Question 1

Who of the following is counted as "unemployed" by the Bureau of Labor Statistics?

Accepted Answer

A) someone working without pay for a family member's business 
B) someone who is absent from their job due to illness 
C) someone on temporary layoff 
D) All of the above are correct. 
A) someone working without pay for a family member's business 
B) someone who is absent from their job due to illness 
C) someone on temporary layoff 
D) All of the above are correct.

Question 2

The Bureau of Labor Statistics produces data on unemployment, types of employment, length of the average workweek, and the duration of unemployment.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a commonly-cited explanation for the decreasing labor-force participation rates for men from 1950 to the present?

Accepted Answer

A) availability of reliable birth control 
B) men acquiring additional years of schooling before entering the labor force 
C) a preference for men to retire when younger 
D) changing social attitudes about stay-at-home fathers 
A) availability of reliable birth control 
B) men acquiring additional years of schooling before entering the labor force 
C) a preference for men to retire when younger 
D) changing social attitudes about stay-at-home fathers

Question 4

Table 28-7
Below is data about the labor market in the city of Productionville.  
-Refer to Table 28-7. If the local government imposed a minimum wage of $4 in Productionville, how many people would be unemployed?

Accepted Answer

A) 0 
B) 2,000 
C) 3,000 
D) 10,000 
A) 0 
B) 2,000 
C) 3,000 
D) 10,000

Question 5

The Bureau of Labor Statistics computes unemployment rates for the entire adult population and for groups based on age, gender, and race.

Accepted Answer

A) True 
 B)False

Question 6

The unemployment rate equals the percentage of the adult population that is unemployed.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not correct?

Accepted Answer

A) When a union is present in a labor market, wages may not be determined by the equilibrium of supply and demand. 
B) Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power. 
C) When unions raise wages above equilibrium, the quantity of labor supplied decreases, and the quantity of labor demanded increases. 
D) Most workers in the U.S. economy are not members of a union. 
A) When a union is present in a labor market, wages may not be determined by the equilibrium of supply and demand. 
B) Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power. 
C) When unions raise wages above equilibrium, the quantity of labor supplied decreases, and the quantity of labor demanded increases. 
D) Most workers in the U.S. economy are not members of a union.

Question 8

The natural unemployment rate includes

Accepted Answer

A) both frictional and structural unemployment. 
B) neither frictional nor structural unemployment. 
C) structural but not frictional unemployment. 
D) frictional but not structural unemployment. 
A) both frictional and structural unemployment. 
B) neither frictional nor structural unemployment. 
C) structural but not frictional unemployment. 
D) frictional but not structural unemployment.

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 highest 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

The natural rate of unemployment is constant over time.

Accepted Answer

A) True 
 B)False

Question 11

When a union raises the wage above the equilibrium level,

Accepted Answer

A) both the quantity of labor supplied and unemployment rise. 
B) both the quantity of labor supplied and unemployment fall. 
C) the quantity of labor supplied rises and unemployment falls. 
D) the quantity of labor supplied falls and unemployment rises. 
A) both the quantity of labor supplied and unemployment rise. 
B) both the quantity of labor supplied and unemployment fall. 
C) the quantity of labor supplied rises and unemployment falls. 
D) the quantity of labor supplied falls and unemployment rises.

Question 12

The labor-force participation rate measures the percentage of the

Accepted Answer

A) total adult population that is in the labor force. 
B) total adult population that is employed. 
C) labor force that is employed. 
D) labor force that is either employed or unemployed. 
A) total adult population that is in the labor force. 
B) total adult population that is employed. 
C) labor force that is employed. 
D) labor force that is either employed or unemployed.

Question 13

How does the government measure the economy's rate of unemployment?

Accepted Answer

The unemployment rat

Question 14

Collective bargaining refers to

Accepted Answer

A) the process by which the government sets exemptions from the minimum wage law. 
B) setting the same wage for all employees to prevent conflict among workers. 
C) firms colluding to set the wages of employees below equilibrium. 
D) the process by which unions and firms agree on the terms of employment. 
A) the process by which the government sets exemptions from the minimum wage law. 
B) setting the same wage for all employees to prevent conflict among workers. 
C) firms colluding to set the wages of employees below equilibrium. 
D) the process by which unions and firms agree on the terms of employment.

Question 15

An economy's natural rate of unemployment refers to the amount of unemployment that the economy normally experiences.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not a cause of the decline in the U.S. men's labor-force participation rate over the past several decades?

Accepted Answer

A) young men now stay in school longer than their fathers and grandfathers did 
B) older men now retire earlier and live longer 
C) with more women employed, there are fewer jobs now available to men 
D) more fathers now stay at home to raise their children 
A) young men now stay in school longer than their fathers and grandfathers did 
B) older men now retire earlier and live longer 
C) with more women employed, there are fewer jobs now available to men 
D) more fathers now stay at home to raise their children

Question 17

For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must

Accepted Answer

A) have worked no more than 10 hours during the past week.. 
B) have tried to find employment during the previous year. 
C) not have been laid off. 
D) None of the above is correct. 
A) have worked no more than 10 hours during the past week.. 
B) have tried to find employment during the previous year. 
C) not have been laid off. 
D) None of the above is correct.

Question 18

Table 28-6  
-Refer to Table 28-6. What is the U-3 measure of labor underutilization?

Accepted Answer

A) 4.7% 
B) 6.2% 
C) 7.0% 
D) 10.9% 
A) 4.7% 
B) 6.2% 
C) 7.0% 
D) 10.9%

Question 19

In the early 1900s, Henry Ford introduced a

Accepted Answer

A) high-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. 
B) high-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory. 
C) low-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. 
D) low-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory. 
A) high-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. 
B) high-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory. 
C) low-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. 
D) low-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory.

Question 20

A union is an employer association that bargains with workers over wages, benefits, and working conditions.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment and Its Natural Rate

Who of the following is counted as "unemployed" by the Bureau of Labor Statistics?

The Bureau of Labor Statistics produces data on unemployment, types of employment, length of the average workweek, and the duration of unemployment.

Which of the following is not a commonly-cited explanation for the decreasing labor-force participation rates for men from 1950 to the present?

Table 28-7 Below is data about the labor market in the city of Productionville. -Refer to Table 28-7. If the local government imposed a minimum wage of $4 in Productionville, how many people would be unemployed?

The Bureau of Labor Statistics computes unemployment rates for the entire adult population and for groups based on age, gender, and race.

The unemployment rate equals the percentage of the adult population that is unemployed.

Which of the following is not correct?

The natural unemployment rate includes

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 highest unemployment rate?

The natural rate of unemployment is constant over time.

When a union raises the wage above the equilibrium level,

The labor-force participation rate measures the percentage of the

How does the government measure the economy's rate of unemployment?

Collective bargaining refers to

An economy's natural rate of unemployment refers to the amount of unemployment that the economy normally experiences.

Which of the following is not a cause of the decline in the U.S. men's labor-force participation rate over the past several decades?

For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must

Table 28-6 -Refer to Table 28-6. What is the U-3 measure of labor underutilization?

In the early 1900s, Henry Ford introduced a

A union is an employer association that bargains with workers over wages, benefits, and working conditions.

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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