Question 1

The incidence of unemployment is the same for all demographic groups.

Accepted Answer

A) True 
 B)False

Question 2

A person who quits a job is not counted as unemployed.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is the best measure of labor input?

Accepted Answer

A) The employment-to-population ratio 
B) The unemployment rate 
C) The labor force participation rate 
D) The employed labor force 
E) Aggregate hours 
A) The employment-to-population ratio 
B) The unemployment rate 
C) The labor force participation rate 
D) The employed labor force 
E) Aggregate hours

Question 4

The unemployment rate among black teenagers is much greater than the overall unemployment rate.

Accepted Answer

A) True 
 B)False

Question 5

The growth of aggregate labor hours in the U.S. is slowing down, increasing by less than one percent per year between 2005 and 2015.

Accepted Answer

A) True 
 B)False

Question 6

Among the United States, France, and Spain, Spain has both the highest minimum wage (as a fraction of the average wage) and the highest unemployment rate among young adults.

Accepted Answer

A) True 
 B)False

Question 7

In the insider-outsider theory of unemployment, those already employed can prevent firms from hiring unemployed workers willing to work at a lower wage.

Accepted Answer

A) True 
 B)False

Question 8

The employed labor force is a good measure of the labor input to production.

Accepted Answer

A) True 
 B)False

Question 9

For the United States, France, and Spain there is a positive correlation between the percentage of young people living with their parents and the unemployment rate among young people.

Accepted Answer

A) True 
 B)False

Question 10

Why is there unemployment when real GDP equals potential GDP?

Accepted Answer

Even when the economy is not i

Question 11

Which of the following might cause the natural unemployment rate to decrease?

Accepted Answer

A) More young people entering the work force 
B) An increase in unemployment insurance payments 
C) A decrease in the number of people migrating to other countries 
D) Less young people entering the work force 
E) People having more children 
A) More young people entering the work force 
B) An increase in unemployment insurance payments 
C) A decrease in the number of people migrating to other countries 
D) Less young people entering the work force 
E) People having more children

Question 12

People are counted as being unemployed because they are

Accepted Answer

A) job losers, job leavers, or discouraged workers. 
B) job leavers, discouraged workers, reentrants, or new entrants. 
C) job losers, job leavers, reentrants, or new entrants. 
D) job losers, reentrants, new entrants, or discouraged workers. 
E) job losers, part-time workers, or discouraged workers. 
A) job losers, job leavers, or discouraged workers. 
B) job leavers, discouraged workers, reentrants, or new entrants. 
C) job losers, job leavers, reentrants, or new entrants. 
D) job losers, reentrants, new entrants, or discouraged workers. 
E) job losers, part-time workers, or discouraged workers.

Question 13

Cyclical unemployment refers to that kind of unemployment that is related to the short-term cyclical fluctuations of the economy.

Accepted Answer

A) True 
 B)False

Question 14

A higher tax rate on wages

Accepted Answer

A) shifts the labor demand curve down to the left. 
B) shifts the labor demand curve up to the right. 
C) does not shift the labor demand or the labor supply curve. 
D) shifts the labor supply curve down to the right. 
E) shifts the labor demand curve up to the right and the labor supply curve up to the left. 
A) shifts the labor demand curve down to the left. 
B) shifts the labor demand curve up to the right. 
C) does not shift the labor demand or the labor supply curve. 
D) shifts the labor supply curve down to the right. 
E) shifts the labor demand curve up to the right and the labor supply curve up to the left.

Question 15

Suppose the government decides to set up a website to link prospective employers and employees. Employers can post jobs and employees can then send resumes.

Accepted Answer

The answer of Suppose the government decides to set up...

Question 16

The official definition of a part-time worker is any individual working

Accepted Answer

A) between 1 and 10 hours per week. 
B) between 1 and 34 hours per week. 
C) between 1 and 25 hours per week. 
D) between 1 and 20 hours per week. 
E) between 1 and 40 hours per week. 
A) between 1 and 10 hours per week. 
B) between 1 and 34 hours per week. 
C) between 1 and 25 hours per week. 
D) between 1 and 20 hours per week. 
E) between 1 and 40 hours per week.

Question 17

Suppose an individual is working at home without pay. That person would be counted as

Accepted Answer

A) employed. 
B) unemployed. 
C) Not enough information is given. 
D) not in the labor force. 
E) self-employed. 
A) employed. 
B) unemployed. 
C) Not enough information is given. 
D) not in the labor force. 
E) self-employed.

Question 18

According to the labor supply schedule, if the price level increases, people will be willing to work more hours because they will need to earn more money to pay for the higher-priced goods.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following explanations argues that the labor market is never in a state of rest?

Accepted Answer

A) The stochastic-worker explanation 
B) The job-search explanation 
C) The minimum-wage explanation 
D) The efficiency-wage explanation 
E) The insider-outsider explanation 
A) The stochastic-worker explanation 
B) The job-search explanation 
C) The minimum-wage explanation 
D) The efficiency-wage explanation 
E) The insider-outsider explanation

Question 20

An individual who only works 11 months out of a year is classified as a part-time worker.

Accepted Answer

A) True 
 B)False

Exam 20: Unemployment and Employment

The incidence of unemployment is the same for all demographic groups.

A person who quits a job is not counted as unemployed.

Which of the following is the best measure of labor input?

The unemployment rate among black teenagers is much greater than the overall unemployment rate.

The growth of aggregate labor hours in the U.S. is slowing down, increasing by less than one percent per year between 2005 and 2015.

Among the United States, France, and Spain, Spain has both the highest minimum wage (as a fraction of the average wage) and the highest unemployment rate among young adults.

In the insider-outsider theory of unemployment, those already employed can prevent firms from hiring unemployed workers willing to work at a lower wage.

The employed labor force is a good measure of the labor input to production.

For the United States, France, and Spain there is a positive correlation between the percentage of young people living with their parents and the unemployment rate among young people.

Why is there unemployment when real GDP equals potential GDP?

Which of the following might cause the natural unemployment rate to decrease?

People are counted as being unemployed because they are

Cyclical unemployment refers to that kind of unemployment that is related to the short-term cyclical fluctuations of the economy.

A higher tax rate on wages

Suppose the government decides to set up a website to link prospective employers and employees. Employers can post jobs and employees can then send resumes.

The official definition of a part-time worker is any individual working

Suppose an individual is working at home without pay. That person would be counted as

According to the labor supply schedule, if the price level increases, people will be willing to work more hours because they will need to earn more money to pay for the higher-priced goods.

Which of the following explanations argues that the labor market is never in a state of rest?

An individual who only works 11 months out of a year is classified as a part-time worker.

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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