Questions from General Economics

Q: What are the three categories into which the Bureau of Labor Statistics

What are the three categories into which the Bureau of Labor Statistics divides everyone? How does the BLS compute the labor force, the unemployment rate, and the labor-force participation rate?

Q: How would an increase in the world price of oil affect the

How would an increase in the world price of oil affect the amount of frictional unemployment? Is this unemployment undesirable? What public policies might affect the amount of unemployment caused by t...

Q: Draw the supply curve and the demand curve for a labor market

Draw the supply curve and the demand curve for a labor market in which the wage is fixed above the equilibrium level. Show the quantity of labor supplied, the quantity demanded, and the amount of unem...

Q: You and a classmate are assigned a project on which you will

You and a classmate are assigned a project on which you will receive one combined grade. You each want to receive a good grade, but you also want to avoid hard work. In particular, here is the situati...

Q: How does a union in the auto industry affect wages and employment

How does a union in the auto industry affect wages and employment at General Motors and Ford? How does it affect wages and employment in other industries?

Q: Give four explanations for why firms might find it profitable to pay

Give four explanations for why firms might find it profitable to pay wages above the level that balances quantity of labor supplied and quantity of labor demanded.

Q: How is the unemployment rate measured? How might the unemployment rate

How is the unemployment rate measured? How might the unemployment rate overstate the amount of joblessness? How might it understate the amount of joblessness?

Q: Assume that the reserve requirement is 5 percent. All other things

Assume that the reserve requirement is 5 percent. All other things being equal, will the money supply expand more if the Fed buys $2,000 worth of bonds or if someone deposits in a bank $2,000 that she...

Q: Suppose that the reserve requirement for checking deposits is 10 percent and

Suppose that the reserve requirement for checking deposits is 10 percent and that banks do not hold any excess reserves. a. If the Fed sells $1 million of government bonds, what is the effect on the e...

Q: Assume that the banking system has total reserves of $100 billion

Assume that the banking system has total reserves of $100 billion. Assume also that required reserves are 10 percent of checking deposits and that banks hold no excess reserves and households hold no...