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True/False: Briefly explain your answers. a. The unemployment rate shows the proportion of people that are not working in the population. (Chapter 2) b. An
True/False: Briefly explain your answers. a. The unemployment rate shows the proportion of people that are not working in the population. (Chapter 2) b. An increase in childcare expenses (which are independent of income) is likely to lead to longer hours of work for those who participate in the labour market. (Chapter 3) c. The difference between a conventional welfare program and a negative income tax program is that for the negative income tax program, the worker receives a wage supplement for each hour that he/she works. (Chapter 3) d. For a worker who is 'at the corner equilibrium' i.e., he or she is not working, the marginal rate of substitution is greater than the wage rate in absolute value terms. (Chapter 2) e. The slope of the WITB program in the plateau area is equal to (1+s)w, where w is the hourly wage and s is the additional value per dollar earned that is covered by the government under this program.(Chapter 3) f. Partial compensation as a result of work injury disincentivizes work effort. (Chapter 3)
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