Question 1

The unemployment rate is computed as the number of unemployed

Accepted Answer

A) divided by the labor force, all times 100. 
B) divided by the number of employed, all times 100. 
C) divided by the adult population, all times 100. 
D) times the labor-force participation rate, all times 100. 
A) divided by the labor force, all times 100. 
B) divided by the number of employed, all times 100. 
C) divided by the adult population, all times 100. 
D) times the labor-force participation rate, all times 100.

Question 2

More than three-fourths of the unemployed are recent entrants into the labor force.

Accepted Answer

A) True 
 B)False

Question 3

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Accepted Answer

A) True 
 B)False

Question 4

The Bureau of Labor Statistics computes labor-force participation rates for the entire adult population and for more narrowly defined groups.

Accepted Answer

A) True 
 B)False

Question 5

There are always some workers without jobs, even when the overall economy is doing well.

Accepted Answer

A) True 
 B)False

Question 6

Critics of government-run employment agencies and public training programs argue that the private market is better at matching workers and jobs than the government is.

Accepted Answer

A) True 
 B)False

Question 7

People who are unemployed because of job search are best classified as

Accepted Answer

A) cyclically unemployed. 
B) structurally unemployed. 
C) frictionally unemployed. 
D) discouraged workers. 
A) cyclically unemployed. 
B) structurally unemployed. 
C) frictionally unemployed. 
D) discouraged workers.

Question 8

The Wagner Act of 1935

Accepted Answer

A) prevents unions from acting as cartels. 
B) allows workers joining a unionized firm to choose not to join the union. 
C) prevents employers from interfering when workers try to organize a union. 
D) prevents firms from hiring permanent replacements for workers who are on strike. 
A) prevents unions from acting as cartels. 
B) allows workers joining a unionized firm to choose not to join the union. 
C) prevents employers from interfering when workers try to organize a union. 
D) prevents firms from hiring permanent replacements for workers who are on strike.

Question 9

Which of the following does not help reduce frictional unemployment?

Accepted Answer

A) government-run employment agencies 
B) public training programs 
C) unemployment insurance 
D) All of the above help reduce frictional unemployment. 
A) government-run employment agencies 
B) public training programs 
C) unemployment insurance 
D) All of the above help reduce frictional unemployment.

Question 10

Within the U.S. population, women ages 20 and older have lower rates of labor-force participation than men.

Accepted Answer

A) True 
 B)False

Question 11

The Bureau of Labor Statistics computes unemployment rates for the entire adult population and for more narrowly defined groups.

Accepted Answer

A) True 
 B)False

Question 12

The Bureau of Labor Statistics' U-3 measure of joblessness is the official unemployment rate.

Accepted Answer

A) True 
 B)False

Question 13

A minimum wage that is below the equilibrium wage rate does not raise unemployment.

Accepted Answer

A) True 
 B)False

Question 14

Suppose that neither textile workers nor shoemakers are unionized. If textile workers unionize, then the supply of shoemakers will

Accepted Answer

A) rise and their wages will rise. 
B) rise and their wages will fall. 
C) fall and their wages will fall. 
D) fall and their wages will rise. 
A) rise and their wages will rise. 
B) rise and their wages will fall. 
C) fall and their wages will fall. 
D) fall and their wages will rise.

Question 15

Marginally attached workers are people who

Accepted Answer

A) are looking for a better job than they currently have. 
B) are not working and are not looking for work, but would work if asked. 
C) are working part-time while they go to school or get training for a better job. 
D) are only a few years from retirement. 
A) are looking for a better job than they currently have. 
B) are not working and are not looking for work, but would work if asked. 
C) are working part-time while they go to school or get training for a better job. 
D) are only a few years from retirement.

Question 16

Of the following groups, who is eligible for unemployment insurance benefits?

Accepted Answer

A) the unemployed who quit their jobs 
B) the unemployed who were laid off because their previous employers no longer needed their skills 
C) the unemployed who were fired for cause 
D) the unemployed who just entered the labor force 
A) the unemployed who quit their jobs 
B) the unemployed who were laid off because their previous employers no longer needed their skills 
C) the unemployed who were fired for cause 
D) the unemployed who just entered the labor force

Question 17

Efficiency wages create a labor

Accepted Answer

A) surplus and so increase unemployment. 
B) surplus and so decrease unemployment. 
C) shortage and so increase unemployment. 
D) shortage and so decrease unemployment. 
A) surplus and so increase unemployment. 
B) surplus and so decrease unemployment. 
C) shortage and so increase unemployment. 
D) shortage and so decrease unemployment.

Question 18

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not correct?

Accepted Answer

A) Unions are exempt from U.S. antitrust laws. 
B) The Wagner Act of 1935 prevents U.S. employers from interfering when workers try to organize unions. 
C) The National Labor Relations Board is the U.S. government agency that enforces workers' right to unionize. 
D) Right-to-work laws prevent firms from hiring permanent replacements for workers who are on strike. 
A) Unions are exempt from U.S. antitrust laws. 
B) The Wagner Act of 1935 prevents U.S. employers from interfering when workers try to organize unions. 
C) The National Labor Relations Board is the U.S. government agency that enforces workers' right to unionize. 
D) Right-to-work laws prevent firms from hiring permanent replacements for workers who are on strike.

Question 20

The labor-force participation rate equals the percentage of the labor force that is employed.

Accepted Answer

A) True 
 B)False

Exam 15: Unemployment

The unemployment rate is computed as the number of unemployed

More than three-fourths of the unemployed are recent entrants into the labor force.

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

The Bureau of Labor Statistics computes labor-force participation rates for the entire adult population and for more narrowly defined groups.

There are always some workers without jobs, even when the overall economy is doing well.

Critics of government-run employment agencies and public training programs argue that the private market is better at matching workers and jobs than the government is.

People who are unemployed because of job search are best classified as

The Wagner Act of 1935

Which of the following does not help reduce frictional unemployment?

Within the U.S. population, women ages 20 and older have lower rates of labor-force participation than men.

The Bureau of Labor Statistics computes unemployment rates for the entire adult population and for more narrowly defined groups.

The Bureau of Labor Statistics' U-3 measure of joblessness is the official unemployment rate.

A minimum wage that is below the equilibrium wage rate does not raise unemployment.

Suppose that neither textile workers nor shoemakers are unionized. If textile workers unionize, then the supply of shoemakers will

Marginally attached workers are people who

Of the following groups, who is eligible for unemployment insurance benefits?

Efficiency wages create a labor

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Which of the following is not correct?

The labor-force participation rate equals the percentage of the labor force that is employed.

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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