Chapter 21: Q. 36 (page 525)
Why do you think that unemployment rates are lower for individuals with more education?
Unemployment rates are lower for individuals with more education because firms require skilled and knowledgeable workers.
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Using the above data, what is the unemployment rate? These data are U.S. statistics from 2010. How does it compare to the February 2015 unemployment rate computed earlier?
What type of unemployment (cyclical, frictional, or structural) applies to each of the following:
(a) landscapers laid off in response to a drop in new housing construction during a recession.
(b) coal miners laid off due to EPA regulations that shut down coal-fired power
(c) a financial analyst who quits his/her job in Chicago and is pursuing similar work in Arizona
(d) printers were laid off due to a drop in demand for printed catalogs and flyers as firms go the internet to promote and advertise their products.
(e) factory workers in the U.S. were laid off as the plants shut down and move to Mexico and Ireland.
Are U.S. unemployment rates typically higher, lower, or about the same as unemployment rates in other high-income countries?
What forces create the natural rate of unemployment for an economy?
Do you think it is rational for workers to prefer sticky wages to wage cuts when the consequence of sticky wages is unemployment for some workers? Why or why not? How do the reasons for sticky wages explained in this section apply to your argument?
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