Question 1

Right-to-work laws

Accepted Answer

A) guarantee workers the right to form unions. 
B) give workers in a unionized firm the right to choose whether to join the union. 
C) prevent employers from hiring permanent replacements for workers who are on strike. 
D) prevent workers from being fired because of increases in wages brought about by collective bargaining. 
A) guarantee workers the right to form unions. 
B) give workers in a unionized firm the right to choose whether to join the union. 
C) prevent employers from hiring permanent replacements for workers who are on strike. 
D) prevent workers from being fired because of increases in wages brought about by collective bargaining.

Question 2

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a surplus of labor.

Accepted Answer

A) True 
 B)False

Question 3

In the 1990's Ireland made unemployment benefits less generous. This change would likely have

Accepted Answer

A) reduced structural unemployment and the natural rate of unemployment 
B) reduced structural unemployment but not the natural rate of unemployment 
C) reduced frictional unemployment and the natural rate of unemployment 
D) reduced frictional unemployment but not the natural rate of unemployment 
A) reduced structural unemployment and the natural rate of unemployment 
B) reduced structural unemployment but not the natural rate of unemployment 
C) reduced frictional unemployment and the natural rate of unemployment 
D) reduced frictional unemployment but not the natural rate of unemployment

Question 4

Sheamous loses his job and decides to sit on the beach rather than look for work during the next few months. Other things the same, the unemployment rate

Accepted Answer

A) increases and the labor-force participation rate decreases. 
B) increases and the labor-force participation rate is unaffected. 
C) is unaffected and the labor-force participation rate decreases. 
D) and the labor-force participation rate are both unaffected. 
A) increases and the labor-force participation rate decreases. 
B) increases and the labor-force participation rate is unaffected. 
C) is unaffected and the labor-force participation rate decreases. 
D) and the labor-force participation rate are both unaffected.

Question 5

Table 15-4
 $\begin{array}{|l|l|}
\hline \text { Civilian labor force } & 100 \text { million } \
\hline \text { Persons unemployed } 15 \text { weeks or longer } & 1.6 \text { million } \
\hline \text { Job losers and persons who have completed temporary jobs (excludes job leavers) } & 3.1 \text { million } \
\hline \text { Total unemployed } & 6.2 \text { million } \
\hline \text { Total unemployed plus discouraged workers } & 7.0 \text { million } \
\hline \text { Total unemployed plus all marginally attached workers } & 8.1 \text { million } \
\hline \begin{array}{l}
\text { Total unemployed plus all marginally attached workers plus total employed part-time for } \
\text { economic reasons }
\end{array} & 9.2 \text { million } \
\hline
\end{array}$

-Refer to Table 15-4. What is the U-5 measure of labor underutilization?

Accepted Answer

A) 7.5 percent 
B) 7.9 percent 
C) 8.1 percent 
D) 26 percent 
A) 7.5 percent 
B) 7.9 percent 
C) 8.1 percent 
D) 26 percent

Question 6

Both full-time and part-time workers are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 7

Public policy can reduce the economy's natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 8

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, then

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) both the unemployment rate and labor-force participation rate would be lower. 
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) both the unemployment rate and labor-force participation rate would be lower.

Question 9

Which of the following is correct?

Accepted Answer

A) In unionized industries wages are above the level that would prevail in competitive markets. 
B) The introduction of a union in some industry reduces the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and reduces wages in the rest of the economy. 
C) Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable. 
D) All of the above are correct. 
A) In unionized industries wages are above the level that would prevail in competitive markets. 
B) The introduction of a union in some industry reduces the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and reduces wages in the rest of the economy. 
C) Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable. 
D) All of the above are correct.

Question 10

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

Accepted Answer

A) increases and the labor-force participation rate decreases. 
B) and the labor-force participation rate both increase. 
C) increases and the labor-force participation rate is unaffected. 
D) is unaffected and the labor-force participation rate decreases. 
A) increases and the labor-force participation rate decreases. 
B) and the labor-force participation rate both increase. 
C) increases and the labor-force participation rate is unaffected. 
D) is unaffected and the labor-force participation rate decreases.

Question 11

The natural rate of unemployment is the desirable rate of unemployment for an economy.

Accepted Answer

A) True 
 B)False

Question 12

Table 15-2
2009 Labor Data for Baltivia
 \(\begin{array}{|l|l}
\hline \text { Number of adults } & 20,000 \
\hline \text { Number of adults who are paid employees } & 8,000 \
\hline \text { Number of adults who work in their own businesses } & 1,600 \
\hline \text { Number of adults who are unpaid workers in a family member's business } & 1,000 \
\hline \text { Number of adults who were temporarily absent from their jobs because of an earthquake } & 400 \
\hline \text { Number of adults who were waiting to be recalled to a job from which they had been laid off } & 200 \
\hline \begin{array}{l}
\text { Number of adults who do not have a job, are available for work, and have tried to find a job } \
\text { within the past four weeks }
\end{array} & 1,400 \
\hline \begin{array}{l}
\text { Number of adults who do not have a job, are available for work, but have not tried to find a job } \
\text { within the past four weeks }
\end{array} & 780 \
\hline \text { Number of adults who are full-time students } & 3,000 \
\hline \text { Number of adults who are homemakers or retirees } & 3,620
\end{array}\)

-Refer to Table 15-2. What was Baltivia's unemployment rate in 2009?

Accepted Answer

A) 8.0 percent 
B) 12.7 percent 
C) 15.9 percent 
D) 22.1 percent 
A) 8.0 percent 
B) 12.7 percent 
C) 15.9 percent 
D) 22.1 percent

Question 13

Suppose that some people report themselves as unemployed when, in fact, they are working in the underground economy. If these persons were counted as employed, then

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 higher and the labor-force participation rate would be higher. 
D) the unemployment rate would be lower and the labor-force participation rate would be unaffected. 
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 higher and the labor-force participation rate would be higher. 
D) the unemployment rate would be lower and the labor-force participation rate would be unaffected.

Question 14

Unions contribute to

Accepted Answer

A) structural unemployment but not the natural rate of unemployment. 
B) the natural rate of unemployment but not structural unemployment. 
C) both structural unemployment and the natural rate of unemployment. 
D) neither structural unemployment nor the natural rate of unemployment. 
A) structural unemployment but not the natural rate of unemployment. 
B) the natural rate of unemployment but not structural unemployment. 
C) both structural unemployment and the natural rate of unemployment. 
D) neither structural unemployment nor the natural rate of unemployment.

Question 15

Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

Accepted Answer

A) True 
 B)False

Question 16

According to 2009 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the lowest unemployment rate?

Accepted Answer

A) white males 
B) white females 
C) black males 
D) black females 
A) white males 
B) white females 
C) black males 
D) black females

Question 17

Economists have found that union workers earn about 30 to 40 percent more than similar workers who do not belong to unions.

Accepted Answer

A) True 
 B)False

Question 18

Economists would predict that, other things the same, the more generous unemployment compensation a country has,

Accepted Answer

A) the shorter the duration of each spell of unemployment, and the higher the unemployment rate. 
B) the shorter the duration of each spell of unemployment, and the lower the unemployment rate. 
C) the longer the duration of each spell of unemployment, and the higher the unemployment rate. 
D) the longer the duration of each spell of unemployment, and the lower the unemployment rate. 
A) the shorter the duration of each spell of unemployment, and the higher the unemployment rate. 
B) the shorter the duration of each spell of unemployment, and the lower the unemployment rate. 
C) the longer the duration of each spell of unemployment, and the higher the unemployment rate. 
D) the longer the duration of each spell of unemployment, and the lower the unemployment rate.

Question 19

The labor force minus the number of employed equals the number of unemployed.

Accepted Answer

A) True 
 B)False

Question 20

Economists have found that union workers earn what percent more than similar nonunion workers?

Accepted Answer

A) 0 to 5 
B) 5 to 10 
C) 10 to 20 
D) 20 to 30 
A) 0 to 5 
B) 5 to 10 
C) 10 to 20 
D) 20 to 30

Right-to-work laws

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a surplus of labor.

In the 1990's Ireland made unemployment benefits less generous. This change would likely have

Sheamous loses his job and decides to sit on the beach rather than look for work during the next few months. Other things the same, the unemployment rate

Both full-time and part-time workers are included in the Bureau of Labor Statistics' "employed" category.

Public policy can reduce the economy's natural rate of unemployment.

Which of the following is correct?

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

The natural rate of unemployment is the desirable rate of unemployment for an economy.

Suppose that some people report themselves as unemployed when, in fact, they are working in the underground economy. If these persons were counted as employed, then

Unions contribute to

Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

According to 2009 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the lowest unemployment rate?

Economists have found that union workers earn about 30 to 40 percent more than similar workers who do not belong to unions.

Economists would predict that, other things the same, the more generous unemployment compensation a country has,

The labor force minus the number of employed equals the number of unemployed.

Economists have found that union workers earn what percent more than similar nonunion workers?

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

Filters

Exam 15: Unemployment

Right-to-work laws

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a surplus of labor.

In the 1990's Ireland made unemployment benefits less generous. This change would likely have

Sheamous loses his job and decides to sit on the beach rather than look for work during the next few months. Other things the same, the unemployment rate

Both full-time and part-time workers are included in the Bureau of Labor Statistics' "employed" category.

Public policy can reduce the economy's natural rate of unemployment.

Which of the following is correct?

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

The natural rate of unemployment is the desirable rate of unemployment for an economy.

Suppose that some people report themselves as unemployed when, in fact, they are working in the underground economy. If these persons were counted as employed, then

Unions contribute to

Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

According to 2009 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the lowest unemployment rate?

Economists have found that union workers earn about 30 to 40 percent more than similar workers who do not belong to unions.

Economists would predict that, other things the same, the more generous unemployment compensation a country has,

The labor force minus the number of employed equals the number of unemployed.

Economists have found that union workers earn what percent more than similar nonunion workers?

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

Filters