Question 1

Advocates of government-run employment agencies and public training programs believe they make job search more efficient.

Accepted Answer

A) True 
 B)False

Question 2

Suppose some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were unemployed?

Accepted Answer

A) 0.846 million 
B) 0.9 million 
C) 1.5 million 
D) 6 million 
A) 0.846 million 
B) 0.9 million 
C) 1.5 million 
D) 6 million

Question 3

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

Accepted Answer

A) Efficiency wages increase worker health and therefore increase worker productivity. 
B) Efficiency wages decrease worker turnover and therefore decrease hiring and training costs. 
C) Efficiency wages decrease worker shirking and therefore increase worker productivity. 
D) Efficiency wages are below the equilibrium wage rate, but still attract a sufficient number of workers. 
A) Efficiency wages increase worker health and therefore increase worker productivity. 
B) Efficiency wages decrease worker turnover and therefore decrease hiring and training costs. 
C) Efficiency wages decrease worker shirking and therefore increase worker productivity. 
D) Efficiency wages are below the equilibrium wage rate, but still attract a sufficient number of workers.

Question 4

The Bureau of Labor Statistics' household survey and establishment survey both yield the same results about total employment.

Accepted Answer

A) True 
 B)False

Question 5

Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Accepted Answer

Standard economic theory suggests that i

Question 6

Efficiency wages create structural unemployment.

Accepted Answer

A) True 
 B)False

Question 7

Suppose that furniture factory worker are unionized. If these workers decide not to be unionized,

Accepted Answer

A) the quantity of furniture factory workers demanded will rise. The supply of workers in other industries will also rise. 
B) the quantity of furniture factory workers demanded will rise. The supply of workers in other industries will fall. 
C) the quantity of furniture factory workers demanded will fall. The supply of workers in other industries will rise. 
D) the quantity of furniture factory workers demanded will fall. The supply of workers in other industries will also fall. 
A) the quantity of furniture factory workers demanded will rise. The supply of workers in other industries will also rise. 
B) the quantity of furniture factory workers demanded will rise. The supply of workers in other industries will fall. 
C) the quantity of furniture factory workers demanded will fall. The supply of workers in other industries will rise. 
D) the quantity of furniture factory workers demanded will fall. The supply of workers in other industries will also fall.

Question 8

Which of the following is not a reason economies experience structural unemployment?

Accepted Answer

A) job search 
B) unions 
C) minimum-wage laws 
D) efficiency wages 
A) job search 
B) unions 
C) minimum-wage laws 
D) efficiency wages

Question 9

When a union raises the wage above the equilibrium level, it

Accepted Answer

A) reduces both the quantity of labor supplied and the quantity of labor demanded. 
B) reduces the quantity of labor supplied and raises the quantity of labor demanded. 
C) raises the quantity of labor supplied and reduces the quantity of labor demanded. 
D) raises both the quantity of labor supplied and the quantity of labor demanded. 
A) reduces both the quantity of labor supplied and the quantity of labor demanded. 
B) reduces the quantity of labor supplied and raises the quantity of labor demanded. 
C) raises the quantity of labor supplied and reduces the quantity of labor demanded. 
D) raises both the quantity of labor supplied and the quantity of labor demanded.

Question 10

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 labor-force participation rate of Aridia in 2011 was

Accepted Answer

A) 43.3%. 
B) 54.2%. 
C) 63.3%. 
D) 68.4%. 
A) 43.3%. 
B) 54.2%. 
C) 63.3%. 
D) 68.4%.

Question 11

Recent entrants into the labor force account for about

Accepted Answer

A) 1/5 of those who are unemployed. 
B) 1/4 of those who are unemployed. 
C) 1/3 of those who are unemployed. 
D) 1/2 of those who are unemployed. 
A) 1/5 of those who are unemployed. 
B) 1/4 of those who are unemployed. 
C) 1/3 of those who are unemployed. 
D) 1/2 of those who are unemployed.

Question 12

Jill does not currently have a job, but has applied for several jobs in the previous week. Ken is an unpaid stay-at-home dad who has not searched for work in recent years. Who does the BLS count as out of the labor force?

Accepted Answer

A) Jill but not Ken 
B) Ken but not Jill 
C) Jill and Ken 
D) neither Jill nor Ken 
A) Jill but not Ken 
B) Ken but not Jill 
C) Jill and Ken 
D) neither Jill nor Ken

Question 13

Which of the following both make a firm more likely to pay efficiency wages?

Accepted Answer

A) it is easy to judge the quality of applicants and after workers have worked for the firm a while they tend not to look for other jobs 
B) it is easy to judge the quality of applicants and after workers have worked for the firm a while they tend to look for other jobs 
C) it is difficult to judge the quality of applicants and after workers have worked for the firm a while they tend not to look for other jobs 
D) it is difficult to judge the quality of applicants and after workers have worked for the firm a while they tend to look for other jobs 
A) it is easy to judge the quality of applicants and after workers have worked for the firm a while they tend not to look for other jobs 
B) it is easy to judge the quality of applicants and after workers have worked for the firm a while they tend to look for other jobs 
C) it is difficult to judge the quality of applicants and after workers have worked for the firm a while they tend not to look for other jobs 
D) it is difficult to judge the quality of applicants and after workers have worked for the firm a while they tend to look for other jobs

Question 14

The Bureau of Labor Statistics produces data on

Accepted Answer

A) unemployment. 
B) types of employment. 
C) length of the average workweek. 
D) All of the above are correct. 
A) unemployment. 
B) types of employment. 
C) length of the average workweek. 
D) All of the above are correct.

Question 15

When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than if many of its workers were idle.

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 labor-force participation 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

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called

Accepted Answer

A) the natural rate of unemployment. 
B) cyclical unemployment. 
C) structural unemployment. 
D) frictional unemployment. 
A) the natural rate of unemployment. 
B) cyclical unemployment. 
C) structural unemployment. 
D) frictional unemployment.

Question 18

A union is a type of cartel.

Accepted Answer

A) True 
 B)False

Question 19

Bob is looking for work after school, but everywhere he fills out an application, the managers say they always have a lot more applications than open positions. Tom has a law degree. Several firms have made him offers, but he thinks he might be able to find a firm where his talents could be put to better use.

Accepted Answer

A) Bob and Tom are both frictionally unemployed. 
B) Bob and Tom are both structurally unemployed. 
C) Bob is frictionally unemployed, and Tom is structurally unemployed. 
D) Bob is structurally unemployed, and Tom is frictionally unemployed. 
A) Bob and Tom are both frictionally unemployed. 
B) Bob and Tom are both structurally unemployed. 
C) Bob is frictionally unemployed, and Tom is structurally unemployed. 
D) Bob is structurally unemployed, and Tom is frictionally unemployed.

Question 20

Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category.

Accepted Answer

A) True 
 B)False

Exam 15: Unemployment

Advocates of government-run employment agencies and public training programs believe they make job search more efficient.

Suppose some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were unemployed?

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

The Bureau of Labor Statistics' household survey and establishment survey both yield the same results about total employment.

Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Efficiency wages create structural unemployment.

Suppose that furniture factory worker are unionized. If these workers decide not to be unionized,

Which of the following is not a reason economies experience structural unemployment?

When a union raises the wage above the equilibrium level, it

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 labor-force participation rate of Aridia in 2011 was

Recent entrants into the labor force account for about

Jill does not currently have a job, but has applied for several jobs in the previous week. Ken is an unpaid stay-at-home dad who has not searched for work in recent years. Who does the BLS count as out of the labor force?

Which of the following both make a firm more likely to pay efficiency wages?

The Bureau of Labor Statistics produces data on

When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than if many of its workers were idle.

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

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called

A union is a type of cartel.

Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category.

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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