Question 2

2. Discouraged workers Which of the following statements correctly describe discouraged workers? (If none of the choices apply, leave all of the checkboxes blank.) Check all that apply. [ They have given up on looking for a job. [C] They are employed workers who want to earn higher wages. [C] They have not looked for a job in 4 weeks (or longer), but they would like a job and are available for work. [C] They are full-time workers who would like to work only part-time. The following table contains U.S. employment information from August 2018. Civilian Population Employed Unemployed Discouraged (Persons 16 years old and over) (Persons) (Persons) (Persons) 258,066,000 155,604,000 5,197,000 434,000 The Bureau of Labor Statistics has several measures of joblessness in addition to the official unemployment rate. One alternative is the U-4 measure of labor underutilization, which is calculated as follows: Unemployed+ Discouraged U-{ = 100 x Labor Force + Discouraged Fill in the following table by calcufating the official unemployment rate and the U-4 measure of labor underutilization. Official Unemployment Rate U-4 Measure of Labor Underutilization (Percent) (Percent) w w The official unemployment rate and the U-4 measure of labor underutilization are two different measures of joblessness in the economy. If the Bureau of Labor Statistics were to include discouraged workers in the official unemployment rate, the reported unemployment rate would e N Save & Continue w 4. Sectoral shifts, frictional unemployment, and job searches Suppose the world price of tobacco falls significantly. The demand for labor among tobacco-producing firms in Kentucky will w . The demand for labor among cigarette manufacturing firms in Virginia, which use tobacco as an input, will w . The temporary unemployment that results from sectoral shifts such as the ones describes above is best categorized as unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. [[J Taxing the price of placing a resume or posting a job opening on a job-search website [_] Improving a widely used job-search website so that it matches workers to job vacancies more effectively Establishing government-run employment agencies to connect unemployed workers to job vacancies el el N T Save & Continue