The table below presents labor market data for three countries. All population values are in millions.

Question

The table below presents labor market data for three countries. All population values are in millions.

Country Working-age pop Labor force Employed Unemp Unemp rate (%) Labor-force parti rate (%)

Japan 111 70 5

France 34 7 65.38

Germany 76 47 6.38

Instructions: Round your answers for the working-age population, labor force, employed, and unemployed to the nearest whole number. Round your answers for the unemployment rate and labor-force participation rate to two decimal places.

a. Fill in the blanks in the table above.

Which of the following are possible reasons why a country may have a higher unemployment rate?

Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the option once to place a check mark. For incorrect answer(s), click the option twice to empty the box.

check all that apply

The country could have more generous unemployment benefits.

Many firms in the country have elected to pay efficiency wages

The country could be in an expansion and have lower cyclical unemployment.

The country could have a lower natural rate of unemployment

The country could have a more liberalized labor market, leading to lower frictional unemployment.

A greater percentage of the country's workers could be unionized.

The country could be in a recession and have higher cyclical unemployment

The country could have higher (and binding) minimum wages.

Answer 1