Question :
71) Suppose a free-trade agreement with Central America eliminates all : 1384496
71) Suppose a free-trade agreement with Central America eliminates all tariffs on imported textiles from those countries. Which type of unemployment will be affected in Canada?
A) frictional unemployment
B) structural unemployment
C) cyclical unemployment
D) seasonal unemployment
E) hidden unemployment
72) Suppose there are 2000 unemployed textile workers in Quebec and 2000 vacant positions in Alberta oil production. We say that this unemployment is
A) cyclical.
B) hysteresis.
C) efficient.
D) structural.
E) frictional.
73) Suppose the NAIRU in April, 2010 is 7.2%. If the actual unemployment rate is 8.1%, then
A) there is an inflationary gap.
B) 0.9 percentage points are due to cyclical factors.
C) the sum of frictional and structural unemployment is greater than the NAIRU.
D) the NAIRU has increased by 0.9 percentage points.
E) cyclical unemployment is 8.1%.
74) Consider Canada’s employment insurance (EI) program, which provides benefits to eligible unemployed workers. If the program is designed such that benefits are more generous in regions with higher rates of unemployment, then we can expect that
A) cyclical unemployment will increase.
B) frictional unemployment will decrease because workers have more time to find a well-suited job.
C) the NAIRU will decrease.
D) labour markets will adapt to changes more quickly as a result.
E) structural unemployment will increase and the NAIRU will be higher than otherwise.
75) Refer to Figure 31-2. At E0, the unemployment rate is 5.6%. Therefore,
1) the NAIRU is 5.6%;
2) cyclical unemployment is 5.6%;
3) the economy is at full unemployment.
A) 1 only
B) 2 only
C) 3 only
D) 1 and 2
E) 1 and 3
76) Refer to Figure 31-2. At E0, the unemployment rate is 5.6%. An increase in the price of raw materials shifts the AS curve to AS1 and a new short-run equilibrium is established at E1. At E1, the unemployment rate is 7%. Therefore,
A) the NAIRU is 7%.
B) the sum of frictional and structural unemployment is 7%.
C) cyclical unemployment is 1.4%.
D) the economy is at full employment.
E) cyclical unemployment is negative.
77) Refer to Figure 31-2. Suppose the economy is in a recession at E1 that is very long lasting. As a result, many young workers are unable to enter the labour market for the first time and are unable to gain experience. These workers continue to have higher than average unemployment rates when the recession is over, causing the NAIRU to rise. This is an example of
A) discrimination.
B) hysteresis.
C) inflexible labour markets.
D) demographic unemployment.
E) voluntary unemployment.
78) Some economists argue that increases in labour-force participation rates by young people and females in the 1970s and 1980s caused
A) a decrease in frictional unemployment.
B) a decrease in cyclical unemployment.
C) a decrease in NAIRU.
D) an increase in NAIRU.
E) an increase in cyclical unemployment.
79) According to 2011 data, unemployment rates for females are ________ unemployment rates for males for any given age group; and unemployment rates for youths (age 15-24) are ________ unemployment rates for all other age groups.
A) equal to; higher than
B) higher than; higher than
C) lower than; higher than
D) higher than; lower than
E) lower than; lower than
80) Suppose that unemployed workers searching to replace their lost jobs become discouraged and so decide to temporarily give up the search. Such a decision
A) increases the NAIRU.
B) decreases the NAIRU.
C) increases the official unemployment rate.
D) decreases the official unemployment rate.
E) has no effect on the official unemployment rate.
