Question 1

Employment can rise in one region of the country while it falls in another.

Accepted Answer

A) True 
 B)False

Question 2

Three possible reasons for an above-equilibrium wage are minimum-wage laws, unions, and efficiency wages.

Accepted Answer

A) True 
 B)False

Question 3

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 of Tajnia in 2015 is 10,000.

Accepted Answer

A) True 
 B)False

Question 4

Within the U.S. population, women of prime working age (ages 25-54) have similar rates of labor-force participation than men of prime working age (ages 25-54), regardless of race.

Accepted Answer

A) True 
 B)False

Question 5

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called structural unemployment.

Accepted Answer

A) True 
 B)False

Question 6

The deviation of unemployment from its natural rate is called cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 7

An increase in the minimum wage above the equilibrium wage

Accepted Answer

A) reduces structural unemployment. 
B) reduces frictional unemployment, 
C) increases structural unemployment. 
D) increases frictional unemployment. 
A) reduces structural unemployment. 
B) reduces frictional unemployment, 
C) increases structural unemployment. 
D) increases frictional unemployment.

Question 8

Joshua is working from home for a start-up company developing mobile apps. The Bureau of Labor Statistics counts Joshua as

Accepted Answer

A) not in the labor force. 
B) unemployed. 
C) marginally attached worker. 
D) employed. 
A) not in the labor force. 
B) unemployed. 
C) marginally attached worker. 
D) employed.

Question 9

Long-run unemployment arises from a single problem that has a single solution.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not correct?

Accepted Answer

A) Most people who become unemployed will soon find jobs. 
B) In an ideal labor market, wages would adjust to ensure that all workers are always fully employed. 
C) The unemployment rate occasionally falls to zero. 
D) There are always some workers without jobs, even when the overall economy is doing well. 
A) Most people who become unemployed will soon find jobs. 
B) In an ideal labor market, wages would adjust to ensure that all workers are always fully employed. 
C) The unemployment rate occasionally falls to zero. 
D) There are always some workers without jobs, even when the overall economy is doing well.

Question 11

Job search is the process of matching workers with appropriate jobs.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a cause of the decline in the U.S. men's labor-force participation rate over the past several decades?

Accepted Answer

A) Young men now stay in school longer than their fathers and grandfathers did. 
B) Older men now retire earlier and live longer. 
C) With more women employed, there are fewer jobs now available to men. 
D) More fathers now stay at home to raise their children. 
A) Young men now stay in school longer than their fathers and grandfathers did. 
B) Older men now retire earlier and live longer. 
C) With more women employed, there are fewer jobs now available to men. 
D) More fathers now stay at home to raise their children.

Question 13

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 14

Write the formula for calculating the labor force participation rate.

Accepted Answer

(labor for

Question 15

The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.

Accepted Answer

A) True 
 B)False

Question 16

A union is an employer association that bargains with workers over wages, benefits, and working conditions.

Accepted Answer

A) True 
 B)False

Question 17

Explain how the actions of labor unions generate greater unemployment.

Accepted Answer

Labor unions push wa

Question 18

Not all unemployment ends with the job seeker finding a job.

Accepted Answer

A) True 
 B)False

Question 19

Most job search in the U.S. economy takes place with the help of the government.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment and Its Natural Rate

Employment can rise in one region of the country while it falls in another.

Three possible reasons for an above-equilibrium wage are minimum-wage laws, unions, and 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 of Tajnia in 2015 is 10,000.

Within the U.S. population, women of prime working age (ages 25-54) have similar rates of labor-force participation than men of prime working age (ages 25-54), regardless of race.

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called structural unemployment.

The deviation of unemployment from its natural rate is called cyclical unemployment.

An increase in the minimum wage above the equilibrium wage

Joshua is working from home for a start-up company developing mobile apps. The Bureau of Labor Statistics counts Joshua as

Long-run unemployment arises from a single problem that has a single solution.

Which of the following is not correct?

Job search is the process of matching workers with appropriate jobs.

Which of the following is not a cause of the decline in the U.S. men's labor-force participation rate over the past several decades?

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called frictional unemployment.

Write the formula for calculating the labor force participation rate.

The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.

A union is an employer association that bargains with workers over wages, benefits, and working conditions.

Explain how the actions of labor unions generate greater unemployment.

Not all unemployment ends with the job seeker finding a job.

Most job search in the U.S. economy takes place with the help of the government.

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

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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