Question 1

In 2012, the likelihood of experiencing a spell of unemployment lasting at least 12 months

Accepted Answer

A) was roughly the same in the United States as it was in Europe. 
B) was much lower in the United States than in Europe. 
C) was much higher in Europe than in the United States with all European countries having at least 30 percent of their unemployed experiencing a spell of unemployment of at least 12 months. 
D) varied substantially across European countries, with some rivaling the United States but many others being much higher than in the United States. 
E) varied substantially across European countries, with some rivaling the United States but many others being much lower than in the United States. 
A) was roughly the same in the United States as it was in Europe. 
B) was much lower in the United States than in Europe. 
C) was much higher in Europe than in the United States with all European countries having at least 30 percent of their unemployed experiencing a spell of unemployment of at least 12 months. 
D) varied substantially across European countries, with some rivaling the United States but many others being much higher than in the United States. 
E) varied substantially across European countries, with some rivaling the United States but many others being much lower than in the United States.

Question 2

According to the neo-classical model, what would not result from the government levying a tax on firms for each worker the firm lays off?

Accepted Answer

A) Firms would be less likely to lay off workers. 
B) Firms would be less likely to hire workers. 
C) Moral hazard would encourage workers to not work as hard as before. 
D) The long-run employment rate would increase. 
E) Unemployed workers would remain unemployed for longer periods of time. 
A) Firms would be less likely to lay off workers. 
B) Firms would be less likely to hire workers. 
C) Moral hazard would encourage workers to not work as hard as before. 
D) The long-run employment rate would increase. 
E) Unemployed workers would remain unemployed for longer periods of time.

Question 3

If the intertemporal substitution hypothesis is correct, then

Accepted Answer

A) the unemployment rate is artificially high. 
B) the unemployment rate is artificially low. 
C) discouraged workers should be included in the unemployed population because they actually want a job at the going wage. 
D) discouraged workers should not be included in the unemployed population because they are optimally choosing more leisure during a time of low wages. 
E) discouraged workers won't exist. 
A) the unemployment rate is artificially high. 
B) the unemployment rate is artificially low. 
C) discouraged workers should be included in the unemployed population because they actually want a job at the going wage. 
D) discouraged workers should not be included in the unemployed population because they are optimally choosing more leisure during a time of low wages. 
E) discouraged workers won't exist.

Question 4

The natural rate of unemployment is higher in many European countries than in the United States largely because

Accepted Answer

A) European countries tend to offer more generous unemployment benefits than in the United States. 
B) European countries tend to place fewer conditions on employers regarding working conditions and firing workers than in the United States. 
C) the labor force is smaller in European countries than in the United States. 
D) more European workers are paid an annual salary rather than an hourly wage compared to workers in the United States. 
E) many European countries have recently targeted policies to fight hyperinflation rather than worrying about unemployment. 
A) European countries tend to offer more generous unemployment benefits than in the United States. 
B) European countries tend to place fewer conditions on employers regarding working conditions and firing workers than in the United States. 
C) the labor force is smaller in European countries than in the United States. 
D) more European workers are paid an annual salary rather than an hourly wage compared to workers in the United States. 
E) many European countries have recently targeted policies to fight hyperinflation rather than worrying about unemployment.

Question 5

James is currently unemployed. He is disappointed every Sunday when none of the job advertisements in the newspaper are for workers with his particular skill set. What type of unemployment is James experiencing?

Accepted Answer

A) Frictional unemployment 
B) Seasonal unemployment 
C) Cyclical unemployment 
D) Structural unemployment 
E) Natural unemployment 
A) Frictional unemployment 
B) Seasonal unemployment 
C) Cyclical unemployment 
D) Structural unemployment 
E) Natural unemployment

Question 6

In the United States, the average replacement ratio associated with unemployment insurance benefits is

Accepted Answer

A) 10% 
B) 35% 
C) 50% 
D) 80% 
E) 100% 
A) 10% 
B) 35% 
C) 50% 
D) 80% 
E) 100%

Question 7

How are unemployment rates in the United States related to education?

Accepted Answer

A) Unemployment rates are unrelated to education. 
B) Higher levels of education are associated with higher rates of unemployment. 
C) Higher levels of education are associated with lower rates of unemployment. 
D) Unemployment rates are highest for high school dropouts but are unrelated to education for anyone who has a high school degree. 
E) Unemployment rates for high school dropouts and high school graduates are roughly equal and are less than the overall unemployment rate of college graduates. 
A) Unemployment rates are unrelated to education. 
B) Higher levels of education are associated with higher rates of unemployment. 
C) Higher levels of education are associated with lower rates of unemployment. 
D) Unemployment rates are highest for high school dropouts but are unrelated to education for anyone who has a high school degree. 
E) Unemployment rates for high school dropouts and high school graduates are roughly equal and are less than the overall unemployment rate of college graduates.

Question 8

If the steady-state unemployment rate for an economy is 5%, and each period 2% of employed workers lose their jobs, what percent of unemployed workers find employment each period?

Accepted Answer

A) 8% 
B) 18% 
C) 28% 
D) 38% 
E) 48% 
A) 8% 
B) 18% 
C) 28% 
D) 38% 
E) 48%

Question 9

The Phillips Curve relates

Accepted Answer

A) the unemployment rate to economic growth. 
B) the unemployment rate to inflation. 
C) the unemployment rate to the real wage. 
D) the real wage to total employment. 
E) the real wage to the natural rate of unemployment. 
A) the unemployment rate to economic growth. 
B) the unemployment rate to inflation. 
C) the unemployment rate to the real wage. 
D) the real wage to total employment. 
E) the real wage to the natural rate of unemployment.

Question 10

What does it mean to conduct a sequential search?

Accepted Answer

A) To search for jobs even when employed. 
B) To accept a job offer from an employer, but then to still search for a better job offer. 
C) To accept the first job that one is offered. 
D) To apply to all job openings. 
E) To determine an asking wage and then accept the first job offer that pays a wage equal to or greater than the asking wage. 
A) To search for jobs even when employed. 
B) To accept a job offer from an employer, but then to still search for a better job offer. 
C) To accept the first job that one is offered. 
D) To apply to all job openings. 
E) To determine an asking wage and then accept the first job offer that pays a wage equal to or greater than the asking wage.

In 2012, the likelihood of experiencing a spell of unemployment lasting at least 12 months

According to the neo-classical model, what would not result from the government levying a tax on firms for each worker the firm lays off?

If the intertemporal substitution hypothesis is correct, then

The natural rate of unemployment is higher in many European countries than in the United States largely because

James is currently unemployed. He is disappointed every Sunday when none of the job advertisements in the newspaper are for workers with his particular skill set. What type of unemployment is James experiencing?

In the United States, the average replacement ratio associated with unemployment insurance benefits is

How are unemployment rates in the United States related to education?

If the steady-state unemployment rate for an economy is 5%, and each period 2% of employed workers lose their jobs, what percent of unemployed workers find employment each period?

The Phillips Curve relates

What does it mean to conduct a sequential search?

Introduction to Labor Economics

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Mobility

Labor Market Discrimination

Labor Unions

Incentive Pay

Filters

Exam 12: Unemployment

In 2012, the likelihood of experiencing a spell of unemployment lasting at least 12 months

According to the neo-classical model, what would not result from the government levying a tax on firms for each worker the firm lays off?

If the intertemporal substitution hypothesis is correct, then

The natural rate of unemployment is higher in many European countries than in the United States largely because

James is currently unemployed. He is disappointed every Sunday when none of the job advertisements in the newspaper are for workers with his particular skill set. What type of unemployment is James experiencing?

In the United States, the average replacement ratio associated with unemployment insurance benefits is

How are unemployment rates in the United States related to education?

If the steady-state unemployment rate for an economy is 5%, and each period 2% of employed workers lose their jobs, what percent of unemployed workers find employment each period?

The Phillips Curve relates

What does it mean to conduct a sequential search?

Introduction to Labor Economics

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Mobility

Labor Market Discrimination

Labor Unions

Incentive Pay

Filters