Question 1

Why is it difficult to determine who is and who isn't in the labor force? What consequence does this have, if any, for the labor market indicators?

Accepted Answer

To be in the labor force, an individual

Question 2

Which of the following groups of people was least likely to be unemployed in 2016?

Accepted Answer

A) All males 
B) All females 
C) All females 20 years and older 
D) All males 20 years and older 
E) All teens 16-19 
A) All males 
B) All females 
C) All females 20 years and older 
D) All males 20 years and older 
E) All teens 16-19

Question 3

A small percentage of unemployment is due to job leavers.

Accepted Answer

A) True 
 B)False

Question 4

Usually on the first Friday of each month, the U.S. Department of Labor releases information about employment and unemployment in the previous month.

Accepted Answer

A) True 
 B)False

Question 5

Exhibit 20-1
  
-According to the data in Exhibit 20-1, the unemployment rate is

Accepted Answer

A) 2.9 percent. 
B) 33 percent. 
C) 7.1 percent. 
D) 3.3 percent. 
E) 29 percent. 
A) 2.9 percent. 
B) 33 percent. 
C) 7.1 percent. 
D) 3.3 percent. 
E) 29 percent.

Question 6

Which of the following groups is likely to experience the highest rate of unemployment?

Accepted Answer

A) Adult men 
B) Adult women 
C) White teenagers 
D) Black teenagers 
E) The unemployment rate is the same for all of these groups. 
A) Adult men 
B) Adult women 
C) White teenagers 
D) Black teenagers 
E) The unemployment rate is the same for all of these groups.

Question 7

According to the job-rationing explanation of unemployment,

Accepted Answer

A) the amount employed depends on the supply of labor. 
B) the actual wage is less than the equilibrium wage. 
C) the amount employed depends on the demand for labor. 
D) the demand for labor is greater than the equilibrium amount. 
E) the supply of labor is less than the demand for labor. 
A) the amount employed depends on the supply of labor. 
B) the actual wage is less than the equilibrium wage. 
C) the amount employed depends on the demand for labor. 
D) the demand for labor is greater than the equilibrium amount. 
E) the supply of labor is less than the demand for labor.

Question 8

Explain why each of the following businesses would have an incentive to pay the efficiency wage.

Accepted Answer

The answer of Explain why each of the following businesses...

Question 9

The growth rate of aggregate hours in the United States is

Accepted Answer

A) slowing because the working-age population is growing more slowly. 
B) slowing because people are working fewer hours. 
C) slowing because the working-age population is growing more rapidly. 
D) increasing because people are working more hours. 
E) increasing because the working-age population is growing more rapidly. 
A) slowing because the working-age population is growing more slowly. 
B) slowing because people are working fewer hours. 
C) slowing because the working-age population is growing more rapidly. 
D) increasing because people are working more hours. 
E) increasing because the working-age population is growing more rapidly.

Question 10

Students entering the labor force for the first time in June each year cause

Accepted Answer

A) no change in unemployment. 
B) a cyclical increase in unemployment. 
C) a cyclical decrease in unemployment. 
D) a seasonal decrease in unemployment. 
E) a seasonal increase in unemployment. 
A) no change in unemployment. 
B) a cyclical increase in unemployment. 
C) a cyclical decrease in unemployment. 
D) a seasonal decrease in unemployment. 
E) a seasonal increase in unemployment.

Question 11

At the end of 2016, the working-age population in the United States was approximately

Accepted Answer

A) 320 million people. 
B) 139 million people. 
C) 239 million people. 
D) 154 million people. 
E) 65 million people. 
A) 320 million people. 
B) 139 million people. 
C) 239 million people. 
D) 154 million people. 
E) 65 million people.

Question 12

To be counted as unemployed a person must be

Accepted Answer

A) actively looking for work. 
B) All of these 
C) working less than one hour per week. 
D) 16 or older. 
E) in the labor force. 
A) actively looking for work. 
B) All of these 
C) working less than one hour per week. 
D) 16 or older. 
E) in the labor force.

Question 13

Which of the following examples best describes a discouraged worker?

Accepted Answer

A) A 25-year-old who, after not being able to find a legitimate job after searching for two years, makes his living selling drugs 
B) An incarcerated 17-year-old 
C) A college student who does not have time to work 
D) A 65-year-old individual who moves to Florida after retirement 
E) A 55-year-old who, after being laid off from a full-time job, is only able to find a job employing her for 15 hours a week 
A) A 25-year-old who, after not being able to find a legitimate job after searching for two years, makes his living selling drugs 
B) An incarcerated 17-year-old 
C) A college student who does not have time to work 
D) A 65-year-old individual who moves to Florida after retirement 
E) A 55-year-old who, after being laid off from a full-time job, is only able to find a job employing her for 15 hours a week

Question 14

Cyclical unemployment can best be described as the

Accepted Answer

A) increase in unemployment when the economy is in a boom. 
B) increase in unemployment when the economy is in a recession. 
C) amount of unemployment when real and potential GDP are equal. 
D) increase in unemployment above the natural rate during and in the aftermath of recessions. 
E) amount of unemployment when real and nominal GDP are equal. 
A) increase in unemployment when the economy is in a boom. 
B) increase in unemployment when the economy is in a recession. 
C) amount of unemployment when real and potential GDP are equal. 
D) increase in unemployment above the natural rate during and in the aftermath of recessions. 
E) amount of unemployment when real and nominal GDP are equal.

Question 15

Which of the following statements is true about the 2008-09 recession?

Accepted Answer

A) During that period, job losses in the United States were minimal and the unemployment rate fell. 
B) During that period, job losses in the United States were minimal, but the unemployment rate rose. 
C) During that period, job losses in the United States were large, but the unemployment rate fell. 
D) During that period, job losses in the United States were large and the unemployment rate rose. 
E) By the end of the 2008-09 recession, payroll employment increased in the United States. 
A) During that period, job losses in the United States were minimal and the unemployment rate fell. 
B) During that period, job losses in the United States were minimal, but the unemployment rate rose. 
C) During that period, job losses in the United States were large, but the unemployment rate fell. 
D) During that period, job losses in the United States were large and the unemployment rate rose. 
E) By the end of the 2008-09 recession, payroll employment increased in the United States.

Question 16

The relative price of labor is known as the

Accepted Answer

A) wage. 
B) real wage. 
C) relative wage. 
D) nominal wage. 
E) equilibrium wage. 
A) wage. 
B) real wage. 
C) relative wage. 
D) nominal wage. 
E) equilibrium wage.

Question 17

Name three policies a government could adopt to reduce the natural unemployment rate. Who would benefit and who would lose from each policy?

Accepted Answer

Lower minimum wage: Workers would lose b

Question 18

Answer the questions below:

Accepted Answer

The answer of Answer the questions below:
  
...

Question 19

Most unemployment is accounted for by

Accepted Answer

A) new entrants. 
B) reentrants. 
C) job leavers. 
D) job losers. 
E) discouraged workers. 
A) new entrants. 
B) reentrants. 
C) job leavers. 
D) job losers. 
E) discouraged workers.

Question 20

Structural unemployment is defined as unemployment that is more long term in nature.

Accepted Answer

A) True 
 B)False

Exam 20: Unemployment and Employment

Why is it difficult to determine who is and who isn't in the labor force? What consequence does this have, if any, for the labor market indicators?

Which of the following groups of people was least likely to be unemployed in 2016?

A small percentage of unemployment is due to job leavers.

Usually on the first Friday of each month, the U.S. Department of Labor releases information about employment and unemployment in the previous month.

Exhibit 20-1 -According to the data in Exhibit 20-1, the unemployment rate is

Which of the following groups is likely to experience the highest rate of unemployment?

According to the job-rationing explanation of unemployment,

Explain why each of the following businesses would have an incentive to pay the efficiency wage.

The growth rate of aggregate hours in the United States is

Students entering the labor force for the first time in June each year cause

At the end of 2016, the working-age population in the United States was approximately

To be counted as unemployed a person must be

Which of the following examples best describes a discouraged worker?

Cyclical unemployment can best be described as the

Which of the following statements is true about the 2008-09 recession?

The relative price of labor is known as the

Name three policies a government could adopt to reduce the natural unemployment rate. Who would benefit and who would lose from each policy?

Answer the questions below:

Most unemployment is accounted for by

Structural unemployment is defined as unemployment that is more long term in nature.

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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