ec_Chapter 6 - Chapter 6 1. In a steady state: A) no hiring...

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Chapter 6 1. In a steady state: A) no hiring or firings are occurring. B) the number of people finding jobs equals the number of people losing jobs. C) the number of people finding jobs exceeds the number of people losing jobs. D) the number of people losing jobs exceeds the number of people finding jobs. 2. If the steady-state rate of unemployment equals 0.10 and the fraction of employed workers who lose their jobs each month (the rate of job separation) is 0.02, then the fraction of unemployed workers who find jobs each month (the rate of job findings) must be: A) 0.02. B) 0.08. C) 0.10. D) 0.18. 3. All of the following are reasons for frictional unemployment except : A) workers have different preferences and abilities. B) unemployed workers accept the first job offer that they receive. C) the flow of information is imperfect. D) geographic mobility takes time. 4. Sectoral shifts: A) lead to wage rigidity. B) explain the payment of efficiency wages.
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This note was uploaded on 11/28/2010 for the course ECO 2013 taught by Professor Patconroy during the Summer '08 term at Miami Dade College, Miami.

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ec_Chapter 6 - Chapter 6 1. In a steady state: A) no hiring...

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