UNIT III ASSESSMENT

Describe the four types of unemployment. How do the four types differ in their effects on the economy and on the unemployed?

Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
Answer
Selected Answer: In In general the four types of unemployment are frictional, which is when there is a process of selection from the employers and the potentially employed. It is important for both parties to know that the particular job is a good fit so that in a month they both don’t have to start over with the hiring process. Seasonal unemployment is due to many factors including climate, holidays, and tourism. It is important to have seasonal employment because these times boost income to compensate for when things are leaner. Another form is structural unemployment. This is when the skills of the applicants don't match the needs of the employers. This is more of an issue than the first two reasons because it takes more time to acquire the necessary skills or find the person who already possesses these skills. The last example of unemployment of cyclical. This is when unemployment fluctuates and cycles along with the state of the economy at any given time. There are government policies that try to keep this type of unemployment at bay.

Reference: McEachern, W.A. (2012). ECON Macro 3 (3rd ed). Mason, OH: South-Western. Correct Answer: [None] Response Feedback: Hi
You did a good job in describing the four types of unemployment.

. Question 2 .20 out of 20 points What is meant by “quality (of capital) per worker”? How does improvement in the quality of capital affect economic growth?

Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

Answer
Selected Answer: Q Quality of capital in the workforce refers to the amount of skill a person has is reflected in the wages they receive. There are really two categories of capital that affect the economy. These are physical capital, which refers to tools and technology that can make a task faster and cheaper. Like carpenters that use nail guns instead of hammers complete jobs faster and can move on to the next job that much quicker. Thus allowing for more income. The other type is human capital. This refers to the quality of skills or education levels possessed by people. This is why a lawyer makes more money than a paralegal. Improvement of either type of capital in the workforce is essential to economic growth because things can't get better if they don't evolve.

Reference: McEachern, W.A. (2012). ECON Macro 3 (3rd ed). Mason, OH: South-Western. Correct Answer: [None] Response Feedback: Hi
You did a good job in explaining quality (of capital) per worker.

. Question 3 .20 out of 20 points What is meant by industrial policy? Discuss the strengths and weaknesses of an industrial policy.

Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
Answer
Selected Answer: .

Industrial policy is "the view that government-using taxes, subsidies, and regulations-should nurture the industries and technologies of the future, thereby giving these domestic industries an advantage over foreign competition". (McEachern, p. 130). This means that the government should intervene to help keep American business ahead of other countries. The positive of this is that the government has more money to put into research and development than a single company has. And if the government sees a future need they can nourish that technology. The downside is that many economists believe that the government can't always accurately predict what the future will be and that it is the responsibility of the companies that are going to profit to spend the necessary monies. That government money can be better used elsewhere in the economy.

Reference: McEachern, W.A. (2012). ECON Macro 3 (3rd ed). Mason, OH: South-Western. Correct Answer: [None] Response Feedback: Hi
You did a good job in explaining what is meant by industrial policy.

. Question 4 .19 out of 20 points Explain how the law of diminishing marginal returns is related to the per-worker production function.

Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
Answer
Selected Answer:

.

Th The per-worker production function and the law of diminishing marginal returns are pretty much the opposite of each other. The law of diminishing marginal returns measures the increased amount of productivity when the labor force is increased. The per-worker production function measures the increased amount of productivity when the technology is improved on or equipment is added and the labor force is kept constant. It is important for companies to find out which is better for them. Correct Answer: [None] Response Feedback: You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

. Question 5 .20 out of 20 points What is the difference between anticipated and unanticipated inflation? How do they differ in their effects on economic agents? Does inflation have no effects on the economy if it is anticipated? Explain.

Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
Answer
Selected Answer:

The difference between anticipated and unanticipated inflation is just that. One can try to predict the amount of inflation that will occur in a time period but often they are incorrect. So when the inflation rate is predicted correctly people can adjust according with price changes and pay raises to suit the anticipated rate. It’s when the rate is drastically different than what is predicted, unanticipated, that problems arise. That is why the anticipated inflation rate is not really a factor in the economy because it is so hard to measure accurately.

Reference: McEachern, W.A. (2012). ECON Macro 3 (3rd ed). Mason, OH: South-Western Correct Answer: [None] Response Feedback: Hi
You did a good job in explaining the difference between anticipated and unanticipated inflation.