MACROECONOMICS MODULE 3 HOMEWORK QUESTIONS
1. The participation of women in the labor force has been on the rise since 1960. Identify 2 specific reasons for this.
2. Identify 3 reasons why the participation rate of men in the work force has been declining since 1960.
3. Part time jobs are attractive to many workers as well as many employers. Explain.
4. If there were 1.5 million people unemployed in Canada with 15.5 million people employed and a population of 20 million, what would the unemployment rate equal? What would be the participation rate? (When calculating, remember that the unemployment rate is calculated upon the number of people in the labor market while the participation rate is calculated upon the entire population- Refer to Checkpoint 15.1, pg. 404).
5. Assume that the government decides to drastically decrease welfare, social security, and unemployment payments. How would this action change the unemployment rate? How would it change the labor participation rate?
6. Look at Figure 15.5, pg. 414. Explain what the author means by the ‘output gap’ in the 2008-2009 recession.
7. Frictional unemployment is considered to be a “…permanent and healthy phenomenon in a dynamic, growing economy”. Identify 3 different causes of frictional unemployment.
8. Susan Sampson lost her job as a bank teller in the early 1970’s when automatic teller machines were introduced. Identify and define the type of unemployment this would be.
9. Assume that you are the president of the US, and you have the tools necessary to create higher levels of employment among workers in the US.
a. Identify two methods you might use to decrease the unemployment level in the US.
b. Many members of Congress want you to initiate programs that would eliminate unemployment altogether (0% unemployment rate). Explain why you either would or would not initiate programs to eliminate all unemployment.
10. Assume that you have a job working as a buyer for a major department store. Your salary is $100,000 per year as well as another $15,000 in benefits. The economy slips into a recession and you are laid off. After looking for a similar position with similar pay for several months you finally take a job waiting tables in a local restaurant making ,000 per year including tips. Obviously this is not the job you wanted but must settle for just to pay basic bills. Once you take this job should you be counted as part of the employed labor force? Explain why or why not taking into account the’ discouraged worker’ phenomenon.
11. Identify at least 3 changes in the last decade that have caused structural unemployment.
12. The federal and some state governments have recently increased minimum wage requirements. Why might this actually increase unemployment and leave workers worse off?
13. Assume that you are a member of a labor union which has just bargained with your employer to raise everyone’s wages by 10% and provide full health coverage. What potential harm could this do to the workforce?