Question 1

Which of the following is a cause of frictional unemployment?

Accepted Answer

A) the minimum wage 
B) a worker leaving a job to find one with better benefits 
C) labor unions 
D) All of the above are correct. 
A) the minimum wage 
B) a worker leaving a job to find one with better benefits 
C) labor unions 
D) All of the above are correct.

Question 2

Sectoral shifts in demand for output

Accepted Answer

A) create structural unemployment. 
B) immediately reduce unemployment. 
C) increase unemployment due to job search. 
D) on net leave unemployment unchanged. 
A) create structural unemployment. 
B) immediately reduce unemployment. 
C) increase unemployment due to job search. 
D) on net leave unemployment unchanged.

Question 3

Most economists would agree that eliminating unemployment insurance would

Accepted Answer

A) increase unemployment because people would quit jobs they thought were not secure. 
B) increase unemployment because if the government didn't provide unemployment insurance, private firms would offer superior insurance. 
C) reduce unemployment and so improve economic well-being. 
D) reduce unemployment, but they disagree about whether economic well-being would be enhanced by such a change. 
A) increase unemployment because people would quit jobs they thought were not secure. 
B) increase unemployment because if the government didn't provide unemployment insurance, private firms would offer superior insurance. 
C) reduce unemployment and so improve economic well-being. 
D) reduce unemployment, but they disagree about whether economic well-being would be enhanced by such a change.

Question 4

If an unemployed person quits looking for work,ceteris paribus,the unemployment rate

Accepted Answer

A) decreases, and the participation rate increases. 
B) decreases, and the participation rate decreases. 
C) stays the same, and the participation rate decreases. 
D) and the labor-force participation rate stay the same. 
A) decreases, and the participation rate increases. 
B) decreases, and the participation rate decreases. 
C) stays the same, and the participation rate decreases. 
D) and the labor-force participation rate stay the same.

Question 5

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

Accepted Answer

A) the natural rate of unemployment. 
B) cyclical unemployment. 
C) structural unemployment. 
D) frictional unemployment. 
A) the natural rate of unemployment. 
B) cyclical unemployment. 
C) structural unemployment. 
D) frictional unemployment.

Question 6

The natural rate of unemployment

Accepted Answer

A) is a constant. 
B) is the desirable rate of unemployment. 
C) cannot be altered by economic policy. 
D) None of the above is correct. 
A) is a constant. 
B) is the desirable rate of unemployment. 
C) cannot be altered by economic policy. 
D) None of the above is correct.

Question 7

Right-to-work laws

Accepted Answer

A) guarantee workers the right to form unions. 
B) give workers in a unionized firm the right to choose whether or not to join the union. 
C) prevent employers from hiring permanent replacements for workers who are on strike. 
D) say that workers can not be fired because of increases in wages brought about by collective bargaining. 
A) guarantee workers the right to form unions. 
B) give workers in a unionized firm the right to choose whether or not to join the union. 
C) prevent employers from hiring permanent replacements for workers who are on strike. 
D) say that workers can not be fired because of increases in wages brought about by collective bargaining.

Question 8

Suppose that in the economy in general efficiency wages become more common.Economists would predict that this would

Accepted Answer

A) increase the quantity demanded and decrease the quantity supplied of labor thereby decreasing the natural rate of unemployment. 
B) decrease the quantity demanded and increase the quantity supplied of labor thereby increasing the natural rate of unemployment. 
C) increase the quantity demanded and decrease the quantity supplied of labor thereby increasing the natural rate of unemployment. 
D) decrease the quantity demanded and increase the quantity supplied of labor thereby decreasing the natural rate of unemployment. 
A) increase the quantity demanded and decrease the quantity supplied of labor thereby decreasing the natural rate of unemployment. 
B) decrease the quantity demanded and increase the quantity supplied of labor thereby increasing the natural rate of unemployment. 
C) increase the quantity demanded and decrease the quantity supplied of labor thereby increasing the natural rate of unemployment. 
D) decrease the quantity demanded and increase the quantity supplied of labor thereby decreasing the natural rate of unemployment.

Question 9

Raphael is not working and is currently not looking for work.The BLS would count Raphael

Accepted Answer

A) as unemployed and in the labor force. 
B) as unemployed, but not in the labor force. 
C) in the labor force, but not as unemployed. 
D) neither as unemployed nor in the labor force. 
A) as unemployed and in the labor force. 
B) as unemployed, but not in the labor force. 
C) in the labor force, but not as unemployed. 
D) neither as unemployed nor in the labor force.

Question 10

Unemployment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

Accepted Answer

A) True 
 B)False

Question 11

The table below uses data for the year 2003 provided by the BLS and adjusted to be comparable to U.S.data.All values are in thousands.Fill in the blank entries in the table.Show your work!

Accepted Answer

The answer of The table below uses data for the...

Question 12

Suppose some country had an adult population of about 50 million,the labor-force participation rate was 60 percent,and the unemployment rate was 5 percent.What were the number of people employed and the number of people in the labor force?

Accepted Answer

A) 27.5 million, 30 million 
B) 28.5 million, 30 million 
C) 30 million, 31.5 million 
D) 30 million, 32.5 million 
A) 27.5 million, 30 million 
B) 28.5 million, 30 million 
C) 30 million, 31.5 million 
D) 30 million, 32.5 million

Question 13

The labor force equals the

Accepted Answer

A) number of people who are employed. 
B) number of people who are unemployed. 
C) number of people employed plus the number of people unemployed. 
D) adult population. 
A) number of people who are employed. 
B) number of people who are unemployed. 
C) number of people employed plus the number of people unemployed. 
D) adult population.

Question 14

Evidence from research studies by economists

Accepted Answer

A) show that increased unemployment benefits decrease the job-search efforts of the unemployed. 
B) show that increased unemployment benefits have virtually no effect on the job-search efforts of the unemployed. 
C) show that increased unemployment benefits increases the job-search effort of the unemployed. 
D) find no clear-cut evidence on what increased unemployment benefits do to job-search efforts. 
A) show that increased unemployment benefits decrease the job-search efforts of the unemployed. 
B) show that increased unemployment benefits have virtually no effect on the job-search efforts of the unemployed. 
C) show that increased unemployment benefits increases the job-search effort of the unemployed. 
D) find no clear-cut evidence on what increased unemployment benefits do to job-search efforts.

Question 15

Who would be included in the labor force?

Accepted Answer

A) Karen, who works most of the week in a steel factory 
B) Beth, who is waiting for her new job at the bank to start 
C) Dave, who does not have a job, but is looking for work 
D) All of the above are included in the labor force. 
A) Karen, who works most of the week in a steel factory 
B) Beth, who is waiting for her new job at the bank to start 
C) Dave, who does not have a job, but is looking for work 
D) All of the above are included in the labor force.

Question 16

Between the 1940s and today,union membership

Accepted Answer

A) rose from about one-eighth to one-third of the labor force. 
B) rose from about one-third to one-half of the labor force. 
C) fell from about one-half to one-third of the labor force. 
D) fell from about one-third to one-eighth of the labor force. 
A) rose from about one-eighth to one-third of the labor force. 
B) rose from about one-third to one-half of the labor force. 
C) fell from about one-half to one-third of the labor force. 
D) fell from about one-third to one-eighth of the labor force.

Question 17

When a union bargains successfully with employers,in that industry

Accepted Answer

A) both the quantity of labor supplied and the quantity of labor demanded increase. 
B) both the quantity of labor supplied and the quantity of labor demanded decrease. 
C) the quantity of labor supplied increases and the quantity of labor demanded decreases. 
D) the quantity of labor demanded increases and the quantity of labor supplied decreases. 
A) both the quantity of labor supplied and the quantity of labor demanded increase. 
B) both the quantity of labor supplied and the quantity of labor demanded decrease. 
C) the quantity of labor supplied increases and the quantity of labor demanded decreases. 
D) the quantity of labor demanded increases and the quantity of labor supplied decreases.

Question 18

Samantha,the CEO of a corporation operating in a comparatively poor country where wages are low,decides to raise the wages of her workers even though she faces an excess supply of labor.Her decision

Accepted Answer

A) might increase profits if it means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive. 
B) will help eliminate the excess supply of labor if she raises it sufficiently. 
C) may cause her workers to increase shirking. 
D) All of the above are correct. 
A) might increase profits if it means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive. 
B) will help eliminate the excess supply of labor if she raises it sufficiently. 
C) may cause her workers to increase shirking. 
D) All of the above are correct.

Question 19

Which of the following is correct?

Accepted Answer

A) Unemployment insurance raises structural unemployment because it reduces the job search efforts of the unemployed. 
B) Most economists are skeptical of the value of unemployment insurance primarily because they believe that it results in a poorer match between workers and jobs. 
C) Studies show that when the unemployed become ineligible for benefits, the probability of their finding a job rises markedly. 
D) All of the above are correct. 
A) Unemployment insurance raises structural unemployment because it reduces the job search efforts of the unemployed. 
B) Most economists are skeptical of the value of unemployment insurance primarily because they believe that it results in a poorer match between workers and jobs. 
C) Studies show that when the unemployed become ineligible for benefits, the probability of their finding a job rises markedly. 
D) All of the above are correct.

Question 20

The National Labor Relations Board

Accepted Answer

A) enforces antitrust laws against unions. 
B) enforces workers' rights to unionize. 
C) for a fee will act as a union's representative in collective bargaining. 
D) is required to approve all collective bargaining agreements before they can be enforced. 
A) enforces antitrust laws against unions. 
B) enforces workers' rights to unionize. 
C) for a fee will act as a union's representative in collective bargaining. 
D) is required to approve all collective bargaining agreements before they can be enforced.

Exam 28: Unemployment

Which of the following is a cause of frictional unemployment?

Sectoral shifts in demand for output

Most economists would agree that eliminating unemployment insurance would

If an unemployed person quits looking for work,ceteris paribus,the unemployment rate

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

The natural rate of unemployment

Right-to-work laws

Suppose that in the economy in general efficiency wages become more common.Economists would predict that this would

Raphael is not working and is currently not looking for work.The BLS would count Raphael

Unemployment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

The table below uses data for the year 2003 provided by the BLS and adjusted to be comparable to U.S.data.All values are in thousands.Fill in the blank entries in the table.Show your work!

Suppose some country had an adult population of about 50 million,the labor-force participation rate was 60 percent,and the unemployment rate was 5 percent.What were the number of people employed and the number of people in the labor force?

The labor force equals the

Evidence from research studies by economists

Who would be included in the labor force?

Between the 1940s and today,union membership

When a union bargains successfully with employers,in that industry

Samantha,the CEO of a corporation operating in a comparatively poor country where wages are low,decides to raise the wages of her workers even though she faces an excess supply of labor.Her decision

Which of the following is correct?

The National Labor Relations Board

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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