Question 1

About one-half of all spells of unemployment end when the unemployed person leaves the labor force.

Accepted Answer

A) True 
 B)False

Question 2

Suppose that Krameria is considering policy changes that would affect the number of males age 25-54 who are employed and unemployed according to the following table.Statisticians at the Kramerian Labor Department have computed current labor statistics and estimated what the labor statistics would have been with the policy in place.What are the current unemployment and labor-force participation rates,to the nearest tenth? According to the estimates,what would their values have been if the policy had been in place?

Accepted Answer

A) current 4.8 % and 70% with policy change 4.4% and 66.7% 
B) current 5% and 70% with policy change 4.6% and 66.7% 
C) current 4.8% and 66.7% with policy change 4.4% and 64% 
D) current 5% and 66.7% with policy change 4.6% and 64% 
A) current 4.8 % and 70% with policy change 4.4% and 66.7% 
B) current 5% and 70% with policy change 4.6% and 66.7% 
C) current 4.8% and 66.7% with policy change 4.4% and 64% 
D) current 5% and 66.7% with policy change 4.6% and 64%

Question 3

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 unemployment rate in Meditor?

Accepted Answer

A) 3.70% 
B) 4.00% 
C) 5.56% 
D) 5.88% 
A) 3.70% 
B) 4.00% 
C) 5.56% 
D) 5.88%

Question 4

Which industry has the highest proportion of workers with reported hourly wages at or below the minimum wage rate?

Accepted Answer

A) transportation 
B) leisure and hospitality 
C) agriculture forestry and fishing 
D) mining 
A) transportation 
B) leisure and hospitality 
C) agriculture forestry and fishing 
D) mining

Question 5

Which of the following causes of unemployment is not associated with a continuing excess supply of labor?

Accepted Answer

A) minimum-wage laws 
B) unions 
C) job search 
D) efficiency wages 
A) minimum-wage laws 
B) unions 
C) job search 
D) efficiency wages

Question 6

Rupert is collecting unemployment insurance benefits.To continue to receive his benefits he must be looking for work.Because he'd like to continue collecting benefits rather than take a job,he applies at places that are unlikely to hire him.People like Rupert make the reported unemployment rate less than it would otherwise be.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following prevent employers from interfering when workers try to organize a union?

Accepted Answer

A) the Clayson Act. 
B) the Humphrey Act. 
C) the Sullivan Act. 
D) the Wagner Act. 
A) the Clayson Act. 
B) the Humphrey Act. 
C) the Sullivan Act. 
D) the Wagner Act.

Question 8

In 1914,Henry Ford began paying his workers $5 per day,about twice the going wage.As a result,turnover and absenteeism fell,and productivity and profits rose.

Accepted Answer

A) True 
 B)False

Question 9

Rupert is a low-skilled worker who washes dishes in a local restaurant.A proposal to increase the minimum wage may worry him if he knows that price

Accepted Answer

A) floors tend to create shortages. 
B) ceilings tend to create shortages. 
C) floors tend to create surpluses. 
D) ceilings tend to create surpluses. 
A) floors tend to create shortages. 
B) ceilings tend to create shortages. 
C) floors tend to create surpluses. 
D) ceilings tend to create surpluses.

Question 10

Which of the following statements is correct?

Accepted Answer

A) There is no easy way to fix the unemployment rate as reported by the BLS to make it a more reliable indicator of conditions in the labor market. 
B) There are several easy ways economists have identified to fix the reported unemployment rate to make it a more reliable indicator of conditions in the labor market. 
C) There is one easy way of fixing the unemployment rate as reported by the BLS to make it a more reliable indicator of conditions in the labor market. 
D) Economists have determined that the unemployment rate as reported by the BLS is a perfectly reliable indicator of conditions in the labor market. 
A) There is no easy way to fix the unemployment rate as reported by the BLS to make it a more reliable indicator of conditions in the labor market. 
B) There are several easy ways economists have identified to fix the reported unemployment rate to make it a more reliable indicator of conditions in the labor market. 
C) There is one easy way of fixing the unemployment rate as reported by the BLS to make it a more reliable indicator of conditions in the labor market. 
D) Economists have determined that the unemployment rate as reported by the BLS is a perfectly reliable indicator of conditions in the labor market.

Question 11

Recent entrants into the labor force account for about

Accepted Answer

A) 1/5 of those who are unemployed. 
B) 1/4 of those who are unemployed. 
C) 1/3 of those who are unemployed. 
D) 1/2 of those who are unemployed. 
A) 1/5 of those who are unemployed. 
B) 1/4 of those who are unemployed. 
C) 1/3 of those who are unemployed. 
D) 1/2 of those who are unemployed.

Question 12

What factors account for the rise in the percentage of noninstitutionalized males ages 25-54 who spent the year without working for pay or attending school?

Accepted Answer

A rise in disability rolls and

Question 13

Over one-half of the unemployed are recent entrants into the labor force.

Accepted Answer

A) True 
 B)False

Question 14

A college student who is not working or looking for a job is counted as

Accepted Answer

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

Question 15

Government policy can do nothing about the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 16

The unemployment rate is computed as the number of unemployed

Accepted Answer

A) divided by the labor force times 100. 
B) divided by the number of people employed times 100. 
C) divided by the adult population times 100. 
D) times the participation rate times 100. 
A) divided by the labor force times 100. 
B) divided by the number of people employed times 100. 
C) divided by the adult population times 100. 
D) times the participation rate times 100.

Question 17

A typical American worker covered by unemployment insurance receives

Accepted Answer

A) 75 percent of his former wages for 26 weeks. 
B) 50 percent of his former wages for 26 weeks. 
C) 35 percent of his former wages for 39 weeks. 
D) None of the above is correct. 
A) 75 percent of his former wages for 26 weeks. 
B) 50 percent of his former wages for 26 weeks. 
C) 35 percent of his former wages for 39 weeks. 
D) None of the above is correct.

Question 18

Suppose the labor-force participation rate of men is greater in Troy than in Sparta.This could be because the men of Troy

Accepted Answer

A) spend more time in school and have earlier and longer retirements than men in Sparta. 
B) spend more time in school and have later and shorter retirements than men in Sparta. 
C) spend less time in school and have earlier and longer retirements than men in Sparta. 
D) spend less time in school and have later and shorter retirements than men in Sparta. 
A) spend more time in school and have earlier and longer retirements than men in Sparta. 
B) spend more time in school and have later and shorter retirements than men in Sparta. 
C) spend less time in school and have earlier and longer retirements than men in Sparta. 
D) spend less time in school and have later and shorter retirements than men in Sparta.

Question 19

Meredith is looking for work as a computer programmer.Although her prospects are good she hasn't yet taken a job.Julie is looking for work in a steel mill.Every time she shows up for an interview there are more people looking for work than their are openings.Someone waiting in line with her tells her its been that way a long time.

Accepted Answer

A) Meredith and Julie are both frictionally unemployed. 
B) Meredith and Julie are both structurally unemployed. 
C) Meredith is frictionally unemployed, and Julie is structurally unemployed. 
D) Meredith is structurally unemployed, and Julie is frictionally unemployed. 
A) Meredith and Julie are both frictionally unemployed. 
B) Meredith and Julie are both structurally unemployed. 
C) Meredith is frictionally unemployed, and Julie is structurally unemployed. 
D) Meredith is structurally unemployed, and Julie is frictionally unemployed.

Question 20

Which of the following causes of unemployment is not associated with a wage rate above the equilibrium level?

Accepted Answer

A) unions 
B) efficiency wages 
C) job search 
D) minimum-wage laws 
A) unions 
B) efficiency wages 
C) job search 
D) minimum-wage laws

Exam 28: Unemployment

About one-half of all spells of unemployment end when the unemployed person leaves the labor force.

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 unemployment rate in Meditor?

Which industry has the highest proportion of workers with reported hourly wages at or below the minimum wage rate?

Which of the following causes of unemployment is not associated with a continuing excess supply of labor?

Which of the following prevent employers from interfering when workers try to organize a union?

In 1914,Henry Ford began paying his workers $5 per day,about twice the going wage.As a result,turnover and absenteeism fell,and productivity and profits rose.

Rupert is a low-skilled worker who washes dishes in a local restaurant.A proposal to increase the minimum wage may worry him if he knows that price

Which of the following statements is correct?

Recent entrants into the labor force account for about

What factors account for the rise in the percentage of noninstitutionalized males ages 25-54 who spent the year without working for pay or attending school?

Over one-half of the unemployed are recent entrants into the labor force.

A college student who is not working or looking for a job is counted as

Government policy can do nothing about the natural rate of unemployment.

The unemployment rate is computed as the number of unemployed

A typical American worker covered by unemployment insurance receives

Suppose the labor-force participation rate of men is greater in Troy than in Sparta.This could be because the men of Troy

Which of the following causes of unemployment is not associated with a wage rate above the equilibrium level?

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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