Question 1

​Fred operates his own business, Fred would be counted as employed

Accepted Answer

A) ​in both the household and estblishment surveys. 
B) in the household but not the establishment survey. 
C) ​in the establishment but not the household survey. 
D) ​in neither the household nor the establishment survey. 
A) ​in both the household and estblishment surveys. 
B) in the household but not the establishment survey. 
C) ​in the establishment but not the household survey. 
D) ​in neither the household nor the establishment survey.

Question 2

Table 28-6  
-Refer to Table 28-6. What is the U-6 measure of labor underutilization?

Accepted Answer

A) 8.4% 
B) 9.0% 
C) 9.2% 
D) 35.2% 
A) 8.4% 
B) 9.0% 
C) 9.2% 
D) 35.2%

Question 3

Even though the difference in labor-force participation rates of U.S. males and females has narrowed, the labor-force participation rate of males remains higher than that of females.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is the correct formula for calculating the unemployment rate?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 5

Figure 28-1  
-Refer to Figure 28-1. Which of the following correctly identifies lines A and B?

Accepted Answer

A) Line A is the unemployment rate, and line B is the natural rate of unemployment. 
B) Line A is the labor force participation rate, and line B is the adult population. 
C) Line A is the employment rate, and line B is the adult population. 
D) Line A is the labor force participation rate, and line B is the unemployment rate. 
A) Line A is the unemployment rate, and line B is the natural rate of unemployment. 
B) Line A is the labor force participation rate, and line B is the adult population. 
C) Line A is the employment rate, and line B is the adult population. 
D) Line A is the labor force participation rate, and line B is the unemployment rate.

Question 6

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate sometimes is close to zero.

Accepted Answer

A) True 
 B)False

Question 7

Minimum-wage laws and unions are similar to each other but different from efficiency wages in that minimum-wage law and unions

Accepted Answer

A) cause unemployment, but efficiency wages do not. 
B) cause the quantity of labor supplied to exceed the quantity of labor demanded, but efficiency wages do not. 
C) cause wages to be above the equilibrium level. 
D) prevent firms from lowering wages in the presence of a surplus of workers. 
A) cause unemployment, but efficiency wages do not. 
B) cause the quantity of labor supplied to exceed the quantity of labor demanded, but efficiency wages do not. 
C) cause wages to be above the equilibrium level. 
D) prevent firms from lowering wages in the presence of a surplus of workers.

Question 8

Economists have found that union workers earn what percent more than similar nonunion workers?

Accepted Answer

A) 0 to 5 
B) 5 to 10 
C) 10 to 20 
D) 20 to 30 
A) 0 to 5 
B) 5 to 10 
C) 10 to 20 
D) 20 to 30

Question 9

Duane owns his own real estate company. The Bureau of Labor Statistics counts Duane as

Accepted Answer

A) unemployed and in the labor force. 
B) unemployed and not in the labor force. 
C) employed and in the labor force. 
D) employed and not in the labor force. 
A) unemployed and in the labor force. 
B) unemployed and not in the labor force. 
C) employed and in the labor force. 
D) employed and not in the labor force.

Question 10

Adults who were waiting to be recalled to a job from which they had been laid off are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 11

Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Accepted Answer

A) True 
 B)False

Question 12

The deviation of unemployment from its natural rate is called

Accepted Answer

A) the normal rate of unemployment. 
B) deviant unemployment. 
C) cyclical unemployment. 
D) fluctuating unemployment. 
A) the normal rate of unemployment. 
B) deviant unemployment. 
C) cyclical unemployment. 
D) fluctuating unemployment.

Question 13

Sam has no job but keeps applying to get a job with a business that is unionized. He is qualified and he finds the pay attractive, but the firm is not hiring. Sam is

Accepted Answer

A) structurally unemployed. Structural unemployment exists even in the long run. 
B) structurally unemployed. Structural unemployment does not exist in the long run. 
C) frictionally unemployed. Frictional unemployment exists even in the long run. 
D) frictionally unemployed. Frictional unemployment does not exist in the long run. 
A) structurally unemployed. Structural unemployment exists even in the long run. 
B) structurally unemployed. Structural unemployment does not exist in the long run. 
C) frictionally unemployed. Frictional unemployment exists even in the long run. 
D) frictionally unemployed. Frictional unemployment does not exist in the long run.

Question 14

The table below uses data for the year 2003 provided by the Bureau of Labor Statistics and adjusted to be comparable to U.S. data. All values are in thousands. Fill in the blank entries in the table.

Accepted Answer

The answer of The table below uses data for the...

Question 15

In the U.S., it is illegal for employers to interfere when workers try to organize unions.

Accepted Answer

A) True 
 B)False

Question 16

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 unemployed?

Accepted Answer

A) 1.425 million 
B) 1.5 million 
C) 2.5 million 
D) 5 million 
A) 1.425 million 
B) 1.5 million 
C) 2.5 million 
D) 5 million

Question 17

Right-to-work laws allow striking union members to be permanently replaced.

Accepted Answer

A) True 
 B)False

Question 18

When job search is the explanation for unemployment, workers are searching for the jobs that best suit their tastes and skills, but when the wage is above the equilibrium level, the quantity of labor supplied exceeds the quantity of labor demanded, and workers are unemployed because they are waiting for jobs to open up.

Accepted Answer

A) True 
 B)False

Question 19

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 participation rate in Meditor?

Accepted Answer

A) 37.5% 
B) 62.5% 
C) 66.7% 
D) 95.8% 
A) 37.5% 
B) 62.5% 
C) 66.7% 
D) 95.8%

Question 20

Some long-run unemployment may be explained by the fact that the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment and Its Natural Rate

​Fred operates his own business, Fred would be counted as employed

Table 28-6 -Refer to Table 28-6. What is the U-6 measure of labor underutilization?

Even though the difference in labor-force participation rates of U.S. males and females has narrowed, the labor-force participation rate of males remains higher than that of females.

Which of the following is the correct formula for calculating the unemployment rate?

Figure 28-1 -Refer to Figure 28-1. Which of the following correctly identifies lines A and B?

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate sometimes is close to zero.

Minimum-wage laws and unions are similar to each other but different from efficiency wages in that minimum-wage law and unions

Economists have found that union workers earn what percent more than similar nonunion workers?

Duane owns his own real estate company. The Bureau of Labor Statistics counts Duane as

Adults who were waiting to be recalled to a job from which they had been laid off are included in the Bureau of Labor Statistics' "employed" category.

Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

The deviation of unemployment from its natural rate is called

Sam has no job but keeps applying to get a job with a business that is unionized. He is qualified and he finds the pay attractive, but the firm is not hiring. Sam is

The table below uses data for the year 2003 provided by the Bureau of Labor Statistics and adjusted to be comparable to U.S. data. All values are in thousands. Fill in the blank entries in the table.

In the U.S., it is illegal for employers to interfere when workers try to organize unions.

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 unemployed?

Right-to-work laws allow striking union members to be permanently replaced.

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 participation rate in Meditor?

Some long-run unemployment may be explained by the fact that the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one.

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

Fred operates his own business, Fred would be counted as employed