Question : 101) Refer to Table 31-3. Suppose that for each year : 1384499

101) Refer to Table 31-3. Suppose that for each year listed the unemployment rate among males is 5% while it is 7% among females. Which of the following statements correctly describes the change in the NAIRU in this economy between 1960 and 1980?

A) Since females account for a smaller percentage of the labour force in all years, the NAIRU is decreasing over time.

B) The NAIRU remains constant between 1960 and 1980 because the unemployment rates for males and females remain constant.

C) Since females have a higher unemployment rate, the NAIRU increases over time as the female share in the labour force increases.

D) Since real GDP is equal to potential GDP in all years, cyclical unemployment is equal to zero, and therefore the NAIRU does not change.

E) Since males have a lower unemployment rate, and they make up a larger percentage of the labour force, the NAIRU is decreasing over time.

102) Other things being equal, many economists believe that more generous employment-insurance benefits would

A) lower frictional unemployment.

B) lower structural unemployment.

C) raise structural unemployment.

D) raise frictional unemployment.

E) have no effect on unemployment.

103) Many economists believe that the more strict rules for qualifying for employment-insurance benefits that were introduced by the federal government in the early 1990s led to

A) lower cyclical unemployment.

B) lower frictional unemployment.

C) lower structural unemployment.

D) higher structural unemployment.

E) higher frictional unemployment.

104) Many economists believe that long-run economic growth is best promoted by ________ structural change, such as with a policy of ________.

A) resisting; subsidizing failing industries

B) resisting; retraining and relocation grants

C) resisting; contractionary monetary policy

D) adapting to; assisting retraining and relocation

E) adapting to; subsidizing failing industries

105) One motivation for having publicly subsidized retraining programs is to

A) reduce structural unemployment.

B) reduce cyclical unemployment.

C) resist adjustment to technological change.

D) encourage employment in low-paying jobs.

E) encourage the use of efficiency wages.

106) Which of the following would be the most appropriate policy for reducing structural unemployment?

A) a combination of tax cuts and increased government spending

B) a decrease in the money supply

C) an increase in the money supply

D) increased benefits for workers covered by employment insurance

E) introduction of programs for the retraining and relocation of labour

107) Which of the following would be the most appropriate policy for reducing cyclical unemployment?

A) a combination of tax cuts and increased government spending

B) a decrease in the money supply

C) increased benefits for workers covered by employment insurance

D) reduced benefits for workers covered by employment insurance

E) introduction of programs for the retraining and relocation of labour

108) Which of the following policies could the government implement to reduce cyclical unemployment?

A) retraining programs for chronically unemployed people

B) a national “job bank” listing available jobs throughout the country

C) relocation allowances to move unemployed people around the country

D) expansionary monetary policy

E) contractionary monetary policy

109) Which of the following policies could the government implement to reduce frictional unemployment?

A) retraining programs for chronically unemployed people

B) a national “job bank” listing available jobs throughout the country

C) relocation allowances to move unemployed people around the country

D) expansionary monetary policy

E) contractionary monetary policy

110) Which of the following best explains why a certain amount of unemployment may be socially desirable?

A) When some workers become unemployed it provides a chance for others in the labour force to become employed.

B) Unemployed workers are able to benefit from employment insurance.

C) The time spent unemployed by the worker is valuable for finding the most appropriate match with firms.

D) A pool of unemployed workers drives down the average wage in the economy, and keeps workers from becoming greedy.

E) A pool of unemployed workers provides an incentive to those employed to remain productive.