Question

11)
In 1998, ______________________ were over 8 times more likely to be unemployed as white adult males. black females black teenagers white teenagers female Hispanics
(12)
Many economists theorize that the non-accelerating inflation rate of unemployment has declined over time. Which of the following factors could economists use to help explain why the NAIRU fell? Decreased immigration The transition away from a service economy toward an agricultural economy The lingering effects of the spikes in oil prices The decreased percentage of teenagers in the labor force
(13)
Negotiations between labor union representatives and the management of a firm are called strikes. collective bargaining. legally binding arbitration. rent-seeking behavior.
(14)
Right-to-work laws shift power away from firms by permitting the formation of unions. permit unions to bargain for “no-loss” negotiations, i.e., contracts in which the firms agree not to fire any union members without cause. give employers the right to disband labor unions. make it illegal for an employer to require union membership as a condition of employment.
(15)
Which of the following is an accurate explanation of the wage-price spiral? When labor costs rise, it causes a self-perpetuating form of cost-push inflation. Higher prices cause workers to demand higher wages. The higher wages raise production costs, which must be passed along to the consumer in the form of further price increases. When one firm pays the efficiency wage, it raises the opportunity cost for all other workers in the industry, necessitating raises for workers in competitive firms. Workers in periods of hyperinflation demand to be paid in the form of goods, rather than cash, which further devalues the currency.

Answer 1

11. White teenagers. The proportion of teenagers in the labor force was at its peak during 1970's. There after it showed a decline. Even though the youth unemployment was severe in last decades.

12. The decreased percentage of teenagers in the labor force. As the percentage of teenagers in the work force came down, the non- accelerating inflation rate of unemployment, that is the unemployment rate which does not cause inflationary pressures has came down, has declined.

13. Collective bargaining. The labor unions has this collective bargaining power so they present the problems of the laborers in front of the management in order to resolve it.

14. Permit the unions to bargain for "no-loss" negotiations, i.e., contracts in which the firms agree not to fire any union member without cause.

15.Higher price cause workers to demand higher wages. the higher wages raise production costs, which must be passed along to the consumers in the form of further price increase. This is the mechanism which causes the wage price spiral. Rise in wage lead to rise in price.