Question 1

In the absence of right-to-work laws,workers

Accepted Answer

A) that went on strike could not be permanently replaced. 
B) might have to join the union if they worked for a unionized firm. 
C) would not be able to unionize. 
D) would not be able to strike. 
A) that went on strike could not be permanently replaced. 
B) might have to join the union if they worked for a unionized firm. 
C) would not be able to unionize. 
D) would not be able to strike.

Question 2

The BLS reported in 2005 that there were 50.40 million people over age 25 whose highest level of education was some college or an associate degree.33.86 million of them were employed and 1.27 million of them were unemployed.About what were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A) 69.7%, 3.6% 
B) 69.7%, 2.5% 
C) 67.2%, 3.6% 
D) 67.2%, 2.5% 
A) 69.7%, 3.6% 
B) 69.7%, 2.5% 
C) 67.2%, 3.6% 
D) 67.2%, 2.5%

Question 3

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 jealousy among workers. 
C) firms colluding to set the wages of employees in order to keep them 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 jealousy among workers. 
C) firms colluding to set the wages of employees in order to keep them below equilibrium. 
D) the process by which unions and firms agree on the terms of employment.

Question 4

If the wage is kept above the equilibrium wage for any reason,the result is structural unemployment.

Accepted Answer

A) True 
 B)False

Question 5

Teenage unemployment is higher than unemployment of people ages 20 and over.Explain why economists would attribute at least part of this difference to minimum-wage laws.(Hint: who is likely to get paid more?)

Accepted Answer

People who are experienced and educated

Question 6

Just after World War II,the labor-force participation rate of men was

Accepted Answer

A) about 87 and currently is about 73. 
B) about 73 and currently is about 63. 
C) about 63 and currently is about 73. 
D) about 73 and currently is about 73. 
A) about 87 and currently is about 73. 
B) about 73 and currently is about 63. 
C) about 63 and currently is about 73. 
D) about 73 and currently is about 73.

Question 7

Compared to the United States,Germany historically has had higher unemployment rates.One explanation for this difference could be

Accepted Answer

A) a very low minimum wage in German. 
B) the relatively low expenditures of the German government.. 
C) the relatively high unemployment insurance in Germany. 
D) the refusal of German firms to set wages according to efficiency wage theory. 
A) a very low minimum wage in German. 
B) the relatively low expenditures of the German government.. 
C) the relatively high unemployment insurance in Germany. 
D) the refusal of German firms to set wages according to efficiency wage theory.

Question 8

The natural rate of unemployment

Accepted Answer

A) refers mostly to unemployment created by the cyclical fluctuations in real GDP. 
B) cannot be changed by government policy. 
C) varies over time. 
D) is the optimal rate of unemployment in an economy. 
A) refers mostly to unemployment created by the cyclical fluctuations in real GDP. 
B) cannot be changed by government policy. 
C) varies over time. 
D) is the optimal rate of unemployment in an economy.

Question 9

Suppose that neither textile workers nor shoemakers are unionized.If textile workers unionize and so are able to raise their wages,then the supply of shoemakers

Accepted Answer

A) rises and their wages rise. 
B) rises and their wages fall. 
C) falls and their wages fall. 
D) falls and their wages rise. 
A) rises and their wages rise. 
B) rises and their wages fall. 
C) falls and their wages fall. 
D) falls and their wages rise.

Question 10

Just after World War II,the labor-force participation rate of women was

Accepted Answer

A) about 1/3 and currently is about 1/2. 
B) about 1/3 and currently is about 3/5. 
C) about 1/2 and currently is about 3/5. 
D) about 3/5 and currently is about 1/2. 
A) about 1/3 and currently is about 1/2. 
B) about 1/3 and currently is about 3/5. 
C) about 1/2 and currently is about 3/5. 
D) about 3/5 and currently is about 1/2.

Question 11

Efficiency wages refer to wages set at a level

Accepted Answer

A) that would make the natural rate of unemployment zero. 
B) to encourage greater worker productivity. 
C) to maximize union members' total earnings. 
D) that would result in equilibrium in the labor market of each industry. 
A) that would make the natural rate of unemployment zero. 
B) to encourage greater worker productivity. 
C) to maximize union members' total earnings. 
D) that would result in equilibrium in the labor market of each industry.

Question 12

Since World War II,the labor-force participation rate

Accepted Answer

A) has increased for both men and women. 
B) increased for women and decreased for men. 
C) has decreased for both men and women. 
D) decreased for women and increased for men. 
A) has increased for both men and women. 
B) increased for women and decreased for men. 
C) has decreased for both men and women. 
D) decreased for women and increased for men.

Question 13

Of women earning an hourly wage,about what percent earn a wage at or below the minimum wage?

Accepted Answer

A) 4% 
B) 10% 
C) 25% 
D) 33% 
A) 4% 
B) 10% 
C) 25% 
D) 33%

Question 14

An increase in the minimum wage would

Accepted Answer

A) increase both the quantity demanded and the quantity supplied of labor. 
B) decrease both the quantity demanded and the quantity supplied of labor. 
C) increase the quantity of labor demanded while decreasing the quantity supplied. 
D) decrease the quantity of labor demanded while increasing the quantity supplied. 
A) increase both the quantity demanded and the quantity supplied of labor. 
B) decrease both the quantity demanded and the quantity supplied of labor. 
C) increase the quantity of labor demanded while decreasing the quantity supplied. 
D) decrease the quantity of labor demanded while increasing the quantity supplied.

Question 15

The sum of which of the following would necessarily be equal to the adult population in the US statistics on labor?

Accepted Answer

A) employed, unemployed 
B) discouraged workers, employed, unemployed 
C) employed, unemployed, not in the labor force 
D) discouraged workers, employed, not in the labor force 
A) employed, unemployed 
B) discouraged workers, employed, unemployed 
C) employed, unemployed, not in the labor force 
D) discouraged workers, employed, not in the labor force

Question 16

Even though most spells of unemployment are short,most unemployment results from long-term unemployment.

Accepted Answer

A) True 
 B)False

Question 17

Figure 28-1
  
-Refer to Figure 28-1.The equilibrium wage and employment in this market is

Accepted Answer

A) $6 and 20 workers. 
B) $5 and 30 workers. 
C) $4 and 40 workers. 
D) Any of the above could be correct. 
A) $6 and 20 workers. 
B) $5 and 30 workers. 
C) $4 and 40 workers. 
D) Any of the above could be correct.

Question 18

Union workers earn what percent more than similar nonunion workers?

Accepted Answer

A) 0 to 5 
B) 5 to 10 
C) 10 to 20 
D) 20 to 30 
A) 0 to 5 
B) 5 to 10 
C) 10 to 20 
D) 20 to 30

Question 19

From time to time the demand for workers has risen in one region of the United States and fallen in another.This illustrates

Accepted Answer

A) frictional unemployment created by efficiency wages. 
B) structural unemployment created by efficiency wages. 
C) frictional unemployment created by sectoral shifts. 
D) structural unemployment created by sectoral shifts. 
A) frictional unemployment created by efficiency wages. 
B) structural unemployment created by efficiency wages. 
C) frictional unemployment created by sectoral shifts. 
D) structural unemployment created by sectoral shifts.

Question 20

Suppose that butchers and bakers had no unions.Now suppose the butchers form a union.What does this do the labor supply of and wages of bakers?

Accepted Answer

A) it increases the labor supply and wages of bakers. 
B) it increases the labor supply and decreases the wages of bakers. 
C) it decreases the labor supply and increases the wages of bakers. 
D) it decreases the labor supply and wages of bakers. 
A) it increases the labor supply and wages of bakers. 
B) it increases the labor supply and decreases the wages of bakers. 
C) it decreases the labor supply and increases the wages of bakers. 
D) it decreases the labor supply and wages of bakers.

Exam 28: Unemployment

In the absence of right-to-work laws,workers

Collective bargaining refers to

If the wage is kept above the equilibrium wage for any reason,the result is structural unemployment.

Teenage unemployment is higher than unemployment of people ages 20 and over.Explain why economists would attribute at least part of this difference to minimum-wage laws.(Hint: who is likely to get paid more?)

Just after World War II,the labor-force participation rate of men was

Compared to the United States,Germany historically has had higher unemployment rates.One explanation for this difference could be

The natural rate of unemployment

Suppose that neither textile workers nor shoemakers are unionized.If textile workers unionize and so are able to raise their wages,then the supply of shoemakers

Just after World War II,the labor-force participation rate of women was

Efficiency wages refer to wages set at a level

Since World War II,the labor-force participation rate

Of women earning an hourly wage,about what percent earn a wage at or below the minimum wage?

An increase in the minimum wage would

The sum of which of the following would necessarily be equal to the adult population in the US statistics on labor?

Even though most spells of unemployment are short,most unemployment results from long-term unemployment.

Figure 28-1 -Refer to Figure 28-1.The equilibrium wage and employment in this market is

Union workers earn what percent more than similar nonunion workers?

From time to time the demand for workers has risen in one region of the United States and fallen in another.This illustrates

Suppose that butchers and bakers had no unions.Now suppose the butchers form a union.What does this do the labor supply of and wages of bakers?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Applications

Supply, demand, and Government Policies

Consumers, producers, and the Efficiency of Markets

Application: 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

Oligopoly

Monopolistic Competition

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

The Basic 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 Trade Off Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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