Question 1

Provide a definition of the natural rate of unemployment.

Accepted Answer

The amount of unempl

Question 2

Every adult who was not employed during the previous four weeks is included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 3

An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?

Accepted Answer

A) Both the changes in information technology and unemployment insurance 
B) Only the changes in information technology 
C) Only the changes in unemployment insurance 
D) Neither the changes in information technology nor the changes in unemployment insurance 
A) Both the changes in information technology and unemployment insurance 
B) Only the changes in information technology 
C) Only the changes in unemployment insurance 
D) Neither the changes in information technology nor the changes in unemployment insurance

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Economists at the Congressional Budget Office estimated that for 2015, the U.S. natural rate of unemployment was about 4.9 percent.​

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Minimum wage laws help explain the natural rate of unemployment if they create a surplus in any labor market.

Accepted Answer

A) True 
 B)False

Question 8

Figure 28-3
​
  
-Refer to Figure 28-3. If the minimum wage increases from $100 to $125, how many additional workers will be unemployed?

Accepted Answer

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

Question 9

Table 28-2
Suppose people in the adult population in a small country are classified based on their age.
​
​
   ​
-Refer to Table 28-2. In the proper order, which age group has the highest unemployment rate and which has the highest labor-force participation rate?

Accepted Answer

A) Under 55, under 55 
B) Under 55, 55 and older 
C) 55 and older, under 55 
D) 55 and older, 55 and older 
A) Under 55, under 55 
B) Under 55, 55 and older 
C) 55 and older, under 55 
D) 55 and older, 55 and older

Question 10

An economy's natural rate of unemployment is the

Accepted Answer

A) lowest rate of unemployment the economy can achieve. 
B) rate associated with the highest possible level of GDP. 
C) unemployment created by wages set above the equilibrium level. 
D) amount of unemployment that does not go away on its own. 
A) lowest rate of unemployment the economy can achieve. 
B) rate associated with the highest possible level of GDP. 
C) unemployment created by wages set above the equilibrium level. 
D) amount of unemployment that does not go away on its own.

Question 11

Advocates of unions contend that unions are a necessary antidote to the market power of the firms that hire workers and that unions are important for helping firms respond efficiently to workers' concerns.

Accepted Answer

A) True 
 B)False

Question 12

There are always some workers without jobs, even when the overall economy is doing well.

Accepted Answer

A) True 
 B)False

Question 13

A firm might offer efficiency wages in order to attract a better pool of applicants.

Accepted Answer

A) True 
 B)False

Question 14

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-4 unemployment rate.

Accepted Answer

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

Question 15

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

Accepted Answer

Cyclical unemploymen

Question 16

The amount of unemployment varies

Accepted Answer

A) little over time and across countries. 
B) little over time but substantially across countries. 
C) substantially over time but little across countries. 
D) substantially over time and across countries. 
A) little over time and across countries. 
B) little over time but substantially across countries. 
C) substantially over time but little across countries. 
D) substantially over time and across countries.

Question 17

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Accepted Answer

A) True 
 B)False

Question 18

In the U.S., it is illegal for employers to interfere when workers try to organize unions.

Accepted Answer

A) True 
 B)False

Question 19

Efficiency wages create structural unemployment.

Accepted Answer

A) True 
 B)False

Question 20

Give an historical example of an efficiency wage that was considered by the firm to be "one of the finest cost-cutting moves we ever made."

Accepted Answer

Henry Ford paid $5 per day to

Exam 28: Unemployment and Its Natural Rate

Provide a definition of the natural rate of unemployment.

Every adult who was not employed during the previous four weeks is included in the Bureau of Labor Statistics' "unemployed" category.

An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?

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

Economists at the Congressional Budget Office estimated that for 2015, the U.S. natural rate of unemployment was about 4.9 percent.​

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

Minimum wage laws help explain the natural rate of unemployment if they create a surplus in any labor market.

Figure 28-3 ​ -Refer to Figure 28-3. If the minimum wage increases from $100 to $125, how many additional workers will be unemployed?

Table 28-2 Suppose people in the adult population in a small country are classified based on their age. ​ ​ ​ -Refer to Table 28-2. In the proper order, which age group has the highest unemployment rate and which has the highest labor-force participation rate?

An economy's natural rate of unemployment is the

Advocates of unions contend that unions are a necessary antidote to the market power of the firms that hire workers and that unions are important for helping firms respond efficiently to workers' concerns.

There are always some workers without jobs, even when the overall economy is doing well.

A firm might offer efficiency wages in order to attract a better pool of applicants.

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

The amount of unemployment varies

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

In the U.S., it is illegal for employers to interfere when workers try to organize unions.

Efficiency wages create structural unemployment.

Give an historical example of an efficiency wage that was considered by the firm to be "one of the finest cost-cutting moves we ever made."

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

Economists at the Congressional Budget Office estimated that for 2015, the U.S. natural rate of unemployment was about 4.9 percent.

Figure 28-3 -Refer to Figure 28-3. If the minimum wage increases from $100 to $125, how many additional workers will be unemployed?

Table 28-2 Suppose people in the adult population in a small country are classified based on their age. -Refer to Table 28-2. In the proper order, which age group has the highest unemployment rate and which has the highest labor-force participation rate?