Question 1

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not correct?

Accepted Answer

A) Frictional unemployment results from the process of matching workers and jobs. 
B) Structural unemployment results when the number of jobs is insufficient for the number of workers. 
C) Minimum wages are the predominant reason for unemployment in the U.S. economy. 
D) When a minimum-wage law forces the wage to remain above the level that balances supply and demand, it raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level. 
A) Frictional unemployment results from the process of matching workers and jobs. 
B) Structural unemployment results when the number of jobs is insufficient for the number of workers. 
C) Minimum wages are the predominant reason for unemployment in the U.S. economy. 
D) When a minimum-wage law forces the wage to remain above the level that balances supply and demand, it raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.

Question 3

About what percentage of jobs are destroyed every year and about what percentage of workers leave their jobs in a typical month?

Accepted Answer

A) 1% and 5% 
B) 5% and 1% 
C) 3% and 10% 
D) 10% and 3% 
A) 1% and 5% 
B) 5% and 1% 
C) 3% and 10% 
D) 10% and 3%

Question 4

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 participation rate of Tajnia in 2010 is about 33.3 percent.

Accepted Answer

A) True 
 B)False

Question 5

If a union and a firm cannot reach an agreement on the terms of employment, then the union can organize a withdrawal of labor from the firm, called a strike.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed.

Accepted Answer

A) True 
 B)False

Question 8

Table 15-3
2010 Labor Data for Adults (age 16 and older) in Meditor
 $$\begin{array} { | l | l | } 
\hline \text { Males not in labar farce } & 45 \text { million } \
\hline \text { Femeles nat in labor force } & 35 \text { million } \
\hline \text { Males unemplayed } & 5 \text { millian } \
\hline \text { Fenales unemployed } & 5 \text { millian } \
\hline \text { Males employed } & 85 \text { million } \
\hline \text { Fenales enployed } & 65 \text { milling } \
\hline
\end{array}$$
-Refer to Table 15-3. What is the adult male labor force in Meditor?

Accepted Answer

A) 50 million 
B) 85 million 
C) 90 million 
D) 130 million 
A) 50 million 
B) 85 million 
C) 90 million 
D) 130 million

Question 9

For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must

Accepted Answer

A) have worked no more than 10 hours during the past week.. 
B) have tried to find employment during the previous year. 
C) not have been laid off. 
D) None of the above is correct. 
A) have worked no more than 10 hours during the past week.. 
B) have tried to find employment during the previous year. 
C) not have been laid off. 
D) None of the above is correct.

Question 10

Sectoral changes in demand

Accepted Answer

A) create frictional unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates structural unemployment. 
B) create structural unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates frictional unemployment. 
C) and firms paying wages above equilibrium to attract a better pool of candidates both create structural unemployment. 
D) and firms paying wages above equilibrium to attract a better pool of candidates both create frictional unemployment. 
A) create frictional unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates structural unemployment. 
B) create structural unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates frictional unemployment. 
C) and firms paying wages above equilibrium to attract a better pool of candidates both create structural unemployment. 
D) and firms paying wages above equilibrium to attract a better pool of candidates both create frictional unemployment.

Question 11

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate. All workers are equally able to do either job. Initially, both labor markets are perfectly competitive. If a union organizes workers in one of the markets, then the wage rates will tend to

Accepted Answer

A) rise in both markets. 
B) fall in both markets 
C) rise for the union jobs, but remain unchanged for the nonunion jobs. 
D) rise for the union jobs and fall for the nonunion jobs. 
A) rise in both markets. 
B) fall in both markets 
C) rise for the union jobs, but remain unchanged for the nonunion jobs. 
D) rise for the union jobs and fall for the nonunion jobs.

Question 12

From time to time, the demand for workers has risen in one region of the United States and fallen in another. This illustrates

Accepted Answer

A) frictional unemployment created by efficiency wages. 
B) structural unemployment created by efficiency wages. 
C) frictional unemployment created by sectoral shifts. 
D) structural unemployment created by sectoral shifts. 
A) frictional unemployment created by efficiency wages. 
B) structural unemployment created by efficiency wages. 
C) frictional unemployment created by sectoral shifts. 
D) structural unemployment created by sectoral shifts.

Question 13

The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.

Accepted Answer

A) True 
 B)False

Question 14

Caitlin is an unpaid worker in her family's bakery. The Bureau of Labor Statistics counts Caitlin 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 15

According to 2009 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the highest 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 16

Workers searching for jobs that best suit them is most closely associated with

Accepted Answer

A) cyclical unemployment. 
B) frictional unemployment. 
C) seasonal unemployment. 
D) structural unemployment. 
A) cyclical unemployment. 
B) frictional unemployment. 
C) seasonal unemployment. 
D) structural unemployment.

Question 17

Which of the following is not correct?

Accepted Answer

A) A union is a worker association that bargains with employers over wages, benefits, and working conditions. 
B) Unions play a much larger role in the U.S. labor market now than they did in the past. 
C) Unions play a large role in many European countries. 
D) A union is a type of cartel. 
A) A union is a worker association that bargains with employers over wages, benefits, and working conditions. 
B) Unions play a much larger role in the U.S. labor market now than they did in the past. 
C) Unions play a large role in many European countries. 
D) A union is a type of cartel.

Question 18

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 19

Shannon is a full-time homemaker not currently searching for paid work. Noah is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A) only Shannon 
B) only Noah 
C) both Shannon and Noah 
D) neither Shannon nor Noah 
A) only Shannon 
B) only Noah 
C) both Shannon and Noah 
D) neither Shannon nor Noah

Question 20

A survey showed that in each of the past 12 months there was one person who was unemployed who worked in all other months. There were also two people who were unemployed for all 12 months. What percentage of the unemployment spells during the year was short-term, and what percentage of the unemployment in a given month was long-term?

Accepted Answer

A) 75 percent and 33.3 percent 
B) 75 percent and 66.7 percent 
C) 85.7 percent and 33.3 percent 
D) 85.7 percent and 66.7 percent 
A) 75 percent and 33.3 percent 
B) 75 percent and 66.7 percent 
C) 85.7 percent and 33.3 percent 
D) 85.7 percent and 66.7 percent

Exam 15: Unemployment

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Which of the following is not correct?

About what percentage of jobs are destroyed every year and about what percentage of workers leave their jobs in a typical month?

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 participation rate of Tajnia in 2010 is about 33.3 percent.

If a union and a firm cannot reach an agreement on the terms of employment, then the union can organize a withdrawal of labor from the firm, called a strike.

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

Studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed.

For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must

Sectoral changes in demand

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate. All workers are equally able to do either job. Initially, both labor markets are perfectly competitive. If a union organizes workers in one of the markets, then the wage rates will tend to

From time to time, the demand for workers has risen in one region of the United States and fallen in another. This illustrates

The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.

Caitlin is an unpaid worker in her family's bakery. The Bureau of Labor Statistics counts Caitlin as

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

Workers searching for jobs that best suit them is most closely associated with

Which of the following is not correct?

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no frictional unemployment.

Shannon is a full-time homemaker not currently searching for paid work. Noah is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?

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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