Question 1

If the minimum wage were currently above the equilibrium wage,than a decrease 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 and decrease the quantity supplied. 
D) decrease the quantity of labor demanded and increase 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 and decrease the quantity supplied. 
D) decrease the quantity of labor demanded and increase the quantity supplied.

Question 2

Among teenagers,which group has the highest unemployment rate?

Accepted Answer

A) white males 
B) black females 
C) black males 
D) There are no significant differences in unemployment rates across these groups. 
A) white males 
B) black females 
C) black males 
D) There are no significant differences in unemployment rates across these groups.

Question 3

Which of the following correctly ranks categories from smallest to largest according to recent U.S.statistics?

Accepted Answer

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

Question 4

Suppose that there is an excess supply of economics professors.Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Accepted Answer

Standard economic theory suggests that i

Question 5

Use the following table to answer the following questions.
Table 28-1
  
-Refer to Table 28-1.What is the U-4 measure of labor underutilization?

Accepted Answer

A) 6.2 percent 
B) 6.9 percent 
C) 7.0 percent 
D) 8.1 percent 
A) 6.2 percent 
B) 6.9 percent 
C) 7.0 percent 
D) 8.1 percent

Question 6

In 2004,based on concepts similar to those used to estimate U.S.employment figures,the Canadian adult non-institutionalized population was 25.022 million,the labor force was 16.956 million,and the number of people employed was 15.864 million.According to these numbers,the Canadian labor-force participation rate and unemployment rate were about

Accepted Answer

A) 67.8% and 6.4% 
B) 67.8% and 4.4% 
C) 63.4% and 6.4% 
D) 63.4% and 4.4% 
A) 67.8% and 6.4% 
B) 67.8% and 4.4% 
C) 63.4% and 6.4% 
D) 63.4% and 4.4%

Question 7

Use the following table to answer the following questions.
Table 28-1
  
-Refer to Table 28-1.What is the U-3 measure of labor underutilization?

Accepted Answer

A) 4.7 percent 
B) 6.2 percent 
C) 7.0 percent 
D) 8.1 percent 
A) 4.7 percent 
B) 6.2 percent 
C) 7.0 percent 
D) 8.1 percent

Question 8

Figure 28-1
  
-Refer to Figure 28-1.If there were a minimum wage of $4 and then the government instituted a minimum wage of $5,in this market,unemployment would

Accepted Answer

A) be unchanged. 
B) drop by 10. 
C) rise by 10. 
D) rise by 20. 
A) be unchanged. 
B) drop by 10. 
C) rise by 10. 
D) rise by 20.

Question 9

Labor Stats
The Labor Market
This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Meditor.
  
-Refer to Labor Stats.What is the adult female population in Meditor?

Accepted Answer

A) 35 million 
B) 40 million 
C) 70 million 
D) 105 million 
A) 35 million 
B) 40 million 
C) 70 million 
D) 105 million

Question 10

Providing training for unemployed individuals is primarily intended to reduce

Accepted Answer

A) frictional unemployment. 
B) seasonal unemployment. 
C) structural unemployment. 
D) cyclical unemployment. 
A) frictional unemployment. 
B) seasonal unemployment. 
C) structural unemployment. 
D) cyclical unemployment.

Question 11

Sectoral changes

Accepted Answer

A) create frictional unemployment.Firms paying wages above equilibrium to attract a better pool of candidates create structural unemployment. 
B) create structural unemployment.Firms paying wages above equilibrium to attract a better pool of candidates create frictional unemployment. 
C) and firms paying wages above equilibrium to attract a better pool of candidates both create structural unemployment. 
D) and firms paying wages above equilibrium to attract a better pool of candidates both create frictional unemployment. 
A) create frictional unemployment.Firms paying wages above equilibrium to attract a better pool of candidates create structural unemployment. 
B) create structural unemployment.Firms paying wages above equilibrium to attract a better pool of candidates create frictional unemployment. 
C) and firms paying wages above equilibrium to attract a better pool of candidates both create structural unemployment. 
D) and firms paying wages above equilibrium to attract a better pool of candidates both create frictional unemployment.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

If the market for day care workers is in equilibrium at $5.00 per hour as shown in this diagram,a minimum wage of $8.00 per hour will

Accepted Answer

A) increase unemployment by 300 workers. 
B) increase unemployment by 500 workers. 
C) increase unemployment by 600 workers. 
D) None of the above is correct. 
A) increase unemployment by 300 workers. 
B) increase unemployment by 500 workers. 
C) increase unemployment by 600 workers. 
D) None of the above is correct.

Question 14

If you were told that someone you knew nothing else about had just become unemployed,your best guess would be

Accepted Answer

A) that they would be unemployed a long time and that most of the unemployed they've joined have been unemployed a long time. 
B) that they would be unemployed for a long time, even though most of the unemployed they've joined have been unemployed for a short time. 
C) that they would be unemployed for a short time, even though most of the unemployed they've joined have been unemployed for a long time. 
D) that they will be unemployed for a short time, and that most of the unemployed they've joined have been unemployed for a short time. 
A) that they would be unemployed a long time and that most of the unemployed they've joined have been unemployed a long time. 
B) that they would be unemployed for a long time, even though most of the unemployed they've joined have been unemployed for a short time. 
C) that they would be unemployed for a short time, even though most of the unemployed they've joined have been unemployed for a long time. 
D) that they will be unemployed for a short time, and that most of the unemployed they've joined have been unemployed for a short time.

Question 15

Which list contains two periods when the unemployment rate was below the natural rate of unemployment?

Accepted Answer

A) 1965-1968, 1981-1984 
B) 1965-1968, 1997-2000 
C) 1981-1984, 1991-1994 
D) 1991-1994, 1997-2000 
A) 1965-1968, 1981-1984 
B) 1965-1968, 1997-2000 
C) 1981-1984, 1991-1994 
D) 1991-1994, 1997-2000

Question 16

Labor Stats
The Labor Market
This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Meditor.
  
-Refer to Labor Stats.What is the adult male labor force in Meditor?

Accepted Answer

A) 85 million 
B) 90 million 
C) 120 million 
D) 135 million 
A) 85 million 
B) 90 million 
C) 120 million 
D) 135 million

Question 17

In 2004,based on concepts similar to those used to estimate U.S.employment figures,the Swedish adult non-institutionalized population was 6.712 million,the labor force was 4.576 million,and the number of people employed was 4.276 million.According to these numbers,the Swedish labor-force participation rate and unemployment rate were about

Accepted Answer

A) 59.5%, 4.5% 
B) 59.5%, 6.6% 
C) 68.2%, 4.5% 
D) 68.2%, 6.6% 
A) 59.5%, 4.5% 
B) 59.5%, 6.6% 
C) 68.2%, 4.5% 
D) 68.2%, 6.6%

Question 18

Which of the following is correct?

Accepted Answer

A) All economists believe that unions are bad for the economy as a whole. 
B) Unions raise wages above the competitive equilibrium level. 
C) Unions increase the level of employment in unionized firms. 
D) Unions decrease the level of employment in nonunionized firms. 
A) All economists believe that unions are bad for the economy as a whole. 
B) Unions raise wages above the competitive equilibrium level. 
C) Unions increase the level of employment in unionized firms. 
D) Unions decrease the level of employment in nonunionized firms.

Question 19

An efficient wage

Accepted Answer

A) requires increased turnover. 
B) may decrease the costs of production. 
C) helps to reduce the level of unemployment. 
D) All of the above are correct. 
A) requires increased turnover. 
B) may decrease the costs of production. 
C) helps to reduce the level of unemployment. 
D) All of the above are correct.

Question 20

Full-time students,retirees,and unpaid stay-at-home fathers are counted as unemployed.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment

If the minimum wage were currently above the equilibrium wage,than a decrease in the minimum wage would

Among teenagers,which group has the highest unemployment rate?

Which of the following correctly ranks categories from smallest to largest according to recent U.S.statistics?

Suppose that there is an excess supply of economics professors.Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Use the following table to answer the following questions. Table 28-1 -Refer to Table 28-1.What is the U-4 measure of labor underutilization?

Use the following table to answer the following questions. Table 28-1 -Refer to Table 28-1.What is the U-3 measure of labor underutilization?

Figure 28-1 -Refer to Figure 28-1.If there were a minimum wage of $4 and then the government instituted a minimum wage of $5,in this market,unemployment would

Labor Stats The Labor Market This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Meditor. -Refer to Labor Stats.What is the adult female population in Meditor?

Providing training for unemployed individuals is primarily intended to reduce

Sectoral changes

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

If the market for day care workers is in equilibrium at $5.00 per hour as shown in this diagram,a minimum wage of $8.00 per hour will

If you were told that someone you knew nothing else about had just become unemployed,your best guess would be

Which list contains two periods when the unemployment rate was below the natural rate of unemployment?

Labor Stats The Labor Market This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Meditor. -Refer to Labor Stats.What is the adult male labor force in Meditor?

Which of the following is correct?

An efficient wage

Full-time students,retirees,and unpaid stay-at-home fathers are counted as unemployed.

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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