Question 1

The destruction of manufacturing jobs and workers leaving their jobs to find better ones both contribute to structural unemployment.

Accepted Answer

A) True 
 B)False

Question 2

List the main employment characteristics over which a labor union negotiates for its workers.

Accepted Answer

higher wages, better

Question 3

Which of the following is not correct?

Accepted Answer

A) Unions are exempt from U.S. antitrust laws. 
B) The Wagner Act of 1935 prevents U.S. employers from interfering when workers try to organize unions. 
C) The National Labor Relations Board is the U.S. government agency that enforces workers' right to unionize. 
D) Right-to-work laws prevent firms from hiring permanent replacements for workers who are on strike. 
A) Unions are exempt from U.S. antitrust laws. 
B) The Wagner Act of 1935 prevents U.S. employers from interfering when workers try to organize unions. 
C) The National Labor Relations Board is the U.S. government agency that enforces workers' right to unionize. 
D) Right-to-work laws prevent firms from hiring permanent replacements for workers who are on strike.

Question 4

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

Accepted Answer

A) 4.2% 
B) 6.25% 
C) 6.7% 
D) 10% 
A) 4.2% 
B) 6.25% 
C) 6.7% 
D) 10%

Question 5

According to the theory of efficiency wages, firms operate more efficiently if wages are below the equilibrium level.

Accepted Answer

A) True 
 B)False

Question 6

Unemployment insurance

Accepted Answer

A) may improve the ability of the economy to match workers with appropriate jobs. 
B) reduces the job search efforts of the unemployed. 
C) increases the amount of frictional unemployment in the economy. 
D) All of the above are correct. 
A) may improve the ability of the economy to match workers with appropriate jobs. 
B) reduces the job search efforts of the unemployed. 
C) increases the amount of frictional unemployment in the economy. 
D) All of the above are correct.

Question 7

Unions

Accepted Answer

A) raise the wages of unionized workers and raise unemployment. 
B) raise the wages of unionized workers and reduce unemployment. 
C) reduce the wages of unionized workers and raise unemployment. 
D) reduce the wages of unionized workers and reduce unemployment. 
A) raise the wages of unionized workers and raise unemployment. 
B) raise the wages of unionized workers and reduce unemployment. 
C) reduce the wages of unionized workers and raise unemployment. 
D) reduce the wages of unionized workers and reduce unemployment.

Question 8

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of households called the

Accepted Answer

A) Census. 
B) Labor Survey. 
C) Survey of Economic Indicators. 
D) Current Population Survey. 
A) Census. 
B) Labor Survey. 
C) Survey of Economic Indicators. 
D) Current Population Survey.

Question 9

Cyclical unemployment is closely associated with

Accepted Answer

A) long-term economic growth. 
B) short-run ups and downs of the economy. 
C) fluctuations in the natural rate of unemployment. 
D) changes in the minimum wage. 
A) long-term economic growth. 
B) short-run ups and downs of the economy. 
C) fluctuations in the natural rate of unemployment. 
D) changes in the minimum wage.

Question 10

For 2015 the U.S. natural rate of unemployment was estimated to be about 4.9 percent, which was close to the actual unemployment rate in 2015.

Accepted Answer

A) True 
 B)False

Question 11

The Bureau of Labor Statistics' U-5 measure of joblessness includes marginally attached workers.

Accepted Answer

A) True 
 B)False

Question 12

In terms of duration, how does cyclical unemployment differ from structural unemployment?

Accepted Answer

Cyclical unemploymen

Question 13

Unemployment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

Accepted Answer

A) True 
 B)False

Question 14

Sheamous loses his job and decides to sit on the beach rather than look for work during the next few months. Other things the same, the unemployment rate

Accepted Answer

A) increases, and the labor-force participation rate decreases. 
B) increases, and the labor-force participation rate is unaffected. 
C) is unaffected, and the labor-force participation rate decreases. 
D) and the labor-force participation rate are both unaffected. 
A) increases, and the labor-force participation rate decreases. 
B) increases, and the labor-force participation rate is unaffected. 
C) is unaffected, and the labor-force participation rate decreases. 
D) and the labor-force participation rate are both unaffected.

Question 15

Which of the following is not correct?

Accepted Answer

A) An organized withdrawal of labor from a firm by a union is called a strike. 
B) The power of a union comes from its ability to strike if the union and the firm do not agree on the terms of employment. 
C) Economists who study the effects of unions typically find that union workers earn about 25 to 35 percent more than similar workers who do not belong to unions. 
D) Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost. 
A) An organized withdrawal of labor from a firm by a union is called a strike. 
B) The power of a union comes from its ability to strike if the union and the firm do not agree on the terms of employment. 
C) Economists who study the effects of unions typically find that union workers earn about 25 to 35 percent more than similar workers who do not belong to unions. 
D) Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

Question 16

Which of the following is correct?

Accepted Answer

A) The Bureau of Labor Statistics uses data collected from those applying for unemployment insurance to compute the unemployment rate. 
B) The labor force includes all adults who are able to work. 
C) Unpaid homemakers are counted as "employed" by the Bureau of Labor Statistics. 
D) People working part time are counted as "employed" by the Bureau of Labor Statistics. 
A) The Bureau of Labor Statistics uses data collected from those applying for unemployment insurance to compute the unemployment rate. 
B) The labor force includes all adults who are able to work. 
C) Unpaid homemakers are counted as "employed" by the Bureau of Labor Statistics. 
D) People working part time are counted as "employed" by the Bureau of Labor Statistics.

Question 17

The introduction of a union into an industry creates a

Accepted Answer

A) surplus of labor and so raises unemployment. 
B) surplus of labor and so reduces unemployment. 
C) shortage of labor and so raises unemployment. 
D) shortage of labor and so reduces unemployment. 
A) surplus of labor and so raises unemployment. 
B) surplus of labor and so reduces unemployment. 
C) shortage of labor and so raises unemployment. 
D) shortage of labor and so reduces unemployment.

Question 18

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

Accepted Answer

A) Juan Carlos, a full-time student who is not looking for work 
B) Kevin, who is on temporary layoff 
C) Andrea, who has retired and is not looking for work 
D) All of the above are correct. 
A) Juan Carlos, a full-time student who is not looking for work 
B) Kevin, who is on temporary layoff 
C) Andrea, who has retired and is not looking for work 
D) All of the above are correct.

Question 19

Who is not included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A) Anita, who is on temporary layoff 
B) Lauren, who has retired and is not looking for work 
C) Raymond, who does not have a job but has applied for several in the last week 
D) None of the above is correct. 
A) Anita, who is on temporary layoff 
B) Lauren, who has retired and is not looking for work 
C) Raymond, who does not have a job but has applied for several in the last week 
D) None of the above is correct.

Question 20

Some of a firm's workers are made worse off by the introduction of a union.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment and Its Natural Rate

The destruction of manufacturing jobs and workers leaving their jobs to find better ones both contribute to structural unemployment.

List the main employment characteristics over which a labor union negotiates for its workers.

Which of the following is not correct?

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

According to the theory of efficiency wages, firms operate more efficiently if wages are below the equilibrium level.

Unemployment insurance

Unions

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of households called the

Cyclical unemployment is closely associated with

For 2015 the U.S. natural rate of unemployment was estimated to be about 4.9 percent, which was close to the actual unemployment rate in 2015.

The Bureau of Labor Statistics' U-5 measure of joblessness includes marginally attached workers.

In terms of duration, how does cyclical unemployment differ from structural unemployment?

Unemployment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

Sheamous loses his job and decides to sit on the beach rather than look for work during the next few months. Other things the same, the unemployment rate

Which of the following is not correct?

Which of the following is correct?

The introduction of a union into an industry creates a

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

Who is not included in the labor force by the Bureau of Labor Statistics?

Some of a firm's workers are made worse off by the introduction of a union.

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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