Question 1

The efficiency-wage theory best explains high teenage unemployment.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following groups will likely have an average unemployment rate that will be significantly lower than the average unemployment rate of the general population?

Accepted Answer

A) College graduates 
B) Teenagers in working age 
C) Teenagers without college education 
D) All of the above 
E) None of the above 
A) College graduates 
B) Teenagers in working age 
C) Teenagers without college education 
D) All of the above 
E) None of the above

Question 3

If people have more children, the unemployment rate will increase when the children enter the work force.

Accepted Answer

A) True 
 B)False

Question 4

The employment-to-population ratio in the United States has increased in the 30 years from about 57 percent in 1970 to over 60 percent in 2016.

Accepted Answer

A) True 
 B)False

Question 5

If the labor market is at the intersection of supply and demand then the unemployment rate is equal to the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 6

According to the job-rationing explanation of unemployment, if there is unemployment,

Accepted Answer

A) the number of people employed will increase to the equilibrium level. 
B) the real wage will increase to the equilibrium level. 
C) the real wage will not fall to the equilibrium level. 
D) the real wage will fall to the equilibrium level. 
E) the number of people employed will decline to the equilibrium level. 
A) the number of people employed will increase to the equilibrium level. 
B) the real wage will increase to the equilibrium level. 
C) the real wage will not fall to the equilibrium level. 
D) the real wage will fall to the equilibrium level. 
E) the number of people employed will decline to the equilibrium level.

Question 7

The growth of aggregate labor hours in the United States is slowing down. What has been cited as one of the main reasons explaining this slowdown?

Accepted Answer

A) Technological changes 
B) A slowdown in the growth of the working-age population itself 
C) Globalization trends 
D) All of the above 
E) None of the above 
A) Technological changes 
B) A slowdown in the growth of the working-age population itself 
C) Globalization trends 
D) All of the above 
E) None of the above

Question 8

Which of the following statements is true?

Accepted Answer

A) The fraction of women working part-time is greater than men, but men and women are just as likely to work part-time for reasons of personal choice. 
B) The fraction of men working part-time is greater than women, and women give personal choice as a reason for working part-time more frequently than men. 
C) The fraction of women working part-time is greater than men, and women give personal choice as a reason for working part-time more frequently than men. 
D) The fraction of men working part-time is greater than women, and men give personal choice as a reason for working part-time more frequently than women. 
E) The fraction of women working part-time is greater than men, but men give personal choice as a reason for working part-time more frequently than women. 
A) The fraction of women working part-time is greater than men, but men and women are just as likely to work part-time for reasons of personal choice. 
B) The fraction of men working part-time is greater than women, and women give personal choice as a reason for working part-time more frequently than men. 
C) The fraction of women working part-time is greater than men, and women give personal choice as a reason for working part-time more frequently than men. 
D) The fraction of men working part-time is greater than women, and men give personal choice as a reason for working part-time more frequently than women. 
E) The fraction of women working part-time is greater than men, but men give personal choice as a reason for working part-time more frequently than women.

Question 9

If more women decide to enter the labor market,

Accepted Answer

A) the unemployment rate will immediately decrease. 
B) the labor force participation rate will immediately increase. 
C) the labor force participation rate will immediately decrease. 
D) the employment-to-population ratio will immediately increase. 
E) the employment-to-population rate will immediately decrease. 
A) the unemployment rate will immediately decrease. 
B) the labor force participation rate will immediately increase. 
C) the labor force participation rate will immediately decrease. 
D) the employment-to-population ratio will immediately increase. 
E) the employment-to-population rate will immediately decrease.

Question 10

Which of the following is not a category that was proposed in the textbook to divide the 4.5 percent of unemployed people in the American economy?

Accepted Answer

A) Job losers 
B) Job leavers 
C) New entrants 
D) All of the above are categories used to divide the unemployment rate. 
E) None of the above are categories used to divide the unemployment rate. 
A) Job losers 
B) Job leavers 
C) New entrants 
D) All of the above are categories used to divide the unemployment rate. 
E) None of the above are categories used to divide the unemployment rate.

Question 11

The most difficult part of measuring the amount of unemployment is

Accepted Answer

A) defining and measuring the working-age population. 
B) defining and measuring who is employed. 
C) defining and measuring who is in the labor force. 
D) deciding who to include in the Current Population Survey. 
E) None of these 
A) defining and measuring the working-age population. 
B) defining and measuring who is employed. 
C) defining and measuring who is in the labor force. 
D) deciding who to include in the Current Population Survey. 
E) None of these

Question 12

During a recession, you would expect there to be fewer job leavers.

Accepted Answer

A) True 
 B)False

Question 13

The main reason for the current decline in the growth rate of aggregate hours is that the growth rate of the working-age population is declining.

Accepted Answer

A) True 
 B)False

Question 14

Countries can reduce unemployment among young people without cost by reducing the minimum wage for young people or reducing unemployment compensation.

Accepted Answer

A) True 
 B)False

Question 15

If more jobs are created than destroyed on average, then according to the labor-supply-and-demand model, the labor demand curve will shift to the right.

Accepted Answer

A) True 
 B)False

Question 16

A student who is not looking for work will be considered part of the labor force but not unemployed.

Accepted Answer

A) True 
 B)False

Question 17

The type of unemployment that occurs because technological changes make some jobs obsolete is known as

Accepted Answer

A) structural unemployment. 
B) cyclical unemployment. 
C) technological unemployment. 
D) unemployment. 
A) structural unemployment. 
B) cyclical unemployment. 
C) technological unemployment. 
D) unemployment.

Question 18

Greater labor force participation for households at higher real wage rates is one reason that

Accepted Answer

A) the demand for labor curve is upward-sloping. 
B) the supply of labor curve is downward-sloping. 
C) the demand for labor curve is downward-sloping. 
D) the supply of labor curve is upward-sloping. 
E) the demand for labor curve has shifted to the right. 
A) the demand for labor curve is upward-sloping. 
B) the supply of labor curve is downward-sloping. 
C) the demand for labor curve is downward-sloping. 
D) the supply of labor curve is upward-sloping. 
E) the demand for labor curve has shifted to the right.

Question 19

To calculate the relative price of labor, one needs to know

Accepted Answer

A) only the reciprocal of the price level. 
B) both the nominal wage and the price level. 
C) the nominal market wage relative to wages paid elsewhere. 
D) only the nominal market wage. 
E) both the price of consumer goods and the price of the product being produced. 
A) only the reciprocal of the price level. 
B) both the nominal wage and the price level. 
C) the nominal market wage relative to wages paid elsewhere. 
D) only the nominal market wage. 
E) both the price of consumer goods and the price of the product being produced.

Question 20

Unemployment for more than six months is classified as long-term unemployment.

Accepted Answer

A) True 
 B)False

Exam 20: Unemployment and Employment

The efficiency-wage theory best explains high teenage unemployment.

Which of the following groups will likely have an average unemployment rate that will be significantly lower than the average unemployment rate of the general population?

If people have more children, the unemployment rate will increase when the children enter the work force.

The employment-to-population ratio in the United States has increased in the 30 years from about 57 percent in 1970 to over 60 percent in 2016.

If the labor market is at the intersection of supply and demand then the unemployment rate is equal to the natural rate of unemployment.

According to the job-rationing explanation of unemployment, if there is unemployment,

The growth of aggregate labor hours in the United States is slowing down. What has been cited as one of the main reasons explaining this slowdown?

Which of the following statements is true?

If more women decide to enter the labor market,

Which of the following is not a category that was proposed in the textbook to divide the 4.5 percent of unemployed people in the American economy?

The most difficult part of measuring the amount of unemployment is

During a recession, you would expect there to be fewer job leavers.

The main reason for the current decline in the growth rate of aggregate hours is that the growth rate of the working-age population is declining.

Countries can reduce unemployment among young people without cost by reducing the minimum wage for young people or reducing unemployment compensation.

If more jobs are created than destroyed on average, then according to the labor-supply-and-demand model, the labor demand curve will shift to the right.

A student who is not looking for work will be considered part of the labor force but not unemployed.

The type of unemployment that occurs because technological changes make some jobs obsolete is known as

Greater labor force participation for households at higher real wage rates is one reason that

To calculate the relative price of labor, one needs to know

Unemployment for more than six months is classified as long-term unemployment.

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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