Question 1

Only paid workers are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 2

Cyclical unemployment refers to

Accepted Answer

A) the portion of unemployment created by job search. 
B) short-run fluctuations around the natural rate of unemployment. 
C) changes in unemployment due to changes in the natural rate of unemployment. 
D) the portion of unemployment created by wages set above the equilibrium level. 
A) the portion of unemployment created by job search. 
B) short-run fluctuations around the natural rate of unemployment. 
C) changes in unemployment due to changes in the natural rate of unemployment. 
D) the portion of unemployment created by wages set above the equilibrium level.

Question 3

Which of the following is a requirement for the Bureau of Labor Statistics to place someone in the "unemployed" category?

Accepted Answer

A) The person must have worked no more than 10 hours during the past week.. 
B) The person must have tried to find employment during the previous four weeks. 
C) The person may not have been laid off. 
D) All of the above are correct. 
A) The person must have worked no more than 10 hours during the past week.. 
B) The person must have tried to find employment during the previous four weeks. 
C) The person may not have been laid off. 
D) All of the above are correct.

Question 4

Which of the following helps to reduce frictional unemployment?

Accepted Answer

A) government-run employment agencies 
B) public training programs 
C) the Internet 
D) All of the above are correct. 
A) government-run employment agencies 
B) public training programs 
C) the Internet 
D) All of the above are correct.

Question 5

If the minimum wage were currently above the equilibrium wage, then a decrease in the minimum wage that kept it above the equilibrium wage would

Accepted Answer

A) increase the surplus of labor. 
B) reduce the surplus of labor. 
C) increase the shortage of labor. 
D) reduce the shortage of labor, 
A) increase the surplus of labor. 
B) reduce the surplus of labor. 
C) increase the shortage of labor. 
D) reduce the shortage of labor,

Question 6

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 7

The natural rate of unemployment
(i)is the economy's desirable level of unemployment.
(ii)arises from a single problem that has a single solution.
(iii)is the amount of unemployment that does not go away on its own.

Accepted Answer

A) (i) and (ii) only 
B) (iii) only 
C) (i), (ii), and (iii) 
D) None of the above is correct. 
A) (i) and (ii) only 
B) (iii) only 
C) (i), (ii), and (iii) 
D) None of the above is correct.

Question 8

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

Accepted Answer

A) teenagers. 
B) low-skill workers. 
C) inexperienced workers. 
D) highly-educated workers. 
A) teenagers. 
B) low-skill workers. 
C) inexperienced workers. 
D) highly-educated workers.

Question 9

The natural rate of unemployment is the

Accepted Answer

A) unemployment rate that would prevail with zero inflation. 
B) rate associated with the highest possible level of GDP. 
C) difference between the long-run and short-run unemployment rates. 
D) amount of unemployment that the economy normally experiences. 
A) unemployment rate that would prevail with zero inflation. 
B) rate associated with the highest possible level of GDP. 
C) difference between the long-run and short-run unemployment rates. 
D) amount of unemployment that the economy normally experiences.

Question 10

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 size of the labor force, and the size of the adult population?

Accepted Answer

The labor force is 1

Question 11

In 2015 the Japanese adult non-institutionalized population was 110.7 million, the labor force was 66 million, and the number of people employed was 63.7 million. According to these numbers, the Japanese labor-force participation rate and unemployment rate were about

Accepted Answer

A) 57.5% and 2.1% 
B) 57.5% and 3.5% 
C) 59.6% and 2.1% 
D) 59.6% and 3.5% 
A) 57.5% and 2.1% 
B) 57.5% and 3.5% 
C) 59.6% and 2.1% 
D) 59.6% and 3.5%

Question 12

An important determinant of a country's standard of living is the amount of __________ it typically experiences.

Accepted Answer

The answer of An important determinant of a country's standard...

Question 13

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are not eligible for unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 14

Economists would predict that, other things the same, the more generous unemployment compensation a country has, the

Accepted Answer

A) shorter the duration of each spell of unemployment and the higher the unemployment rate. 
B) shorter the duration of each spell of unemployment and the lower the unemployment rate. 
C) longer the duration of each spell of unemployment and the higher the unemployment rate. 
D) longer the duration of each spell of unemployment and the lower the unemployment rate. 
A) shorter the duration of each spell of unemployment and the higher the unemployment rate. 
B) shorter the duration of each spell of unemployment and the lower the unemployment rate. 
C) longer the duration of each spell of unemployment and the higher the unemployment rate. 
D) longer the duration of each spell of unemployment and the lower the unemployment rate.

Question 15

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate. All workers are equally able to do either job. Initially, both labor markets are perfectly competitive. If a union organizes workers in one of the markets, then the wage rates will tend to

Accepted Answer

A) rise in both markets. 
B) fall in both markets 
C) rise for the union jobs, but remain unchanged for the nonunion jobs. 
D) rise for the union jobs and fall for the nonunion jobs. 
A) rise in both markets. 
B) fall in both markets 
C) rise for the union jobs, but remain unchanged for the nonunion jobs. 
D) rise for the union jobs and fall for the nonunion jobs.

Question 16

According to 2014 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the lowest 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 17

Noah is an unpaid stay-at-home father who is not currently searching for paid work. Pete is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A) only Noah 
B) only Pete 
C) both Noah and Pete 
D) neither Noah nor Pete 
A) only Noah 
B) only Pete 
C) both Noah and Pete 
D) neither Noah nor Pete

Question 18

Which of the following is not an explanation for structural unemployment?

Accepted Answer

A) efficiency wages 
B) job search 
C) minimum-wage laws 
D) unions 
A) efficiency wages 
B) job search 
C) minimum-wage laws 
D) unions

Question 19

The theory of efficiency wages explains why

Accepted Answer

A) setting wages at the equilibrium level may increase unemployment. 
B) it may be in the best interest of firms to offer wages that are above the equilibrium level. 
C) the most efficient way to pay workers is to pay them according to their skills. 
D) it is efficient for firms to set wages at the equilibrium level. 
A) setting wages at the equilibrium level may increase unemployment. 
B) it may be in the best interest of firms to offer wages that are above the equilibrium level. 
C) the most efficient way to pay workers is to pay them according to their skills. 
D) it is efficient for firms to set wages at the equilibrium level.

Question 20

Figure 28-3  
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be employed?

Accepted Answer

A) 3,000 
B) 4,000 
C) 5,000 
D) 7,000 
A) 3,000 
B) 4,000 
C) 5,000 
D) 7,000

Exam 28: Unemployment and Its Natural Rate

Only paid workers are included in the Bureau of Labor Statistics' "employed" category.

Cyclical unemployment refers to

Which of the following is a requirement for the Bureau of Labor Statistics to place someone in the "unemployed" category?

Which of the following helps to reduce frictional unemployment?

If the minimum wage were currently above the equilibrium wage, then a decrease in the minimum wage that kept it above the equilibrium wage would

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

The natural rate of unemployment (i)is the economy's desirable level of unemployment. (ii)arises from a single problem that has a single solution. (iii)is the amount of unemployment that does not go away on its own.

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

The natural rate of unemployment is the

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 size of the labor force, and the size of the adult population?

In 2015 the Japanese adult non-institutionalized population was 110.7 million, the labor force was 66 million, and the number of people employed was 63.7 million. According to these numbers, the Japanese labor-force participation rate and unemployment rate were about

An important determinant of a country's standard of living is the amount of __________ it typically experiences.

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are not eligible for unemployment insurance.

Economists would predict that, other things the same, the more generous unemployment compensation a country has, the

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate. All workers are equally able to do either job. Initially, both labor markets are perfectly competitive. If a union organizes workers in one of the markets, then the wage rates will tend to

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

Noah is an unpaid stay-at-home father who is not currently searching for paid work. Pete is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?

Which of the following is not an explanation for structural unemployment?

The theory of efficiency wages explains why

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be employed?

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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