Suppose researchers discover that a government program to match job seekers and employers has caused an increase in the unemployment rate. Does this mean that the program has failed?
What will be an ideal response?
No. A program to facilitate good job matches will increase frictional unemployment, if it inspires enough of either discouraged workers (who had given up their job search) or discontented workers (who have a job) to join the unemployed in the program. If the program improves job placements, it enhances the economic benefit of frictional unemployment, regardless its impact on the rate of unemployment.
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Which of the following will increase the supply of a product?
A) an increase in the price of the product B) an increase in the demand for the product C) an increase in the number of sellers D) a decrease in the demand for the product E) an increase in the price of inputs
What are the economic functions of depository institutions?
What will be an ideal response?
Edward is an unmarried man with no children. He loses his job as the manager of a company. After three years of job searching, Edward manages to finally get a job in a small company. Edward's three years of unemployment are most likely to result in _____
a. a loss of lifetime earnings for Edward b. a loss of human capital for the broader society c. the deterioration of health for the broader society d. a loss of social cohesion for the broader society
Outsourcing is a term increasingly used to refer to the act of:
A. hiring illegal immigrants. B. replacing relatively expensive American workers with low-wage workers overseas. C. importing raw materials into the United States from other countries. D. exporting final goods to other countries.