Discuss the Likely Impact of Each of the Following on the Unemployment

question 108

Essay

Discuss the likely impact of each of the following on the unemployment rate:
a. The length of time workers are eligible to receive unemployment benefit payments is reduced.
b. The government passes a law making trade unions illegal.
c. The minimum wage is raised by 50 per cent.
d. The government funds an Internet site where companies can post job openings at no charge.

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Definitions:

Tradable Emissions Permits

Market-based allowances to emit a certain amount of pollution, which companies can buy or sell depending on their need to emit more or less than their allocation.

Equilibrium Price

The rate at which the demand for a good or service perfectly balances with its supply.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrating price in a market.

Positive Externality

A beneficial effect experienced by a third party due to a transaction or activity they were not involved in.