Question 1

Which of the following has not been an effect of globalization and a large trade deficit?

Accepted Answer

A) Lower wages in the tradable sector than there otherwise would have been. 
B) Lower employment in the tradable sector than there otherwise would have been. 
C) Significant decline in wages and unemployment in the nontradable sector. 
D) An increase in income disparities. 
A) Lower wages in the tradable sector than there otherwise would have been. 
B) Lower employment in the tradable sector than there otherwise would have been. 
C) Significant decline in wages and unemployment in the nontradable sector. 
D) An increase in income disparities.

Question 2

The fact that more women have entered the labor force has:

Accepted Answer

A) raised the target rate of unemployment. 
B) lowered the target rate of unemployment. 
C) raised cyclical unemployment. 
D) lowered cyclical unemployment. 
A) raised the target rate of unemployment. 
B) lowered the target rate of unemployment. 
C) raised cyclical unemployment. 
D) lowered cyclical unemployment.

Question 3

Why doesn't the minimum job proposal offer jobs commensurate with people's skills and education?

Accepted Answer

A) The monitoring costs of such a job would be too high, because people will claim to have high skills when they really don't. 
B) These people can find such jobs in the marketplace because their skills are valued, making them in high demand. 
C) The proposal doesn't believe these people provide more productive skills that other workers. 
D) These people are holding out for a job in the marketplace. Providing them with jobs wouldn't be offering a minimum job, which is the program's objective. 
A) The monitoring costs of such a job would be too high, because people will claim to have high skills when they really don't. 
B) These people can find such jobs in the marketplace because their skills are valued, making them in high demand. 
C) The proposal doesn't believe these people provide more productive skills that other workers. 
D) These people are holding out for a job in the marketplace. Providing them with jobs wouldn't be offering a minimum job, which is the program's objective.

Question 4

Why doesn't the minimum jobs proposal provide output directly useful to the marketplace?

Accepted Answer

A) The monitoring costs of such a job would be too high. 
B) If it did, it might be replacing jobs otherwise provided by the market. 
C) It would provide training to participants better provided by other programs. 
D) To compete with the Federal minimum wage of $7.25 per hour. 
A) The monitoring costs of such a job would be too high. 
B) If it did, it might be replacing jobs otherwise provided by the market. 
C) It would provide training to participants better provided by other programs. 
D) To compete with the Federal minimum wage of $7.25 per hour.

Question 5

News Story: Workers at a car-manufacturing plant in Flint, Michigan, are laid off because the economy is weak and GM cars are not selling well. GM isn't sure when the plant will reopen. What type of unemployment describes the workers' situation?

Accepted Answer

A) Cyclical unemployment 
B) Full unemployment 
C) Structural unemployment 
D) Frictional unemployment 
A) Cyclical unemployment 
B) Full unemployment 
C) Structural unemployment 
D) Frictional unemployment

Question 6

Using Okun's rule of thumb, if trend growth is 3 percent and the unemployment rate rises by 2 percentage points, output would be expected to have:

Accepted Answer

A) fallen by 1 percentage point. 
B) risen by 1 percentage point. 
C) fallen by 2 percentage points. 
D) risen by 2 percentage points. 
A) fallen by 1 percentage point. 
B) risen by 1 percentage point. 
C) fallen by 2 percentage points. 
D) risen by 2 percentage points.

Question 7

Using Okun's rule of thumb, if trend growth is 3 percent and the unemployment rate rises by 0.5 percent, output would be expected to have:

Accepted Answer

A) fallen by 1 percentage point. 
B) risen by 1 percentage point. 
C) fallen by 2 percentage points. 
D) risen by 2 percentage points. 
A) fallen by 1 percentage point. 
B) risen by 1 percentage point. 
C) fallen by 2 percentage points. 
D) risen by 2 percentage points.

Question 8

Cyclical unemployment results from:

Accepted Answer

A) fluctuations in economic activity. 
B) structural changes in the economy. 
C) changes in technology. 
D) the aging of the population. 
A) fluctuations in economic activity. 
B) structural changes in the economy. 
C) changes in technology. 
D) the aging of the population.

Question 9

Why does the minimum jobs program pay a maximum of $10 an hour?

Accepted Answer

A) To limit the number of people who will participate. 
B) To provide a living wage to all those who participate. 
C) To provide an attractive alternative to dangerous jobs. 
D) To compete with the Federal minimum wage of $7.25 per hour. 
A) To limit the number of people who will participate. 
B) To provide a living wage to all those who participate. 
C) To provide an attractive alternative to dangerous jobs. 
D) To compete with the Federal minimum wage of $7.25 per hour.

Question 10

Workers at a car-manufacturing plant are let go because automated machinery has been installed that requires fewer employees to operate. What type of unemployment describes the workers' situation?

Accepted Answer

A) Cyclical unemployment 
B) Full unemployment 
C) Structural unemployment 
D) Frictional unemployment 
A) Cyclical unemployment 
B) Full unemployment 
C) Structural unemployment 
D) Frictional unemployment

Question 11

Which of the following groups would be eligible for the author's job program?

Accepted Answer

A) Students 
B) Immigrants 
C) Nonstudents 
D) Retirees 
A) Students 
B) Immigrants 
C) Nonstudents 
D) Retirees

Question 12

In today's globalized economy, a U.S. worker's reservation wage tends to be lower than the reservation wage of many workers in developing countries.

Accepted Answer

A) True 
 B)False

Question 13

If trend growth is zero and if unemployment falls by 3%,by how much would you expect output to rise? (Use Okun's rule of thumb. )

Accepted Answer

Okun's rule of thumb states that a 1 per

Question 14

Which of the following types of unemployment is considered to be the most controllable through demand-side macroeconomic policy?

Accepted Answer

A) Frictional unemployment 
B) Natural unemployment 
C) Cyclical unemployment 
D) Structural unemployment 
A) Frictional unemployment 
B) Natural unemployment 
C) Cyclical unemployment 
D) Structural unemployment

Question 15

Globalization has:

Accepted Answer

A) lowered the target rate of unemployment. 
B) raised the target rate of unemployment. 
C) lowered cyclical unemployment. 
D) raised cyclical unemployment. 
A) lowered the target rate of unemployment. 
B) raised the target rate of unemployment. 
C) lowered cyclical unemployment. 
D) raised cyclical unemployment.

Question 16

According to the individual responsibility framework, which of the following would be most likely counted as unemployed?

Accepted Answer

A) A person graduates from a job-training program but cannot find a job. 
B) A person has a lower reservation wage than the equilibrium wage and cannot find a job. 
C) A person has a higher reservation wage than the equilibrium wage and cannot find a job. 
D) A person who has looked for a job for 24 months and can't find one. 
A) A person graduates from a job-training program but cannot find a job. 
B) A person has a lower reservation wage than the equilibrium wage and cannot find a job. 
C) A person has a higher reservation wage than the equilibrium wage and cannot find a job. 
D) A person who has looked for a job for 24 months and can't find one.

Question 17

Which framework for thinking about unemployment is correct: the individual responsibility framework or the social responsibility framework?

Accepted Answer

There is no one right framework for thin

Question 18

Suppose an economy currently has total output of $7 trillion,trend growth is 3%,and the unemployment rate of 4%.Using Okun's rule of thumb,how would the level of output change if unemployment decreased to 3.5%?

Accepted Answer

Okun's rule of thumb tells us a 1% drop

Question 19

Structural unemployment:

Accepted Answer

A) includes cyclical unemployment. 
B) is generally greater than cyclical unemployment. 
C) is generally less than cyclical unemployment. 
D) cannot be reduced with demand side policies. 
A) includes cyclical unemployment. 
B) is generally greater than cyclical unemployment. 
C) is generally less than cyclical unemployment. 
D) cannot be reduced with demand side policies.

Question 20

In 2001, the U.S. economy entered a recession and unemployment rose. Which one of the following types of unemployment was most likely caused by the recession?

Accepted Answer

A) Cyclical unemployment 
B) Full unemployment 
C) Structural unemployment 
D) Seasonal unemployment 
A) Cyclical unemployment 
B) Full unemployment 
C) Structural unemployment 
D) Seasonal unemployment

Exam 33: Jobs and Unemployment

Which of the following has not been an effect of globalization and a large trade deficit?

The fact that more women have entered the labor force has:

Why doesn't the minimum job proposal offer jobs commensurate with people's skills and education?

Why doesn't the minimum jobs proposal provide output directly useful to the marketplace?

News Story: Workers at a car-manufacturing plant in Flint, Michigan, are laid off because the economy is weak and GM cars are not selling well. GM isn't sure when the plant will reopen. What type of unemployment describes the workers' situation?

Using Okun's rule of thumb, if trend growth is 3 percent and the unemployment rate rises by 2 percentage points, output would be expected to have:

Using Okun's rule of thumb, if trend growth is 3 percent and the unemployment rate rises by 0.5 percent, output would be expected to have:

Cyclical unemployment results from:

Why does the minimum jobs program pay a maximum of $10 an hour?

Workers at a car-manufacturing plant are let go because automated machinery has been installed that requires fewer employees to operate. What type of unemployment describes the workers' situation?

Which of the following groups would be eligible for the author's job program?

In today's globalized economy, a U.S. worker's reservation wage tends to be lower than the reservation wage of many workers in developing countries.

If trend growth is zero and if unemployment falls by 3%,by how much would you expect output to rise? (Use Okun's rule of thumb. )

Which of the following types of unemployment is considered to be the most controllable through demand-side macroeconomic policy?

Globalization has:

According to the individual responsibility framework, which of the following would be most likely counted as unemployed?

Which framework for thinking about unemployment is correct: the individual responsibility framework or the social responsibility framework?

Suppose an economy currently has total output of $7 trillion,trend growth is 3%,and the unemployment rate of 4%.Using Okun's rule of thumb,how would the level of output change if unemployment decreased to 3.5%?

Structural unemployment:

In 2001, the U.S. economy entered a recession and unemployment rose. Which one of the following types of unemployment was most likely caused by the recession?

Economics and Economic Reasoning

The Production Possibility Model, Trade, and Globalization

Economic Institutions

Supply and Demand

Using Supply and Demand

Describing Supply and Demand: Elasticities

Taxation and Government Intervention

Market Failure Versus Government Failure

Comparative Advantage, Exchange Rates, and Globalization

International Trade Policy

Production and Cost Analysis I

Production and Cost Analysis II

Perfect Competition

Monopoly and Monopolistic Competition

Oligopoly and Antitrust Policy

Real-World Competition and Technology

Work and the Labor Market

Who Gets What the Distribution of Income

The Logic of Individual Choice: the Foundation of Supply and Demand

Game Theory, Strategic Decision Making, and Behavioral Economics

Thinking Like a Modern Economist

Behavioral Economics and Modern Economic Policy

Microeconomic Policy, Economic Reasoning, and Beyond

Economic Growth, Business Cycles, and Unemployment

Measuring and Describing the Aggregate Economy

The Keynesian Short-Run Policy Model: Demand-Side Policies

The Classical Long-Run Policy Model: Growth and Supply-Side Policies

The Financial Sector and the Economy

Monetary Policy

Financial Crises, Panics, and Unconventional Monetary Policy

Deficits and Debt: the Austerity Debate

The Fiscal Policy Dilemma

Inflation, Deflation, and Macro Policy

International Financial Policy

Macro Policy in a Global Setting

Structural Stagnation and Globalization

Macro Policy in Developing Countries

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