Question 1

Structural unemployment results when the number of jobs is insufficient for the number of workers.

Accepted Answer

A) True 
 B)False

Question 2

Table 15-1
Labor Data for Aridia
 $$\begin{array} { | l | c | c | c | } 
\hline \text { Year } & \mathbf { 2 0 1 0 } & \mathbf { 2 0 1 1 } & \mathbf { 2 0 1 2 } \
\hline \text { Adult population } & 2000 & 3000 & 3200 \
\hline \text { Number of emplayed } & 1400 & 1300 & 1600 \
\hline \text { Number of unemplayed } & 200 & 600 & 200 \
\hline
\end{array}$$
-Refer to Table 15-1. The number of adults not in the labor force of Aridia

Accepted Answer

A) increased from 2010 to 2011 and increased from 2011 to 2012. 
B) increased from 2010 to 2011 and decreased from 2011 to 2012. 
C) decreased from 2010 to 2011 and increased from 2011 to 2012. 
D) decreased from 2010 to 2011 and decreased from 2011 to 2012. 
A) increased from 2010 to 2011 and increased from 2011 to 2012. 
B) increased from 2010 to 2011 and decreased from 2011 to 2012. 
C) decreased from 2010 to 2011 and increased from 2011 to 2012. 
D) decreased from 2010 to 2011 and decreased from 2011 to 2012.

Question 3

Angelica is an unpaid homemaker who works as a volunteer at the local Red Cross and is currently not looking for a paid job. The Bureau of Labor Statistics counts Angelica as

Accepted Answer

A) unemployed and in the labor force. 
B) unemployed, but not in the labor force. 
C) in the labor force, but not unemployed. 
D) neither in the labor force nor unemployed. 
A) unemployed and in the labor force. 
B) unemployed, but not in the labor force. 
C) in the labor force, but not unemployed. 
D) neither in the labor force nor unemployed.

Question 4

Efficiency-wage theory suggests that paying

Accepted Answer

A) low wages might be profitable because they raise the efficiency of a firm's workers. 
B) low wages might be profitable because they lower the efficiency of a firm's workers. 
C) high wages might be profitable because they raise the efficiency of a firm's workers. 
D) high wages might be profitable because they lower the efficiency of a firm's workers. 
A) low wages might be profitable because they raise the efficiency of a firm's workers. 
B) low wages might be profitable because they lower the efficiency of a firm's workers. 
C) high wages might be profitable because they raise the efficiency of a firm's workers. 
D) high wages might be profitable because they lower the efficiency of a firm's workers.

Question 5

Spells of unemployment end about

Accepted Answer

A) 1/5 of the time with the person leaving the labor force. 
B) 1/4 of the time with the person leaving the labor force. 
C) 1/3 of the time with the person leaving the labor force. 
D) 1/2 of the time with the person leaving the labor force. 
A) 1/5 of the time with the person leaving the labor force. 
B) 1/4 of the time with the person leaving the labor force. 
C) 1/3 of the time with the person leaving the labor force. 
D) 1/2 of the time with the person leaving the labor force.

Question 6

If the wage is kept above the equilibrium wage for any reason, the result is structural unemployment.

Accepted Answer

A) True 
 B)False

Question 7

Minimum wages create unemployment in markets where they create a

Accepted Answer

A) shortage of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S. 
B) shortage of labor. Minimum wage laws are the predominant reason for unemployment in the U.S. 
C) surplus of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S. 
D) surplus of labor. Minimum wage laws are the predominant reason for unemployment in the U.S. 
A) shortage of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S. 
B) shortage of labor. Minimum wage laws are the predominant reason for unemployment in the U.S. 
C) surplus of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S. 
D) surplus of labor. Minimum wage laws are the predominant reason for unemployment in the U.S.

Question 8

Some long-run unemployment may be explained by the fact that the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one.

Accepted Answer

A) True 
 B)False

Question 9

In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Swedish adult non-institutionalized population was 7.568 million, the labor force was 4.888 million, and the number of people employed was 4.486 million. According to these numbers, the Swedish labor-force participation rate and unemployment rate were about

Accepted Answer

A) 64.6% and 8.2%. 
B) 64.6% and 5.3%. 
C) 59.3% and 8.2%. 
D) 59.3% and 5.3%. 
A) 64.6% and 8.2%. 
B) 64.6% and 5.3%. 
C) 59.3% and 8.2%. 
D) 59.3% and 5.3%.

Question 10

The labor-force participation rate is computed as

Accepted Answer

A) (EmployedAdult Population)100. 
B) (EmployedLabor Force)100. 
C) (Labor ForceAdult Population)100. 
D) (Adult PopulationLabor Force)100. 
A) (EmployedAdult Population)100. 
B) (EmployedLabor Force)100. 
C) (Labor ForceAdult Population)100. 
D) (Adult PopulationLabor Force)100.

Question 11

Table 15-1
Labor Data for Aridia
 $$\begin{array} { | l | c | c | c | } 
\hline \text { Year } & \mathbf { 2 0 1 0 } & \mathbf { 2 0 1 1 } & \mathbf { 2 0 1 2 } \
\hline \text { Adult population } & 2000 & 3000 & 3200 \
\hline \text { Number of emplayed } & 1400 & 1300 & 1600 \
\hline \text { Number of unemplayed } & 200 & 600 & 200 \
\hline
\end{array}$$
-Refer to Table 15-1. The unemployment rate of Aridia in 2011 was

Accepted Answer

A) 20%. 
B) 31.6%. 
C) 46.2%. 
D) 63.3%. 
A) 20%. 
B) 31.6%. 
C) 46.2%. 
D) 63.3%.

Question 12

Brian is the owner of a firm that produces bottled water in Washington state. There are many other such firms in the area. Brian decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

Accepted Answer

A) The higher the wage, the less often his workers will choose to leave his firm. 
B) The higher the wage, the lower will be the cost of obtaining needed supplies. 
C) The higher the wage, the more he can charge for his water. 
D) The higher the wage, the more he will have to monitor his workers for shirking. 
A) The higher the wage, the less often his workers will choose to leave his firm. 
B) The higher the wage, the lower will be the cost of obtaining needed supplies. 
C) The higher the wage, the more he can charge for his water. 
D) The higher the wage, the more he will have to monitor his workers for shirking.

Question 13

More than 3 percent of U.S. workers leave their jobs in a typical month.

Accepted Answer

A) True 
 B)False

Question 14

Andre owns his own business. Oscar is an unpaid worker in his family's business. Who is included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A) only Andre 
B) only Oscar 
C) both Andre and Oscar 
D) neither Andre nor Oscar 
A) only Andre 
B) only Oscar 
C) both Andre and Oscar 
D) neither Andre nor Oscar

Question 15

The reported unemployment rate should be viewed as

Accepted Answer

A) a useful but imperfect measure of joblessness. 
B) clearly smaller than the true unemployment rate. 
C) clearly larger than the true unemployment rate. 
D) being very close to the true unemployment rate. 
A) a useful but imperfect measure of joblessness. 
B) clearly smaller than the true unemployment rate. 
C) clearly larger than the true unemployment rate. 
D) being very close to the true unemployment rate.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?

Accepted Answer

A) (total unemployed + marginally attached workers)/adult population 
B) (total unemployed + marginally attached workers + part-time employed for economic reasons)/adult population 
C) (total unemployed + marginally attached workers)/(labor force + marginally attached workers) 
D) (total unemployed + marginally attached workers + part time employed for economic reasons)/(labor force + marginally attached workers) 
A) (total unemployed + marginally attached workers)/adult population 
B) (total unemployed + marginally attached workers + part-time employed for economic reasons)/adult population 
C) (total unemployed + marginally attached workers)/(labor force + marginally attached workers) 
D) (total unemployed + marginally attached workers + part time employed for economic reasons)/(labor force + marginally attached workers)

Question 18

Every adult who was not employed during the previous 4 weeks is included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 19

Within the U.S., teenagers have similar rates of unemployment as older workers.

Accepted Answer

A) True 
 B)False

Question 20

The Bureau of Labor Statistics' U-1 measure of joblessness is larger than its U-6 measure of joblessness.

Accepted Answer

A) True 
 B)False

Exam 15: Unemployment

Structural unemployment results when the number of jobs is insufficient for the number of workers.

Table 15-1 Labor Data for Aridia Year Adult population 2000 3000 3200 Number of emplayed 1400 1300 1600 Number of unemplayed 200 600 200 -Refer to Table 15-1. The number of adults not in the labor force of Aridia

Angelica is an unpaid homemaker who works as a volunteer at the local Red Cross and is currently not looking for a paid job. The Bureau of Labor Statistics counts Angelica as

Efficiency-wage theory suggests that paying

Spells of unemployment end about

If the wage is kept above the equilibrium wage for any reason, the result is structural unemployment.

Minimum wages create unemployment in markets where they create a

Some long-run unemployment may be explained by the fact that the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one.

The labor-force participation rate is computed as

Table 15-1 Labor Data for Aridia Year Adult population 2000 3000 3200 Number of emplayed 1400 1300 1600 Number of unemplayed 200 600 200 -Refer to Table 15-1. The unemployment rate of Aridia in 2011 was

Brian is the owner of a firm that produces bottled water in Washington state. There are many other such firms in the area. Brian decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

More than 3 percent of U.S. workers leave their jobs in a typical month.

Andre owns his own business. Oscar is an unpaid worker in his family's business. Who is included in the Bureau of Labor Statistics' "employed" category?

The reported unemployment rate should be viewed as

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

The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?

Every adult who was not employed during the previous 4 weeks is included in the Bureau of Labor Statistics' "unemployed" category.

Within the U.S., teenagers have similar rates of unemployment as older workers.

The Bureau of Labor Statistics' U-1 measure of joblessness is larger than its U-6 measure of joblessness.

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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