Question 1

Frictional unemployment results from

Accepted Answer

A) job searching.It is often thought to explain relatively long spells of unemployment. 
B) a surplus in some labor markets; often thought to explain relatively short spells of unemployment. 
C) a surplus in some labor markets; often thought to explain relatively long spells of unemployment. 
D) job searching.It is often thought to explain relatively short spells of unemployment. 
A) job searching.It is often thought to explain relatively long spells of unemployment. 
B) a surplus in some labor markets; often thought to explain relatively short spells of unemployment. 
C) a surplus in some labor markets; often thought to explain relatively long spells of unemployment. 
D) job searching.It is often thought to explain relatively short spells of unemployment.

Question 2

Write the formula for calculating the unemployment rate.

Accepted Answer

(number un

Question 3

Esmeralda worked part-time for her mother's business without pay. Tatiana was absent from work because she had strep throat. Who is counted as "employed" by the Bureau of Labor Statistics?

Accepted Answer

A) Esmeralda but not Tatiana 
B) Tatiana but not Esmeralda 
C) Both Esmeralda and Tatiana 
D) Neither Esmeralda nor Tatiana 
A) Esmeralda but not Tatiana 
B) Tatiana but not Esmeralda 
C) Both Esmeralda and Tatiana 
D) Neither Esmeralda nor Tatiana

Question 4

Table 28-3
​
​
 $$\begin{array} { | l | l | } 
\hline \text { Civilian labor force } & 100 \text { million } \
\hline \text { Persons unemployed } 15 \text { weeks or longer } & 1.6 \text { million } \
\hline \text { Job losers and persons who have completed temporary jobs (excludes job leavers) } & 3.1 \text { million } \
\hline \text { Total unemployed } & 6.2 \text { million } \
\hline \text { Total unemployed plus discouraged workers } & 7.0 \text { million } \
\hline \text { Total unemployed plus all marginally attached workers } & 8.1 \text { million } \
\hline \text { Total unemployed plus all marginally attached workers plus total employed part-time } & 9.2 \text { million } \
\text { for economic reasons } & \
\hline
\end{array}$$
-Refer to Table 28-3. What is the U-2 measure of labor underutilization?

Accepted Answer

A) 1.5% 
B) 3.1% 
C) 4.7% 
D) 6.2% 
A) 1.5% 
B) 3.1% 
C) 4.7% 
D) 6.2%

Question 5

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 6

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

Question 7

Table 28-6
The table below lists the number of people by labor force classification for the country of Shelbyville.
 $$\begin{array} { | l | l | } 
\hline \text { Employed } & 80 \text { million } \
\hline \text { Unemployed } & 20 \text { million } \
\hline \text { Not in the Labor Force } & 60 \text { million } \
\hline
\end{array}$$
-Refer to Table 28-6. What is the size of the labor force, and the size of the adult population?

Accepted Answer

The labor force is 1

Question 8

In the 1940s and 1950s, about one-third of U.S. workers belonged to unions, but today, only about one-fifth of U.S. workers belong to unions.

Accepted Answer

A) True 
 B)False

Question 9

The Bureau of Labor Statistics produces data on unemployment by using data on claims filed for unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 10

The Bureau of Labor Statistics' U-1 measure of joblessness includes only very long-term unemployed.

Accepted Answer

A) True 
 B)False

Question 11

The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 12

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a surplus of labor.

Accepted Answer

A) True 
 B)False

Question 13

There is no easy way for policymakers to reduce the economy's natural rate of unemployment while at the same time reducing the hardships of the unemployed.

Accepted Answer

A) True 
 B)False

Question 14

Serena has just finished high school and started looking for her first job, but has not yet found one. Other things the same, the unemployment rate

Accepted Answer

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

Question 15

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 16

The natural rate of unemployment is constant over time.

Accepted Answer

A) True 
 B)False

Question 17

Labor unions

Accepted Answer

A) are similar to cartels. 
B) create labor shortages in non-unionized industries. 
C) create labor shortages in least-skilled workers. 
D) attract a membership of about 25 percent of current U.S.workers. 
A) are similar to cartels. 
B) create labor shortages in non-unionized industries. 
C) create labor shortages in least-skilled workers. 
D) attract a membership of about 25 percent of current U.S.workers.

Question 18

Sectoral shifts temporarily cause unemployment.

Accepted Answer

A) True 
 B)False

Question 19

Table 28-5
2015 Labor Data for Tajnia
 $$\begin{array} { | l | l | } 
\hline \text { Number of adults employed } & 10,000 \
\hline \text { Number of adults unemployed } & 2,250 \
\hline \text { Number of adults not in the labor force } & 17,750 \
\hline
\end{array}$$
-Refer to Table 28-5. The total adult population of Tajnia in 2015 is 30,000.

Accepted Answer

A) True 
 B)False

Question 20

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment and Its Natural Rate

Frictional unemployment results from

Write the formula for calculating the unemployment rate.

Esmeralda worked part-time for her mother's business without pay. Tatiana was absent from work because she had strep throat. Who is counted as "employed" by the Bureau of Labor Statistics?

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.

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

Table 28-6 The table below lists the number of people by labor force classification for the country of Shelbyville. Employed 80 million Unemployed 20 million Not in the Labor Force 60 million -Refer to Table 28-6. What is the size of the labor force, and the size of the adult population?

In the 1940s and 1950s, about one-third of U.S. workers belonged to unions, but today, only about one-fifth of U.S. workers belong to unions.

The Bureau of Labor Statistics produces data on unemployment by using data on claims filed for unemployment insurance.

The Bureau of Labor Statistics' U-1 measure of joblessness includes only very long-term unemployed.

The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting unemployment insurance.

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a surplus of labor.

There is no easy way for policymakers to reduce the economy's natural rate of unemployment while at the same time reducing the hardships of the unemployed.

Serena has just finished high school and started looking for her first job, but has not yet found one. Other things the same, the unemployment rate

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

The natural rate of unemployment is constant over time.

Labor unions

Sectoral shifts temporarily cause unemployment.

Table 28-5 2015 Labor Data for Tajnia Number of adults employed 10,000 Number of adults unemployed 2,250 Number of adults not in the labor force 17,750 -Refer to Table 28-5. The total adult population of Tajnia in 2015 is 30,000.

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor.

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 Nations 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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