Question 1

Suppose there is a large increase in the number of workers migrating to a particular country. For that particular country, this is likely to

Accepted Answer

A) cause a leftward shift of the labor demand curve as the supply of workers increases and firms can pay lower wages. 
B) cause a rightward shift of the labor demand and labor supply curves as more workers are willing to work and firms can pay lower wages. 
C) cause a rightward shift of the labor supply curve as more workers are willing to work at any given wage. 
D) cause a rightward shift of the labor demand curve as the supply of workers increases and firms can pay lower wages. 
E) cause an upward movement along the labor supply curve as more workers are available for work. 
A) cause a leftward shift of the labor demand curve as the supply of workers increases and firms can pay lower wages. 
B) cause a rightward shift of the labor demand and labor supply curves as more workers are willing to work and firms can pay lower wages. 
C) cause a rightward shift of the labor supply curve as more workers are willing to work at any given wage. 
D) cause a rightward shift of the labor demand curve as the supply of workers increases and firms can pay lower wages. 
E) cause an upward movement along the labor supply curve as more workers are available for work.

Question 2

The unemployment rate in the absence of cyclical increases or decreases in the economy is known as

Accepted Answer

A) the natural rate of unemployment. 
B) the anticyclical employment rate. 
C) the structural rate of unemployment. 
D) the absence unemployment rate. 
E) None of these 
A) the natural rate of unemployment. 
B) the anticyclical employment rate. 
C) the structural rate of unemployment. 
D) the absence unemployment rate. 
E) None of these

Question 3

There has been a significant increase in the participation of women in the labor force in the decade between 1996 and 2010.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following would cause aggregate hours to increase?

Accepted Answer

A) An increase in the employment-to-population ratio 
B) A decrease in the employment-to-population ratio 
C) A decrease in the number of hours worked per employed worker 
D) A decrease in the working-age population 
E) An increase in the number of part-time workers 
A) An increase in the employment-to-population ratio 
B) A decrease in the employment-to-population ratio 
C) A decrease in the number of hours worked per employed worker 
D) A decrease in the working-age population 
E) An increase in the number of part-time workers

Question 5

Frictional unemployment best describes those unemployed

Accepted Answer

A) more than 5 weeks but less than 6 months. 
B) for more than 6 months. 
C) for less than 5 weeks. 
D) for more than 5 weeks. 
E) for less than a week. 
A) more than 5 weeks but less than 6 months. 
B) for more than 6 months. 
C) for less than 5 weeks. 
D) for more than 5 weeks. 
E) for less than a week.

Question 6

Exhibit 20-1
  
-According to the data in Exhibit 20-1, the employment-to-population ratio is

Accepted Answer

A) 67 percent. 
B) 62 percent. 
C) 72 percent. 
D) 93 percent. 
E) 51 percent. 
A) 67 percent. 
B) 62 percent. 
C) 72 percent. 
D) 93 percent. 
E) 51 percent.

Question 7

Suppose that, in the year 2016, the U.S. working-age population is 300 million people, the total labor force is 240 million, and the unemployment rate is 6 percent.

Accepted Answer

The answer of Suppose that, in the year 2016, the...

Question 8

Should policymakers worry more about structural unemployment or frictional unemployment?

Accepted Answer

Structural unemployment, because it is m

Question 9

Which of the following is true?

Accepted Answer

A) The employment-to-population ratio has decreased over the past 30 years. 
B) The labor force participation rate has decreased over the past 30 years. 
C) The employment-to-population ratio has increased over the past 30 years. 
D) The labor force participation rate, the unemployment rate, and the employment-to-population ratio have all increased over the past 30 years. 
E) The unemployment rate has increased over the past 30 years. 
A) The employment-to-population ratio has decreased over the past 30 years. 
B) The labor force participation rate has decreased over the past 30 years. 
C) The employment-to-population ratio has increased over the past 30 years. 
D) The labor force participation rate, the unemployment rate, and the employment-to-population ratio have all increased over the past 30 years. 
E) The unemployment rate has increased over the past 30 years.

Question 10

According to the job-rationing theory of unemployment, the number of workers employed equals the amount of labor supplied by households.

Accepted Answer

A) True 
 B)False

Question 11

The natural unemployment rate has been constant over the past 40 years.

Accepted Answer

A) True 
 B)False

Question 12

Frictional unemployment is defined as the increase in the unemployment rate during a recession.

Accepted Answer

A) True 
 B)False

Question 13

The natural unemployment rate is based on

Accepted Answer

A) rationing and job-search explanations. 
B) cyclical unemployment. 
C) seasonal unemployment. 
D) the discouraged-worker effect. 
E) the belief that the free market works. 
A) rationing and job-search explanations. 
B) cyclical unemployment. 
C) seasonal unemployment. 
D) the discouraged-worker effect. 
E) the belief that the free market works.

Question 14

Which of the following statements is false?

Accepted Answer

A) The likelihood of losing a job declines during a boom. 
B) Job vacancies and unemployment exist at the same time. 
C) The only component of unemployment that is related to the business cycle is job losers. 
D) The likelihood of losing a job increases during a recession. 
E) People lose their jobs only during recessions. 
A) The likelihood of losing a job declines during a boom. 
B) Job vacancies and unemployment exist at the same time. 
C) The only component of unemployment that is related to the business cycle is job losers. 
D) The likelihood of losing a job increases during a recession. 
E) People lose their jobs only during recessions.

Question 15

On average, half of all unemployed workers are unemployed because they lost their job.

Accepted Answer

A) True 
 B)False

Question 16

Since World War II, the real wage has increased while the employment-to-population ratio has increased. This is consistent with

Accepted Answer

A) a rightward shift of the labor supply curve and a movement along the labor demand curve. 
B) a leftward shift of the labor demand curve and a movement along the labor supply curve. 
C) a rightward shift of the labor demand curve and a movement along the labor supply curve. 
D) a leftward shift of the labor supply curve and a movement along the labor demand curve. 
E) both the labor demand and the labor supply curves shifting to the left. 
A) a rightward shift of the labor supply curve and a movement along the labor demand curve. 
B) a leftward shift of the labor demand curve and a movement along the labor supply curve. 
C) a rightward shift of the labor demand curve and a movement along the labor supply curve. 
D) a leftward shift of the labor supply curve and a movement along the labor demand curve. 
E) both the labor demand and the labor supply curves shifting to the left.

Question 17

Higher unemployment caused by higher unemployment compensation can be explained by

Accepted Answer

A) the insider-outsider theory. 
B) the discouraged-worker theory. 
C) the minimum-wage theory. 
D) the job-search theory. 
E) the efficiency-wage theory. 
A) the insider-outsider theory. 
B) the discouraged-worker theory. 
C) the minimum-wage theory. 
D) the job-search theory. 
E) the efficiency-wage theory.

Question 18

If a worker is paid the efficiency wage,

Accepted Answer

A) unemployment is equal to the natural rate. 
B) the wage is below the equilibrium level. 
C) there is an excess supply of labor. 
D) the wage is equal to the equilibrium level. 
E) there is an excess demand for labor. 
A) unemployment is equal to the natural rate. 
B) the wage is below the equilibrium level. 
C) there is an excess supply of labor. 
D) the wage is equal to the equilibrium level. 
E) there is an excess demand for labor.

Question 19

The natural unemployment rate is caused by a combination of

Accepted Answer

A) frictional and structural unemployment. 
B) cyclical and real unemployment. 
C) cyclical and natural unemployment. 
D) real and natural unemployment. 
E) real and nominal unemployment. 
A) frictional and structural unemployment. 
B) cyclical and real unemployment. 
C) cyclical and natural unemployment. 
D) real and natural unemployment. 
E) real and nominal unemployment.

Question 20

Which of the following supports the contention that the differences in the minimum wage can explain differences in unemployment rates among young people across countries?

Accepted Answer

A) The minimum wage as a percentage of the average wage is lower in the United States than in France. 
B) The minimum wage as a percentage of the average wage is lower in France than it is in the United States. 
C) The minimum wage as a percentage of the average wage is lower in the United States than in Spain. 
D) The minimum wage as a percentage of the average wage is lower in Spain than it is in the United States. 
E) The minimum wage as a percentage of the average wage is lower in Spain than it is in the United States or France. 
A) The minimum wage as a percentage of the average wage is lower in the United States than in France. 
B) The minimum wage as a percentage of the average wage is lower in France than it is in the United States. 
C) The minimum wage as a percentage of the average wage is lower in the United States than in Spain. 
D) The minimum wage as a percentage of the average wage is lower in Spain than it is in the United States. 
E) The minimum wage as a percentage of the average wage is lower in Spain than it is in the United States or France.

Exam 20: Unemployment and Employment

Suppose there is a large increase in the number of workers migrating to a particular country. For that particular country, this is likely to

The unemployment rate in the absence of cyclical increases or decreases in the economy is known as

There has been a significant increase in the participation of women in the labor force in the decade between 1996 and 2010.

Which of the following would cause aggregate hours to increase?

Frictional unemployment best describes those unemployed

Exhibit 20-1 -According to the data in Exhibit 20-1, the employment-to-population ratio is

Suppose that, in the year 2016, the U.S. working-age population is 300 million people, the total labor force is 240 million, and the unemployment rate is 6 percent.

Should policymakers worry more about structural unemployment or frictional unemployment?

Which of the following is true?

According to the job-rationing theory of unemployment, the number of workers employed equals the amount of labor supplied by households.

The natural unemployment rate has been constant over the past 40 years.

Frictional unemployment is defined as the increase in the unemployment rate during a recession.

The natural unemployment rate is based on

Which of the following statements is false?

On average, half of all unemployed workers are unemployed because they lost their job.

Since World War II, the real wage has increased while the employment-to-population ratio has increased. This is consistent with

Higher unemployment caused by higher unemployment compensation can be explained by

If a worker is paid the efficiency wage,

The natural unemployment rate is caused by a combination of

Which of the following supports the contention that the differences in the minimum wage can explain differences in unemployment rates among young people across countries?

The Central Idea

Observing and Explaining the Economy

The Supply and Demand Model

Subtleties of the Supply and Demand Model

The Demand Curve and the Behavior of Consumers

The Supply Curve and the Behavior of Firms

The Efficiency of Markets

Costs and the Changes at Firms Over Time

The Rise and Fall of Industries

Monopoly

Product Differentiation, Monopolistic Competition, and Oligopoly

Antitrust Policy and Regulation

Labor Markets

Taxes, Transfers, and Income Distribution

Public Goods, Externalities, and Government Behavior

Capital and Financial Markets

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Economic Growth Around the World

International Trade

International Finance

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