Question 1

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

Accepted Answer

A) increases, and the labor-force participation rate decreases. 
B) and the labor-force participation rate both increase. 
C) increases, and the labor-force participation rate is unaffected. 
D) is unaffected, and the labor-force participation rate decreases. 
A) increases, and the labor-force participation rate decreases. 
B) and the labor-force participation rate both increase. 
C) increases, and the labor-force participation rate is unaffected. 
D) is unaffected, and the labor-force participation rate decreases.

Question 2

Job search

Accepted Answer

A) and firms paying wages above equilibrium to improve worker health both create frictional unemployment. 
B) creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment. 
C) creates structural unemployment, while firms paying wages above equilibrium to improve worker health creates frictional unemployment. 
D) and firms paying wages above equilibrium to improve worker health both create structural unemployment. 
A) and firms paying wages above equilibrium to improve worker health both create frictional unemployment. 
B) creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment. 
C) creates structural unemployment, while firms paying wages above equilibrium to improve worker health creates frictional unemployment. 
D) and firms paying wages above equilibrium to improve worker health both create structural unemployment.

Question 3

Table 28-2
Labor Data for Aridia  
-Refer to Table 28-2. The labor-force participation rate of Aridia in 2012 was

Accepted Answer

A) 50%. 
B) 53.3%. 
C) 56.25%. 
D) 88.9%. 
A) 50%. 
B) 53.3%. 
C) 56.25%. 
D) 88.9%.

Question 4

The adult population must equal the sum of the employed, the unemployed, and those not in the labor force.

Accepted Answer

A) True 
 B)False

Question 5

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 60,000 households, called the Current Population Survey.

Accepted Answer

A) True 
 B)False

Question 6

Providing training for unemployed individuals is primarily intended to reduce

Accepted Answer

A) frictional unemployment. 
B) seasonal unemployment. 
C) structural unemployment. 
D) cyclical unemployment. 
A) frictional unemployment. 
B) seasonal unemployment. 
C) structural unemployment. 
D) cyclical unemployment.

Question 7

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Accepted Answer

A) True 
 B)False

Question 8

List the four ways to explain unemployment in the long run.

Accepted Answer

job search, minimum-

Question 9

According to 2014 data on the U.S. population, which of the following groups of adults of prime working age (ages 25-54) had the lowest unemployment rate?

Accepted Answer

A) white males 
B) white females 
C) black males 
D) black females 
A) white males 
B) white females 
C) black males 
D) black females

Question 10

Esmerelda worked part-time for her mother's business without pay. Tabitha was absent from work because she had strep throat. Who is counted as "employed" by the Bureau of Labor Statistics?

Accepted Answer

A) Esmerelda but not Tabitha 
B) Tabitha but not Esmerelda 
C) both Esmerelda and Tabitha 
D) neither Esmerelda nor Tabitha 
A) Esmerelda but not Tabitha 
B) Tabitha but not Esmerelda 
C) both Esmerelda and Tabitha 
D) neither Esmerelda nor Tabitha

Question 11

Advocates of unions contend that unions are a necessary antidote to the market power of the firms that hire workers and that unions are important for helping firms respond efficiently to workers' concerns.

Accepted Answer

A) True 
 B)False

Question 12

The deviation of unemployment from its natural rate is called cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 13

The Bureau of Labor Statistics produces data on

Accepted Answer

A) unemployment. 
B) types of employment. 
C) length of the average workweek. 
D) All of the above are correct. 
A) unemployment. 
B) types of employment. 
C) length of the average workweek. 
D) All of the above are correct.

Question 14

Figure 28-4
​  
-Refer to Figure 28-4. If the government imposes a minimum wage of $10, how many workers will be unemployed?

Accepted Answer

A) 0 
B) 2,000 
C) 4,000 
D) 8,000 
A) 0 
B) 2,000 
C) 4,000 
D) 8,000

Question 15

Amy is working part-time. Tavaris is on temporary layoff. Who is included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A) only Amy 
B) only Tavaris 
C) both Amy and Tavaris 
D) neither Amy nor Tavaris 
A) only Amy 
B) only Tavaris 
C) both Amy and Tavaris 
D) neither Amy nor Tavaris

Question 16

Someone who loses his job at a truck factory because the demand for trucks has fallen and the demand for cars has risen, is structurally unemployed.

Accepted Answer

A) True 
 B)False

Question 17

The labor-force participation rate equals the percentage of the labor force that is either employed or unemployed.

Accepted Answer

A) True 
 B)False

Question 18

Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were employed?

Accepted Answer

A) 1.5 million 
B) 28.5 million 
C) 30 million 
D) 47.5 million 
A) 1.5 million 
B) 28.5 million 
C) 30 million 
D) 47.5 million

Question 19

Most spells of unemployment are

Accepted Answer

A) long, and most unemployment observed at any given time is long term. 
B) long, but most unemployment observed at any given time is short term. 
C) short, but most unemployment observed at any given time is long term. 
D) short, and most unemployment observed at any given time is short term. 
A) long, and most unemployment observed at any given time is long term. 
B) long, but most unemployment observed at any given time is short term. 
C) short, but most unemployment observed at any given time is long term. 
D) short, and most unemployment observed at any given time is short term.

Question 20

Karena was laid off, but she is expecting to be recalled. She has not looked for work since being laid off. Nathan is not employed, nor was he laid off. Who is counted as "unemployed" in the U.S. labor force statistics?

Accepted Answer

A) 1) Karena and 2) Nathan, even if Nathan has not looked for work during the previous four weeks 
B) 1) Karena and 2) Nathan, if Nathan has looked for work during the previous four weeks 
C) 1) not Karena but 2) Nathan, even if Nathan has not looked for work during the previous four weeks 
D) 1) not Karena but 2) Nathan, if Nathan has looked for work during the previous four weeks 
A) 1) Karena and 2) Nathan, even if Nathan has not looked for work during the previous four weeks 
B) 1) Karena and 2) Nathan, if Nathan has looked for work during the previous four weeks 
C) 1) not Karena but 2) Nathan, even if Nathan has not looked for work during the previous four weeks 
D) 1) not Karena but 2) Nathan, if Nathan has looked for work during the previous four weeks

Exam 28: Unemployment and Its Natural Rate

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

Job search

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor-force participation rate of Aridia in 2012 was

The adult population must equal the sum of the employed, the unemployed, and those not in the labor force.

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 60,000 households, called the Current Population Survey.

Providing training for unemployed individuals is primarily intended to reduce

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

List the four ways to explain unemployment in the long run.

According to 2014 data on the U.S. population, which of the following groups of adults of prime working age (ages 25-54) had the lowest unemployment rate?

Esmerelda worked part-time for her mother's business without pay. Tabitha was absent from work because she had strep throat. Who is counted as "employed" by the Bureau of Labor Statistics?

Advocates of unions contend that unions are a necessary antidote to the market power of the firms that hire workers and that unions are important for helping firms respond efficiently to workers' concerns.

The deviation of unemployment from its natural rate is called cyclical unemployment.

The Bureau of Labor Statistics produces data on

Figure 28-4 ​ -Refer to Figure 28-4. If the government imposes a minimum wage of $10, how many workers will be unemployed?

Amy is working part-time. Tavaris is on temporary layoff. Who is included in the Bureau of Labor Statistics' "employed" category?

Someone who loses his job at a truck factory because the demand for trucks has fallen and the demand for cars has risen, is structurally unemployed.

The labor-force participation rate equals the percentage of the labor force that is either employed or unemployed.

Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were employed?

Most spells of unemployment are

Karena was laid off, but she is expecting to be recalled. She has not looked for work since being laid off. Nathan is not employed, nor was he laid off. Who is counted as "unemployed" in the U.S. labor force statistics?

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

Filters

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $10, how many workers will be unemployed?