Question

1. Structural unemployment is caused by

   		changing patterns of labor demand.
   		real wages being inflexible downward.
   		high costs of occupational and/or geographic adjustment.
   		All of these

2.5 points   

QUESTION 13

1. Suppose an employment contract includes a no-quit clause. How does the answer to the question “Who pays for general training?” depend on the no-quit clause?

   		Workers pay for their general training with or without the no-quit clause
   		With the no-quit clause, the firm can pay for general training
   		With the no-quit clause, the worker must pay for general training
   		With the no-quit clause, the firm must pay for general training

2.5 points   

QUESTION 14

1. Demand deficient unemployment results from

   		a general slowdown in business activity.
   		real wages being inflexible downward
   		changes in the skills required of workers.
   		Both a and b

2.5 points   

QUESTION 15

1. Workers performing dangerous jobs in the economy are typically people that

   		cannot find work offering better conditions.
   		see the jobs as paying well compared to alternative employment.
   		are poorly paid.
   		enjoy danger.

2.5 points   

QUESTION 16

1. In the human capital model of education, going to school longer

   		makes the worker more productive after he or she leaves school.
   		is a waste of social resources
   		signals the worker's innate ability
   		is essential to promote economic growth

2.5 points   

QUESTION 17

1. A government policy likely to be helpful in dealing with structural unemployment is

   		a requirement that firms give employees advance notice of plant closings.
   		a minimum wage law.
   		an increase in unemployment insurance.
   		the creation of public sector jobs.

2.5 points   

QUESTION 18

1. If the labor market flow P_ue is found to equal 0.2 for a particular month, this means that

   		20 percent of the total adult population flowed from unemployment to employment during the month.
   		20 percent of the total labor force flowed from unemployment to employment during the month.
   		20 percent of those who were initially unemployed became employed during the month.
   		20 percent of those who were initially employed became unemployed during the month

2.5 points   

QUESTION 19

1. Which of the following is not a commonly used definition of the full-employment (natural) rate of unemployment?

   		The unemployment rate that prevails in normal times
   		The unemployment rate where the number of job vacancies equals the number of new labor force entrants
   		The unemployment rate associated with zero excess demand for labor
   		The unemployment rate at which all unemployment is voluntary

2.5 points   

QUESTION 20

1. The theory of compensating differentials predicts that

   		workers with poor conditions will earn more than those with good conditions.
   		holding worker characteristics constant, workers experiencing poor conditions will earn more than those experiencing good conditions.
   		holding wages constant, highly skilled workers will work under worse conditions than less skilled workers.
   		All of these are true

Answer 1

Question: Structural unemployment is caused by

Answer : All of the above

Structural unemployment is a kind of involuntary unemployment. It can be caused by the changing patterns of labor demand, real wages being inflexible downward and high costs of occupational and/or geographic adjustment. Structural employment is caused due to the mismatch between the skills offered by workers and the skills demanded by employees, change in the pattern and structure of the economy , immobility of workers due to high cost from one geographical area with high unemployment to other area where there is shortage of labour, occupational immobility etc..