《西方经济学》习题答案—chapter 28.docVIP

SOLUTIONS TO TEXT PROBLEMS: Quick Quizzes 1. The unemployment rate is measured through a survey of 60,000 households to find out the percentage of the labor force that is unemployed. The unemployment rate overstates the amount of joblessness because some of those who report being unemployed may not, in fact, be trying hard to find a job. But the unemployment rate understates the amount of joblessness because discouraged workers report being out of the labor force even though they want jobs. 2. An increase in the world price of oil increases the amount of frictional unemployment as oil-producing firms increase output and employment, but other firms, such as those in the auto industry, reduce output and employment. The sectoral shift from the auto industry to oil firms causes higher frictional unemployment for a time until workers have shifted from the auto industry to the oil industry. Although no increase in unemployment is really desirable, this type of frictional unemployment is necessary to reallocate resources between different sectors. Public policies that might affect the unemployment caused by this change in the price of oil include employment agencies, which can help auto workers move into the oil industry, job-training programs to help workers adapt to a new industry, and unemployment insurance, which keeps workers from suffering economic hardship while changing from one industry to another. 3. Figure 1 shows the supply curve (S) and the demand curve (D) for labor. The wage (W) is above the equilibrium wage (WE). The result is unemployment, equal to the amount by which labor supply (LS) exceeds labor demand (LD). Figure 1 4. A union in the auto industry raises the wages of workers employed by General Motors and Ford by threatening to strike. To prevent the costs of a strike, the firms generally pay higher wages than they would if there was no union. However, the higher wages reduce employment at General Motors and Ford. Wages and emp