Question 1

Table 28-3
2009 Labor Data for Baltivia  
-Refer to Table 28-3. How many people were employed in Baltivia in 2009?

Accepted Answer

A) 9,600 
B) 10,600 
C) 11,000 
D) 11,200 
A) 9,600 
B) 10,600 
C) 11,000 
D) 11,200

Question 2

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

Accepted Answer

A) a higher wage paid to a more experienced worker 
B) a below-equilibrium wage paid by a small business exempt from minimum-wage laws 
C) an above-equilibrium wage paid by a firm to reduce turnover costs 
D) a wage tied to participation in a government-sponsored job training program 
A) a higher wage paid to a more experienced worker 
B) a below-equilibrium wage paid by a small business exempt from minimum-wage laws 
C) an above-equilibrium wage paid by a firm to reduce turnover costs 
D) a wage tied to participation in a government-sponsored job training program

Question 3

Sectoral shifts contribute to structural unemployment.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) 4.8% 
B) 5.0% 
C) 7.1% 
D) 7.7% 
A) 4.8% 
B) 5.0% 
C) 7.1% 
D) 7.7%

Question 5

More than three-fourths of the unemployed are recent entrants into the labor force.

Accepted Answer

A) True 
 B)False

Question 6

The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?

Accepted Answer

A) (total unemployed + marginally attached workers)/adult population 
B) (total unemployed + marginally attached workers + part-time employed for economic reasons)/adult population 
C) (total unemployed + marginally attached workers)/(labor force + marginally attached workers) 
D) (total unemployed + marginally attached workers + part time employed for economic reasons)/(labor force + marginally attached workers) 
A) (total unemployed + marginally attached workers)/adult population 
B) (total unemployed + marginally attached workers + part-time employed for economic reasons)/adult population 
C) (total unemployed + marginally attached workers)/(labor force + marginally attached workers) 
D) (total unemployed + marginally attached workers + part time employed for economic reasons)/(labor force + marginally attached workers)

Question 7

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Accepted Answer

A) True 
 B)False

Question 8

Table 28-5
Labor Force Statistics by Age
Suppose people in the adult population in a small country are classified based on their age.  
-Refer to Table 28-5. Suppose that the natural rate of unemployment is 5% for those under 55 and 3% for those 55 and older. The cyclical unemployment rate for those under 55 is

Accepted Answer

A) 0.88% which is greater than the cyclical unemployment rate for those 55 and older. 
B) 0.88% which is less than the cyclical unemployment rate for those 55 and older. 
C) -0.83% which is greater than the cyclical unemployment rate for those 55 and older. 
D) -0.83% which is less than the cyclical unemployment rate for those 55 and older. 
A) 0.88% which is greater than the cyclical unemployment rate for those 55 and older. 
B) 0.88% which is less than the cyclical unemployment rate for those 55 and older. 
C) -0.83% which is greater than the cyclical unemployment rate for those 55 and older. 
D) -0.83% which is less than the cyclical unemployment rate for those 55 and older.

Question 9

Sectoral shifts temporarily cause unemployment.

Accepted Answer

A) True 
 B)False

Question 10

Most U.S. workers have wages well above the legal minimum, so minimum-wage laws do not prevent the wage from adjusting to balance supply and demand.

Accepted Answer

A) True 
 B)False

Question 11

In the U.S., the National Labor Relations Board is the government agency that enforces workers' right to unionize.

Accepted Answer

A) True 
 B)False

Question 12

The adult population in the town of Shelbyville is 150 thousand. If 100 thousand people are employed and 20 thousand are unemployed, then the labor force participation rate is approximately

Accepted Answer

A) 67%. 
B) 80%. 
C) 16%. 
D) 13%. 
A) 67%. 
B) 80%. 
C) 16%. 
D) 13%.

Question 13

Causes of the changing role of women in American society over the past several decades include new technologies that have reduced the amount of time required to complete routine household tasks, improved birth control, and changing political and social attitudes.

Accepted Answer

A) True 
 B)False

Question 14

Recent entrants into the labor force account for about

Accepted Answer

A) 1/5 of those who are unemployed. 
B) 1/4 of those who are unemployed. 
C) 1/3 of those who are unemployed. 
D) 1/2 of those who are unemployed. 
A) 1/5 of those who are unemployed. 
B) 1/4 of those who are unemployed. 
C) 1/3 of those who are unemployed. 
D) 1/2 of those who are unemployed.

Question 15

Table 28-9
The table below lists the number of people by labor force classification for the country of Shelbyville.  
-Refer to Table 28-9. What is the labor force participation rate?

Accepted Answer

The answer of Table 28-9
The table below lists the number...

Question 16

Since the 1940's U.S. union membership has

Accepted Answer

A) fallen. This decline should have reduced structural unemployment. 
B) fallen. This decline should not have reduced structural unemployment. 
C) risen. This increase should have raised structural unemployment. 
D) risen. This increase should not have raised structural unemployment. 
A) fallen. This decline should have reduced structural unemployment. 
B) fallen. This decline should not have reduced structural unemployment. 
C) risen. This increase should have raised structural unemployment. 
D) risen. This increase should not have raised structural unemployment.

Question 17

All else equal, which of the following would increase the unemployment rate?
(i)an increase in the number of women who return to work after being stay-at-home mothers
(ii)a preference among older men to retire early
(iii)an increase in the maximum number of weeks for which someone can receive government unemployment benefits
(iv)an increase in the number of previously unemployed women who stop looking for work and become discouraged workers

Accepted Answer

A) (i) and (ii) only 
B) (iii) only 
C) (ii) and (iii) only 
D) (ii), (iii), and (iv) only 
A) (i) and (ii) only 
B) (iii) only 
C) (ii) and (iii) only 
D) (ii), (iii), and (iv) only

Question 18

Frictional unemployment is often thought to explain relatively short spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 19

Economists have found that union workers earn about 30 to 40 percent more than similar workers who do not belong to unions.

Accepted Answer

A) True 
 B)False

Question 20

Wanda quit her job because she was unhappy at work. Arnold was fired from his landscaping job because his company was downsizing. Who is eligible for unemployment insurance benefits?

Accepted Answer

A) both Wanda and Arnold 
B) Wanda but not Arnold 
C) Arnold but not Wanda 
D) neither Wanda nor Arnold 
A) both Wanda and Arnold 
B) Wanda but not Arnold 
C) Arnold but not Wanda 
D) neither Wanda nor Arnold

Exam 28: Unemployment and Its Natural Rate

Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. How many people were employed in Baltivia in 2009?

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

Sectoral shifts contribute to structural unemployment.

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

More than three-fourths of the unemployed are recent entrants into the labor force.

The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Sectoral shifts temporarily cause unemployment.

Most U.S. workers have wages well above the legal minimum, so minimum-wage laws do not prevent the wage from adjusting to balance supply and demand.

In the U.S., the National Labor Relations Board is the government agency that enforces workers' right to unionize.

The adult population in the town of Shelbyville is 150 thousand. If 100 thousand people are employed and 20 thousand are unemployed, then the labor force participation rate is approximately

Causes of the changing role of women in American society over the past several decades include new technologies that have reduced the amount of time required to complete routine household tasks, improved birth control, and changing political and social attitudes.

Recent entrants into the labor force account for about

Table 28-9 The table below lists the number of people by labor force classification for the country of Shelbyville. -Refer to Table 28-9. What is the labor force participation rate?

Since the 1940's U.S. union membership has

Frictional unemployment is often thought to explain relatively short spells of unemployment.

Economists have found that union workers earn about 30 to 40 percent more than similar workers who do not belong to unions.

Wanda quit her job because she was unhappy at work. Arnold was fired from his landscaping job because his company was downsizing. Who is eligible for unemployment insurance benefits?

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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