CH 21 Flashcards

1
Q

if employers reduce wages for all workers, the best will leave

A

adverse selection of wage cuts argument

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2
Q

unemployment closely tied to the business cycle, like higher unemployment during a recession

A

cyclical unemployment

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3
Q

those who have stopped looking for employment due to the lack of suitable positions available

A

discouraged workers

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4
Q

the theory that the productivity of workers, either individually or as a group, will increase if the employer pays them more

A

efficiency wage theory

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5
Q

unemployment that occurs as workers move between jobs

A

frictional unemployment

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6
Q

an unwritten agreement in the labor market that the employer will try to keep wages from falling when the economy is weak or the business is having trouble, and the employee will not expect huge salary increases
when the economy or the business is strong

A

implicit contract

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7
Q

those already working for the firm are “insiders” who know the procedures; the other workers are “outsiders” who are recent or prospective hires

A

insider-outsider model

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8
Q

this is the percentage of adults in an economy who are either employed or who are unemployed and looking for a job

A

labor force participation rate

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9
Q

the unemployment rate that would exist in a growing and healthy economy from the combination of economic, social, and political factors that exist at a given time

A

natural rate of unemployment

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10
Q

the unemployment rate that would exist in a growing and healthy economy from the combination of economic, social, and political factors that exist at a given time

A

natural rate of unemployment

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11
Q

those who are not working and not looking for work—whether they want employment or not; also termed “not in the labor force”

A

out of the labor force

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12
Q

across-the-board wage cuts are hard for an economy to implement, and
workers fight against them

A

relative wage coordination argument

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13
Q

unemployment that occurs because individuals lack skills valued by employers

A

structural unemployment

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14
Q

individuals who are employed in a job that is below their skills

A

underemployed

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15
Q

the percentage of adults who are in the labor force and thus seeking jobs, but who do not have jobs

A

unemployment rate

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