Exam 28: Unemployment and Its Natural Rate

The adult non-institutionalized population in the town of Bedrock is 75 thousand. Within Bedrock, 5 thousand are unemployed, and 40 thousand are employed. Calculate the number of people not in the labor force.

Gwen is an unpaid worker in her family's restaurant. The Bureau of Labor Statistics counts Gwen as

An increase in the minimum wage

A firm may pay efficiency wages in an attempt to

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

Table 28-7 Below is data about the labor market in the city of Productionville. -Refer to Table 28-7. If the local government imposed a minimum wage of $5 in Productionville, how many people would be unemployed?

Suppose that a well-respected study published in Child Psychology Today finds that a very high proportion of children raised by stay-at-home fathers are accepted to Harvard University. If a large number of previously working fathers quit their jobs and become stay-at-home dads, which of the following will occur, all else equal? (i)The unemployment rate will decrease. (ii)The size of the labor force will decrease. (iii)The number of unemployed people will increase. (iv)The unemployment rate will increase.

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor force of Aridia in 2011 was

From 2002 to 2014, employment​

Public policy, without intending to do so, can increase frictional unemployment.

There is no easy way for policymakers to reduce the economy's natural rate of unemployment while at the same time reducing the hardships of the unemployed.

A firm might offer efficiency wages in order to reduce shirking.

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

Which of the following is an example of an efficiency wage?

The unemployment rate never falls to zero.

Unions contribute to

Unemployment data are collected

Which of the following includes everyone in the adult population that the Bureau of Labor Statistics counts as "unemployed"?

Some individuals would like to have a job, but they have given up looking for a job after an unsuccessful search. These individuals are called

A firm might offer efficiency wages so its workers will eat a more nutritious diet and therefore be healthier and more productive.