Economic ch 9 – Flashcards
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Which of these groups is included in the labor force?
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The unemploymed
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Which of these factors can cause the natural rate of unemployment to change?
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Demographic changes
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The normal or natural underlying level of unemployment in the economy is the
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Full employment rate of unemployment
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As the population increase, the labor supple curve
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Shifts to the right
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As the number of workers increases, the marginal product of labor ____ and the marginal revenue product of labor ___
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Decreases, decreases
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As the wage increases, the demand for labor curve
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Does not shift, but the quantity demanded for labor decreases
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Which of these persons is officially unemployed
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A non working individual who has looked for a job in the past week
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As technology improves, the demand for labor curve
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Shifts to the right
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The labor market may take a long time to adjust to economic growth due to
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Excess capacity in production
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As the price of the final product increases, the demand for labor curve
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Shifts to the right
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If the labor demand is unchanged, an increase in the labor supply will ____ the equilibrium wage and __ the number of workers employed
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Decrease, increase
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Increases in the minimum wage will increase ____
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Teenage unemployment
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The short term unemployment that arises from workers, in the process of changing jobs, is called
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Frictional unemployment
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At full unemployment
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Cyclical unemployment is zero
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If the minimum wage is set above the market determined clearing wage, the
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Unemployment rate will be higher than it would be without a minimum wage
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Unemployment arising from a persistent mismatch between the skills and characteristics of workers and job requirements is called
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Structural unemployment
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When the economy is at full employment, which types of unemployment reman
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Frictional and structural
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The natural rate of unemployment is the
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Unemployment rate that results when the economy produces the potential level of real GDP
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Which of these factors will not cause the demand curve for labor to shift
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A change in wage
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The labor market may take a long time to adjust to economic growth due to
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Excess capacity in population
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If the minimum wage is set above the market determined clearing wage
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Unemployment rate will be higher than it would be without minimum wage
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A change in which of these factors would cause a movement along the supply curve for labor rather than a shift of the labor supply curve
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A change in wage
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Which of the following is equivalent of the demand curve for labor
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The marginal revenue product curve
