Reference no: EM133311737

In an article in an academic? journal, Victor? Ortego-Marti of the University of California at Riverside found? that, "The rate of skills loss is around 3 times larger for workers employed as? professionals, technical? workers, sales? workers, managers and? officials, compared to workers employed as? craftsmen, foremen and? operatives."

Part 1a. Suppose the U.S. economy experiences a severe recession. Would you expect that workers in occupations that require greater skills or training to have more difficulty or less difficulty in finding a job after the recession ends than would workers in occupations that require fewer skills or? training, holding all other factors? constant?

A. More? difficulty, if these skilled occupations have experienced a permanent reduction in the number of workers employed-for example, a declining industry reduces the number of jobs available.

B. More? difficulty, if workers are unemployed for a significant period of? time, their? skills, especially in? high-technology fields, may? deteriorate, thereby reducing the normal advantages they may have in finding a new job.

C. Less? difficulty, since the greater the skills a worker? has, the fewer other workers who are able to compete with the worker for job openings.

D. Only A and B are correct.

E. All of the above are correct.

Part 1b. What additional information would you need to make it easier to answer the? question?

A. Information regarding? workers' ability to understand monetary policy would make it easier to answer the question.

B. Information on? workers' preferences for unemployment compensation would make it easier to answer the question.

C. Information on the effect of the recession on different occupations would make it easier to answer the question.

D. Information on? workers' expectations about future wage rates would make it easier to answer the question.

Part 2a. Suppose that jobs in the United States require increasing amounts of skill. How might that fact affect monetary? policy?

b. If jobs in the United States require increasing amounts of? skill, unskilled workers may have_____ difficulty finding jobs.

A. Less

B. Greater

c. As a? result, the level of structural unemployment may (a) _______thereby (b) ______the natural rate of unemployment.

(a) A. increase B. decrease

(b) A. increasing B. decreasing