Question 4a, b,c,d,eQuestion 5a,b

CHAPTERS UNEMPLOYMENT TOT b. In some cases, there can be an increase in the number of people employed but the number of antemployed people declines by a smaller amount. Why might one expect a reduction in the number of people counted as unemployed to be smaller than the increase in the number of people employed? 4) Are the following workers more likely to experience short-term or long-term unemploy hit? Explain a. a construction worker laid off because of bad weather b. a manufacturing worker who loses their job at a plant in an isolated area c. a bus industry worker laid off because of competition from the railway d. a short-order cook who loses their job when a new restaurant opens across the street e. an expert welder with little formal education who loses their job when the company installs automatic welding machinery. 5 Consider an economy with two labour markets, neither of which is unionised. Now suppose a union is established in one market. a. Show the effect of the union on the market in which it is formed. In what sense is the quantity of labour employed in this market an inefficient quantity? b. Show the effect of the union on the non-unionised market. What happens to the equilibrium wage in this market? 6 Some workers in the economy are paid a flat salary and some are paid by commission. Which compensation scheme would require more monitoring by supervisors? In which case do firms have an incentive to pay more than the equilib