Exam 6: Measuring the Price Level and Inflation

Holding other factors constant, if oil prices rise relative to the prices of other products, then the real wages of oil workers will ______ and employment of oil workers will _____.

The towns of Jekyll and Hyde each have a labor force of 2,000 people. In Jekyll, 500 people were unemployed for the entire year, while the rest of the labor force was employed continuously. In Hyde, every member of the labor force was unemployed for three months and was employed for nine months. The average duration of unemployment spells over the year was ______ months in Jekyll and ______ months in Hyde.

All of the following describe trends in labor markets EXCEPT:

Data for an economy shows that the unemployment rate is 6%, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are employed in this economy?

Long-term increases in productivity that have increased the demand for labor and the real wages of labor have resulted primarily from ______ and _____.

The slowdown in the growth of real wages in the United States since 1973 is consistent with a concurrent:

Martha did not like her job as a receptionist, so she quit the job and is looking for one that better suits her artistic talents. Ting Pei would like to work, but employers are not willing to hire him because he does not speak English. Martha is ______ unemployed and Ting Pei is ______ unemployed.

In the last two decades of the twentieth century, the number of people with jobs in the United States:

A person 16 years or older who does not work, but is actively looking for work, is officially classified as:

Which of the following is an example of structural unemployment?

Slower real wage growth since the 1970s accompanied by rapid job growth can be explained by:

Arthur is an unskilled worker who is currently unemployed. He has been offered a job that pays $40 a day, but he is currently receiving unemployment insurance benefits equal to $50 a day, so he chooses not to accept the job and to continue looking for a better job. Arthur is ______ unemployed.

Firms will hire additional workers as long as the wage:

High Tech, Inc. produces plastic chairs that sell for $10 each. The following table provides information about how many plastic chairs can be produced per hour. Number of Workers Chairs Produced Per Hour 0 0 1 10 2 18 3 24 4 28 5 30 For simplicity, assume that labor is the only input. How many workers will be hired if the hourly wage for workers is $30?

Income lost by the unemployed is an example of the ______ cost of unemployment, while the additional spending to control crime is an example of the ______ cost of unemployment.

Slower growth in labor demand in combination with increases in labor supply explains ____________ accompanied by __________.

The marginal product of labor is the additional:

Initially, workers in the shoe industry and the computer industry earn the same wage. Reductions in trade barriers give domestic consumers access to cheaper shoes produced abroad, so domestic shoe prices fall. At the same time, foreign consumers purchase more computers, raising the relative price of computers. As a result of these changes, wages in the shoe industry ______ and wages in the computer industry ______.

The value of the marginal product of labor equals the marginal product of labor times the:

An increase in the price of the output produced by labor will: