Question 1

Suppose that telemarketers are not unionized.If they unionize,then the supply of labor in other sectors of the economy

Accepted Answer

A) decreases, raising wages in industries that are not unionized. 
B) decreases, reducing wages in industries that are not unionized. 
C) increases, raising wages in industries that are not unionized. 
D) increases, reducing wages in industries that are not unionized. 
A) decreases, raising wages in industries that are not unionized. 
B) decreases, reducing wages in industries that are not unionized. 
C) increases, raising wages in industries that are not unionized. 
D) increases, reducing wages in industries that are not unionized.

Question 2

Unemployment insurance

Accepted Answer

A) and unions both create structural unemployment. 
B) and unions both create frictional unemployment. 
C) creates frictional unemployment and unions create structural unemployment. 
D) creates structural unemployment and unions create frictional unemployment. 
A) and unions both create structural unemployment. 
B) and unions both create frictional unemployment. 
C) creates frictional unemployment and unions create structural unemployment. 
D) creates structural unemployment and unions create frictional unemployment.

Question 3

In the US an increase in the world price of oil would likely

Accepted Answer

A) decrease unemployment, and the decrease would be greater the more generous unemployment insurance benefits were. 
B) decrease unemployment, but the decrease would be smaller the more generous unemployment insurance benefits were. 
C) increase unemployment, and the increase would be greater the more generous unemployment insurance benefits were. 
D) increase unemployment, but the increase would be smaller the more generous unemployment insurance benefits were. 
A) decrease unemployment, and the decrease would be greater the more generous unemployment insurance benefits were. 
B) decrease unemployment, but the decrease would be smaller the more generous unemployment insurance benefits were. 
C) increase unemployment, and the increase would be greater the more generous unemployment insurance benefits were. 
D) increase unemployment, but the increase would be smaller the more generous unemployment insurance benefits were.

Question 4

Which of the following is not correct?

Accepted Answer

A) A union is a form of cartel. 
B) Union workers typically earn 25 to 33 percent more than similar nonunionized workers. 
C) The power of a union comes from its ability to strike if its demands are not met. 
D) Workers in unions reap the benefits of collective bargaining, while workers not in unions bear some of the cost. 
A) A union is a form of cartel. 
B) Union workers typically earn 25 to 33 percent more than similar nonunionized workers. 
C) The power of a union comes from its ability to strike if its demands are not met. 
D) Workers in unions reap the benefits of collective bargaining, while workers not in unions bear some of the cost.

Question 5

Who would be included in the labor force?

Accepted Answer

A) Homer, who is waiting for his new job to start 
B) Michelle, who has become discouraged looking for a job and has quit looking for awhile 
C) Derrick, an unpaid homemaker 
D) None of the above would be included in the labor force. 
A) Homer, who is waiting for his new job to start 
B) Michelle, who has become discouraged looking for a job and has quit looking for awhile 
C) Derrick, an unpaid homemaker 
D) None of the above would be included in the labor force.

Question 6

Ted is working part time.Alice is on temporary layoff.Who is counted as employed by the BLS?

Accepted Answer

A) only Ted 
B) only Alice 
C) both Ted and Alice 
D) neither Ted nor Alice 
A) only Ted 
B) only Alice 
C) both Ted and Alice 
D) neither Ted nor Alice

Question 7

Frictional unemployment exists because of the time it takes for workers to search for the jobs that best suit their tastes and skills.

Accepted Answer

A) True 
 B)False

Question 8

Other things the same,an increase in wages above their equilibrium level

Accepted Answer

A) increases frictional unemployment but leaves the natural rate of unemployment unchanged. 
B) increases frictional unemployment and increases the natural rate of unemployment. 
C) increases structural unemployment but leaves the natural rate of unemployment unchanged. 
D) increases structural unemployment and increases the natural rate of unemployment. 
A) increases frictional unemployment but leaves the natural rate of unemployment unchanged. 
B) increases frictional unemployment and increases the natural rate of unemployment. 
C) increases structural unemployment but leaves the natural rate of unemployment unchanged. 
D) increases structural unemployment and increases the natural rate of unemployment.

Question 9

Even though the difference in labor force participation rates of males and females has narrowed,the participation rate of males remains higher.

Accepted Answer

A) True 
 B)False

Question 10

The natural rate of unemployment is the

Accepted Answer

A) unemployment rate that would prevail with zero inflation. 
B) rate associated with the highest possible level of GDP. 
C) difference between the long-run and short-run unemployment rates. 
D) amount of unemployment that the economy normally experiences. 
A) unemployment rate that would prevail with zero inflation. 
B) rate associated with the highest possible level of GDP. 
C) difference between the long-run and short-run unemployment rates. 
D) amount of unemployment that the economy normally experiences.

Question 11

Which of the following is correct?

Accepted Answer

A) Short-term unemployment is a more serious problem than long-term unemployment. 
B) Most spells of unemployment are long term. 
C) Most of the currently unemployed have been unemployed a long time. 
D) None of the above is correct. 
A) Short-term unemployment is a more serious problem than long-term unemployment. 
B) Most spells of unemployment are long term. 
C) Most of the currently unemployed have been unemployed a long time. 
D) None of the above is correct.

Question 12

Most spells of unemployment are short,and most unemployment observed at any given time is long term.How can this be?

Accepted Answer

Most unemployed people in the economy ar

Question 13

Spells of unemployment end about

Accepted Answer

A) 1/5 of the time with the person leaving the labor force. 
B) 1/4 of the time with the person leaving the labor force. 
C) 1/3 of the time with the person leaving the labor force. 
D) 1/2 of the time with the person leaving the labor force. 
A) 1/5 of the time with the person leaving the labor force. 
B) 1/4 of the time with the person leaving the labor force. 
C) 1/3 of the time with the person leaving the labor force. 
D) 1/2 of the time with the person leaving the labor force.

Question 14

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 labor force 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 15

Job search

Accepted Answer

A) explains why firms pay less than the competitive equilibrium wage. 
B) is due simply to the failure of wages to balance labor supply and labor demand. 
C) is the process of matching workers with appropriate jobs. 
D) All of the above are correct. 
A) explains why firms pay less than the competitive equilibrium wage. 
B) is due simply to the failure of wages to balance labor supply and labor demand. 
C) is the process of matching workers with appropriate jobs. 
D) All of the above are correct.

Question 16

Which of the following would be associated with the type of unemployment created by minimum wages?

Accepted Answer

A) Greg quits his job as a grocery cashier because he prefers to work at the library. 
B) Mia searches for a low-wage job, but finds that there seem to be more people looking than positions open. 
C) In hopes of earning higher income Bruce goes back to trade school to get further training. 
D) Liz pays the workers for her plumbing and heating company more than the equilibrium wage because she believes it will make them work harder. 
A) Greg quits his job as a grocery cashier because he prefers to work at the library. 
B) Mia searches for a low-wage job, but finds that there seem to be more people looking than positions open. 
C) In hopes of earning higher income Bruce goes back to trade school to get further training. 
D) Liz pays the workers for her plumbing and heating company more than the equilibrium wage because she believes it will make them work harder.

Question 17

Which group has the highest labor-force participation rate?

Accepted Answer

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

Question 18

Right-to-work laws allow striking union members to be permanently replaced.

Accepted Answer

A) True 
 B)False

Question 19

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 unemployment rate in Meditor?

Accepted Answer

A) 4.12% 
B) 6.25% 
C) 11.11% 
D) 12.50% 
A) 4.12% 
B) 6.25% 
C) 11.11% 
D) 12.50%

Question 20

When a union bargains successfully with an employer,in that industry

Accepted Answer

A) unemployment and wages increase. 
B) unemployment and wages decrease. 
C) unemployment decreases and wages increase. 
D) unemployment increases and wages decrease. 
A) unemployment and wages increase. 
B) unemployment and wages decrease. 
C) unemployment decreases and wages increase. 
D) unemployment increases and wages decrease.

Exam 28: Unemployment

Suppose that telemarketers are not unionized.If they unionize,then the supply of labor in other sectors of the economy

Unemployment insurance

In the US an increase in the world price of oil would likely

Which of the following is not correct?

Who would be included in the labor force?

Ted is working part time.Alice is on temporary layoff.Who is counted as employed by the BLS?

Frictional unemployment exists because of the time it takes for workers to search for the jobs that best suit their tastes and skills.

Other things the same,an increase in wages above their equilibrium level

Even though the difference in labor force participation rates of males and females has narrowed,the participation rate of males remains higher.

The natural rate of unemployment is the

Which of the following is correct?

Most spells of unemployment are short,and most unemployment observed at any given time is long term.How can this be?

Spells of unemployment end about

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 labor force in Meditor?

Job search

Which of the following would be associated with the type of unemployment created by minimum wages?

Which group has the highest labor-force participation rate?

Right-to-work laws allow striking union members to be permanently replaced.

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 unemployment rate in Meditor?

When a union bargains successfully with an employer,in that industry

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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