Chapter 8: Q2. (page 311)
What is the likely effect of such services on the number of people considered to be in the labor force?
Services such as TaskRabbit will increase the labor force since it will reduce frictional unemployment.
Over 30 million students worldwide already upgrade their learning with Vaia!
All the tools & learning materials you need for study success - in one app.
Get started for free
Why does collective bargaining have the same general effect on unemployment as a minimum wage? Illustrate your answer with a diagram.
How is the matching of job-seekers and employers through services like TaskRabbit likely to affect frictional unemployment?
Explain the following statements.
a. Frictional unemployment is higher when the pace of technological advance quickens.
b. Structural unemployment is higher when the pace of technological advances quickens.
c. Frictional unemployment accounts for a larger share of total unemployment when the unemployment rate is low.
Suppose that at the peak of the business cycle the United States dramatically increases benefits for unemployed workers. Explain what will happen to the natural rate of unemployment.
In which of the following cases is a worker counted as unemployed? Explain.
a. Rosa, an older worker who has been laid off and who gave up looking for work months ago
b. Anthony, a schoolteacher who is not working during his three-month summer break
c. Kanako, an investment banker who has been laid off and is currently searching for another position
d. Sergio, a classically trained musician who can only find work playing for local parties
e. Natasha, a graduate student who went back to school because jobs were scarce
What do you think about this solution?
We value your feedback to improve our textbook solutions.
