Question 1

Who would be included in the labor force?

Accepted Answer

A) Homer, who is waiting for his new job to start 
B) Michelle, who has become discouraged looking for a job and has quit looking 
C) Derrick, an unpaid homemaker 
D) None of the above would be included in the labor force. 
A) Homer, who is waiting for his new job to start 
B) Michelle, who has become discouraged looking for a job and has quit looking 
C) Derrick, an unpaid homemaker 
D) None of the above would be included in the labor force.

Question 2

The unemployment rate equals the percentage of the labor force that is unemployed.

Accepted Answer

A) True 
 B)False

Question 3

Jason works part-time as a babysitter. The Bureau of Labor Statistics counts Jason as

Accepted Answer

A) unemployed and in the labor force. 
B) unemployed and not in the labor force. 
C) employed and in the labor force. 
D) employed and not in the labor force. 
A) unemployed and in the labor force. 
B) unemployed and not in the labor force. 
C) employed and in the labor force. 
D) employed and not in the labor force.

Question 4

Figure 15-1  
-Refer to Figure 15-1. If the government imposes a minimum wage of $4, then how many workers will be unemployed?

Accepted Answer

A) 0 
B) 3000 
C) 4000 
D) 7000 
A) 0 
B) 3000 
C) 4000 
D) 7000

Question 5

The introduction of a union into an industry

Accepted Answer

A) creates a surplus of labor and so raises unemployment. 
B) creates a surplus of labor and so reduces unemployment. 
C) creates a shortage of labor and so raises unemployment. 
D) creates a shortage of labor and so reduces unemployment. 
A) creates a surplus of labor and so raises unemployment. 
B) creates a surplus of labor and so reduces unemployment. 
C) creates a shortage of labor and so raises unemployment. 
D) creates a shortage of labor and so reduces unemployment.

Question 6

Unemployment insurance increases frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 7

Within the U.S. population, women have higher rates of unemployment than men.

Accepted Answer

A) True 
 B)False

Question 8

Suppose that autoworkers are unionized in one region of the country but not in the other. If the unionized workers abolished their unions, employment

Accepted Answer

A) and wages of autoworkers in that region would rise. 
B) of automobile workers in that region would rise, but wages of automobile workers in that region would fall. 
C) and wages of autoworkers in that region would fall. 
D) of automobile workers in that region would fall but wages of automobile workers in that region would rise. 
A) and wages of autoworkers in that region would rise. 
B) of automobile workers in that region would rise, but wages of automobile workers in that region would fall. 
C) and wages of autoworkers in that region would fall. 
D) of automobile workers in that region would fall but wages of automobile workers in that region would rise.

Question 9

Unions are exempt from U.S. antitrust laws.

Accepted Answer

A) True 
 B)False

Question 10

A union is an employer association that bargains with workers over wages, benefits, and working conditions.

Accepted Answer

A) True 
 B)False

Question 11

Right-to-work laws allow striking union members to be permanently replaced.

Accepted Answer

A) True 
 B)False

Question 12

A firm might offer efficiency wages in order to attract a better pool of applicants.

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 12,250.

Accepted Answer

A) True 
 B)False

Question 14

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 15

Unemployment insurance

Accepted Answer

A) may improve the ability of the economy to match workers with appropriate jobs. 
B) reduces the job search efforts of the unemployed. 
C) increases the amount of frictional unemployment in the economy. 
D) All of the above are correct. 
A) may improve the ability of the economy to match workers with appropriate jobs. 
B) reduces the job search efforts of the unemployed. 
C) increases the amount of frictional unemployment in the economy. 
D) All of the above are correct.

Question 16

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 17

The normal rate of unemployment around which the unemployment rate fluctuates is called cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 18

Within the U.S., teenagers have similar rates of labor-force participation as older workers.

Accepted Answer

A) True 
 B)False

Question 19

U.S. Department of Labor data show that minimum-wage workers tend to be

Accepted Answer

A) young and less educated. 
B) young and more educated. 
C) old and less educated. 
D) old and more educated. 
A) young and less educated. 
B) young and more educated. 
C) old and less educated. 
D) old and more educated.

Question 20

One explanation for long-run unemployment is that it takes time for workers to search for the jobs that are best suited for them.

Accepted Answer

A) True 
 B)False

Exam 15: Unemployment

Who would be included in the labor force?

The unemployment rate equals the percentage of the labor force that is unemployed.

Jason works part-time as a babysitter. The Bureau of Labor Statistics counts Jason as

Figure 15-1 -Refer to Figure 15-1. If the government imposes a minimum wage of $4, then how many workers will be unemployed?

The introduction of a union into an industry

Unemployment insurance increases frictional unemployment.

Within the U.S. population, women have higher rates of unemployment than men.

Suppose that autoworkers are unionized in one region of the country but not in the other. If the unionized workers abolished their unions, employment

Unions are exempt from U.S. antitrust laws.

A union is an employer association that bargains with workers over wages, benefits, and working conditions.

Right-to-work laws allow striking union members to be permanently replaced.

A firm might offer efficiency wages in order to attract a better pool of applicants.

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 12,250.

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Unemployment insurance

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

The normal rate of unemployment around which the unemployment rate fluctuates is called cyclical unemployment.

Within the U.S., teenagers have similar rates of labor-force participation as older workers.

U.S. Department of Labor data show that minimum-wage workers tend to be

One explanation for long-run unemployment is that it takes time for workers to search for the jobs that are best suited for them.

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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