Question 1

Which of the following will cause the natural unemployment rate to decline?

Accepted Answer

A) Reducing unemployment compensation 
B) Increasing welfare payments 
C) Increasing the bargaining strength of labor 
D) Increasing unemployment compensation 
E) Increasing the minimum wage 
A) Reducing unemployment compensation 
B) Increasing welfare payments 
C) Increasing the bargaining strength of labor 
D) Increasing unemployment compensation 
E) Increasing the minimum wage

Question 2

The unemployment rate reported in the newspaper is usually adjusted so it doesn't include seasonal fluctuations.

Accepted Answer

A) True 
 B)False

Question 3

A minimum wage

Accepted Answer

A) prevents the real wage from increasing to its equilibrium amount. 
B) prevents employment from increasing to its equilibrium level. 
C) cannot have any effect on employment. 
D) prevents employment from declining to its equilibrium level. 
E) guarantees that the labor market will be at equilibrium. 
A) prevents the real wage from increasing to its equilibrium amount. 
B) prevents employment from increasing to its equilibrium level. 
C) cannot have any effect on employment. 
D) prevents employment from declining to its equilibrium level. 
E) guarantees that the labor market will be at equilibrium.

Question 4

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

Accepted Answer

A) Unemployment insurance being abolished 
B) A recession in the economy 
C) More young people entering the work force 
D) An increase in migration to other countries 
E) People having fewer children 
A) Unemployment insurance being abolished 
B) A recession in the economy 
C) More young people entering the work force 
D) An increase in migration to other countries 
E) People having fewer children

Question 5

Which of the following statements about the natural rate of unemployment is true?

Accepted Answer

A) The natural rate of unemployment declined during the 1970s. 
B) An aging labor force causes the natural rate of unemployment to decline. 
C) Economists are able to precisely calculate the natural rate of unemployment. 
D) The natural rate of unemployment has remained constant over the past 30 years. 
E) The term natural in natural rate of unemployment is meant to imply that this is the unemployment rate that the economy should always try to strive for. 
A) The natural rate of unemployment declined during the 1970s. 
B) An aging labor force causes the natural rate of unemployment to decline. 
C) Economists are able to precisely calculate the natural rate of unemployment. 
D) The natural rate of unemployment has remained constant over the past 30 years. 
E) The term natural in natural rate of unemployment is meant to imply that this is the unemployment rate that the economy should always try to strive for.

Question 6

Suppose the wage is $15 per hour. At this wage, firms are willing to hire 200 million people, and 220 million people are willing to work.

Accepted Answer

The answer of Suppose the wage is $15 per hour....

Question 7

The average number of hours worked per week has increased as a result of more people working part-time.

Accepted Answer

A) True 
 B)False

Question 8

Various projections have been made about the size of the labor force in a country in 2025. These projections are contingent on estimates of the participation rates of various demographic groups and estimates for net immigration. Based on the scenario in the table below, calculate total employment and the employment-to-population ratio.

Accepted Answer

The answer of Various projections have been made about the...

Question 9

Which of the following is not in agreement with the definition of frictional unemployment?

Accepted Answer

A) It occurs when new workers enter the labor force and must look for work. 
B) It can also occur in the time when workers change jobs. 
C) It is most commonly short-lived. 
D) It appears because of the natural friction between bosses and their employees. 
E) All of these are part of the definition of frictional unemployment. 
A) It occurs when new workers enter the labor force and must look for work. 
B) It can also occur in the time when workers change jobs. 
C) It is most commonly short-lived. 
D) It appears because of the natural friction between bosses and their employees. 
E) All of these are part of the definition of frictional unemployment.

Question 10

Which of the following was the approximate unemployment rate of the United States by the end of 2016?

Accepted Answer

A) 1 percent. 
B) 2.3 percent 
C) 4.7 percent. 
D) 8.9 percent. 
E) 24.1 percent. 
A) 1 percent. 
B) 2.3 percent 
C) 4.7 percent. 
D) 8.9 percent. 
E) 24.1 percent.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The unemployment rate for young adults is higher in France and Spain than it is in the United States. Why do economists attribute this to differences in the natural unemployment rate and not to cyclical factors?

Accepted Answer

The differences in the young a

Question 13

Which of the following statements is true?

Accepted Answer

A) Tax rates on labor income are higher in Spain than they are in the United States, and France.Spain's unemployment rate among young adults is the highest of these three countries. 
B) Though the unemployment rate among young adults is higher in Spain than in France, the tax rate on wage income is higher in France than in Spain. 
C) Though the unemployment rate among young adults is higher in France than in Spain, the tax rate on wage income is higher in Spain than in France. 
D) Though the unemployment rate among young adults is higher in France than in the United States, the tax rate on wage income is higher in the United States than in France. 
E) Though the unemployment rate among young adults is higher in Spain than in the United States, the tax rate on wage income is higher in the United States than in Spain. 
A) Tax rates on labor income are higher in Spain than they are in the United States, and France.Spain's unemployment rate among young adults is the highest of these three countries. 
B) Though the unemployment rate among young adults is higher in Spain than in France, the tax rate on wage income is higher in France than in Spain. 
C) Though the unemployment rate among young adults is higher in France than in Spain, the tax rate on wage income is higher in Spain than in France. 
D) Though the unemployment rate among young adults is higher in France than in the United States, the tax rate on wage income is higher in the United States than in France. 
E) Though the unemployment rate among young adults is higher in Spain than in the United States, the tax rate on wage income is higher in the United States than in Spain.

Question 14

The employment-to-population ratio is the highest it has been in U.S. history.

Accepted Answer

A) True 
 B)False

Question 15

Ceteris paribus, a leftward shift in the labor demand curve would cause

Accepted Answer

A) the real wage to increase and the amount of labor employed to decline. 
B) both the real wage and the amount employed to increase. 
C) the real wage to decrease and the amount of labor employed to increase. 
D) both the real wage and the amount employed to decrease. 
E) neither the real wage nor the amount employed to change. 
A) the real wage to increase and the amount of labor employed to decline. 
B) both the real wage and the amount employed to increase. 
C) the real wage to decrease and the amount of labor employed to increase. 
D) both the real wage and the amount employed to decrease. 
E) neither the real wage nor the amount employed to change.

Question 16

Creative destruction occurs when

Accepted Answer

A) more jobs are created than destroyed. 
B) an individual loses a job. 
C) the forces causing the destruction of certain types of jobs result in the creation of better types of jobs. 
D) service sector jobs replace manufacturing jobs. 
E) a job involving creativity is replaced by mass production. 
A) more jobs are created than destroyed. 
B) an individual loses a job. 
C) the forces causing the destruction of certain types of jobs result in the creation of better types of jobs. 
D) service sector jobs replace manufacturing jobs. 
E) a job involving creativity is replaced by mass production.

Question 17

Roughly, the percentage of U.S. workers that is employed part-time is about 1 percent.

Accepted Answer

A) True 
 B)False

Question 18

Of the unemployment rate, the employment-to-population ratio, and the labor force participation rate, which of the three is(are) unaffected by the discouraged worker phenomenon?

Accepted Answer

A) Only the unemployment rate 
B) Both the unemployment rate and the employment-to-population ratio 
C) Only the employment-to-population ratio 
D) Only the labor force participation rate 
E) Both the unemployment rate and the labor force participation rate 
A) Only the unemployment rate 
B) Both the unemployment rate and the employment-to-population ratio 
C) Only the employment-to-population ratio 
D) Only the labor force participation rate 
E) Both the unemployment rate and the labor force participation rate

Question 19

According to the labor-supply-and-demand model if the economy enters a recession then the demand for labor shifts to the left.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements about the U.S. employment statistics is not true?

Accepted Answer

A) Since the 1950s, a growing number of women are part of the labor force. 
B) In 1956, about 37 percent of women were part of the labor force. 
C) In 2016, almost 60 percent of women were part of the labor force. 
D) There was a significant increase in the participation of women in the labor force in the decade between 1996 and 2016. 
E) All of these are true facts. 
A) Since the 1950s, a growing number of women are part of the labor force. 
B) In 1956, about 37 percent of women were part of the labor force. 
C) In 2016, almost 60 percent of women were part of the labor force. 
D) There was a significant increase in the participation of women in the labor force in the decade between 1996 and 2016. 
E) All of these are true facts.

Exam 20: Unemployment and Employment

Which of the following will cause the natural unemployment rate to decline?

The unemployment rate reported in the newspaper is usually adjusted so it doesn't include seasonal fluctuations.

A minimum wage

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

Which of the following statements about the natural rate of unemployment is true?

Suppose the wage is $15 per hour. At this wage, firms are willing to hire 200 million people, and 220 million people are willing to work.

The average number of hours worked per week has increased as a result of more people working part-time.

Which of the following is not in agreement with the definition of frictional unemployment?

Which of the following was the approximate unemployment rate of the United States by the end of 2016?

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

The unemployment rate for young adults is higher in France and Spain than it is in the United States. Why do economists attribute this to differences in the natural unemployment rate and not to cyclical factors?

Which of the following statements is true?

The employment-to-population ratio is the highest it has been in U.S. history.

Ceteris paribus, a leftward shift in the labor demand curve would cause

Creative destruction occurs when

Roughly, the percentage of U.S. workers that is employed part-time is about 1 percent.

Of the unemployment rate, the employment-to-population ratio, and the labor force participation rate, which of the three is(are) unaffected by the discouraged worker phenomenon?

According to the labor-supply-and-demand model if the economy enters a recession then the demand for labor shifts to the left.

Which of the following statements about the U.S. employment statistics is not true?

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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

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