Question 1

Henry Ford

Accepted Answer

A) was forced by a union to pay $5.00 per day. 
B) paid $5.00 per day to replace striking workers as an example to the union. 
C) believed that paying $5.00 a day would increase worker productivity. 
D) paid $5.00 per day to illustrate he was a humanitarian. 
A) was forced by a union to pay $5.00 per day. 
B) paid $5.00 per day to replace striking workers as an example to the union. 
C) believed that paying $5.00 a day would increase worker productivity. 
D) paid $5.00 per day to illustrate he was a humanitarian.

Question 2

Suppose some country had an adult population of about 25 million,the labor-force participation rate was 60 percent,and the unemployment rate was 6 percent.What were the number of people employed and the number of people in the labor force?

Accepted Answer

A) 11.75 million, and 12.5 million 
B) 13.5 million and 15 million 
C) 14 million, and 12.5 million 
D) 14.1 million, and 15 million 
A) 11.75 million, and 12.5 million 
B) 13.5 million and 15 million 
C) 14 million, and 12.5 million 
D) 14.1 million, and 15 million

Question 3

Sally is on a temporary layoff from her factory job.If Sally participates in the BLS survey,she will be classified as

Accepted Answer

A) unemployed and in the labor force. 
B) unemployed and out of the labor force. 
C) employed and in the labor force. 
D) employed and out of the labor force. 
A) unemployed and in the labor force. 
B) unemployed and out of the labor force. 
C) employed and in the labor force. 
D) employed and out of the labor force.

Question 4

In one year you meet 45 people who are each unemployed for one week,and five people who are each unemployed for the whole year.What percent of the people you meet are short-term unemployed,and about what percent of the unemployment you encounter is long-term?

Accepted Answer

A) 90 percent and 85.2 percent 
B) 10 percent and 85.2 percent 
C) 90 percent and 10 percent 
D) 10 percent and 14.7 percent 
A) 90 percent and 85.2 percent 
B) 10 percent and 85.2 percent 
C) 90 percent and 10 percent 
D) 10 percent and 14.7 percent

Question 5

Cyclical unemployment is closely associated with

Accepted Answer

A) long-term economic growth. 
B) short-run ups and downs of the economy. 
C) fluctuations in the natural rate of unemployment. 
D) changes in the minimum wage. 
A) long-term economic growth. 
B) short-run ups and downs of the economy. 
C) fluctuations in the natural rate of unemployment. 
D) changes in the minimum wage.

Question 6

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate.All workers are equally able to do either job.Initially,both labor markets are perfectly competitive.If a union organizes workers in one of the markets,then the wage rates will tend to

Accepted Answer

A) rise in both markets. 
B) fall in both markets 
C) rise for the union jobs, but remain unchanged for the nonunion jobs. 
D) rise for the union jobs and fall for the nonunion jobs. 
A) rise in both markets. 
B) fall in both markets 
C) rise for the union jobs, but remain unchanged for the nonunion jobs. 
D) rise for the union jobs and fall for the nonunion jobs.

Question 7

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

Accepted Answer

A) 1.6 percent 
B) 3.1 percent 
C) 4.7 percent 
D) 6.2 percent 
A) 1.6 percent 
B) 3.1 percent 
C) 4.7 percent 
D) 6.2 percent

Question 8

John is a stockbroker.He has had several job offers,but he has turned them down because he thinks he can find a firm that better matches his tastes and skills.Curtis has looked for work as an accountant for some time.While the demand for accounts doesn't appear to be falling,there seems to be more people applying than jobs available.

Accepted Answer

A) John and Curtis are both frictionally unemployed. 
B) John and Curtis are both structurally unemployed. 
C) John is frictionally unemployed, and Curtis is structurally unemployed. 
D) John is structurally unemployed, and Curtis is frictionally unemployed. 
A) John and Curtis are both frictionally unemployed. 
B) John and Curtis are both structurally unemployed. 
C) John is frictionally unemployed, and Curtis is structurally unemployed. 
D) John is structurally unemployed, and Curtis is frictionally unemployed.

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 population in Meditor?

Accepted Answer

A) 90 million 
B) 150 million 
C) 160 million 
D) 240 million 
A) 90 million 
B) 150 million 
C) 160 million 
D) 240 million

Question 10

In 2002,the demand for construction workers increased and the demands for textile and steel workers diminished.This illustrates

Accepted Answer

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

Question 11

Consumers decide to buy more computers and fewer typewriters.As a result,computer companies expand production while typewriter companies lay-off workers.This is an example of

Accepted Answer

A) structural unemployment created by efficiency wages. 
B) cyclical unemployment created by a recession. 
C) frictional unemployment created by a sectoral shift in demand. 
D) None of the above is correct. 
A) structural unemployment created by efficiency wages. 
B) cyclical unemployment created by a recession. 
C) frictional unemployment created by a sectoral shift in demand. 
D) None of the above is correct.

Question 12

Efficiency wages

Accepted Answer

A) offset the effects of unions on the unemployment rate. 
B) reduce the natural rate of unemployment. 
C) reduce the incentive to shirk. 
D) increase worker turnover. 
A) offset the effects of unions on the unemployment rate. 
B) reduce the natural rate of unemployment. 
C) reduce the incentive to shirk. 
D) increase worker turnover.

Question 13

Which of the following is correct?

Accepted Answer

A) There is consensus among economists that unions are good for the economy. 
B) There is consensus among economists that unions are bad for the economy. 
C) There is consensus among economists that, on net, unions have almost no impact on macroeconomic variables. 
D) There is no consensus among economists about whether unions are good or bad for the economy. 
A) There is consensus among economists that unions are good for the economy. 
B) There is consensus among economists that unions are bad for the economy. 
C) There is consensus among economists that, on net, unions have almost no impact on macroeconomic variables. 
D) There is no consensus among economists about whether unions are good or bad for the economy.

Question 14

Efficiency wages

Accepted Answer

A) increase frictional unemployment by keeping wages above equilibrium. 
B) decrease frictional unemployment by keeping wages at equilibrium. 
C) increase structural unemployment by keeping wages above equilibrium. 
D) decrease structural unemployment by keeping wages at equilibrium. 
A) increase frictional unemployment by keeping wages above equilibrium. 
B) decrease frictional unemployment by keeping wages at equilibrium. 
C) increase structural unemployment by keeping wages above equilibrium. 
D) decrease structural unemployment by keeping wages at equilibrium.

Question 15

Discouraged workers

Accepted Answer

A) are not counted either as part of the adult population or as part of the labor force. 
B) are counted as part of the adult population, but not as part of the labor force. 
C) are counted as part of the adult population, and as unemployed. 
D) None the above are correct. 
A) are not counted either as part of the adult population or as part of the labor force. 
B) are counted as part of the adult population, but not as part of the labor force. 
C) are counted as part of the adult population, and as unemployed. 
D) None the above are correct.

Question 16

A minimum wage above equilibrium creates a surplus in the labor market.

Accepted Answer

A) True 
 B)False

Question 17

Frictional unemployment can be the consequence of

Accepted Answer

A) workers leaving existing jobs to find ones they like better. 
B) an industry declining while another is growing. 
C) changes in the working conditions offered by competing firms. 
D) All of the above are correct. 
A) workers leaving existing jobs to find ones they like better. 
B) an industry declining while another is growing. 
C) changes in the working conditions offered by competing firms. 
D) All of the above are correct.

Question 18

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 population in Meditor?

Accepted Answer

A) 85 million 
B) 120 million 
C) 135 million 
D) 240 million 
A) 85 million 
B) 120 million 
C) 135 million 
D) 240 million

Question 19

Who would be included in the labor force?

Accepted Answer

A) Dakota, an unpaid homemaker not looking for other work 
B) Brad, a full-time student not looking for work 
C) Maggie, who does not have a job, but is looking for work 
D) None of the above is included in the labor force. 
A) Dakota, an unpaid homemaker not looking for other work 
B) Brad, a full-time student not looking for work 
C) Maggie, who does not have a job, but is looking for work 
D) None of the above is included in the labor force.

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment

Henry Ford

Suppose some country had an adult population of about 25 million,the labor-force participation rate was 60 percent,and the unemployment rate was 6 percent.What were the number of people employed and the number of people in the labor force?

Sally is on a temporary layoff from her factory job.If Sally participates in the BLS survey,she will be classified as

In one year you meet 45 people who are each unemployed for one week,and five people who are each unemployed for the whole year.What percent of the people you meet are short-term unemployed,and about what percent of the unemployment you encounter is long-term?

Cyclical unemployment is closely associated with

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate.All workers are equally able to do either job.Initially,both labor markets are perfectly competitive.If a union organizes workers in one of the markets,then the wage rates will tend to

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

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 population in Meditor?

In 2002,the demand for construction workers increased and the demands for textile and steel workers diminished.This illustrates

Consumers decide to buy more computers and fewer typewriters.As a result,computer companies expand production while typewriter companies lay-off workers.This is an example of

Efficiency wages

Which of the following is correct?

Efficiency wages

Discouraged workers

A minimum wage above equilibrium creates a surplus in the labor market.

Frictional unemployment can be the consequence of

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 population in Meditor?

Who would be included in the labor force?

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

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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