Question 1

Frictional unemployment is often the result of changes in the demand for labor among different firms.

Accepted Answer

A) True 
 B)False

Question 2

Public policy can reduce the economy's natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 3

In June 2009 the Bureau of Labor Statistics reported a U.S. foreign-born population of 35.3 million. Of these, 22.7 million were employed and 1.4 million were unemployed. Based on these numbers what were the unemployment rate and the labor-force participation rate of the foreign-born U.S. population?

Accepted Answer

A) 1.4/35.3 and 22.7/35.3 
B) 1.4/35.3 and 24.1/35.3 
C) 1.4/24.1 and 22.7/24.1 
D) None of the above is correct. 
A) 1.4/35.3 and 22.7/35.3 
B) 1.4/35.3 and 24.1/35.3 
C) 1.4/24.1 and 22.7/24.1 
D) None of the above is correct.

Question 4

Unemployment generated by the existence of labor unions is structural unemployment and so contributes to the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 5

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 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 6

The Bureau of Labor Statistics' U-4 measure of joblessness includes discouraged workers.

Accepted Answer

A) True 
 B)False

Question 7

Frictional unemployment is

Accepted Answer

A) not inevitable; rather, it can be reduced to zero by well-designed public policies. 
B) not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance. 
C) inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms. 
D) inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium. 
A) not inevitable; rather, it can be reduced to zero by well-designed public policies. 
B) not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance. 
C) inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms. 
D) inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium.

Question 8

Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

Accepted Answer

A) True 
 B)False

Question 9

Table 28-2
Labor Data for Aridia  
-Refer to Table 28-2. The number of adults not in the labor force of Aridia in 2010 was

Accepted Answer

A) 200. 
B) 400. 
C) 600. 
D) 1,800. 
A) 200. 
B) 400. 
C) 600. 
D) 1,800.

Question 10

The process by which unions and firms agree on the terms of employment is called collective bargaining.

Accepted Answer

A) True 
 B)False

Question 11

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 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 12

Public policy can reduce frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 13

The reported unemployment rate should be viewed as

Accepted Answer

A) a useful but imperfect measure of joblessness. 
B) clearly smaller than the true unemployment rate. 
C) clearly larger than the true unemployment rate. 
D) being very close to the true unemployment rate. 
A) a useful but imperfect measure of joblessness. 
B) clearly smaller than the true unemployment rate. 
C) clearly larger than the true unemployment rate. 
D) being very close to the true unemployment rate.

Question 14

Which of the following is the correct formula for calculating the labor force participation rate?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 15

Figure 28-7  
-Refer to Figure 28-7. If the minimum wage is equal to $125, what is the quantity of labor supplied, the quantity of labor demanded, and number unemployed?

Accepted Answer

Labor supplied is 35

Question 16

A typical American worker covered by unemployment insurance receives

Accepted Answer

A) 50 percent of his former wages for 26 weeks. 
B) 50 percent of his former wages for 52 weeks. 
C) 100 percent of his former wages for 26 weeks. 
D) 100 percent of his former wages for 52 weeks. 
A) 50 percent of his former wages for 26 weeks. 
B) 50 percent of his former wages for 52 weeks. 
C) 100 percent of his former wages for 26 weeks. 
D) 100 percent of his former wages for 52 weeks.

Question 17

The labor-force participation rate equals the percentage of the total adult population that is in the labor force.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is correct?

Accepted Answer

A) Union membership in the United States peaked in the 1940s and 1950s. 
B) Unions play a larger role in the United States than in European countries such as Belgium, France, and Germany. 
C) Because of the popularity of unions, most workers in the United States discuss their wages, benefits, and working conditions with their employers as a group. 
D) Collective bargaining is the process by which unions negotiate membership dues with the National Labor Relations Board. 
A) Union membership in the United States peaked in the 1940s and 1950s. 
B) Unions play a larger role in the United States than in European countries such as Belgium, France, and Germany. 
C) Because of the popularity of unions, most workers in the United States discuss their wages, benefits, and working conditions with their employers as a group. 
D) Collective bargaining is the process by which unions negotiate membership dues with the National Labor Relations Board.

Question 19

Within the U.S. population, women of prime working age (ages 25-54) have similar rates of labor-force participation than men of prime working age (ages 25-54), regardless of race.

Accepted Answer

A) True 
 B)False

Question 20

The labor-force participation rate tells us the fraction of the population that is able to participate in the labor market.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment and Its Natural Rate

Frictional unemployment is often the result of changes in the demand for labor among different firms.

Public policy can reduce the economy's natural rate of unemployment.

Unemployment generated by the existence of labor unions is structural unemployment and so contributes to the natural rate of unemployment.

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 lowest labor-force participation rate?

The Bureau of Labor Statistics' U-4 measure of joblessness includes discouraged workers.

Frictional unemployment is

Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The number of adults not in the labor force of Aridia in 2010 was

The process by which unions and firms agree on the terms of employment is called collective bargaining.

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 labor-force participation rate?

Public policy can reduce frictional unemployment.

The reported unemployment rate should be viewed as

Which of the following is the correct formula for calculating the labor force participation rate?

Figure 28-7 -Refer to Figure 28-7. If the minimum wage is equal to $125, what is the quantity of labor supplied, the quantity of labor demanded, and number unemployed?

A typical American worker covered by unemployment insurance receives

The labor-force participation rate equals the percentage of the total adult population that is in the labor force.

Which of the following is correct?

Within the U.S. population, women of prime working age (ages 25-54) have similar rates of labor-force participation than men of prime working age (ages 25-54), regardless of race.

The labor-force participation rate tells us the fraction of the population that is able to participate in the labor market.

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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