Question 1

Suppose that appliance factory workers and furniture factory workers are not unionized. If the furniture factory workers unionize, then

Accepted Answer

A) the wages of appliance factory workers will rise and the wages of furniture factory workers will fall. 
B) the wages of furniture factory workers will rise and the wages of appliance factory workers will fall. 
C) the wages of both appliance factory workers and furniture factory workers will rise. 
D) the wages of both appliance factory workers and furniture factory workers will fall. 
A) the wages of appliance factory workers will rise and the wages of furniture factory workers will fall. 
B) the wages of furniture factory workers will rise and the wages of appliance factory workers will fall. 
C) the wages of both appliance factory workers and furniture factory workers will rise. 
D) the wages of both appliance factory workers and furniture factory workers will fall.

Question 2

An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?

Accepted Answer

A) both the changes in information technology and unemployment insurance 
B) only the changes in information technology 
C) only the changes in unemployment insurance 
D) neither the changes in information technology nor the changes in unemployment insurance 
A) both the changes in information technology and unemployment insurance 
B) only the changes in information technology 
C) only the changes in unemployment insurance 
D) neither the changes in information technology nor the changes in unemployment insurance

Question 3

If you were told that someone you knew nothing else about had just become unemployed, your best guess would be

Accepted Answer

A) that they would be unemployed for a long time, and that most of the unemployed they've joined have been unemployed for a long time. 
B) that they would be unemployed for a long time, even though most of the unemployed they've joined have been unemployed for a short time. 
C) that they would be unemployed for a short time, even though most of the unemployed they've joined have been unemployed for a long time. 
D) that they will be unemployed for a short time, and that most of the unemployed they've joined have been unemployed for a short time. 
A) that they would be unemployed for a long time, and that most of the unemployed they've joined have been unemployed for a long time. 
B) that they would be unemployed for a long time, even though most of the unemployed they've joined have been unemployed for a short time. 
C) that they would be unemployed for a short time, even though most of the unemployed they've joined have been unemployed for a long time. 
D) that they will be unemployed for a short time, and that most of the unemployed they've joined have been unemployed for a short time.

Question 4

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually increased.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not correct?

Accepted Answer

A) When a union is present in a labor market, wages are not determined by the equilibrium of supply and demand. 
B) Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power. 
C) The process by which unions and firms agree on the terms of employment is called a strike. 
D) Most workers in the U.S. economy are not members of a union. 
A) When a union is present in a labor market, wages are not determined by the equilibrium of supply and demand. 
B) Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power. 
C) The process by which unions and firms agree on the terms of employment is called a strike. 
D) Most workers in the U.S. economy are not members of a union.

Question 6

The Bureau of Labor Statistics 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 adult population that is unemployed or not in the labor force. 
A) those unemployed relative to those employed. 
B) the labor force that is unemployed. 
C) the adult population that is unemployed. 
D) the adult population that is unemployed or not in the labor force.

Question 7

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had decreased.

Accepted Answer

A) True 
 B)False

Question 8

The Bureau of Labor Statistics divides the adult population into three categories: employed, unemployed, and not in the labor force.

Accepted Answer

A) True 
 B)False

Question 9

Sectoral shifts contribute to frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not correct?

Accepted Answer

A) An organized withdrawal of labor from a firm by a union is called a strike. 
B) The power of a union comes from its ability to strike if the union and the firm do not agree on the terms of employment. 
C) Economists who study the effects of unions typically find that union workers earn about 25 to 35 percent more than similar workers who do not belong to unions. 
D) Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost. 
A) An organized withdrawal of labor from a firm by a union is called a strike. 
B) The power of a union comes from its ability to strike if the union and the firm do not agree on the terms of employment. 
C) Economists who study the effects of unions typically find that union workers earn about 25 to 35 percent more than similar workers who do not belong to unions. 
D) Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

Question 11

Table 15-3
2010 Labor Data for Adults (age 16 and older) in Meditor
 $$\begin{array} { | l | l | } 
\hline \text { Males not in labar farce } & 45 \text { million } \
\hline \text { Femeles nat in labor force } & 35 \text { million } \
\hline \text { Males unemplayed } & 5 \text { millian } \
\hline \text { Fenales unemployed } & 5 \text { millian } \
\hline \text { Males employed } & 85 \text { million } \
\hline \text { Fenales enployed } & 65 \text { milling } \
\hline
\end{array}$$
-Refer to Table 15-3. What is the adult male unemployment rate in Meditor?

Accepted Answer

A) 3.7 percent 
B) 5 percent 
C) 5.6 percent 
D) 5.9 percent 
A) 3.7 percent 
B) 5 percent 
C) 5.6 percent 
D) 5.9 percent

Question 12

Most job search in the U.S. economy takes place with the help of the government.

Accepted Answer

A) True 
 B)False

Question 13

Table 15-5
2010 Labor Data for Tajnia
 $$\begin{array} { | l | l | } 
\hline \text { Number of adiults employed } & 10,000 \
\hline \text { Number of adults unemployed } & 2,250 \
\hline \text { Number of atults not in the labar force } & 17,750 \
\hline
\end{array}$$
-Refer to Table 15-5. The labor force of Tajnia in 2010 is 10,000.

Accepted Answer

A) True 
 B)False

Question 14

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being.

Accepted Answer

A) True 
 B)False

Question 15

Frictional unemployment is often thought to explain relatively short spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 16

Suppose that efficiency wages become more common in the economy. Imposing efficiency wages

Accepted Answer

A) Increases the quantity demanded and decreases the quantity supplied of labor. 
B) Decreases the quantity demanded and increases the quantity supplied of labor 
C) increases the quantity demanded and decreases the quantity supplied of labor. 
D) decreases the quantity demanded and increases the quantity supplied of labor 
A) Increases the quantity demanded and decreases the quantity supplied of labor. 
B) Decreases the quantity demanded and increases the quantity supplied of labor 
C) increases the quantity demanded and decreases the quantity supplied of labor. 
D) decreases the quantity demanded and increases the quantity supplied of labor

Question 17

Three possible reasons for an above-equilibrium wage are minimum-wage laws, unions, and efficiency wages.

Accepted Answer

A) True 
 B)False

Question 18

Unemployment insurance

Accepted Answer

A) reduces the hardship of unemployment, but it also increases the amount of unemployment. 
B) reduces the incentive for the unemployed to find and take new jobs. 
C) causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment. 
D) All of the above are correct. 
A) reduces the hardship of unemployment, but it also increases the amount of unemployment. 
B) reduces the incentive for the unemployed to find and take new jobs. 
C) causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment. 
D) All of the above are correct.

Question 19

Minimum-wage laws are one reason there is always some unemployment in the U.S. economy.

Accepted Answer

A) True 
 B)False

Question 20

Labor Force Statistics by Age.Suppose people in the adult population in a small country are classified based on their age. $$\begin{array} { | l | c | c | } 
\hline  { \text { Lebar Farce Status } } & \text { lets then 55 } & 55 \text { and alder } \
\hline \text { Number enplayed } & 400,000 & 100,000 \
\hline \text { Number unamplayed } & 25,000 & 7,000 \
\hline \text { Numbe in Papulation } & 600,000 & 200,000 \
\hline
\end{array}$$
-Refer to Labor Force Statistics by Age. Suppose that the natural rate of unemployment is 5% for those under 55 and 3% for those 55 and older. The cyclical unemployment rate for those under 55 is

Accepted Answer

A) .88% which is greater than the cyclical unemployment rate for those 55 and older. 
B) .88% which is less than the cyclical unemployment rate for those 55 and older. 
C) -.83% which is greater than the cyclical unemployment rate for those 55 and older. 
D) -.83% which is less than the cyclical unemployment rate for those 55 and older. 
A) .88% which is greater than the cyclical unemployment rate for those 55 and older. 
B) .88% which is less than the cyclical unemployment rate for those 55 and older. 
C) -.83% which is greater than the cyclical unemployment rate for those 55 and older. 
D) -.83% which is less than the cyclical unemployment rate for those 55 and older.

Exam 15: Unemployment

Suppose that appliance factory workers and furniture factory workers are not unionized. If the furniture factory workers unionize, then

An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?

If you were told that someone you knew nothing else about had just become unemployed, your best guess would be

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually increased.

Which of the following is not correct?

The Bureau of Labor Statistics defines the unemployment rate as the percentage of

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had decreased.

The Bureau of Labor Statistics divides the adult population into three categories: employed, unemployed, and not in the labor force.

Sectoral shifts contribute to frictional unemployment.

Which of the following is not correct?

Most job search in the U.S. economy takes place with the help of the government.

Table 15-5 2010 Labor Data for Tajnia Number of adiults employed 10,000 Number of adults unemployed 2,250 Number of atults not in the labar force 17,750 -Refer to Table 15-5. The labor force of Tajnia in 2010 is 10,000.

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being.

Frictional unemployment is often thought to explain relatively short spells of unemployment.

Suppose that efficiency wages become more common in the economy. Imposing efficiency wages

Three possible reasons for an above-equilibrium wage are minimum-wage laws, unions, and efficiency wages.

Unemployment insurance

Minimum-wage laws are one reason there is always some unemployment in the U.S. economy.

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

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 Macroeconomic Models

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

Six Debates Over Macroeconomic Policy

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