Question 1

Regarding the categories of unemployment, how does a minimum-wage law compare to firms paying higher-than-equilibrium wages?

Accepted Answer

A)  The minimum wage creates frictional unemployment, while firms paying wages above equilibrium create structural unemployment. 
B)  The minimum wage creates structural unemployment, while firms paying wages above equilibrium create frictional unemployment. 
C)  The minimum wage and firms paying wages above equilibrium both create structural unemployment. 
D)  The minimum wage and firms paying wages above equilibrium both create frictional unemployment. 
A)  The minimum wage creates frictional unemployment, while firms paying wages above equilibrium create structural unemployment. 
B)  The minimum wage creates structural unemployment, while firms paying wages above equilibrium create frictional unemployment. 
C)  The minimum wage and firms paying wages above equilibrium both create structural unemployment. 
D)  The minimum wage and firms paying wages above equilibrium both create frictional unemployment.

Question 2

Geoff loses his job in May and decides to spend his summer fishing. Assuming that other things remain the same, what happens to the unemployment rate?

Accepted Answer

A)  The unemployment rate decreases because he is not in the labour force anymore. 
B)  The unemployment rate increases because he is still in the labour force. 
C)  The unemployment rate decreases because he is still in the labour force. 
D)  The unemployment rate increases because he is not in the labour force anymore. 
A)  The unemployment rate decreases because he is not in the labour force anymore. 
B)  The unemployment rate increases because he is still in the labour force. 
C)  The unemployment rate decreases because he is still in the labour force. 
D)  The unemployment rate increases because he is not in the labour force anymore.

Question 3

What is the effect of minimum-wage laws on unemployment?

Accepted Answer

A)  Minimum-wage laws are the major cause of natural unemployment. 
B)  Minimum-wage laws probably increase teenage unemployment. 
C)  Minimum-wage laws mainly affect skilled workers. 
D)  Minimum-wage laws have no impact on unemployment. 
A)  Minimum-wage laws are the major cause of natural unemployment. 
B)  Minimum-wage laws probably increase teenage unemployment. 
C)  Minimum-wage laws mainly affect skilled workers. 
D)  Minimum-wage laws have no impact on unemployment.

Question 4

Even though the difference in labour-force participation rates of males and females has narrowed, the participation rate of males remains higher.

Accepted Answer

A) True 
 B)False

Question 5

What industry in the Canadian economy has the highest percentage of unionized workers?

Accepted Answer

A)  agriculture 
B)  the public sector 
C)  oil and gas 
D)  food and accommodation 
A)  agriculture 
B)  the public sector 
C)  oil and gas 
D)  food and accommodation

Question 6

Rebecca's contract position with Elections Canada ended after the federal election. She is now looking for another job, but has not yet found one. Which pair of categories does Rebecca now belong to?

Accepted Answer

A)  unemployed and not in the labour force 
B)  unemployed and in the labour force 
C)  employed and not in the labour force 
D)  employed and in the labour force 
A)  unemployed and not in the labour force 
B)  unemployed and in the labour force 
C)  employed and not in the labour force 
D)  employed and in the labour force

Question 7

A foreign governmental statistics agency recently reported that there were 37.6 million people over age 25 who had at least a bachelor's degree. Of this number, 28.0 million were in the labour force and 25.9 million were employed. What was the unemployment rate in this group?

Accepted Answer

A)  about 5.6 percent 
B)  about 7.5 percent 
C)  about 7.7 percent 
D)  about 31.1 percent 
A)  about 5.6 percent 
B)  about 7.5 percent 
C)  about 7.7 percent 
D)  about 31.1 percent

Question 8

What impact does employment insurance have on the labour market?

Accepted Answer

A)  It reduces search effort and raises unemployment. 
B)  It reduces discouraged search efforts and lowers unemployment. 
C)  It increases successful search efforts and reduces unemployment. 
D)  It increases search effort and increases unemployment. 
A)  It reduces search effort and raises unemployment. 
B)  It reduces discouraged search efforts and lowers unemployment. 
C)  It increases successful search efforts and reduces unemployment. 
D)  It increases search effort and increases unemployment.

Question 9

Where is the unemployment rate more likely higher?

Accepted Answer

A)  where minimum wages are lower, because people don't take low-paid jobs 
B)  in the public sector, because less workers are unionized 
C)  where EI benefits are higher, because people have less incentive to find jobs 
D)  in the private sector, because minimum wages are higher 
A)  where minimum wages are lower, because people don't take low-paid jobs 
B)  in the public sector, because less workers are unionized 
C)  where EI benefits are higher, because people have less incentive to find jobs 
D)  in the private sector, because minimum wages are higher

Question 10

Frictional unemployment is different from unemployment arising from minimum-wage laws, unions, and efficiency wages because in the former, workers are searching for the jobs that best suit them, while in the latter, workers are waiting for jobs to open up.

Accepted Answer

A) True 
 B)False

Question 11

Even though most spells of unemployment are short, most unemployment results from long-term unemployment.

Accepted Answer

A) True 
 B)False

Question 12

Which data does Statistics Canada NOT produce?

Accepted Answer

A)  monthly data on unemployment 
B)  data on types of employment 
C)  data on length of the average workweek 
D)  daily data on unemployment 
A)  monthly data on unemployment 
B)  data on types of employment 
C)  data on length of the average workweek 
D)  daily data on unemployment

Question 13

When a union bargains successfully with employers, what happens to quantity of labour supplied and demanded in that industry?

Accepted Answer

A)  Both the quantity of labour supplied and the quantity of labour demanded increase. 
B)  Both the quantity of labour supplied and the quantity of labour demanded decrease. 
C)  The quantity of labour supplied increases and the quantity of labour demanded decreases. 
D)  The quantity of labour supplied decreases the quantity of labour demanded increases. 
A)  Both the quantity of labour supplied and the quantity of labour demanded increase. 
B)  Both the quantity of labour supplied and the quantity of labour demanded decrease. 
C)  The quantity of labour supplied increases and the quantity of labour demanded decreases. 
D)  The quantity of labour supplied decreases the quantity of labour demanded increases.

Question 14

Full-time students, retirees, and unpaid stay-at-home fathers are counted as unemployed.

Accepted Answer

A) True 
 B)False

Question 15

Someone who is without work but is not looking for work would be counted as unemployed.

Accepted Answer

A) True 
 B)False

Question 16

-Refer to Table 9-1. What is the adult unemployment rate in Bolivar?

Accepted Answer

A)  5.55 percent 
B)  6.25 percent 
C)  6.67 percent 
D)  37.5 percent 
A)  5.55 percent 
B)  6.25 percent 
C)  6.67 percent 
D)  37.5 percent

Question 17

In Sweden what percentage of the workers belong to unions?

Accepted Answer

A)  almost zero 
B)  about 1/3 
C)  approximately 1/2 
D)  about 2/3 
A)  almost zero 
B)  about 1/3 
C)  approximately 1/2 
D)  about 2/3

Question 18

When a union bargains successfully with an employer, what happens to unemployment and wages in that industry?

Accepted Answer

A)  unemployment and wages increase 
B)  unemployment and wages decrease 
C)  unemployment decreases and wages increase 
D)  unemployment increases and wages decrease 
A)  unemployment and wages increase 
B)  unemployment and wages decrease 
C)  unemployment decreases and wages increase 
D)  unemployment increases and wages decrease

Question 19

Which of the following lists includes all the categories into which Statistics Canada divides the adult population?

Accepted Answer

A)  employed, unemployed 
B)  discouraged workers, employed, unemployed 
C)  employed, unemployed, not in the labour force 
D)  discouraged workers, employed, not in the labour force 
A)  employed, unemployed 
B)  discouraged workers, employed, unemployed 
C)  employed, unemployed, not in the labour force 
D)  discouraged workers, employed, not in the labour force

Question 20

If an unemployed person quits looking for work, other things equal, which statement best describes the changes in the labour statistics?

Accepted Answer

A)  The unemployment rate decreases, and the labour-force participation rate increases. 
B)  The unemployment rate decreases, and the labour-force participation rate decreases. 
C)  The unemployment rate stays the same, and the labour-force participation rate decreases. 
D)  The unemployment rate and the labour-force participation rate stay the same. 
A)  The unemployment rate decreases, and the labour-force participation rate increases. 
B)  The unemployment rate decreases, and the labour-force participation rate decreases. 
C)  The unemployment rate stays the same, and the labour-force participation rate decreases. 
D)  The unemployment rate and the labour-force participation rate stay the same.

Regarding the categories of unemployment, how does a minimum-wage law compare to firms paying higher-than-equilibrium wages?

Geoff loses his job in May and decides to spend his summer fishing. Assuming that other things remain the same, what happens to the unemployment rate?

What is the effect of minimum-wage laws on unemployment?

Even though the difference in labour-force participation rates of males and females has narrowed, the participation rate of males remains higher.

What industry in the Canadian economy has the highest percentage of unionized workers?

Rebecca's contract position with Elections Canada ended after the federal election. She is now looking for another job, but has not yet found one. Which pair of categories does Rebecca now belong to?

A foreign governmental statistics agency recently reported that there were 37.6 million people over age 25 who had at least a bachelor's degree. Of this number, 28.0 million were in the labour force and 25.9 million were employed. What was the unemployment rate in this group?

What impact does employment insurance have on the labour market?

Where is the unemployment rate more likely higher?

Frictional unemployment is different from unemployment arising from minimum-wage laws, unions, and efficiency wages because in the former, workers are searching for the jobs that best suit them, while in the latter, workers are waiting for jobs to open up.

Even though most spells of unemployment are short, most unemployment results from long-term unemployment.

Which data does Statistics Canada NOT produce?

When a union bargains successfully with employers, what happens to quantity of labour supplied and demanded in that industry?

Full-time students, retirees, and unpaid stay-at-home fathers are counted as unemployed.

Someone who is without work but is not looking for work would be counted as unemployed.

-Refer to Table 9-1. What is the adult unemployment rate in Bolivar?

In Sweden what percentage of the workers belong to unions?

When a union bargains successfully with an employer, what happens to unemployment and wages in that industry?

Which of the following lists includes all the categories into which Statistics Canada divides the adult population?

If an unemployed person quits looking for work, other things equal, which statement best describes the changes in the labour statistics?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary Policy on Aggregate Demand

The Influence of Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 9: Unemployment and Its Natural Rate

Regarding the categories of unemployment, how does a minimum-wage law compare to firms paying higher-than-equilibrium wages?

Geoff loses his job in May and decides to spend his summer fishing. Assuming that other things remain the same, what happens to the unemployment rate?

What is the effect of minimum-wage laws on unemployment?

Even though the difference in labour-force participation rates of males and females has narrowed, the participation rate of males remains higher.

What industry in the Canadian economy has the highest percentage of unionized workers?

Rebecca's contract position with Elections Canada ended after the federal election. She is now looking for another job, but has not yet found one. Which pair of categories does Rebecca now belong to?

A foreign governmental statistics agency recently reported that there were 37.6 million people over age 25 who had at least a bachelor's degree. Of this number, 28.0 million were in the labour force and 25.9 million were employed. What was the unemployment rate in this group?

What impact does employment insurance have on the labour market?

Where is the unemployment rate more likely higher?

Frictional unemployment is different from unemployment arising from minimum-wage laws, unions, and efficiency wages because in the former, workers are searching for the jobs that best suit them, while in the latter, workers are waiting for jobs to open up.

Even though most spells of unemployment are short, most unemployment results from long-term unemployment.

Which data does Statistics Canada NOT produce?

When a union bargains successfully with employers, what happens to quantity of labour supplied and demanded in that industry?

Full-time students, retirees, and unpaid stay-at-home fathers are counted as unemployed.

Someone who is without work but is not looking for work would be counted as unemployed.

-Refer to Table 9-1. What is the adult unemployment rate in Bolivar?

In Sweden what percentage of the workers belong to unions?

When a union bargains successfully with an employer, what happens to unemployment and wages in that industry?

Which of the following lists includes all the categories into which Statistics Canada divides the adult population?

If an unemployed person quits looking for work, other things equal, which statement best describes the changes in the labour statistics?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary Policy on Aggregate Demand

The Influence of Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters