Question 1

The program suggested by the textbook author provides a job for everyone.

Accepted Answer

A) True 
 B)False

Question 2

A decline in the number of immigrants into the United States would most likely reduce:

Accepted Answer

A) frictional unemployment. 
B) the number of discouraged workers. 
C) cyclical unemployment. 
D) the target rate of unemployment. 
A) frictional unemployment. 
B) the number of discouraged workers. 
C) cyclical unemployment. 
D) the target rate of unemployment.

Question 3

Why would students be prevented from joining the minimum jobs program?

Accepted Answer

A) They would be considered overqualified. 
B) They would be judged as unreliable. 
C) They would overwhelm the system looking for summer work. 
D) They possess too much intelligence to join this program. 
A) They would be considered overqualified. 
B) They would be judged as unreliable. 
C) They would overwhelm the system looking for summer work. 
D) They possess too much intelligence to join this program.

Question 4

Define Okun's rule of thumb.

Accepted Answer

Okun's rule of thumb is a relationship t

Question 5

According to Okun's rule of thumb, if trend growth is 2 percent, and unemployment increases from 6 percent to 8 percent, what would be expected to occur with respect to income?

Accepted Answer

A) Income would fall by 4 percent. 
B) Income would rise by 4 percent. 
C) Income would fall by 2 percent. 
D) Income would rise by 2 percent. 
A) Income would fall by 4 percent. 
B) Income would rise by 4 percent. 
C) Income would fall by 2 percent. 
D) Income would rise by 2 percent.

Question 6

The duration of unemployment rose significantly during the 2008/09 recession, relative to previous recessions.

Accepted Answer

A) True 
 B)False

Question 7

What type of unemployment would you expect fiscal policy to be most effective against?

Accepted Answer

The type of unemployment that

Question 8

Today people have 7-10 jobs over their lifetime.

Accepted Answer

A) True 
 B)False

Question 9

If a politician adheres to the social responsibility framework, which of the following would not be mentioned in their campaign manifesto?

Accepted Answer

A) Unskilled workers should not have to accept jobs below a living wage. 
B) Part-time workers who would like to work full time cannot find it. 
C) People with enormous education and training cannot find a job that uses their skills. 
D) Individuals who are unemployed can create their own jobs. 
A) Unskilled workers should not have to accept jobs below a living wage. 
B) Part-time workers who would like to work full time cannot find it. 
C) People with enormous education and training cannot find a job that uses their skills. 
D) Individuals who are unemployed can create their own jobs.

Question 10

Someone who believes in the social responsibility framework believes that the standard measure of unemployment underestimates the level of unemployment.

Accepted Answer

A) True 
 B)False

Question 11

Globalization has tended to:

Accepted Answer

A) lower people's reservation wage. 
B) raise people's reservation wage. 
C) lower people's expectational wage. 
D) raise people's expectational wage. 
A) lower people's reservation wage. 
B) raise people's reservation wage. 
C) lower people's expectational wage. 
D) raise people's expectational wage.

Question 12

Cyclical unemployment is caused by fluctuations in economic activity.

Accepted Answer

A) True 
 B)False

Question 13

What will likely lower structural unemployment?

Accepted Answer

A) People lower their reservation wages. 
B) The labor force participation rate rises. 
C) The Fed sells bonds. 
D) The economy expands. 
A) People lower their reservation wages. 
B) The labor force participation rate rises. 
C) The Fed sells bonds. 
D) The economy expands.

Question 14

Would the guaranteed jobs proposal outlined in the book likely significantly affect the pay of (1)waiters (2)dishwashers, (3)teachers, (4)investment bankers, (5)hotel support staff, (6)student interns?

Accepted Answer

(1)Waiters: Probably not,since most wait

Question 15

Immigration is

Accepted Answer

A) bad for all citizens in the United States. 
B) good for all citizens in the United States. 
C) both good and bad for the U.S. economy. 
D) is neither good nor bad for citizens in the United States. 
A) bad for all citizens in the United States. 
B) good for all citizens in the United States. 
C) both good and bad for the U.S. economy. 
D) is neither good nor bad for citizens in the United States.

Question 16

Jamaal lost his job when a mechanical device replaced people with his skills. If Jamaal's skills are non-transferable, he would be considered to be structurally unemployed.

Accepted Answer

A) True 
 B)False

Question 17

Other things equal, the higher the reservation wage, the more likely one is to be unemployed.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following has been an effect of globalization and a large trade deficit?

Accepted Answer

A) Increased wages in the tradable sector. 
B) Increased employment in the tradable sector. 
C) Decreased employment in the tradable sector. 
D) Increased wages in the immigrant sector. 
A) Increased wages in the tradable sector. 
B) Increased employment in the tradable sector. 
C) Decreased employment in the tradable sector. 
D) Increased wages in the immigrant sector.

Exam 33: Jobs and Unemployment

The program suggested by the textbook author provides a job for everyone.

A decline in the number of immigrants into the United States would most likely reduce:

Why would students be prevented from joining the minimum jobs program?

Define Okun's rule of thumb.

According to Okun's rule of thumb, if trend growth is 2 percent, and unemployment increases from 6 percent to 8 percent, what would be expected to occur with respect to income?

The duration of unemployment rose significantly during the 2008/09 recession, relative to previous recessions.

What type of unemployment would you expect fiscal policy to be most effective against?

Today people have 7-10 jobs over their lifetime.

If a politician adheres to the social responsibility framework, which of the following would not be mentioned in their campaign manifesto?

Someone who believes in the social responsibility framework believes that the standard measure of unemployment underestimates the level of unemployment.

Globalization has tended to:

Cyclical unemployment is caused by fluctuations in economic activity.

What will likely lower structural unemployment?

Would the guaranteed jobs proposal outlined in the book likely significantly affect the pay of (1)waiters (2)dishwashers, (3)teachers, (4)investment bankers, (5)hotel support staff, (6)student interns?

Immigration is

Jamaal lost his job when a mechanical device replaced people with his skills. If Jamaal's skills are non-transferable, he would be considered to be structurally unemployed.

Other things equal, the higher the reservation wage, the more likely one is to be unemployed.

Which of the following has been an effect of globalization and a large trade deficit?

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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