Question 1

Measuring unemployment is the job of the Bureau of Labor Statistics, which is part of the U.S. Department of Commerce.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is correct?

Accepted Answer

A) In the U.S. the natural rate of unemployment is frequently near 2%. 
B) The natural rate of unemployment fluctuates more than the cyclical rate of unemployment. 
C) The cyclical rate of unemployment is sometimes below the natural rate of unemployment. 
D) None of the above is correct. 
A) In the U.S. the natural rate of unemployment is frequently near 2%. 
B) The natural rate of unemployment fluctuates more than the cyclical rate of unemployment. 
C) The cyclical rate of unemployment is sometimes below the natural rate of unemployment. 
D) None of the above is correct.

Question 3

The deviation of unemployment from its natural rate is called

Accepted Answer

A) the normal rate of unemployment. 
B) deviant unemployment. 
C) cyclical unemployment. 
D) fluctuating unemployment. 
A) the normal rate of unemployment. 
B) deviant unemployment. 
C) cyclical unemployment. 
D) fluctuating unemployment.

Question 4

Efficiency wages

Accepted Answer

A) increase productivity and reduce unemployment. 
B) increase productivity but increase unemployment. 
C) decrease productivity but reduce unemployment. 
D) decrease productivity and increase unemployment. 
A) increase productivity and reduce unemployment. 
B) increase productivity but increase unemployment. 
C) decrease productivity but reduce unemployment. 
D) decrease productivity and increase unemployment.

Question 5

Suppose that because of the popularity of the low-carb diet, bakeries need fewer workers and steak houses need more workers. The unemployment created by this change is

Accepted Answer

A) frictional unemployment created by efficiency wages. 
B) frictional unemployment created by sectoral shifts. 
C) structural unemployment created by efficiency wages. 
D) structural unemployment created by sectoral shifts. 
A) frictional unemployment created by efficiency wages. 
B) frictional unemployment created by sectoral shifts. 
C) structural unemployment created by efficiency wages. 
D) structural unemployment created by sectoral shifts.

Question 6

To be counted as employed in the U.S. labor force statistics a person

Accepted Answer

A) must be working for pay and be working full time. 
B) must be working for pay, but does not have to be working full time. 
C) does not have to be working for pay if they are working for a family business, but must be employed full time. 
D) does not have to be working for pay if they are working for a family business and does not have to be working full time 
A) must be working for pay and be working full time. 
B) must be working for pay, but does not have to be working full time. 
C) does not have to be working for pay if they are working for a family business, but must be employed full time. 
D) does not have to be working for pay if they are working for a family business and does not have to be working full time

Question 7

Job search

Accepted Answer

A) and firms paying wages above equilibrium to improve worker health both create frictional unemployment. 
B) creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment. 
C) creates structural unemployment, while firms paying wages above equilibrium to improve worker health creates frictional unemployment. 
D) and firms paying wages above equilibrium to improve worker health both create structural unemployment. 
A) and firms paying wages above equilibrium to improve worker health both create frictional unemployment. 
B) creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment. 
C) creates structural unemployment, while firms paying wages above equilibrium to improve worker health creates frictional unemployment. 
D) and firms paying wages above equilibrium to improve worker health both create structural unemployment.

Question 8

Minimum-wage laws and unions are similar to each other but different from efficiency wages in that minimum-wage law and unions

Accepted Answer

A) cause unemployment, but efficiency wages do not. 
B) cause the quantity of labor supplied to exceed the quantity of labor demanded, but efficiency wages do not. 
C) cause wages to be above the equilibrium level. 
D) prevent firms from lowering wages in the presence of a surplus of workers. 
A) cause unemployment, but efficiency wages do not. 
B) cause the quantity of labor supplied to exceed the quantity of labor demanded, but efficiency wages do not. 
C) cause wages to be above the equilibrium level. 
D) prevent firms from lowering wages in the presence of a surplus of workers.

Question 9

Some individuals would like to have a job, but they have given up looking for a job after an unsuccessful search. These individuals are called

Accepted Answer

A) detached workers, and they are classified by the Bureau of Labor Statistics as unemployed. 
B) detached workers, and they are not classified by the Bureau of Labor Statistics as unemployed. 
C) discouraged workers, and they are classified by the Bureau of Labor Statistics as unemployed. 
D) discouraged workers, and they are not classified by the Bureau of Labor Statistics as unemployed. 
A) detached workers, and they are classified by the Bureau of Labor Statistics as unemployed. 
B) detached workers, and they are not classified by the Bureau of Labor Statistics as unemployed. 
C) discouraged workers, and they are classified by the Bureau of Labor Statistics as unemployed. 
D) discouraged workers, and they are not classified by the Bureau of Labor Statistics as unemployed.

Question 10

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

Accepted Answer

A) shortage of labor and a shortage of jobs. 
B) shortage of labor and a surplus of jobs. 
C) surplus of labor and a shortage of jobs. 
D) surplus of labor and a surplus of jobs. 
A) shortage of labor and a shortage of jobs. 
B) shortage of labor and a surplus of jobs. 
C) surplus of labor and a shortage of jobs. 
D) surplus of labor and a surplus of jobs.

Question 11

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. How many adults were not in Baltivia's labor force in 2009?

Accepted Answer

A) 4,400 
B) 6,620 
C) 7,400 
D) 8,690 
A) 4,400 
B) 6,620 
C) 7,400 
D) 8,690

Question 12

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-3 measure of labor underutilization?

Accepted Answer

A) 4.7 percent 
B) 6.2 percent 
C) 7.0 percent 
D) 10.9 percent 
A) 4.7 percent 
B) 6.2 percent 
C) 7.0 percent 
D) 10.9 percent

Question 13

Which of the following is correct?

Accepted Answer

A) The labor-force participation rate of women has increased in part due to smaller families. 
B) The labor-force participation rate of men has decreased in part due to men retiring younger and living longer. 
C) Both a and b are correct. 
D) None of the above is correct. 
A) The labor-force participation rate of women has increased in part due to smaller families. 
B) The labor-force participation rate of men has decreased in part due to men retiring younger and living longer. 
C) Both a and b are correct. 
D) None of the above is correct.

Question 14

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

Accepted Answer

A) gradually increased. 
B) remained constant. 
C) gradually decreased. 
D) been eliminated. 
A) gradually increased. 
B) remained constant. 
C) gradually decreased. 
D) been eliminated.

Question 15

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

Accepted Answer

A) True 
 B)False

Question 16

According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see

Accepted Answer

A) an increase in the number of job applicants and an increase in how long workers stay on the job 
B) an increase in the number of job applicants and a decrease in how long workers stay on the job 
C) a decrease in the number of job applicants and an increase in how long workers stay on the job 
D) a decrease in the number of job applicants and a decrease in how long workers stay on the job 
A) an increase in the number of job applicants and an increase in how long workers stay on the job 
B) an increase in the number of job applicants and a decrease in how long workers stay on the job 
C) a decrease in the number of job applicants and an increase in how long workers stay on the job 
D) a decrease in the number of job applicants and a decrease in how long workers stay on the job

Question 17

Sectoral shifts in demand for output

Accepted Answer

A) create structural unemployment. 
B) immediately reduce unemployment. 
C) increase unemployment due to job search. 
D) do not affect demand for labor. 
A) create structural unemployment. 
B) immediately reduce unemployment. 
C) increase unemployment due to job search. 
D) do not affect demand for labor.

Question 18

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Accepted Answer

A) True 
 B)False

Question 19

Structural unemployment is often thought to explain relatively long spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 20

The labor-force participation rate measures the percentage of the

Accepted Answer

A) total adult population that is in the labor force. 
B) total adult population that is employed. 
C) labor force that is employed. 
D) labor force that is either employed or unemployed. 
A) total adult population that is in the labor force. 
B) total adult population that is employed. 
C) labor force that is employed. 
D) labor force that is either employed or unemployed.

Exam 15: Unemployment

Measuring unemployment is the job of the Bureau of Labor Statistics, which is part of the U.S. Department of Commerce.

Which of the following is correct?

The deviation of unemployment from its natural rate is called

Efficiency wages

Suppose that because of the popularity of the low-carb diet, bakeries need fewer workers and steak houses need more workers. The unemployment created by this change is

To be counted as employed in the U.S. labor force statistics a person

Job search

Minimum-wage laws and unions are similar to each other but different from efficiency wages in that minimum-wage law and unions

Some individuals would like to have a job, but they have given up looking for a job after an unsuccessful search. These individuals are called

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

Which of the following is correct?

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

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see

Sectoral shifts in demand for output

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Structural unemployment is often thought to explain relatively long spells of unemployment.

The labor-force participation rate measures the percentage of the

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