Question 1

The natural rate of unemployment includes

Accepted Answer

A) both frictional and structural unemployment. 
B) neither frictional nor structural unemployment. 
C) structural but not frictional unemployment. 
D) frictional but not structural unemployment. 
A) both frictional and structural unemployment. 
B) neither frictional nor structural unemployment. 
C) structural but not frictional unemployment. 
D) frictional but not structural unemployment.

Question 2

Structural unemployment is often thought to explain relatively long spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 3

The unemployment that results from the process of matching workers and jobs is called frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 4

Explain the effect of right-to-work laws on the collective bargaining power of labor unions.

Accepted Answer

Right-to-work laws decrease th

Question 5

The adult population must equal the sum of the employed and the unemployed.

Accepted Answer

A) True 
 B)False

Question 6

The Bureau of Labor Statistics' U-1 measure of joblessness is smaller than its U-6 measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 7

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Accepted Answer

A) True 
 B)False

Question 8

Who of the following is not included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A) Those who worked in their own business 
B) Those who worked as unpaid workers in a family member's business 
C) Those waiting to be recalled to a job from which they had been laid off 
D) Those who were temporarily absent from work because of vacation 
A) Those who worked in their own business 
B) Those who worked as unpaid workers in a family member's business 
C) Those waiting to be recalled to a job from which they had been laid off 
D) Those who were temporarily absent from work because of vacation

Question 9

Efficiency wages

Accepted Answer

A) increase productivity and reduce unemployment. 
B) increase productivity but increase unemployment. 
C) decrease productivity but reduce unemployment. 
D) decrease productivity and increase unemployment. 
A) increase productivity and reduce unemployment. 
B) increase productivity but increase unemployment. 
C) decrease productivity but reduce unemployment. 
D) decrease productivity and increase unemployment.

Question 10

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 labor-force participation rate of Tajnia in 2015 is about 33.3 percent.

Accepted Answer

A) True 
 B)False

Question 11

Figure 28-3
​
  
-Refer to Figure 28-3. At a minimum wage of $125, how much is the surplus of labor?

Accepted Answer

The answer of Figure 28-3
​
  
-Refer to Figure 28-3....

Question 12

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 unemployment rate of Tajnia in 2015 is about 18.4 percent.

Accepted Answer

A) True 
 B)False

Question 13

Unions are often thought to cause conflict between different groups of workers -- between the insiders who benefit from high union wages and the outsiders who do not get the union jobs.

Accepted Answer

A) True 
 B)False

Question 14

Within the U.S. population, teenagers (ages 16-19) have similar rates of unemployment to adults of prime working age (ages 25-54), regardless of race or gender.

Accepted Answer

A) True 
 B)False

Question 15

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

Accepted Answer

A) True 
 B)False

Question 16

Most spells of unemployment are long, and most unemployment observed at any given time is long-term.

Accepted Answer

A) True 
 B)False

Question 17

Studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed.

Accepted Answer

A) True 
 B)False

Question 18

Table 28-7
The table below lists the number of people by labor force classification for the country of Springfield.
 $$\begin{array} { | l | l | } 
\hline \text { Employed } & 78 \text { million } \
\hline \text { Part-time employed } & 22 \text { million } \
\hline \text { Unemployed } & 12 \text { million } \
\hline \text { Marginally attached } & 3 \text { million } \
\hline \text { Not in the Labor Force } & 30 \text { million } \
\hline \text { Discouraged } & 4 \text { million } \
\hline
\end{array}$$
-Refer to Table 28-7. Calculate the U-5 unemployment rate.

Accepted Answer

The answer of Table 28-7
The table below lists the number...

Question 19

Every week, the Bureau of Labor Statistics produces data on unemployment.

Accepted Answer

A) True 
 B)False

Question 20

Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment and Its Natural Rate

The natural rate of unemployment includes

Structural unemployment is often thought to explain relatively long spells of unemployment.

The unemployment that results from the process of matching workers and jobs is called frictional unemployment.

Explain the effect of right-to-work laws on the collective bargaining power of labor unions.

The adult population must equal the sum of the employed and the unemployed.

The Bureau of Labor Statistics' U-1 measure of joblessness is smaller than its U-6 measure of joblessness.

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Who of the following is not included in the Bureau of Labor Statistics' "employed" category?

Efficiency wages

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 labor-force participation rate of Tajnia in 2015 is about 33.3 percent.

Figure 28-3 ​ -Refer to Figure 28-3. At a minimum wage of $125, how much is the surplus of labor?

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 unemployment rate of Tajnia in 2015 is about 18.4 percent.

Unions are often thought to cause conflict between different groups of workers -- between the insiders who benefit from high union wages and the outsiders who do not get the union jobs.

Within the U.S. population, teenagers (ages 16-19) have similar rates of unemployment to adults of prime working age (ages 25-54), regardless of race or gender.

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

Most spells of unemployment are long, and most unemployment observed at any given time is long-term.

Studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed.

Every week, the Bureau of Labor Statistics produces data on unemployment.

Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

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

Filters

Figure 28-3 -Refer to Figure 28-3. At a minimum wage of $125, how much is the surplus of labor?