Why might it be inefficient for the labor market not to have some form of unemployment compensation?
What will be an ideal response?
Some form of unemployment compensation lowers the opportunity cost of looking for work. Without any compensation whatsoever workers might be tempted to terminate their job search much more quickly and accept jobs that are well below their productivity because of the urgent need to earn money just to get by to pay for food and other necessities.
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Which of the following is an implicit cost of production?
A) interest paid on a loan to a bank B) wages paid to labor plus the cost of carrying benefits for workers C) rent that could have been earned on a building owned and used by the firm D) the utility bill paid to water, electricity, and natural gas companies
Using the above figure, if the government levies a new unit tax in this market, S represents the original supply curve, and St represents the after-tax supply curve, then the after-tax price paid by consumers is the vertical distance from the origin
to A) point A. B) point B. C) somewhere between point B and point A. D) point F.
The supply curve shows the relationship between:
A. price and quantity supplied. B. production costs and the amount demanded. C. total business revenues and quantity supplied. D. physical inputs of resources and the resulting units of output.
The percentage of the noninstitutionalized working-age individuals who are employed or seeking work is known as
A. the labor force. B. the stock of employed and unemployed workers. C. discouraged worker. D. the labor force participation rate.