CHAPTER 8 : UNEMPLOYMENT

1.The Department of Statistics, Malaysia announced that in 2005, of all adult Malaysians 10 547 500 were employed, 379 100 were unemployed, and 5 628 800 were not in the labor force. Use this information to calculate :

A)The adult population

B)The labor force

C)The labor-force participation rate

D)The unemployment rate

03. Are the following workers more likely to experience short-term or long-term unemployment ? Explain.

A)a construction worker laid off because of bad weather

B)A manufacturing worker who loses her job at a plant in an isolated area

C)A stagecoach-industry worker laid off because of competition from railroads

D)A short-order cookwho loses his job when a new restaurant opens across the street

E)An expert welder with little formal education who loses her job when the company installs automatic welding machinery

05. Consider an economy with two labor markets-one for manufacturing workers and one for service workers. Suppose initially that neither in unionized.

A)If manufacturing workers formed a union, what impact on the wages and employment in manufacturing would you predict ?

B)How would these changes in the manufacturing labor market affect the supply of labor in the market for service workers ? What would happen to the equilibrium wage and employment in this labor market ?