PS2sp08

PS2sp08 - Problem Set 2 Due date: March 7, 2008 at the...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Problem Set 2 Econ 320 – 001, Spring 2008 Due date: March 7, 2008 at the beginning of class There are 30 questions (25 multiple choice and 5 short answer) in this problem set. Submit your answers by the beginning of the class on Fri. March 7, 2008. For the Multiple Choice section: mark your answers (and submit) on an official UNC scantron sheet. Make sure to fill in your name and your student ID number. You can pick up a scantron sheet at the checkout counters of the Student Stores and campus snackbars. For the Short Answer section: please write out and submit on your own paper the answers to these questions. You must show your work (calculations, derivations, reasoning) in order to receive full credit. Make sure to print your name on the paper and sign the honor Pledge affirming that you have neither given nor received unauthorized aid on this assignment and have complied with all of the rules of this assignment. I. Multiple Choice 1. The natural rate of unemployment is: A) the average rate of unemployment around which the economy fluctuates. B) about 10 percent of the labor force. C) a rate that never changes. D) the transition of individuals between employment and unemployment. 2. 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. 3. 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. 4. Frictional unemployment is unemployment caused by: A) wage rigidity. B) minimum-wage legislation. C) the time it takes workers to search for a job. D) clashes between the motives of insiders and outsiders. 5. Unemployment insurance increases the amount of frictional unemployment by: A) making workers more frantic in their search for new jobs. B) inducing workers to accept the first job offer that they receive. C) making employers more reluctant to lay off workers. D) softening the economic hardship of unemployment.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 6. When there is structural unemployment, the real wage is: A) rigid at a level below the market-clearing level. B) rigid at the market-clearing level.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

PS2sp08 - Problem Set 2 Due date: March 7, 2008 at the...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online