Question 1

Recent entrants into the labor force account for about

Accepted Answer

A) 1/2 of those who are unemployed.Spells of unemployment end about 1/5 of the time with people leaving the labor force. 
B) 1/3 of those who are unemployed.Spells of unemployment end about 1/2 of the time with people leaving the labor force. 
C) 1/4 of those who are unemployed.Spells of unemployment end about 1/2 of the time with people leaving the labor force. 
D) 1/4 of those who are unemployed.Spells of unemployment end about 1/5 of the time with people leaving the labor force. 
A) 1/2 of those who are unemployed.Spells of unemployment end about 1/5 of the time with people leaving the labor force. 
B) 1/3 of those who are unemployed.Spells of unemployment end about 1/2 of the time with people leaving the labor force. 
C) 1/4 of those who are unemployed.Spells of unemployment end about 1/2 of the time with people leaving the labor force. 
D) 1/4 of those who are unemployed.Spells of unemployment end about 1/5 of the time with people leaving the labor force.

Question 2

The reported unemployment rate should be viewed as

Accepted Answer

A) a useful but imperfect measure of joblessness. 
B) clearly smaller than the true unemployment rate. 
C) clearly larger than the true unemployment rate. 
D) being very close to the true unemployment rate. 
A) a useful but imperfect measure of joblessness. 
B) clearly smaller than the true unemployment rate. 
C) clearly larger than the true unemployment rate. 
D) being very close to the true unemployment rate.

Question 3

Wages in excess of their equilibrium level help explain

Accepted Answer

A) frictional but not structural unemployment. 
B) structural but not frictional unemployment. 
C) frictional and structural unemployment. 
D) neither frictional or structural unemployment. 
A) frictional but not structural unemployment. 
B) structural but not frictional unemployment. 
C) frictional and structural unemployment. 
D) neither frictional or structural unemployment.

Question 4

Suppose that some people are counted as unemployed when,to maintain unemployment compensation,they search for work only at places where they are unlikely to be hired.If these individuals were counted as out of the labor force instead of as unemployed,

Accepted Answer

A) both the unemployment rate and labor-force participation rate would be higher. 
B) both the unemployment rate and labor-force participation rate would be lower. 
C) the unemployment rate would be lower and the labor-force participation rate would be higher. 
D) the unemployment rate would be higher and the participation rate would be lower. 
A) both the unemployment rate and labor-force participation rate would be higher. 
B) both the unemployment rate and labor-force participation rate would be lower. 
C) the unemployment rate would be lower and the labor-force participation rate would be higher. 
D) the unemployment rate would be higher and the participation rate would be lower.

Question 5

Suppose that in the small country of Sociopolis there are 6 million people in the adult population,that the labor-force participation rate is 70 percent,and that there are 3.8 million people employed.To the nearest tenth,what is the unemployment rate?

Accepted Answer

A) 10.5% 
B) 9.5% 
C) 6.7% 
D) None of the above is correct. 
A) 10.5% 
B) 9.5% 
C) 6.7% 
D) None of the above is correct.

Question 6

Which of the following definitions is correct?

Accepted Answer

A) Labor force = number of employed. 
B) Labor force = population - number of unemployed. 
C) Unemployment Rate = (number of unemployed ÷ [number of employed + number of unemployed]) × 100. 
D) Unemployment Rate = (number of unemployed ÷ adult population) × 100. 
A) Labor force = number of employed. 
B) Labor force = population - number of unemployed. 
C) Unemployment Rate = (number of unemployed ÷ [number of employed + number of unemployed]) × 100. 
D) Unemployment Rate = (number of unemployed ÷ adult population) × 100.

Question 7

The labor-force participation rates among U.S.men since World War II

Accepted Answer

A) decreased because of longer schooling, an increase in stay-at-home dads, earlier retirement, and longer lives. 
B) decreased because of longer lives, laws that prevent mandatory retirement, and an increase in stay-at-home dads. 
C) increased because of better unemployment insurance, laws that prevent mandatory retirement, and laws that prevent age discrimination in hiring. 
D) increased because of easier job searches, better training, and laws that prevent mandatory retirement and age discrimination in hiring. 
A) decreased because of longer schooling, an increase in stay-at-home dads, earlier retirement, and longer lives. 
B) decreased because of longer lives, laws that prevent mandatory retirement, and an increase in stay-at-home dads. 
C) increased because of better unemployment insurance, laws that prevent mandatory retirement, and laws that prevent age discrimination in hiring. 
D) increased because of easier job searches, better training, and laws that prevent mandatory retirement and age discrimination in hiring.

Question 8

Anything that makes the efficiency wage rise relative to the market-clearing wage will

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 demanded and decrease the quantity supplied of labor. 
D) decrease the quantity demanded and increase the quantity supplied of labor. 
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 demanded and decrease the quantity supplied of labor. 
D) decrease the quantity demanded and increase the quantity supplied of labor.

Question 9

In 2004,based on concepts similar to those used to estimate U.S.employment figures,the Italian adult non-institutionalized population was 45.020 million,the labor force was 24.065 million,and the number of people employed was 22.105 million.According to these numbers,the Italian labor-force participation rate and unemployment rate were about

Accepted Answer

A) 45.1%, 8.1% 
B) 45.1%, 4.4% 
C) 53.5%, 8.1% 
D) 53.5%, 4.4% 
A) 45.1%, 8.1% 
B) 45.1%, 4.4% 
C) 53.5%, 8.1% 
D) 53.5%, 4.4%

Question 10

The percentage of men not working is higher among those

Accepted Answer

A) with a college education and those living in a central city. 
B) with less than a high school degree and those living in a central city. 
C) with a college education and those living outside a central city. 
D) with less than a high school degree and those living outside a central city. 
A) with a college education and those living in a central city. 
B) with less than a high school degree and those living in a central city. 
C) with a college education and those living outside a central city. 
D) with less than a high school degree and those living outside a central city.

Question 11

Unemployment due to job search is best classified as structural unemployment.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Accepted Answer

A) minimum-wage laws 
B) unions 
C) efficiency wages 
D) All of the above are correct. 
A) minimum-wage laws 
B) unions 
C) efficiency wages 
D) All of the above are correct.

Question 13

Suppose that we added up all the weeks that each person who was unemployed during a year was unemployed.We'd find that

Accepted Answer

A) people who were unemployed a short time account for both most of the people who were unemployed and most of the time spent unemployed. 
B) people who were unemployed a long time account for both most of the people who were unemployed and most of the time spent unemployed. 
C) people who were unemployed a short time account for most of the people unemployed, but people who were unemployed for a long time account for most of the weeks spent unemployed. 
D) people who were unemployed for a long time account for most of the people unemployed, but people who were unemployed for a short time account for most of the weeks spent unemployed. 
A) people who were unemployed a short time account for both most of the people who were unemployed and most of the time spent unemployed. 
B) people who were unemployed a long time account for both most of the people who were unemployed and most of the time spent unemployed. 
C) people who were unemployed a short time account for most of the people unemployed, but people who were unemployed for a long time account for most of the weeks spent unemployed. 
D) people who were unemployed for a long time account for most of the people unemployed, but people who were unemployed for a short time account for most of the weeks spent unemployed.

Question 14

The BLS defines the unemployment rate as the percentage of

Accepted Answer

A) those unemployed relative to those employed. 
B) the labor force that is unemployed. 
C) the adult population that is unemployed. 
D) the labor force without fulltime employment. 
A) those unemployed relative to those employed. 
B) the labor force that is unemployed. 
C) the adult population that is unemployed. 
D) the labor force without fulltime employment.

Question 15

Sarah is the CEO of a corporation that hires nonunion labor.According to the theory of efficiency wages,if she decides to pay her workers more than the competitive equilibrium wage,

Accepted Answer

A) the profits of her firm might increase. 
B) the higher wages will induce her workers to shirk. 
C) the turnover of her workers may increase. 
D) she will face a shortage of labor. 
A) the profits of her firm might increase. 
B) the higher wages will induce her workers to shirk. 
C) the turnover of her workers may increase. 
D) she will face a shortage of labor.

Question 16

Suppose that grocery clerks and nurses are not unionized.If the nurses unionize then

Accepted Answer

A) the wages of both grocery clerks and nurses rise. 
B) the wages of both grocery clerks and nurses fall. 
C) the wages of grocery clerks rise and the wages of nurses fall. 
D) the wages of nurses rise and the wages of grocery clerks fall. 
A) the wages of both grocery clerks and nurses rise. 
B) the wages of both grocery clerks and nurses fall. 
C) the wages of grocery clerks rise and the wages of nurses fall. 
D) the wages of nurses rise and the wages of grocery clerks fall.

Question 17

Some persons are counted as out of the labor force because they have made no serious or recent effort to look for work.However,some of these individuals may want to work even though they are too discouraged to make a serious effort to look for work.If these individuals were counted as unemployed instead of out of the labor force,

Accepted Answer

A) both the unemployment rate and labor-force participation rate would be higher. 
B) the unemployment rate would be higher and the labor-force participation rate would be lower. 
C) the unemployment rate would be lower and the labor-force participation rate would be higher. 
D) None of the above is correct. 
A) both the unemployment rate and labor-force participation rate would be higher. 
B) the unemployment rate would be higher and the labor-force participation rate would be lower. 
C) the unemployment rate would be lower and the labor-force participation rate would be higher. 
D) None of the above is correct.

Question 18

Use the graph below to answer the following questions.
Figure 28-2
  
-Refer to Figure 28-2.If the minimum wage is $5,the number of people unemployed in this market is

Accepted Answer

A) 40 and if the minimum wage is $6 it is 0. 
B) 20 and if the minimum wage is $6 it is 20. 
C) 40 and if the minimum wage is $6 it is 20. 
D) 0 and if the minimum wage is $6 it is 0. 
A) 40 and if the minimum wage is $6 it is 0. 
B) 20 and if the minimum wage is $6 it is 20. 
C) 40 and if the minimum wage is $6 it is 20. 
D) 0 and if the minimum wage is $6 it is 0.

Question 19

In 2004,based on concepts similar to those used to estimate U.S.employment figures,the Japanese adult non-institutionalized population was 109.684 million,the labor force was 65.760 million,and the number of people employed was 62.630 million.According to these numbers,the Japanese labor-force participation rate and unemployment rate were about

Accepted Answer

A) 60%, 2.9% 
B) 60%, 4.8% 
C) 57.1%, 2.9% 
D) 57.1%, 4.8% 
A) 60%, 2.9% 
B) 60%, 4.8% 
C) 57.1%, 2.9% 
D) 57.1%, 4.8%

Question 20

Other things the same,countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment

Recent entrants into the labor force account for about

The reported unemployment rate should be viewed as

Wages in excess of their equilibrium level help explain

Suppose that some people are counted as unemployed when,to maintain unemployment compensation,they search for work only at places where they are unlikely to be hired.If these individuals were counted as out of the labor force instead of as unemployed,

Suppose that in the small country of Sociopolis there are 6 million people in the adult population,that the labor-force participation rate is 70 percent,and that there are 3.8 million people employed.To the nearest tenth,what is the unemployment rate?

Which of the following definitions is correct?

The labor-force participation rates among U.S.men since World War II

Anything that makes the efficiency wage rise relative to the market-clearing wage will

The percentage of men not working is higher among those

Unemployment due to job search is best classified as structural unemployment.

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Suppose that we added up all the weeks that each person who was unemployed during a year was unemployed.We'd find that

The BLS defines the unemployment rate as the percentage of

Sarah is the CEO of a corporation that hires nonunion labor.According to the theory of efficiency wages,if she decides to pay her workers more than the competitive equilibrium wage,

Suppose that grocery clerks and nurses are not unionized.If the nurses unionize then

Use the graph below to answer the following questions. Figure 28-2 -Refer to Figure 28-2.If the minimum wage is $5,the number of people unemployed in this market is

Other things the same,countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

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

Filters