Mod 13 Quiz

Anna recently moved to Boston in order for her husband Joe to begin a new job as an economics professor at Harvard. Anna is an experienced surgeon who is currently interviewing with several different hospitals in Boston. Anna is currently:

• seasonally unemployed.

• structurally unemployed.

• cyclically unemployed.

• counted as employed since she is likely to receive a job offer soon.

• frictionally unemployed.

Unemployment that occurs because it takes workers and employees time to find each other is called:

• cyclical unemployment

• structural unemployment

• frictional unemployment

• discouraged unemployment

• natural unemployment

Structural unemployment is:

• unemployment that results when there are more people seeking jobs than there are jobs available at the current wage rate.

• unemployment experienced by those entering the labor force for the first time.

• zero when the economy is in full employment.

• caused by short run economic fluctuations.

• the result of jobs that are predictably lost during certain parts of the calendar year.

The natural rate of employment is achieved when:

• the actual rate of unemployment is equal to zero.

• the natural rate of unemployment is equal to the frictional rate of unemployment.

• the quantity of labor supplied is equal to the quantity of labor demanded.

• there is no cyclical unemployment.

• there is no cyclical unemployment and no frictional unemployment.

Use the “Effect of Minimum Wage” Figure 13-2. Suppose the labor market is in equilibrium at E when the government introduces a minimum wage of WF. One problem that may arise is that the quantity of labor supplied would ______, resulting in structural unemployment.

• decrease to QD

• stay at QE

• increase to QS

• stay at WE

• decrease to zero.