Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 3

Unemployment insurance

Accepted Answer

A) reduces job search effort which lowers unemployment. 
B) increases job search effort which raises unemployment. 
C) reduces job search effort which raises unemployment. 
D) increases job search effort which decreases unemployment. 
A) reduces job search effort which lowers unemployment. 
B) increases job search effort which raises unemployment. 
C) reduces job search effort which raises unemployment. 
D) increases job search effort which decreases unemployment.

Question 4

Causes of the changing role of women in American society over the past several decades include new technologies that have reduced the amount of time required to complete routine household tasks, improved birth control, and changing political and social attitudes.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

higher wages, better

Question 6

Sectoral shifts contribute to structural unemployment.

Accepted Answer

A) True 
 B)False

Question 7

Full-time students and homemakers are included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 8

Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

Accepted Answer

A) True 
 B)False

Question 9

Collective bargaining refers to

Accepted Answer

A) the process by which the government sets exemptions from the minimum wage law. 
B) setting the same wage for all employees to prevent conflict among workers. 
C) firms colluding to set the wages of employees below equilibrium. 
D) the process by which unions and firms agree on the terms of employment. 
A) the process by which the government sets exemptions from the minimum wage law. 
B) setting the same wage for all employees to prevent conflict among workers. 
C) firms colluding to set the wages of employees below equilibrium. 
D) the process by which unions and firms agree on the terms of employment.

Question 10

Give a few examples of how sectoral shifts temporarily cause unemployment.

Accepted Answer

Examples should focus on sectors of the

Question 11

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 12

The Bureau of Labor Statistics divides the adult population into three categories: employed, unemployed, and not in the labor force.

Accepted Answer

A) True 
 B)False

Question 13

The labor-force participation rate tells us the fraction of the population that

Accepted Answer

A) has chosen to participate in the labor market. 
B) is able to participate in the labor market. 
C) has ever been employed. 
D) has chosen not to participate in the labor market. 
A) has chosen to participate in the labor market. 
B) is able to participate in the labor market. 
C) has ever been employed. 
D) has chosen not to participate in the labor market.

Question 14

Government policy can do nothing about the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 15

If a union and a firm cannot reach an agreement on the terms of employment, then the union can organize a withdrawal of labor from the firm, called a strike.

Accepted Answer

A) True 
 B)False

Question 16

List the four types of efficiency-wage theory.

Accepted Answer

Worker health, worke

Question 17

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually decreased.

Accepted Answer

A) True 
 B)False

Question 18

Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Accepted Answer

A) True 
 B)False

Question 19

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) Individuals have more market power over their wages than a group of individuals in a union. 
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) Individuals have more market power over their wages than a group of individuals in a union.

Question 20

Almost half of all spells of unemployment end when the unemployed person __________.

Accepted Answer

leaves the

Exam 28: Unemployment and Its Natural Rate

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

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no frictional unemployment.

Unemployment insurance

Causes of the changing role of women in American society over the past several decades include new technologies that have reduced the amount of time required to complete routine household tasks, improved birth control, and changing political and social attitudes.

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

Sectoral shifts contribute to structural unemployment.

Full-time students and homemakers are included in the Bureau of Labor Statistics' "unemployed" category.

Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

Collective bargaining refers to

Give a few examples of how sectoral shifts temporarily cause unemployment.

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

The Bureau of Labor Statistics divides the adult population into three categories: employed, unemployed, and not in the labor force.

The labor-force participation rate tells us the fraction of the population that

Government policy can do nothing about the natural rate of unemployment.

If a union and a firm cannot reach an agreement on the terms of employment, then the union can organize a withdrawal of labor from the firm, called a strike.

List the four types of efficiency-wage theory.

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually decreased.

Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Which of the following is correct?

Almost half of all spells of unemployment end when the unemployed person __________.

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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