Question 1

Figure 28-7  
-Refer to Figure 28-7. At a minimum wage of $125, how much is the surplus of labor?

Accepted Answer

The answer of Figure 28-7  
-Refer to Figure 28-7....

Question 2

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 600 households, called the Current Population Survey.

Accepted Answer

A) True 
 B)False

Question 3

Figure 28-3  
-Refer to Figure 28-3. If the government imposes a minimum wage of $4, 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

Question 4

To maintain their standard of living, most people rely on

Accepted Answer

A) government assistance. 
B) their labor earnings. 
C) their personal savings. 
D) All of the above are correct. 
A) government assistance. 
B) their labor earnings. 
C) their personal savings. 
D) All of the above are correct.

Question 5

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 $7 in Productionville, how many people would be unemployed?

Accepted Answer

A) 0 
B) 2,000 
C) 5,000 
D) 10,000 
A) 0 
B) 2,000 
C) 5,000 
D) 10,000

Question 6

According to 2014 data on the U.S. population, which of the following groups of teenagers (ages 16-19) 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 7

An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

Accepted Answer

A) True 
 B)False

Question 8

A labor union is similar to a __________.

Accepted Answer

The answer of A labor union is similar to a...

Question 9

Table 28-4
2010 Labor Data for Adults (ages 16 and older) in Meditor  
-Refer to Table 28-4. What is the adult male labor-force participation rate in Meditor?

Accepted Answer

A) 37% 
B) 63% 
C) 66.7% 
D) 96.3% 
A) 37% 
B) 63% 
C) 66.7% 
D) 96.3%

Question 10

People who report being unemployed but who, in fact, are working for "under the table" pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.

Accepted Answer

A) True 
 B)False

Question 11

List a few of the characteristics of workers who typically earn at or below the minimum wage.

Accepted Answer

teenagers, the least skilled m

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Christopher is an unpaid, stay-at-home father who works as a volunteer at the local Habitat for Humanity chapter. Currently, Christopher is not looking for a paid job. The Bureau of Labor Statistics counts Christopher as

Accepted Answer

A) unemployed and in the labor force. 
B) unemployed but not in the labor force. 
C) in the labor force but not unemployed. 
D) neither in the labor force nor unemployed. 
A) unemployed and in the labor force. 
B) unemployed but not in the labor force. 
C) in the labor force but not unemployed. 
D) neither in the labor force nor unemployed.

Question 14

If outsiders had more say in union contracts then it is likely that union wages would be

Accepted Answer

A) higher so unemployment would be higher. 
B) higher so unemployment would be lower. 
C) lower so unemployment would be higher. 
D) lower so unemployment would be lower. 
A) higher so unemployment would be higher. 
B) higher so unemployment would be lower. 
C) lower so unemployment would be higher. 
D) lower so unemployment would be lower.

Question 15

Suppose there are a large number of men who used to work or seek work who now no longer do either. Other things the same, this makes

Accepted Answer

A) the number of people unemployed rise but does not change the labor force. 
B) the number of people unemployed rise but makes the labor force fall. 
C) both the number of people unemployed and the labor force fall. 
D) the number of people unemployed fall but does not change the labor force. 
A) the number of people unemployed rise but does not change the labor force. 
B) the number of people unemployed rise but makes the labor force fall. 
C) both the number of people unemployed and the labor force fall. 
D) the number of people unemployed fall but does not change the labor force.

Question 16

The amount of unemployment that an economy normally experiences is called the

Accepted Answer

A) average rate of unemployment. 
B) natural rate of unemployment. 
C) cyclical rate of unemployment. 
D) typical rate of unemployment. 
A) average rate of unemployment. 
B) natural rate of unemployment. 
C) cyclical rate of unemployment. 
D) typical rate of unemployment.

Question 17

Rupert is collecting unemployment insurance benefits. To continue to receive his benefits, he must be looking for work. Because he'd like to continue collecting benefits rather than take a job, he applies at places that are unlikely to hire him. People like Rupert make the reported unemployment rate less than it would otherwise be.

Accepted Answer

A) True 
 B)False

Question 18

The Bureau of Labor Statistics counts discouraged workers as

Accepted Answer

A) employed. Including them as employed makes the unemployment rate lower than otherwise. 
B) unemployed. Including them as unemployed makes the unemployment rate higher than otherwise. 
C) out of the labor force. If they were counted as unemployed the unemployment rate would be higher. 
D) None of the above is correct. 
A) employed. Including them as employed makes the unemployment rate lower than otherwise. 
B) unemployed. Including them as unemployed makes the unemployment rate higher than otherwise. 
C) out of the labor force. If they were counted as unemployed the unemployment rate would be higher. 
D) None of the above is correct.

Question 19

Other things the same, an increase in wages above their equilibrium level

Accepted Answer

A) increases frictional unemployment but leaves the natural rate of unemployment unchanged. 
B) increases frictional unemployment and increases the natural rate of unemployment. 
C) increases structural unemployment but leaves the natural rate of unemployment unchanged. 
D) increases structural unemployment and increases the natural rate of unemployment. 
A) increases frictional unemployment but leaves the natural rate of unemployment unchanged. 
B) increases frictional unemployment and increases the natural rate of unemployment. 
C) increases structural unemployment but leaves the natural rate of unemployment unchanged. 
D) increases structural unemployment and increases the natural rate of unemployment.

Question 20

Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A) Tina, who worked most of the week in a steel factory 
B) Kelly, who is temporarily laid off but expects to be recalled 
C) DJ, who does not have a job but is looking for work 
D) All of the above are correct. 
A) Tina, who worked most of the week in a steel factory 
B) Kelly, who is temporarily laid off but expects to be recalled 
C) DJ, who does not have a job but is looking for work 
D) All of the above are correct.

Exam 28: Unemployment and Its Natural Rate

Figure 28-7 -Refer to Figure 28-7. At a minimum wage of $125, how much is the surplus of labor?

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 600 households, called the Current Population Survey.

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $4, how many workers will be employed?

To maintain their standard of living, most people rely on

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 $7 in Productionville, how many people would be unemployed?

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

An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

A labor union is similar to a __________.

Table 28-4 2010 Labor Data for Adults (ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult male labor-force participation rate in Meditor?

People who report being unemployed but who, in fact, are working for "under the table" pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.

List a few of the characteristics of workers who typically earn at or below the minimum wage.

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

Christopher is an unpaid, stay-at-home father who works as a volunteer at the local Habitat for Humanity chapter. Currently, Christopher is not looking for a paid job. The Bureau of Labor Statistics counts Christopher as

If outsiders had more say in union contracts then it is likely that union wages would be

Suppose there are a large number of men who used to work or seek work who now no longer do either. Other things the same, this makes

The amount of unemployment that an economy normally experiences is called the

The Bureau of Labor Statistics counts discouraged workers as

Other things the same, an increase in wages above their equilibrium level

Who is included in the labor force by the Bureau of Labor Statistics?

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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