Question 1

Data on the unemployment rate in the U.S. since 1960 show that the economy always has some unemployment and that the amount changes from year to year.

Accepted Answer

A) True 
 B)False

Question 2

Labor Market Data
Below is some hypothetical data on the labor market. $$\begin{array} { | c | c | c | } 
\hline \text { wage } & \text { quuantity demanded } & \text { quuanty 5upplied } \
\hline \$ 7 & 9,000 & 14,000 \
\hline \$ 6 & 12,000 & 12,000 \
\hline \$ 5 & 15,000 & 10,000 \
\hline
\end{array}$$
-Refer to Labor Market Data. If the government imposed a minimum wage of $7, what would unemployment be?

Accepted Answer

A) 0 
B) 2,000 
C) 3,000 
D) 5,000 
A) 0 
B) 2,000 
C) 3,000 
D) 5,000

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

In the 1940s and 1950s, about one-third of U.S. workers belonged to unions, but today, only about one-fifth of U.S. workers belong to unions.

Accepted Answer

A) True 
 B)False

Question 5

Figure 15-1  
-Refer to Figure 15-1. If the government imposes a minimum wage of $8, then how many workers will be employed?

Accepted Answer

A) 3000 
B) 4000 
C) 5000 
D) 7000 
A) 3000 
B) 4000 
C) 5000 
D) 7000

Question 6

According to 2009 data on the U.S. population, which of the following groups of adults (ages 20 and older) 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 7

The table below uses data for the year 2003 provided by the Bureau of Labor Statistics and adjusted to be comparable to U.S. data. All values are in thousands. Fill in the blank entries in the table. $\begin{array}{|c|c|c|c|c|c|c|}
\hline \text { Country } & \begin{array}{c}
\text { Adult } \
\text { Population }
\end{array} & \begin{array}{c}
\text { Labor } \
\text { Force }
\end{array} & \text { Employed } & \text { Unemployed } & \begin{array}{c}
\text { Unemployment } \
\text { Rate }
\end{array} & \begin{array}{c}
\text { Labor-Force } \
\text { Participation } \
\text { Rate }
\end{array} \
\hline \text { Japan } & 109,474 & & 62,510 & 3,500 & & \
\hline \text { France } & & 26,870 & & 2,577 & & 57.41 \
\hline \text { Germany } & 70,159 & 39,591 & & & 9.69 & \
\hline
\end{array}$

Accepted Answer

None

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 unemployment rate in Meditor?

Accepted Answer

A) 4.2 percent 
B) 6.25 percent 
C) 6.7 percent 
D) 10 percent 
A) 4.2 percent 
B) 6.25 percent 
C) 6.7 percent 
D) 10 percent

Question 9

Unemployment data are collected

Accepted Answer

A) from unemployment insurance claims. 
B) through a regular survey of about 60,000 households. 
C) through a regular survey of about 200,000 firms. 
D) using all of the above. 
A) from unemployment insurance claims. 
B) through a regular survey of about 60,000 households. 
C) through a regular survey of about 200,000 firms. 
D) using all of the above.

Question 10

Data show that at least 20 percent of U.S. manufacturing jobs are destroyed every year.

Accepted Answer

A) True 
 B)False

Question 11

Wages in excess of their equilibrium level help explain

Accepted Answer

A) frictional but not structural unemployment. 
B) structural but not frictional unemployment. 
C) both frictional and structural unemployment. 
D) neither frictional nor structural unemployment. 
A) frictional but not structural unemployment. 
B) structural but not frictional unemployment. 
C) both frictional and structural unemployment. 
D) neither frictional nor structural unemployment.

Question 12

Sirius has just finished high school and started looking for his first job, but has not yet found one. Other things the same, the unemployment rate

Accepted Answer

A) and the labor-force participation rate both increase. 
B) increases and the labor-force participation rate is unaffected. 
C) is unaffected and the labor-force participation rate increases. 
D) and the labor-force participation rate are both unaffected. 
A) and the labor-force participation rate both increase. 
B) increases and the labor-force participation rate is unaffected. 
C) is unaffected and the labor-force participation rate increases. 
D) and the labor-force participation rate are both unaffected.

Question 13

Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

Accepted Answer

A) True 
 B)False

Question 14

Measuring unemployment is the job of the

Accepted Answer

A) Congressional Budget Office. 
B) Department of Commerce. 
C) Council of Economic Advisers. 
D) Bureau of Labor Statistics. 
A) Congressional Budget Office. 
B) Department of Commerce. 
C) Council of Economic Advisers. 
D) Bureau of Labor Statistics.

Question 15

In 1914, Henry Ford began paying his workers $5 per day, about twice the going wage. As a result, turnover and absenteeism fell and productivity and profits rose.

Accepted Answer

A) True 
 B)False

Question 16

The labor-force participation rate tells us the fraction of the population that is able to participate in the labor market.

Accepted Answer

A) True 
 B)False

Question 17

More generous unemployment insurance would

Accepted Answer

A) raise structural unemployment. 
B) raise frictional unemployment. 
C) lower structural unemployment. 
D) lower frictional unemployment. 
A) raise structural unemployment. 
B) raise frictional unemployment. 
C) lower structural unemployment. 
D) lower frictional unemployment.

Question 18

Which of the following is not correct?

Accepted Answer

A) The unemployment rate is an imperfect measure of a nation's overall level of economic well-being. 
B) Most job search in the U.S. economy takes place without intervention by the government. 
C) Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being. 
D) Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates. 
A) The unemployment rate is an imperfect measure of a nation's overall level of economic well-being. 
B) Most job search in the U.S. economy takes place without intervention by the government. 
C) Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being. 
D) Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Question 19

Causes of the decline in the U.S. men's labor-force participation rate over the past several decades include young men now staying in school longer than their fathers and grandfathers did, older men now retiring earlier and living longer, and more fathers now staying at home to raise their children.

Accepted Answer

A) True 
 B)False

Question 20

The Bureau of labor statistics divides the adult population into two categorizes, those who are employed and those who are unemployed.

Accepted Answer

A) True 
 B)False

Exam 15: Unemployment

Data on the unemployment rate in the U.S. since 1960 show that the economy always has some unemployment and that the amount changes from year to year.

Labor Market Data Below is some hypothetical data on the labor market. wage quuantity demanded quuanty 5upplied \ 7 9,000 14,000 \ 6 12,000 12,000 \ 5 15,000 10,000 -Refer to Labor Market Data. If the government imposed a minimum wage of $7, what would unemployment be?

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

In the 1940s and 1950s, about one-third of U.S. workers belonged to unions, but today, only about one-fifth of U.S. workers belong to unions.

Figure 15-1 -Refer to Figure 15-1. If the government imposes a minimum wage of $8, then how many workers will be employed?

According to 2009 data on the U.S. population, which of the following groups of adults (ages 20 and older) had the lowest labor-force participation rate?

Unemployment data are collected

Data show that at least 20 percent of U.S. manufacturing jobs are destroyed every year.

Wages in excess of their equilibrium level help explain

Sirius has just finished high school and started looking for his first job, but has not yet found one. Other things the same, the unemployment rate

Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

Measuring unemployment is the job of the

In 1914, Henry Ford began paying his workers $5 per day, about twice the going wage. As a result, turnover and absenteeism fell and productivity and profits rose.

The labor-force participation rate tells us the fraction of the population that is able to participate in the labor market.

More generous unemployment insurance would

Which of the following is not correct?

The Bureau of labor statistics divides the adult population into two categorizes, those who are employed and those who are unemployed.

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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