ECON 203 TEST 2 MATTHEWS OLE MISS NEWEST ACTUAL

ECON 203 TEST 2 MATTHEWS OLE MISS NEWEST ACTUAL

ANSWERS A+

GUARANTEED.

Cyclical Unemployment - ----Answers---the deviation of unemployment from its natural rate

Discouraged Workers - ----Answers---individuals who would like to work but have given up looking for a job

• do not show up in unemployment statistics, even though they

are workers without jobs

Frictional Unemployment - ----Answers---unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills

Structural Unemployment - ----Answers---unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one

Job Search - ----Answers---the process by which workers find appropriate jobs given their tastes and skills

Sectoral Shifts - ----Answers---changes in the composition of demand among industries or regions

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Minimum Wage Laws - ----Answers---- Can cause unemployment

• when a minimum-wage law is above the equilibrium,

workers are unemployed because they are waiting for jobs to open up

Union - ----Answers---a worker association that bargains with employers over wages, benefits, and working conditions

• when a union raises the wage above equilibrium level, it

results in unemployment

Collective Bargaining - ----Answers---the process by which unions and firms agree on the terms of employment

Strike - ----Answers---the organized withdrawal of labor from a firm by a union

• because a strike reduces production, sales, and profit, a firm

facing a strike threat is likely to agree to pay higher wages than it would otherwise would

Outsiders - ----Answers---those who do not get union jobs, previously employed and are now unemployed are worse off

• remain unemployed and wait for the chance to become

insiders and earn the high union wage

• others take jobs in firms that are not unionized
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Right-to-Work Laws - ----Answers---give workers in a unionized firm the right to choose whether to join the union

Efficiency Wages - ----Answers---above-equilibrium wages paid by firms to increase worker productivity

Types of Efficiency Wages - ----Answers---- Worker Health

• better-paid workers eat a more nutritious diet , and workers

who eat a better diet are healthier and more productive

• Worker Turnover
• the more a firm pays, the less often its workers will choose

to leave

• Worker Quality
• when a firm pays a high wage, it attracts a better pool of

workers to apply for its jobs and increases the quality of its workforce

• Worker Effort
• high wages make workers more eager to keep their jobs

and thus motivate them to put forward their best effort

Unemployment Insurance - ----Answers---gov program that partially protects workers' income when they become unemployed

Federal Reserve (the Fed) - ----Answers---- The central bank of the United States which is responsible for regulating the system

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