Answer to Question #211661 in Economics for Sukhwinder

Question

8. Jones is a tool-and-die maker earning $30 an hour. He is suddenly laid off.

a) He frequents employment agencies, reads want ads, and follows up leads on tool-anddie–making jobs for two weeks. Is he unemployed (as officially defined) during this time?

b) At the end of two weeks, he is offered a job driving a bread truck that pays $9 an hour.

He turns it down. Is he unemployed?

c) He receives an offer of a job as a tool-and-die maker in a city 125 miles away. He turns it

down because his teenage children don’t want to change high schools. Is he unemployed?d) After three months of searching, Jones becomes discouraged and quits looking. Is he

unemployed?

Answer 1

a) He frequents employment agencies, reads want ads, and follows up leads on tool-and die–making jobs for two weeks. Is he unemployed (as officially defined) during this time? NO

b) At the end of two weeks, he is offered a job driving a bread truck that pays $9 an hour.

He turns it down. Is he unemployed? NO

c) He receives an offer of a job as a tool-and-die maker in a city 125 miles away. He turns it

down because his teenage children don’t want to change high schools. Is he unemployed?YES

d) After three months of searching, Jones becomes discouraged and quits looking. Is he

unemployed? YES