Question :
41) What economists call “involuntary unemployment” occurs when
A) a job : 1384493
41) What economists call “involuntary unemployment” occurs when
A) a job is available but the worker has not yet found it.
B) the level of real GDP is at or above the economy’s potential output.
C) a person is willing to accept a job at the going wage rate but cannot find one.
D) a person enters the job market for the first time.
E) a person is not willing to accept an available job at the going wage rate.
42) In non-market-clearing theories of the labour market an important explanation for the existence of involuntary unemployment is that labour markets exhibit
A) an elastic labour demand curve.
B) perfectly flexible wages.
C) rigid or sticky wages.
D) unshifting labour demand.
E) unshifting labour supply.
43) Involuntary unemployment in a labour market is said to exist when the wage is ________ the market-clearing wage, this creating an excess ________ labour.
A) greater than; demand for
B) greater than; supply of
C) equal to; employment of
D) less than; supply of
E) less than; demand for
44) Non-market-clearing theories of the labour market feature ________ wages, and thus involuntary unemployment ________.
A) perfectly flexible; cannot exist
B) perfectly flexible; can exist
C) sticky; cannot exist
D) sticky; can exist
E) efficiency wages; cannot exist
45) Retaining a core group of experienced employees that feels entitled to some degree of job security requires that in a recession firms hold wages ________ the market-clearing level, thus ________ involuntary unemployment.
A) above; avoiding
B) above; creating
C) equal to; avoiding
D) below; avoiding
E) below; creating
46) Long-term labour contracts are an important feature of ________ theories of the labour market. In contrast to a world with continuous bargaining of wages and employment, the existence of such contracts leads to a labour market in which involuntary unemployment is ________.
A) non-market-clearing; possible
B) non-market-clearing; impossible
C) market-clearing; possible
D) market-clearing; impossible
E) market-clearing; always present
47) Wage contracts are often set for periods of up to three years. As a result, fluctuations in aggregate demand and aggregate supply tend to
A) cause changes in the amount of involuntary unemployment.
B) cause greater inflexibility of wages.
C) have no effect in labour markets until wages are renegotiated.
D) clear the labour market.
E) either increase or decrease the NAIRU.
48) The main difference between market-clearing and non-market-clearing models of the economy is
A) the long-run path of wages.
B) the long-run path of employment.
C) the degree of wage and price flexibility in the short run.
D) the long-run path of output.
E) the tendency for output to return to potential in the long run.
49) The market-clearing and non-market-clearing theories of unemployment both agree that
A) actual unemployment rates will equal the NAIRU in the long run.
B) wages and prices are perfectly flexible.
C) unemployment is always voluntary.
D) actual output adjusts only gradually to potential output.
E) wages are rigid and adjust only over the long run.
50) “Efficiency wages” are said to exist when wages are
A) such that cyclical unemployment is zero.
B) such that the NAIRU is zero.
C) high enough above market levels that workers increase their productivity.
D) equal to the market wage.
E) just high enough to induce a worker to take a job.
