Question

Sectoral shifts, frictional unemployment, and job searches Suppose the world price of steel falls substantially. The demand for labor among steel-producing firms in Pennsylvania will decrease . The demand for labor among automobile-producing firms in Michigan, for which steel is an input, will decrease . The temporary unemployment resulting from such sectoral shifts in the economy is best described as frictional unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. a. Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks b. Establishing government-run employment agencies to connect unemployed workers to job vacancies c. Taxing the price of placing a resume or posting a job opening on a job-search website

Answer 1

Answer:

Option b is correct

Explanation:

This option achieves the aim of reducing the stress of looking for jobs by creating an avenue for easy job connections for searchers which would help increase the rate of re employment into other sectors.

Answer 2

Answer:

The answer is B, Establishing government -run employment agencies to connect unemployed workers to job vacancies.

Explanation:

By developing government agencies whose main purpose is to connect job seekers to job vacancies, there would be a reduction in unemployment because job seekers will have the opportunity to access and apply to alternative job vacancies in other industries aside from the steel industry that has been affected with the fall in price of steel that led to the frictional unemployment.

Also, the government agencies can go ahead to design an online jobs board where employers from other industry can post job vacancies and job applicant can apply to this vacancies. This way, there will be a bridge between the job seekers and the employers therefore reducing unemployment.