Question 71(1 point)

Which of the following would we predict if a country increases its unemployment compensation?

Question 71 options:

a)

The country would have shorter durations of each spell of unemployment, and it would have a higher unemployment.

b)

The country would have shorter durations of each spell of unemployment, and it would have a lower unemployment rate

c)

The country would have longer durations of each spell of unemployment, and it would have a higher unemployment rate.

d)

The country would have longer durations of each spell of unemployment, and it would have a lower unemployment.

Question 72(1 point)

When unions raise wages in some sectors of the economy, which of the following happens to the supply of labour in other sectors of the economy?

Question 72 options:

a)

It decreases, raising wages in industries that are not unionized.

b)

It decreases, reducing wages in industries that are not unionized.

c)

It increases, raising wages in industries that are not unionized.

d)

It increases, reducing wages in industries that are not unionized.

Question 73(1 point)

Where is the unemployment rate more likely higher?

Question 73 options:

a)

Where minimum wages are lower, because people don't take low-paid jobs.

b)

In the public sector, because less workers are unionized.

c)

Where EI benefits are higher, because people have less incentive to find jobs.

d)

In the private sector, because minimum wages are higher.

Question 74(1 point)

Which of the following causes of unemployment is NOT associated with a wage rate above the equilibrium level?

Question 74 options:

a)

unions

b)

efficiency wages

c)

job search

d)

minimum-wage laws

Question 75(1 point)

Which of the following is most likely to reduce the natural rate of unemployment?

Question 75 options:

a)

the Internet providing more readily available information about available jobs

b)

provincial legislators voting for increasing the minimum wage

c)

passing laws that make it more difficult to monitor the efforts of workers

d)

firms offering higher-than-equilibrium wages to attract better job candidates