Question 1

If the number of people unemployed rose but the number of people employed and the adult population stayed the same, then the labor force participation rate would rise.

Accepted Answer

A) True 
 B)False

Question 2

A century ago, the four industries with the largest employment in the United States were cotton goods, woolen goods, men's clothing, and lumber.

Accepted Answer

A) True 
 B)False

Question 3

The natural rate of unemployment is constant over time.

Accepted Answer

A) True 
 B)False

Question 4

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-1 measure of labor underutilization?

Accepted Answer

A) 1.6 percent 
B) 3.1 percent 
C) 6.2 percent 
D) 7.0 percent 
A) 1.6 percent 
B) 3.1 percent 
C) 6.2 percent 
D) 7.0 percent

Question 5

The Bureau of Labor Statistics' U-1 measure of joblessness includes only very long-term unemployed.

Accepted Answer

A) True 
 B)False

Question 6

Some people who are employed or who are not making serious effort to find employment will report themselves as unemployed. Some people who want to find work will be counted as out of the labor force.

Accepted Answer

A) Both the first and the second fact tend to make the reported unemployment rate lower than otherwise. 
B) Both the first and the second fact tend to make the reported unemployment rate higher than otherwise. 
C) The first fact tends to make the reported unemployment rate higher than otherwise, while the second fact tends to make the reported unemployment rate lower than otherwise. 
D) The first fact tends to make the reported unemployment rate lower than otherwise, while the second fact tends to make the reported unemployment rate higher than otherwise. 
A) Both the first and the second fact tend to make the reported unemployment rate lower than otherwise. 
B) Both the first and the second fact tend to make the reported unemployment rate higher than otherwise. 
C) The first fact tends to make the reported unemployment rate higher than otherwise, while the second fact tends to make the reported unemployment rate lower than otherwise. 
D) The first fact tends to make the reported unemployment rate lower than otherwise, while the second fact tends to make the reported unemployment rate higher than otherwise.

Question 7

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 total adult population of Tajnia in 2010 is 30,000.

Accepted Answer

A) True 
 B)False

Question 8

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-2 measure of labor underutilization?

Accepted Answer

A) 1.5 percent 
B) 3.1 percent 
C) 4.7 percent 
D) 6.2 percent 
A) 1.5 percent 
B) 3.1 percent 
C) 4.7 percent 
D) 6.2 percent

Question 9

The Bureau of Labor Statistics' U-2 measure of joblessness includes job losers and job leavers.

Accepted Answer

A) True 
 B)False

Question 10

The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate.

Accepted Answer

A) True 
 B)False

Question 11

Evidence from research studies by economists

Accepted Answer

A) shows that increased unemployment benefits decrease the job search efforts of the unemployed. 
B) shows that increased unemployment benefits have virtually no effect on the job search efforts of the unemployed. 
C) shows that increased unemployment benefits increase the job search efforts of the unemployed. 
D) is conflicting on what increased unemployment benefits do to the job search efforts of the unemployed. 
A) shows that increased unemployment benefits decrease the job search efforts of the unemployed. 
B) shows that increased unemployment benefits have virtually no effect on the job search efforts of the unemployed. 
C) shows that increased unemployment benefits increase the job search efforts of the unemployed. 
D) is conflicting on what increased unemployment benefits do to the job search efforts of the unemployed.

Question 12

More than one-third of the unemployed are recent entrants into the labor force.

Accepted Answer

A) True 
 B)False

Question 13

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 2012 was

Accepted Answer

A) 50%. 
B) 53.3%. 
C) 56.25%. 
D) 88.9%. 
A) 50%. 
B) 53.3%. 
C) 56.25%. 
D) 88.9%.

Question 14

Suppose that butchers and bakers have no unions. Now suppose the butchers form a union. What does this do the labor supply of and wages of bakers?

Accepted Answer

A) It increases the labor supply and wages of bakers. 
B) It increases the labor supply and decreases the wages of bakers. 
C) It decreases the labor supply and increases the wages of bakers. 
D) It decreases the labor supply and wages of bakers. 
A) It increases the labor supply and wages of bakers. 
B) It increases the labor supply and decreases the wages of bakers. 
C) It decreases the labor supply and increases the wages of bakers. 
D) It decreases the labor supply and wages of bakers.

Question 15

Why might a favorable change in the economy, such as technological improvement or a decrease in the price of imported oil, be associated with an increase in frictional unemployment?

Accepted Answer

Even generally favorable changes will us

Question 16

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

Accepted Answer

A) True 
 B)False

Question 17

When unions raise wages in one part of the economy, the supply of labor increases in other parts of the economy, which reduces wages in industries that are not unionized.

Accepted Answer

A) True 
 B)False

Question 18

Only paid workers are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 19

Meredith is looking for work as a computer programmer. Although her prospects are good, she hasn't yet taken a job. Julie is looking for work in a steel mill. Every time she shows up for an interview, there are more people looking for work than their are openings. Someone waiting in line with her tells her it has been that way for a long time.

Accepted Answer

A) Meredith and Julie are both frictionally unemployed. 
B) Meredith and Julie are both structurally unemployed. 
C) Meredith is frictionally unemployed, and Julie is structurally unemployed. 
D) Meredith is structurally unemployed, and Julie is frictionally unemployed. 
A) Meredith and Julie are both frictionally unemployed. 
B) Meredith and Julie are both structurally unemployed. 
C) Meredith is frictionally unemployed, and Julie is structurally unemployed. 
D) Meredith is structurally unemployed, and Julie is frictionally unemployed.

Question 20

One reason economies always experience some unemployment is job search.

Accepted Answer

A) True 
 B)False

If the number of people unemployed rose but the number of people employed and the adult population stayed the same, then the labor force participation rate would rise.

A century ago, the four industries with the largest employment in the United States were cotton goods, woolen goods, men's clothing, and lumber.

The natural rate of unemployment is constant over time.

The Bureau of Labor Statistics' U-1 measure of joblessness includes only very long-term unemployed.

Some people who are employed or who are not making serious effort to find employment will report themselves as unemployed. Some people who want to find work will be counted as out of the labor force.

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 total adult population of Tajnia in 2010 is 30,000.

The Bureau of Labor Statistics' U-2 measure of joblessness includes job losers and job leavers.

The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate.

Evidence from research studies by economists

More than one-third of the unemployed are recent entrants into the labor force.

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 2012 was

Suppose that butchers and bakers have no unions. Now suppose the butchers form a union. What does this do the labor supply of and wages of bakers?

Why might a favorable change in the economy, such as technological improvement or a decrease in the price of imported oil, be associated with an increase in frictional unemployment?

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

When unions raise wages in one part of the economy, the supply of labor increases in other parts of the economy, which reduces wages in industries that are not unionized.

Only paid workers are included in the Bureau of Labor Statistics' "employed" category.

One reason economies always experience some unemployment is job search.

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

If the number of people unemployed rose but the number of people employed and the adult population stayed the same, then the labor force participation rate would rise.

A century ago, the four industries with the largest employment in the United States were cotton goods, woolen goods, men's clothing, and lumber.

The natural rate of unemployment is constant over time.

The Bureau of Labor Statistics' U-1 measure of joblessness includes only very long-term unemployed.

Some people who are employed or who are not making serious effort to find employment will report themselves as unemployed. Some people who want to find work will be counted as out of the labor force.

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 total adult population of Tajnia in 2010 is 30,000.

The Bureau of Labor Statistics' U-2 measure of joblessness includes job losers and job leavers.

The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate.

Evidence from research studies by economists

More than one-third of the unemployed are recent entrants into the labor force.

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 2012 was

Suppose that butchers and bakers have no unions. Now suppose the butchers form a union. What does this do the labor supply of and wages of bakers?

Why might a favorable change in the economy, such as technological improvement or a decrease in the price of imported oil, be associated with an increase in frictional unemployment?

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

When unions raise wages in one part of the economy, the supply of labor increases in other parts of the economy, which reduces wages in industries that are not unionized.

Only paid workers are included in the Bureau of Labor Statistics' "employed" category.

One reason economies always experience some unemployment is job search.

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