A.Using the numbers in the preceding question, what is the size of Ectenia’s labor force?
a. 50
b. 60
c. 70 d. 80
B. T he main policy goal of unemployment insurance is to reduce the
a. search effort of the unemployed.
b. income uncertainty that workers face.
c. role of unions in wage setting.
d. amount of frictional unemployment.
C. O ne unintended consequence of unemployment insurance is that it reduces the
a. search effort of the unemployed.
b. income uncertainty that workers face.
c. role of unions in wage setting.
d. amount of frictional unemployment
D. I n a competitive labor market, an increase in the minimum wage results in a(n) _________ in the quantity of labor supplied and a(n) _________ in the quantity of labor demanded.
a. increase; increase
b. increase; decrease
c. decrease; increase
d. decrease; decrease
E. Approximately what percent of U.S. workers are directly affected by the minimum wage?
a. 1
b. 6
c. 12
d. 25
