Question 1

Job search

Accepted Answer

A) is one reason economies always experience some unemployment. 
B) is the process of matching workers with appropriate jobs. 
C) would not be a problem if all workers and all jobs were the same. 
D) All of the above are correct. 
A) is one reason economies always experience some unemployment. 
B) is the process of matching workers with appropriate jobs. 
C) would not be a problem if all workers and all jobs were the same. 
D) All of the above are correct.

Question 2

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

Accepted Answer

A) True 
 B)False

Question 3

Suppose that the adult population in the country of Atlantis is 115 million. If 80 million people are employed and 5 million are unemployed, then

Accepted Answer

A) 30 million are not in the labor force. 
B) 35 million are in the labor force. 
C) 75 million are in the labor force. 
D) 35 million are not in the labor force. 
A) 30 million are not in the labor force. 
B) 35 million are in the labor force. 
C) 75 million are in the labor force. 
D) 35 million are not in the labor force.

Question 4

Give a few examples of how sectoral shifts temporarily cause unemployment.

Accepted Answer

Examples should focus on sectors of the

Question 5

A firm may pay efficiency wages in an attempt to

Accepted Answer

A) entice workers to work the night shift rather than the day shift. 
B) improve productivity by reducing turnover. 
C) reduce costs by attracting the least-skilled workers to apply for job vacancies. 
D) All of the above are correct. 
A) entice workers to work the night shift rather than the day shift. 
B) improve productivity by reducing turnover. 
C) reduce costs by attracting the least-skilled workers to apply for job vacancies. 
D) All of the above are correct.

Question 6

Within the U.S. population, teenagers (ages 16-19) have similar rates of labor-force participation than adults of prime working age (ages 25-54), regardless of race or gender.

Accepted Answer

A) True 
 B)False

Question 7

Not all unemployment ends with the job seeker finding a job.

Accepted Answer

A) True 
 B)False

Question 8

Briefly summarize the advantages and disadvantages of unemployment insurance.

Accepted Answer

The main advantage is that unemployment

Question 9

If a union raises the wage in its industry above equilibrium then employment in that industry

Accepted Answer

A) and non-unionized industries falls. 
B) falls and employment in non-unionized industries rises. 
C) rises and falls in non-unionized industries. 
D) and non-unionized industries rises. 
A) and non-unionized industries falls. 
B) falls and employment in non-unionized industries rises. 
C) rises and falls in non-unionized industries. 
D) and non-unionized industries rises.

Question 10

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has

Accepted Answer

A) gradually increased. 
B) remained constant. 
C) gradually decreased. 
D) been eliminated. 
A) gradually increased. 
B) remained constant. 
C) gradually decreased. 
D) been eliminated.

Question 11

In an ideal labor market, wages would adjust to balance the quantity of labor supplied and the quantity of labor demanded, ensuring that all workers are always fully employed.

Accepted Answer

A) True 
 B)False

Question 12

Long-run unemployment arises from a single problem that has a single solution.

Accepted Answer

A) True 
 B)False

Question 13

Some degree of unemployment is inevitable in a complex economy.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) both wages and unemployment increase. 
B) wages increase and unemployment decreases. 
C) wages decrease and unemployment increases. 
D) both wages and unemployment decrease. 
A) both wages and unemployment increase. 
B) wages increase and unemployment decreases. 
C) wages decrease and unemployment increases. 
D) both wages and unemployment decrease.

Question 15

If the number of people unemployed rose but the number of people employed and the adult population stayed the same, then the labor force participation rate would rise.

Accepted Answer

A) True 
 B)False

Question 16

Suppose that some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were unemployed?

Accepted Answer

A) 2.54 million 
B) 2.76 million 
C) 3.68 million 
D) 8 million 
A) 2.54 million 
B) 2.76 million 
C) 3.68 million 
D) 8 million

Question 17

Which famous company executive introduced an innovative pay system that is consistent with the theory of efficiency wages?

Accepted Answer

A) Lee Iococca 
B) Steve Jobs 
C) Mark Zuckerberg 
D) Henry Ford 
A) Lee Iococca 
B) Steve Jobs 
C) Mark Zuckerberg 
D) Henry Ford

Question 18

Table 28-6  
-Refer to Table 28-6. What is the U-5 measure of labor underutilization?

Accepted Answer

A) 7.5% 
B) 7.9% 
C) 8.1% 
D) 26% 
A) 7.5% 
B) 7.9% 
C) 8.1% 
D) 26%

Question 19

Suppose that roofers are not unionized. If roofers unionize, then the supply of labor in other sectors of the economy will

Accepted Answer

A) decrease, raising wages in industries that are not unionized. 
B) decrease, reducing wages in industries that are not unionized. 
C) increase, raising wages in industries that are not unionized. 
D) increase, reducing wages in industries that are not unionized. 
A) decrease, raising wages in industries that are not unionized. 
B) decrease, reducing wages in industries that are not unionized. 
C) increase, raising wages in industries that are not unionized. 
D) increase, reducing wages in industries that are not unionized.

Question 20

Efficiency wages create a

Accepted Answer

A) shortage of labor and so reduce unemployment. 
B) shortage of labor and so raise unemployment. 
C) surplus of labor and so reduce unemployment. 
D) surplus of labor and so raise unemployment. 
A) shortage of labor and so reduce unemployment. 
B) shortage of labor and so raise unemployment. 
C) surplus of labor and so reduce unemployment. 
D) surplus of labor and so raise unemployment.

Exam 28: Unemployment and Its Natural Rate

Job search

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

Suppose that the adult population in the country of Atlantis is 115 million. If 80 million people are employed and 5 million are unemployed, then

Give a few examples of how sectoral shifts temporarily cause unemployment.

A firm may pay efficiency wages in an attempt to

Within the U.S. population, teenagers (ages 16-19) have similar rates of labor-force participation than adults of prime working age (ages 25-54), regardless of race or gender.

Not all unemployment ends with the job seeker finding a job.

Briefly summarize the advantages and disadvantages of unemployment insurance.

If a union raises the wage in its industry above equilibrium then employment in that industry

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has

In an ideal labor market, wages would adjust to balance the quantity of labor supplied and the quantity of labor demanded, ensuring that all workers are always fully employed.

Long-run unemployment arises from a single problem that has a single solution.

Some degree of unemployment is inevitable in a complex economy.

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

If the number of people unemployed rose but the number of people employed and the adult population stayed the same, then the labor force participation rate would rise.

Suppose that some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were unemployed?

Which famous company executive introduced an innovative pay system that is consistent with the theory of efficiency wages?

Table 28-6 -Refer to Table 28-6. What is the U-5 measure of labor underutilization?

Suppose that roofers are not unionized. If roofers unionize, then the supply of labor in other sectors of the economy will

Efficiency wages create a

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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