Question 1

In claimant bonus experiments, bonuses to workers ________ the average duration of unemployment, and bonuses to employers ________ the average duration of unemployment.

Accepted Answer

A)  increased; did not change 
B)  decreased; did not change 
C)  did not change; increased 
D)  did not change; decreased 
A)  increased; did not change 
B)  decreased; did not change 
C)  did not change; increased 
D)  did not change; decreased

Question 2

In the face of declining demand, unions usually tend to favor laying off workers rather than lowering wages. Which of these factors would not explain why this occurs?

Accepted Answer

A)  Workers with less seniority are laid off first. 
B)  Union leaders are elected by majority vote. 
C)  Lay-offs usually only affect a small fraction of the work force. 
D)  Most union members are willing to lose their jobs rather than accept even a small cut in wages. 
A)  Workers with less seniority are laid off first. 
B)  Union leaders are elected by majority vote. 
C)  Lay-offs usually only affect a small fraction of the work force. 
D)  Most union members are willing to lose their jobs rather than accept even a small cut in wages.

Question 3

Experience rating is

Accepted Answer

A)  assigning a higher UI tax to employers who lay off workers frequently. 
B)  assigning a higher UI tax to employers who have a large number of experienced workers. 
C)  assigning a higher UI tax to employers who have a large number of inexperienced workers. 
D)  assigning a higher UI tax to employers who have not been in business for very long, because these businesses are likely to fail. 
A)  assigning a higher UI tax to employers who lay off workers frequently. 
B)  assigning a higher UI tax to employers who have a large number of experienced workers. 
C)  assigning a higher UI tax to employers who have a large number of inexperienced workers. 
D)  assigning a higher UI tax to employers who have not been in business for very long, because these businesses are likely to fail.

Question 4

A worker who is laid off because his or her company chooses to move from Wisconsin to North Carolina is counted as ________ unemployment.

Accepted Answer

A)  frictional 
B)  wait 
C)  structural 
D)  cyclical 
A)  frictional 
B)  wait 
C)  structural 
D)  cyclical

Question 5

Which of the following describes the wage curve?

Accepted Answer

A)  Workers with higher wages are less likely to become unemployed. 
B)  Regions with higher wages have lower regional unemployment rates. 
C)  As more workers seek jobs, market wages fall. 
D)  As regional wages increase, the number of persons seeking jobs goes up. 
A)  Workers with higher wages are less likely to become unemployed. 
B)  Regions with higher wages have lower regional unemployment rates. 
C)  As more workers seek jobs, market wages fall. 
D)  As regional wages increase, the number of persons seeking jobs goes up.

Question 6

Which of these is NOT an implication of the model of job search?

Accepted Answer

A)  Virtually all individuals will be underemployed. 
B)  Workers with identical skill levels will generally receive different wages if their reservation wages differ. 
C)  If the cost of being unemployed falls, a person's reservation wage will fall. 
D)  Search unemployment is a rational strategy in a world of imperfect information. 
A)  Virtually all individuals will be underemployed. 
B)  Workers with identical skill levels will generally receive different wages if their reservation wages differ. 
C)  If the cost of being unemployed falls, a person's reservation wage will fall. 
D)  Search unemployment is a rational strategy in a world of imperfect information.

Question 7

Which of the following does NOT explain why firms and employees may prefer layoffs to wage reductions?

Accepted Answer

A)  Employees may possess firm-specific training. 
B)  Employees may possess general training. 
C)  Firms may have implicitly promised a wage path to their employees. 
D)  Experienced workers may prefer a certain income stream to an uncertain income stream. 
A)  Employees may possess firm-specific training. 
B)  Employees may possess general training. 
C)  Firms may have implicitly promised a wage path to their employees. 
D)  Experienced workers may prefer a certain income stream to an uncertain income stream.

Question 8

If unemployment insurance were perfectly experience rated then

Accepted Answer

A)  unemployment would probably rise. 
B)  unemployment would probably fall. 
C)  unemployment could either rise or fall. 
D)  unemployment would be unchanged. 
A)  unemployment would probably rise. 
B)  unemployment would probably fall. 
C)  unemployment could either rise or fall. 
D)  unemployment would be unchanged.

Question 9

If Ajax Incorporated is a very unstable employer that frequently lays off workers, it will prefer to locate its plants in states

Accepted Answer

A)  with perfect experience rating of unemployment insurance tax rates. 
B)  with imperfect experience rating such that once its layoffs increase beyond a certain level, it does not have to pay a higher unemployment insurance tax rate. 
C)  with imperfect experience ratings such that once its layoffs fall below a certain level, it pays the same minimum unemployment insurance tax rate. 
D)  with imperfect experience ratings such that above a certain level, the unemployment tax rate increases more than in proportion to layoffs. 
A)  with perfect experience rating of unemployment insurance tax rates. 
B)  with imperfect experience rating such that once its layoffs increase beyond a certain level, it does not have to pay a higher unemployment insurance tax rate. 
C)  with imperfect experience ratings such that once its layoffs fall below a certain level, it pays the same minimum unemployment insurance tax rate. 
D)  with imperfect experience ratings such that above a certain level, the unemployment tax rate increases more than in proportion to layoffs.

Question 10

A construction worker who is not working due to a snow storm would be counted as ________ unemployed.

Accepted Answer

A)  frictionally 
B)  structurally 
C)  cyclically 
D)  seasonally 
A)  frictionally 
B)  structurally 
C)  cyclically 
D)  seasonally

Question 11

A retraining program to teach unemployed auto workers how to program computers would help to reduce ________ unemployment.

Accepted Answer

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

Question 12

An increase in an individual's reservation wage

Accepted Answer

A)  will increase the duration of the individual's unemployment but not affect the expected wage. 
B)  will increase the individual's expected wage but not affect the duration of unemployment. 
C)  will not change the individual's duration of unemployment. 
D)  will increase both the individual's duration of unemployment and expected wage. 
A)  will increase the duration of the individual's unemployment but not affect the expected wage. 
B)  will increase the individual's expected wage but not affect the duration of unemployment. 
C)  will not change the individual's duration of unemployment. 
D)  will increase both the individual's duration of unemployment and expected wage.

Question 13

A reservation wage is

Accepted Answer

A)  the lowest wage a worker will accept. 
B)  the lowest wage a company will offer. 
C)  the highest wage a company will offer. 
D)  the wage at which a company's profits are maximized. 
A)  the lowest wage a worker will accept. 
B)  the lowest wage a company will offer. 
C)  the highest wage a company will offer. 
D)  the wage at which a company's profits are maximized.

Question 14

Wait unemployment is a form of ________ unemployment.

Accepted Answer

A)  structural 
B)  frictional 
C)  cyclical 
D)  structural and cyclical 
A)  structural 
B)  frictional 
C)  cyclical 
D)  structural and cyclical

Question 15

The wage curve

Accepted Answer

A)  shows that with higher regional rates of unemployment, wages for otherwise comparable workers are higher. 
B)  is evidence that most national economies have regionally integrated labor markets. 
C)  may exist because efficiency-wage premiums can be smaller in areas of high unemployment. 
D)  is evidence that wages are always at equilibrium. 
A)  shows that with higher regional rates of unemployment, wages for otherwise comparable workers are higher. 
B)  is evidence that most national economies have regionally integrated labor markets. 
C)  may exist because efficiency-wage premiums can be smaller in areas of high unemployment. 
D)  is evidence that wages are always at equilibrium.

In claimant bonus experiments, bonuses to workers the average duration of unemployment, and bonuses to employers the average duration of unemployment.

In the face of declining demand, unions usually tend to favor laying off workers rather than lowering wages. Which of these factors would not explain why this occurs?

Experience rating is

A worker who is laid off because his or her company chooses to move from Wisconsin to North Carolina is counted as ________ unemployment.

Which of the following describes the wage curve?

Which of these is NOT an implication of the model of job search?

Which of the following does NOT explain why firms and employees may prefer layoffs to wage reductions?

If unemployment insurance were perfectly experience rated then

If Ajax Incorporated is a very unstable employer that frequently lays off workers, it will prefer to locate its plants in states

A construction worker who is not working due to a snow storm would be counted as ________ unemployed.

A retraining program to teach unemployed auto workers how to program computers would help to reduce ________ unemployment.

An increase in an individual's reservation wage

A reservation wage is

Wait unemployment is a form of ________ unemployment.

The wage curve

Introduction

Overview of the Labor Market

The Demand for Labor

Labor Demand Elasticities

Frictions in the Labor Market

Supply of Labor to the Economy: the Decision to Work

Labor Supply: Household Production, the Family, and the Life Cycle

Compensating Wage Differentials and Labor Markets

Investments in Human Capital: Education and Training

Worker Mobility: Migration, Immigration, and Turnover

Pay and Productivity: Wage Determination Within the Firm

Gender, Race, and Ethnicity in the Labor Market

Unions and the Labor Market

Inequality in Earnings

The Labor Market Effects of International Trade and Production Sharing

Filters

Exam 14: Unemployment

In claimant bonus experiments, bonuses to workers ________ the average duration of unemployment, and bonuses to employers ________ the average duration of unemployment.

In the face of declining demand, unions usually tend to favor laying off workers rather than lowering wages. Which of these factors would not explain why this occurs?

Experience rating is

A worker who is laid off because his or her company chooses to move from Wisconsin to North Carolina is counted as ________ unemployment.

Which of the following describes the wage curve?

Which of these is NOT an implication of the model of job search?

Which of the following does NOT explain why firms and employees may prefer layoffs to wage reductions?

If unemployment insurance were perfectly experience rated then

If Ajax Incorporated is a very unstable employer that frequently lays off workers, it will prefer to locate its plants in states

A construction worker who is not working due to a snow storm would be counted as ________ unemployed.

A retraining program to teach unemployed auto workers how to program computers would help to reduce ________ unemployment.

An increase in an individual's reservation wage

A reservation wage is

Wait unemployment is a form of ________ unemployment.

The wage curve

Introduction

Overview of the Labor Market

The Demand for Labor

Labor Demand Elasticities

Frictions in the Labor Market

Supply of Labor to the Economy: the Decision to Work

Labor Supply: Household Production, the Family, and the Life Cycle

Compensating Wage Differentials and Labor Markets

Investments in Human Capital: Education and Training

Worker Mobility: Migration, Immigration, and Turnover

Pay and Productivity: Wage Determination Within the Firm

Gender, Race, and Ethnicity in the Labor Market

Unions and the Labor Market

Inequality in Earnings

The Labor Market Effects of International Trade and Production Sharing

Filters

In claimant bonus experiments, bonuses to workers the average duration of unemployment, and bonuses to employers the average duration of unemployment.