Chapter 1 Questions

3. Indicate whether each of the following statements pertains to microeconomics or macroeconomics?

a. The unemployment rate in the United States was 3.7 percent in 2019.

b. Workers and the Sleepy Eye grain elevator are paid $10 per hour.

c. The productivity of American workers as whole increased by more than 2 percent per year in the last decade.

d. The money or nominal wages of nursing aides increased by 2 percent in 2019.

e. The Alpo dog food plant in Bowser, Indiana, laid off 15 workers last month.

4. Why must the concepts of supply and demand as they pertain to product markets be modified when applied to labour markets?

Chapter 3 Questions

10. "Empirical evidence for the United States suggests that labor force participation varies directly with unemployment." Do you agree? Explain in terms of discouraged-worker and added worker effect.

Additional questions

1. Define and explain labour force and participation rates.