Macro HW 2 - February 6, 2008 Homework #2 1. a. I didn't...

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February 6, 2008 Homework #2 1. a. I didn’t truly understand what in terms you were looking for as far as what you were looking for (was it a number or just the term). I understand that you are looking for terms like the damage cost approach and the maintenance cost approach. I do not see how it is possible to see the depreciation of any assets unless we take into account the future income of the workers who may or may not be laid off due to the reason that the fish are now injured or damaged. 2. The unemployment insurance inflates the unemployment rate by giving people an “incentive” for being unemployed. This could be presented as a reason on why the people who are supposedly looking for jobs can never truly find one. Though a hasty employment is not normally one that is in the best interest of either the employer or employee it is possible that there are a number of unemployed individuals who maintain there lifestyle based on the unemployment and are happy not to get a job. The unemployment rate can be considered as too high because it gives the unemployed a higher standard of living than is essential. The normal standard of living and quality of life can be measured relatively easily and if, for whatever reason, the unemployment insurance boosts them well above the poverty line it is obviously too much. 3. a. One can determine whether the fall in the unemployment rate in January is a true result of the employment situation by looking at the solid numbers of the employed, unemployed, and not in the labor force and comparing them. If there was a substantial boost in the not in the labor force category it could be tied to the
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Macro HW 2 - February 6, 2008 Homework #2 1. a. I didn't...

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