the former
A) the relative wage ratio will determine the pattern of trade ( which good is exported by which country. B) which country will export which product is determined entirely by labor productivity data. C) full specialization is likely to hold in equilibrium. D) none of the goods are potentially nontraded. E) domestic relative prices are not relevant.
Test pilots are paid high wages by airplane makers primarily because
a. the demand for labor in this area is very high relative to the demand for labor in other areas of employment. b. the demand for labor in this area is very low relative to the demand for labor in other areas of employment. c. the demand for labor in this category is highly elastic. d. few people possess the required skills and the occupation is very risky.
According to official statistics in the United States, a family is considered to live in poverty if its money income:
A. and all government transfers are below three times an average family's minimum food budget. B. is below the income earned by 80 percent of all Americans. C. is below the income earned by 90 percent of all Americans. D. is below three times an average family's minimum food budget.
Compared with average cost at the quantity that an unregulated monopolist would choose, average costs are higher at the quantity chosen by a monopoly facing an average-cost pricing policy.
Answer the following statement true (T) or false (F)