Exam 6: Measuring the Price Level and Inflation

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 $70?

Health and safety regulations in the labor market:

Data for an economy shows that the unemployment rate is 10%, the participation rate 80 percent, and 200 million people 16 years or older are not in the labor force. How many people are in the labor force in this economy?

Holding other factors constant, if computers allow factory workers to manufacture more products per hour, then the real wages of factory workers will ______ and employment of factory workers will _____.

Jim Brown would like to work, but has not looked for work in the past four weeks because he does not believe any jobs are available. In the official employment statistics, Jim is classified as:

The minimum payment you are willing to accept to do a job is your:

A war destroys much of the capital stock in the country of Omega. As a result, holding other factors constant, the real wage in Omega will ______ and employment in Omega will ______.

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, the demand for labor in the shoe industry ______ and the demand for labor in the computer industry ______.

Globalization can increase wage inequality in the United States if international competition is primarily in industries requiring ______ workers.

The costs of unemployment are lowest (and perhaps even negative) for ______ unemployment.

In the United States the real wages of the least-skilled, least educated workers have ______ and the wages of best-educated, highest skilled workers have ______.

An increase in unemployment insurance benefits will:

Skill-biased technological change increases wage inequality by altering the ______ high-skilled workers relative to low-skilled workers.

Cyclical unemployment is:

Skill-biased technological has different effects on the marginal products of ______ workers and ______ workers.

Periods of unusually low production in an economy result in ______ unemployment.

According to the principle of diminishing returns to labor, if the amount of capital and other inputs are held constant, employing additional workers:

People who say that they would like to have a job, but have not made an effort to find a job in the past four weeks, are called ______ workers.

The unemployment rate equals the number of people:

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 unemployed this economy?