Question 1

According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see a(n)

Accepted Answer

A) increase in the number of job applicants and an increase in how long workers stay on the job. 
B) increase in the number of job applicants and a decrease in how long workers stay on the job. 
C) decrease in the number of job applicants and an increase in how long workers stay on the job. 
D) decrease in the number of job applicants and a decrease in how long workers stay on the job. 
A) increase in the number of job applicants and an increase in how long workers stay on the job. 
B) increase in the number of job applicants and a decrease in how long workers stay on the job. 
C) decrease in the number of job applicants and an increase in how long workers stay on the job. 
D) decrease in the number of job applicants and a decrease in how long workers stay on the job.

Question 2

The introduction of a union into a firm benefits all of that firm's workers.

Accepted Answer

A) True 
 B)False

Question 3

The invention of the telegraph led to the loss of jobs for those who had delivered mail by horse but created jobs for telegraph operators and delivery persons. This is an example of

Accepted Answer

A) structural unemployment created by efficiency wages. 
B) structural unemployment created by sectoral shifts. 
C) frictional unemployment created by efficiency wages. 
D) frictional unemployment created by sectoral shifts. 
A) structural unemployment created by efficiency wages. 
B) structural unemployment created by sectoral shifts. 
C) frictional unemployment created by efficiency wages. 
D) frictional unemployment created by sectoral shifts.

Question 4

In the absence of right-to-work laws, workers

Accepted Answer

A) that went on strike could be permanently replaced. 
B) might be required to join the union if they worked for a unionized firm. 
C) would not be able to unionize. 
D) would not be able to strike. 
A) that went on strike could be permanently replaced. 
B) might be required to join the union if they worked for a unionized firm. 
C) would not be able to unionize. 
D) would not be able to strike.

Question 5

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called structural unemployment.

Accepted Answer

A) True 
 B)False

Question 6

Frictional unemployment can be the consequence of

Accepted Answer

A) workers leaving existing jobs to find ones they like better. 
B) one industry declining while another is growing. 
C) changes in the working conditions offered by competing firms. 
D) All of the above are correct. 
A) workers leaving existing jobs to find ones they like better. 
B) one industry declining while another is growing. 
C) changes in the working conditions offered by competing firms. 
D) All of the above are correct.

Question 7

When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than if many of its workers were idle.

Accepted Answer

A) True 
 B)False

Question 8

Table 28-8
Below is data about the labor market in the state of Northwoods.  
-Refer to Table 28-8. If the state government imposed a minimum wage of $9, how many people would be unemployed?

Accepted Answer

A) 0 
B) 10,000 
C) 20,000 
D) 40,000 
A) 0 
B) 10,000 
C) 20,000 
D) 40,000

Question 9

Table 28-2
Labor Data for Aridia  
-Refer to Table 28-2. The labor-force participation rate of Aridia in 2010 was

Accepted Answer

A) 70%. 
B) 77.8%. 
C) 80%. 
D) 87.5%. 
A) 70%. 
B) 77.8%. 
C) 80%. 
D) 87.5%.

Question 10

Olga owns her own business. Sven is an unpaid worker in his family's business. Who is included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A) only Olga 
B) only Sven 
C) both Olga and Sven 
D) neither Olga nor Sven 
A) only Olga 
B) only Sven 
C) both Olga and Sven 
D) neither Olga nor Sven

Question 11

The Bureau of Labor Statistics' household survey and establishment survey both yield information about unemployment.

Accepted Answer

A) True 
 B)False

Question 12

Anna recently graduated from college with a degree in electrical engineering, but she has not yet started working. To be counted as "unemployed" she

Accepted Answer

A) does not have to have looked for work. 
B) must have looked for work no more than a week ago. 
C) must have looked for work no more than four weeks ago. 
D) must have looked for work no more than twelve weeks ago. 
A) does not have to have looked for work. 
B) must have looked for work no more than a week ago. 
C) must have looked for work no more than four weeks ago. 
D) must have looked for work no more than twelve weeks ago.

Question 13

Consider two people who are currently out of work. Tim is not looking for work because there have been many job cuts where he lives, and he doesn't think it likely that he will find work. Bev is not currently looking for work, but she would like a job, and she has looked for work in the past. The Bureau of Labor Statistics considers

Accepted Answer

A) both Tim and Bev to be marginally attached workers. 
B) neither Tim nor Bev to be marginally attached workers. 
C) only Tim to be a marginally attached worker. 
D) only Bev to be a marginally attached worker. 
A) both Tim and Bev to be marginally attached workers. 
B) neither Tim nor Bev to be marginally attached workers. 
C) only Tim to be a marginally attached worker. 
D) only Bev to be a marginally attached worker.

Question 14

Economists at the Congressional Budget Office estimated that for 2015, the U.S. natural rate of unemployment was

Accepted Answer

A) 2.8% 
B) 3,.6% 
C) 4.9% 
D) 6.2% 
A) 2.8% 
B) 3,.6% 
C) 4.9% 
D) 6.2%

Question 15

The Internet may reduce frictional unemployment because it __________.

Accepted Answer

reduces the search c

Question 16

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

Structural unemployment results when the number of jobs is insufficient for the number of workers.

Accepted Answer

A) True 
 B)False

Question 18

In 1914, Henry Ford began paying his workers $5 per day, about twice the going wage. As a result, turnover and absenteeism fell and productivity and profits rose.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not a cause of frictional unemployment?

Accepted Answer

A) the destruction of manufacturing jobs 
B) a worker leaving a job to find one with better benefits 
C) minimum-wage laws 
D) unemployment insurance 
A) the destruction of manufacturing jobs 
B) a worker leaving a job to find one with better benefits 
C) minimum-wage laws 
D) unemployment insurance

Question 20

The Bureau of Labor Statistics' household survey and establishment survey both yield the same results about total employment.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment and Its Natural Rate

According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see a(n)

The introduction of a union into a firm benefits all of that firm's workers.

The invention of the telegraph led to the loss of jobs for those who had delivered mail by horse but created jobs for telegraph operators and delivery persons. This is an example of

In the absence of right-to-work laws, workers

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called structural unemployment.

Frictional unemployment can be the consequence of

When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than if many of its workers were idle.

Table 28-8 Below is data about the labor market in the state of Northwoods. -Refer to Table 28-8. If the state government imposed a minimum wage of $9, how many people would be unemployed?

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor-force participation rate of Aridia in 2010 was

Olga owns her own business. Sven is an unpaid worker in his family's business. Who is included in the Bureau of Labor Statistics' "employed" category?

The Bureau of Labor Statistics' household survey and establishment survey both yield information about unemployment.

Anna recently graduated from college with a degree in electrical engineering, but she has not yet started working. To be counted as "unemployed" she

Economists at the Congressional Budget Office estimated that for 2015, the U.S. natural rate of unemployment was

The Internet may reduce frictional unemployment because it __________.

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

Structural unemployment results when the number of jobs is insufficient for the number of workers.

In 1914, Henry Ford began paying his workers $5 per day, about twice the going wage. As a result, turnover and absenteeism fell and productivity and profits rose.

Which of the following is not a cause of frictional unemployment?

The Bureau of Labor Statistics' household survey and establishment survey both yield the same results about total employment.

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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