Question 1

Wages in excess of their equilibrium level help explain

Accepted Answer

A) frictional but not structural unemployment. 
B) structural but not frictional unemployment. 
C) both frictional and structural unemployment. 
D) neither frictional nor structural unemployment. 
A) frictional but not structural unemployment. 
B) structural but not frictional unemployment. 
C) both frictional and structural unemployment. 
D) neither frictional nor structural unemployment.

Question 2

The natural rate of unemployment is any type of unemployment that does not go away on its own even in the long run.

Accepted Answer

A) True 
 B)False

Question 3

Suppose that because of the popularity of the low-carb diet, bakeries need fewer workers and steak houses need more workers. The unemployment created by this change is

Accepted Answer

A) frictional unemployment created by efficiency wages. 
B) frictional unemployment created by sectoral shifts. 
C) structural unemployment created by efficiency wages. 
D) structural unemployment created by sectoral shifts. 
A) frictional unemployment created by efficiency wages. 
B) frictional unemployment created by sectoral shifts. 
C) structural unemployment created by efficiency wages. 
D) structural unemployment created by sectoral shifts.

Question 4

Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

Accepted Answer

A) True 
 B)False

Question 5

An economy's natural rate of unemployment is the

Accepted Answer

A) economy's long-run target level of unemployment. 
B) amount of unemployment that the economy normally experiences. 
C) lowest rate of unemployment the economy can achieve. 
D) All of the above are correct. 
A) economy's long-run target level of unemployment. 
B) amount of unemployment that the economy normally experiences. 
C) lowest rate of unemployment the economy can achieve. 
D) All of the above are correct.

Question 6

Figure 28-7  
-Refer to Figure 28-7. Without a minimum wage, what is the equilibrium level of employment? Explain what happens to the level of employment if the minimum wage is equal to $125.

Accepted Answer

Without a minimum wage, employ

Question 7

If a country signs a trade agreement so that employment in some industries rises and employment in some industries fall, then

Accepted Answer

A) structual unemployment rises temporarily. 
B) structural unemployment rises permananently. 
C) frictional unemployment rises temporarily. 
D) frictional unemployment rises permanently. 
A) structual unemployment rises temporarily. 
B) structural unemployment rises permananently. 
C) frictional unemployment rises temporarily. 
D) frictional unemployment rises permanently.

Question 8

Efficiency wages

Accepted Answer

A) increase frictional unemployment by keeping wages above equilibrium. 
B) decrease frictional unemployment by keeping wages at equilibrium. 
C) increase structural unemployment by keeping wages above equilibrium. 
D) decrease structural unemployment by keeping wages at equilibrium. 
A) increase frictional unemployment by keeping wages above equilibrium. 
B) decrease frictional unemployment by keeping wages at equilibrium. 
C) increase structural unemployment by keeping wages above equilibrium. 
D) decrease structural unemployment by keeping wages at equilibrium.

Question 9

Cyclical unemployment is caused by

Accepted Answer

A) frictional and structural unemployment 
B) frictional but not structural unemployment 
C) structural but not frictional unemployment 
D) neither frictional nor structural unemployment 
A) frictional and structural unemployment 
B) frictional but not structural unemployment 
C) structural but not frictional unemployment 
D) neither frictional nor structural unemployment

Question 10

Unemployment numbers reported by the Bureau of Labor Statistics are reported based on a

Accepted Answer

A) monthly survey of about 60,000 households. 
B) monthly survey of about 6,000 households. 
C) weekly survey of about 60,000 households. 
D) weekly survey of about 6,000 households. 
A) monthly survey of about 60,000 households. 
B) monthly survey of about 6,000 households. 
C) weekly survey of about 60,000 households. 
D) weekly survey of about 6,000 households.

Question 11

The labor-force participation rate tells us the fraction of the population that has chosen to participate in the labor market.

Accepted Answer

A) True 
 B)False

Question 12

Employment can rise in one region of the country while it falls in another.

Accepted Answer

A) True 
 B)False

Question 13

The National Labor Relations Board

Accepted Answer

A) enforces antitrust laws against unions. 
B) enforces workers' rights to unionize. 
C) acts as a union's representative in collective bargaining. 
D) is required to approve all collective bargaining agreements before they can be enforced. 
A) enforces antitrust laws against unions. 
B) enforces workers' rights to unionize. 
C) acts as a union's representative in collective bargaining. 
D) is required to approve all collective bargaining agreements before they can be enforced.

Question 14

Right-to-work laws

Accepted Answer

A) guarantee workers the right to form unions. 
B) give workers in a unionized firm the right to choose whether to join the union. 
C) prevent employers from hiring permanent replacements for workers who are on strike. 
D) prevent workers from being fired because of increases in wages brought about by collective bargaining. 
A) guarantee workers the right to form unions. 
B) give workers in a unionized firm the right to choose whether to join the union. 
C) prevent employers from hiring permanent replacements for workers who are on strike. 
D) prevent workers from being fired because of increases in wages brought about by collective bargaining.

Question 15

A typical American worker covered by unemployment insurance receives 50 percent of his former wages for 52 weeks.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not correct?

Accepted Answer

A) The unemployment rate is an imperfect measure of a nation's overall level of economic well-being. 
B) Most job search in the U.S. economy takes place without intervention by the government. 
C) Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being. 
D) Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates. 
A) The unemployment rate is an imperfect measure of a nation's overall level of economic well-being. 
B) Most job search in the U.S. economy takes place without intervention by the government. 
C) Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being. 
D) Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Question 17

Efficiency wages

Accepted Answer

A) increase productivity and reduce unemployment. 
B) increase productivity but increase unemployment. 
C) decrease productivity but reduce unemployment. 
D) decrease productivity and increase unemployment. 
A) increase productivity and reduce unemployment. 
B) increase productivity but increase unemployment. 
C) decrease productivity but reduce unemployment. 
D) decrease productivity and increase unemployment.

Question 18

It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 19

Changes in the composition of demand among industries or regions are called sectoral shifts.

Accepted Answer

A) True 
 B)False

Question 20

List the four types of efficiency-wage theory.

Accepted Answer

Worker health, worke

Exam 28: Unemployment and Its Natural Rate

Wages in excess of their equilibrium level help explain

The natural rate of unemployment is any type of unemployment that does not go away on its own even in the long run.

Suppose that because of the popularity of the low-carb diet, bakeries need fewer workers and steak houses need more workers. The unemployment created by this change is

Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

An economy's natural rate of unemployment is the

Figure 28-7 -Refer to Figure 28-7. Without a minimum wage, what is the equilibrium level of employment? Explain what happens to the level of employment if the minimum wage is equal to $125.

If a country signs a trade agreement so that employment in some industries rises and employment in some industries fall, then

Efficiency wages

Cyclical unemployment is caused by

Unemployment numbers reported by the Bureau of Labor Statistics are reported based on a

The labor-force participation rate tells us the fraction of the population that has chosen to participate in the labor market.

Employment can rise in one region of the country while it falls in another.

The National Labor Relations Board

Right-to-work laws

A typical American worker covered by unemployment insurance receives 50 percent of his former wages for 52 weeks.

Which of the following is not correct?

Efficiency wages

It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.

Changes in the composition of demand among industries or regions are called sectoral shifts.

List the four types of efficiency-wage theory.

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Applications: the Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Measuring a Nation S Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Tools of Finance

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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