According to the vacancy supply condition, firms keep opening vacancies until the cost of opening a vacant job is ________ the expected sum of profits from a vacancy. equal to greater than none of the above less than greater than. You selected this answer.
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- Suppose the world price of steel falls substantially. The demand for labor among steel-producing firms in Pennsylvania willdecrease . The demand for labor among automobile-producing firms in Michigan, for which steel is an input, willincrease . The temporary unemployment resulting from such sectoral shifts in the economy is best described asfrictional unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply.The college graduates of 2000 could hardly have asked for better luck. The unemployment ratedropped to 4.1 % in May 2000- roughly, the lowest level in a generation- and employers wereliterally scrambling for new hires. Starting salaries rose, many graduating seniors had numerousjob offers, and some firms even offered $10,000- $20,000 bonuses to students who signed thedotted line. Three years later, the job market for the Class of 2003 was rather different. U.S. economic growth had slowed to a crawl, and then to a halt. Companies that had stocked up on recent college grads in the tighter labour markets of 1998-2000 found themselves with more than they knew what to do with in 2002 and 2003. They were not eager to hire more. Bonuses and other “perks” disappeared; job offers became scarcer. With the unemployment rate around 6% in May and June of 2003, the job market was far from the worst ever. But it was nothing like the glory days of 2000. Discussion:(i) Briefly explain and justify…Some Firms Struggle to Hire Despite High Unemployment Matching people with available jobs is always diffi- cult after a recession as the economy remakes itself. But Labor Department data suggest the disconnect is particularly acute this time. Since the recovery began in mid-2009, the number of job openings has risen more than twice as fast as actual hires. If the job mar- ket were working normally, openings would be get- ting filled as they appear. Some five million more would be employed and the unemployment rate would be 6.8%, instead of 9.5%. Source: The Wall Street Journal, August 9, 2010 9. If the labor market is working properly, why would there be any unemployment at all?
- 1. Consider the production function given by Y = 10 1 k where I denotes number of workers and k denotes units of capital. The MPL = 10k and the MPK = 101. The prices of labor and capital are wloand wK, respectively. a. TRS=.. b. The conditional labor demand is C. How will an increase in wk affect the labor demand in b? ExplainExplain how equilibrium wages and employment change in the economy when there is an increase in thenumber of working-age immigrants. Be clear on the short-run and long-run response.b) Suppose that some of the immigrants set up businesses rather than become employees. Explain howyou expect this to affect the wage-setting curve, the price-setting curve and the labour market equilibrium.c) Answerbriey, do the results you have obtained in (a) and (b) suggest that immigration is good for theeconomy?Scenario 1 Suppose the marginal product of labor in the economy is given by MPN-200-0.5N, while the supply of labor is 300+8w Refer to Scenario 1. What is the market clearing real wage? Ow=5 Ow-11 Ow-10 Ow-15
- Based on our understanding of the labor market model, the new labor law in China which increases the protection of workers to be laid off would lead to Select one: a. an increase in the equilibrium real wage O b. an increase in the natural rate of unemployment O c.a reduction in the natural rate of unemployment O d. a reduction in the equilibrium real wageSuppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will The temporary unemployment resulting from such sectoral shifts in the economy is best described as v unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. O Improving a widely used job-search website so that it matches workers to job vacancies more effectively O Increasing the benefits offered to unemployed workers through the government's unemployment insurance program O Extending the number of weeks for which unemployed workers are eligible for unemployment insurance benefits from the governmentReal wage Cabor supply Labor (hours) Preferences Time preference: 100 O A flattening of the labor supply curve due to a higher labor supply elasticity OA steepening of the labor supply curve due to a lower labor supply elasticity Smoothing: 100 Will to substitute: 105 Consumption weight: 10 Prices and assets Initial assets: 100 Wage rate: 100 Interest rate: 100 Price level: 100 Inflation rate: 100 The following question will be about the labor supply curve. Remember, the labor supply curve plots hours worked on the x-axis and the real wage on the y-axis. Which of the following would happen as a result of an increase in households' willingness to substitute between consumption and leisure? O An upward movement along the curve and an increase in the log of hours worked O A downward movement along the curve and a decrease in the amount of hours worked O None of these
- E1 3. [Employment and Unemployment] Suppose a country has a working-age population of 500people. The demand and supply functions of its labor market are:w=300-0.5L w=60+0.1Lwhere w is the wage, L is the quantity of labor. The labor market has search friction so thatthose that are looking for a job may not immediately find one even when there are openings.Specifically, Assume the number of job matches (i.e. employment) is given by: 0.8L(a) Find the equilibrium wage and the actual number of employed people. Calculate thelabor force participation rate and unemployment rate. (b) The COVID-19 pandemic lowers the labor demand, and the new labor demand becomesw=240-0.5L. Assume that the wage can adjust quickly, find the equilibrium wage and theactual number of employed people during the pandemic. (c) Briefly explain in words, and with a specific example of each, the difference betweenstructural and frictional unemployment.Efficiency wages exist when wages are... O a. Such that cyclical unemployment is zero. Ob. Just high enough to induce a worker to take a job. c. Equal to the market wage. O d. High enough above market levels that workers increase their productivity. O e. Such that the NAIRU is zero.Please only awnser this question I must give uou the previous question below it for context Please awnser this one: In the same model of the labour market as in the previous question,Select one or more:a. A rise in labour supply will lead to a rise in wagesb. Given a constant mark-up a rise in labour productivity will lead to higher wagesc. A rise in product market competition will lead to a higher mark-upd. Equilibrium employment is given by the intersection of the wage and profit curves This one is just for context so you can awnser the question: Given labour market equilibrium with identical workers, as set out in CORESelect one or more:a. Unemployment is always voluntaryb. Workers who are involuntarily unemployed cannot gain a job at any wagec. A Nash equilibrium existsd. Measured unemployment will be zero