Answer any 5 of the following 6 questions. Taxpayers outnumber government workers, which implies that, for political reasons, government officials will adopt a hard-line approach towards government workers, paying them as little as possible. Suppose Congress passes legislation that raises the cost of employing elderly workers. With your diagram indicate separately how the income and substitution effects alter hours of work. Draw your curves carefully and label your axes.
Economists generally cite four sources or types of unemployment.
That is, various laws and programs may either increase or decrease the rate of joblessness. Cite two distinct ways that the government could alter the nation's rate of unemployment. Read each question carefully, and then select the single best answer. Ask if something is unclear. Select the most appropriate statement.