Question 1

In which of the following situations should a firm pay efficiency wages?

Accepted Answer

A) A hiring manager can easily judge the quality of applicants, and after workers have worked for the firm a while, they tend not to look for other jobs. 
B) A hiring manager can easily judge the quality of applicants, and after workers have worked for the firm a while, they tend to look for other jobs. 
C) A hiring manager cannot easily judge the quality of applicants, and after workers have worked for the firm a while, they tend to look for other jobs. 
D) A hiring manager cannot easily judge the quality of applicants, and after workers have worked for the firm a while, they tend not to look for other jobs. 
A) A hiring manager can easily judge the quality of applicants, and after workers have worked for the firm a while, they tend not to look for other jobs. 
B) A hiring manager can easily judge the quality of applicants, and after workers have worked for the firm a while, they tend to look for other jobs. 
C) A hiring manager cannot easily judge the quality of applicants, and after workers have worked for the firm a while, they tend to look for other jobs. 
D) A hiring manager cannot easily judge the quality of applicants, and after workers have worked for the firm a while, they tend not to look for other jobs.

Question 2

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a surplus of labor.

Accepted Answer

A) True 
 B)False

Question 3

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate is

Accepted Answer

A) always zero. 
B) sometimes zero. 
C) rarely zero. 
D) never zero. 
A) always zero. 
B) sometimes zero. 
C) rarely zero. 
D) never zero.

Question 4

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is correct?

Accepted Answer

A) In unionized industries, wages are below the level that would prevail in competitive markets. 
B) The introduction of a union in an industry increases the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and increases wages in the rest of the economy. 
C) Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable. 
D) All of the above are correct. 
A) In unionized industries, wages are below the level that would prevail in competitive markets. 
B) The introduction of a union in an industry increases the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and increases wages in the rest of the economy. 
C) Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable. 
D) All of the above are correct.

Question 6

Evidence indicates that the typical person who becomes unemployed will

Accepted Answer

A) soon find a job. 
B) find a job but not before a year or more has gone by. 
C) leave the labor force and never return. 
D) retire soon after 
A) soon find a job. 
B) find a job but not before a year or more has gone by. 
C) leave the labor force and never return. 
D) retire soon after

Question 7

What problems arise in interpreting unemployment data?

Accepted Answer

Because people move into and out of the

Question 8

Within the U.S. population, women of prime working age (ages 25-54) have lower rates of labor-force participation than men of prime working age (ages 25-54), regardless of race.

Accepted Answer

A) True 
 B)False

Question 9

Figure 28-4
​  
-Refer to Figure 28-4. If the government imposes a minimum wage of $12, how many workers will be unemployed?

Accepted Answer

A) 0 
B) 2,000 
C) 4,000 
D) 10,000 
A) 0 
B) 2,000 
C) 4,000 
D) 10,000

Question 10

Since 1960, the natural rate of unemployment in the U.S. has been between

Accepted Answer

A) 0% and 1%. 
B) 5% and 6%. 
C) 10% and 12%. 
D) 12% and 24%. 
A) 0% and 1%. 
B) 5% and 6%. 
C) 10% and 12%. 
D) 12% and 24%.

Question 11

Table 28-11
2015 Labor Data for Tajnia  
-Refer to Table 28-11. The labor force of Tajnia in 2015 is 12,250.

Accepted Answer

A) True 
 B)False

Question 12

Figure 28-3  
-Refer to Figure 28-3. If the government imposes a minimum wage of $4, how many workers will be unemployed?

Accepted Answer

A) 0 
B) 3,000 
C) 4,000 
D) 7,000 
A) 0 
B) 3,000 
C) 4,000 
D) 7,000

Question 13

The deviation of unemployment from its natural rate is called

Accepted Answer

A) the economic rate of unemployment. 
B) cyclical unemployment. 
C) frictional unemployment. 
D) structural unemployment. 
A) the economic rate of unemployment. 
B) cyclical unemployment. 
C) frictional unemployment. 
D) structural unemployment.

Question 14

The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a contention of advocates of unions?

Accepted Answer

A) Unions are a necessary antidote to the market power of the firms that hire workers. 
B) In the case of a "company town," a union may balance the firm's market power and protect the workers from being at the mercy of the firm's owners. 
C) The introduction of a union benefits all workers in a firm. 
D) Unions are important for helping firms respond efficiently to workers' concerns. 
A) Unions are a necessary antidote to the market power of the firms that hire workers. 
B) In the case of a "company town," a union may balance the firm's market power and protect the workers from being at the mercy of the firm's owners. 
C) The introduction of a union benefits all workers in a firm. 
D) Unions are important for helping firms respond efficiently to workers' concerns.

Question 16

The Bureau of Labor Statistics' "employed" category includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member's business.

Accepted Answer

A) True 
 B)False

Question 17

Table 28-4
2010 Labor Data for Adults (ages 16 and older) in Meditor  
-Refer to Table 28-4. What is the adult labor force in Meditor?

Accepted Answer

A) 90 million 
B) 150 million 
C) 160 million 
D) 230 million 
A) 90 million 
B) 150 million 
C) 160 million 
D) 230 million

Question 18

Unemployment insurance increases frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 19

Compare the 2014 unemployment rates and labor-force participation rates of whites, blacks, adults of prime working age (ages 25-54), and teenagers (ages 16-19).

Accepted Answer

For adults:
Adult white males have the h

Question 20

Efficiency wages create a labor

Accepted Answer

A) surplus and so increase unemployment. 
B) surplus and so decrease unemployment. 
C) shortage and so increase unemployment. 
D) shortage and so decrease unemployment. 
A) surplus and so increase unemployment. 
B) surplus and so decrease unemployment. 
C) shortage and so increase unemployment. 
D) shortage and so decrease unemployment.

Exam 28: Unemployment and Its Natural Rate

In which of the following situations should a firm pay efficiency wages?

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a surplus of labor.

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate is

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

Which of the following is correct?

Evidence indicates that the typical person who becomes unemployed will

What problems arise in interpreting unemployment data?

Within the U.S. population, women of prime working age (ages 25-54) have lower rates of labor-force participation than men of prime working age (ages 25-54), regardless of race.

Figure 28-4 ​ -Refer to Figure 28-4. If the government imposes a minimum wage of $12, how many workers will be unemployed?

Since 1960, the natural rate of unemployment in the U.S. has been between

Table 28-11 2015 Labor Data for Tajnia -Refer to Table 28-11. The labor force of Tajnia in 2015 is 12,250.

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $4, how many workers will be unemployed?

The deviation of unemployment from its natural rate is called

The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

Which of the following is not a contention of advocates of unions?

The Bureau of Labor Statistics' "employed" category includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member's business.

Table 28-4 2010 Labor Data for Adults (ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult labor force in Meditor?

Unemployment insurance increases frictional unemployment.

Compare the 2014 unemployment rates and labor-force participation rates of whites, blacks, adults of prime working age (ages 25-54), and teenagers (ages 16-19).

Efficiency wages create a labor

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 $12, how many workers will be unemployed?