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Rewrite the answers in your own words 2 .The rate of unemployment is measured as the number of people unemployed divided by the labor force. If the...

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Rewrite the answers in your own words 2 .The rate of unemployment is measured as the number of people unemployed divided by the labor force. If the number of people in the labor force rises, but a significant portion of the rise in the labor force is people who are unemployed, then both employment and unemployment could rise 3. Causes of the increase in the U.S. women’s labor-force participation rate over the past several decades include new technologies that have reduced the amount of time required to complete routine household tasks, improved birth control, and changing political and social attitudes. Causes of the decline in the U.S. men’s labor-force participation rate over the past several decades include young men now staying in school longer than their fathers and grandfathers did, older men now retiring earlier and living longer, and more fathers now staying at home to raise their children. 4 . Most unemployed people in the economy are unemployed for relatively short periods of time, while fewer people are unemployed for relatively long periods of time. If you were to total the weeks spent unemployed, most of those weeks would be accounted for by people who had been unemployed a long time 5 . Even generally favorable changes will usually involve some sort of sectoral shock that changes the demand for labor among different firms. For example, a decrease in the price of imported oil would likely reduce the demand for U.S. oil workers and increase the demand for automobile workers. Similarly, technological progress makes some industries decline and others advance, creating frictional unemployment. 6. People who are experienced and educated are likely to find jobs where the equilibrium wage is above the minimum wage. In labor markets where the equilibrium wage is above the minimum wage, the minimum wage does not create unemployment. Since people ages 20 and over tend to have more experience and education than teenagers, the minimum wage matters less and so creates less unemployment
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7 . The text offers two explanations for the natural rate of unemployment. The first is frictional unemployment, which results from people and employers taking time to search for the best match. Frictional unemployment would be higher in countries that have frequent and large sectoral shifts and generous unemployment compensation. It seems unlikely that Canada and Western European countries would have greater sectoral shifts than the United States, so some of the difference might be due to more generous unemployment compensation in Canada and Western Europe. The second explanation for the natural rate of unemployment is that wages in some labor markets are above equilibrium. One rationale for setting wages above equilibrium is to attract and retain productive workers. There is no obvious reason why these efficiency wages should contribute to unemployment more in Canada and Western Europe than in the United States. Wages can also be above equilibrium in some markets because of minimum-wage laws. So, some unemployment in Canada and Western Europe might result from higher minimum wages. Finally, unions may negotiate higher wages for their members causing a rise in unemployment. Possibly, Canada and Western Europe have greater union membership rates or more powerful unions. 8 . Standard economic theory suggests that if universities are interested in maximizing profits or minimizing costs, they should reduce salaries until the quantity supplied of workers is equal to the quantity demanded. The reduction in wages would reduce the costs of production and raise profits while still allowing universities to fill faculty positions. Efficiency-wage theory suggests that it might be profitable for universities to keep wages above the equilibrium level in order to reduce worker turnover, increase worker quality, increase worker effort (reduce shirking) and therefore worker productivity. (Fortunately, salaries of economics professors are usually a bit above what is necessary to eat nutritious diets, so the worker-health variant of the efficiency wage is not likely to be important here.
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