Question 1

According to 2014 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the highest labor-force participation 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 2

Suppose that the adult population is 4 million, the number of unemployed is 0.25 million, and the labor-force participation rate is 75%. What is the unemployment rate?

Accepted Answer

A) 6.25% 
B) 8.3% 
C) 9.1% 
D) 18.75% 
A) 6.25% 
B) 8.3% 
C) 9.1% 
D) 18.75%

Question 3

Since unemployment rates are consistently higher in Canada and some Western European countries than in the United States, it appears that the natural rate of unemployment is lower in the United States. What might explain this difference?

Accepted Answer

The text offers two explanations for the

Question 4

Jenna is searching for a job that suits her tastes about where to live. Mary is looking for a job that makes best use of her skills.

Accepted Answer

A) Jenna and Mary are both frictionally unemployed. 
B) Jenna and Mary are both structurally unemployed. 
C) Jenna is frictionally unemployed, and Mary is structurally unemployed. 
D) Jenna is structurally unemployed, and Mary is frictionally unemployed. 
A) Jenna and Mary are both frictionally unemployed. 
B) Jenna and Mary are both structurally unemployed. 
C) Jenna is frictionally unemployed, and Mary is structurally unemployed. 
D) Jenna is structurally unemployed, and Mary is frictionally unemployed.

Question 5

Suppose that dental hygienists are unionized in the eastern region of the country but not in the western region. If the unionized workers in the eastern region abolished their unions, employment

Accepted Answer

A) and wages of dental hygienists in the eastern region would rise. 
B) of dental hygienists in the eastern region would rise, but wages of dental hygienists in the eastern region would fall. 
C) and wages of dental hygienists in the eastern region would fall. 
D) of dental hygienists in the eastern region would fall, but wages of dental hygienists in the eastern region would rise. 
A) and wages of dental hygienists in the eastern region would rise. 
B) of dental hygienists in the eastern region would rise, but wages of dental hygienists in the eastern region would fall. 
C) and wages of dental hygienists in the eastern region would fall. 
D) of dental hygienists in the eastern region would fall, but wages of dental hygienists in the eastern region would rise.

Question 6

The adult population must equal the sum of the employed and the unemployed.

Accepted Answer

A) True 
 B)False

Question 7

Critics of unions argue that unions cause the allocation of labor to be inefficient and inequitable.

Accepted Answer

A) True 
 B)False

Question 8

The Bureau of Labor Statistics defines discouraged workers as marginally attached workers who have given a job-market related reason for not currently looking for a job.

Accepted Answer

A) True 
 B)False

Question 9

Who among the following would be counted as "unemployed"?

Accepted Answer

A) Shasta, who is waiting to be recalled to a job from which she has been laid off. 
B) Karen, who neither has a job nor is looking for one. 
C) Mary, who worked only 35 hours last week. 
D) None of the above is correct. 
A) Shasta, who is waiting to be recalled to a job from which she has been laid off. 
B) Karen, who neither has a job nor is looking for one. 
C) Mary, who worked only 35 hours last week. 
D) None of the above is correct.

Question 10

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

When a union bargains successfully with employers, in that industry,

Accepted Answer

A) both the quantity of labor supplied and the quantity of labor demanded increase. 
B) both the quantity of labor supplied and the quantity of labor demanded decrease. 
C) the quantity of labor supplied increases and the quantity of labor demanded decreases. 
D) the quantity of labor demanded increases and the quantity of labor supplied decreases. 
A) both the quantity of labor supplied and the quantity of labor demanded increase. 
B) both the quantity of labor supplied and the quantity of labor demanded decrease. 
C) the quantity of labor supplied increases and the quantity of labor demanded decreases. 
D) the quantity of labor demanded increases and the quantity of labor supplied decreases.

Question 13

Unemployment insurance __________ the amount of unemployment.

Accepted Answer

The answer of Unemployment insurance __________ the amount of unemployment....

Question 14

Suppose that a country becomes relatively better than other countries at producing wind generators, in this country

Accepted Answer

A) structural unemployment and so the natural rate of unemployment will increase. 
B) structural unemployment and so cyclical unemployment will increase. 
C) frictional unemployment and so the natural rate of unemployment will increase. 
D) frictional unemployment and the cyclical rate of unemployment will increase. 
A) structural unemployment and so the natural rate of unemployment will increase. 
B) structural unemployment and so cyclical unemployment will increase. 
C) frictional unemployment and so the natural rate of unemployment will increase. 
D) frictional unemployment and the cyclical rate of unemployment will increase.

Question 15

The Bureau of Labor Statistics' U-1 measure of joblessness is larger than its U-6 measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 16

Minimum-wage laws are most likely to affect the wages paid to

Accepted Answer

A) teenagers. 
B) people with advanced technical training. 
C) people who are self-employed. 
D) union members. 
A) teenagers. 
B) people with advanced technical training. 
C) people who are self-employed. 
D) union members.

Question 17

Sirius has just finished high school and started looking for his first job, but has not yet found one. Other things the same, the unemployment rate

Accepted Answer

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

Question 18

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

Accepted Answer

A) True 
 B)False

Question 19

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

Accepted Answer

A) Miguel, who is on temporary layoff 
B) Reta, who worked only 15 hours last week 
C) Marisa, who neither has a job nor is looking for one 
D) None of the above is correct. 
A) Miguel, who is on temporary layoff 
B) Reta, who worked only 15 hours last week 
C) Marisa, who neither has a job nor is looking for one 
D) None of the above is correct.

Question 20

If the wage is kept above the equilibrium wage for any reason, the result is structural unemployment.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment and Its Natural Rate

According to 2014 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the highest labor-force participation rate?

Suppose that the adult population is 4 million, the number of unemployed is 0.25 million, and the labor-force participation rate is 75%. What is the unemployment rate?

Since unemployment rates are consistently higher in Canada and some Western European countries than in the United States, it appears that the natural rate of unemployment is lower in the United States. What might explain this difference?

Jenna is searching for a job that suits her tastes about where to live. Mary is looking for a job that makes best use of her skills.

Suppose that dental hygienists are unionized in the eastern region of the country but not in the western region. If the unionized workers in the eastern region abolished their unions, employment

The adult population must equal the sum of the employed and the unemployed.

Critics of unions argue that unions cause the allocation of labor to be inefficient and inequitable.

The Bureau of Labor Statistics defines discouraged workers as marginally attached workers who have given a job-market related reason for not currently looking for a job.

Who among the following would be counted as "unemployed"?

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

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

When a union bargains successfully with employers, in that industry,

Unemployment insurance __________ the amount of unemployment.

Suppose that a country becomes relatively better than other countries at producing wind generators, in this country

The Bureau of Labor Statistics' U-1 measure of joblessness is larger than its U-6 measure of joblessness.

Minimum-wage laws are most likely to affect the wages paid to

Sirius has just finished high school and started looking for his first job, but has not yet found one. Other things the same, the unemployment rate

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

If the wage is kept above the equilibrium wage for any reason, the result is structural unemployment.

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