Question 1

Unions

Accepted Answer

A) do not affect the natural rate of unemployment. 
B) lower the wages of unionized workers. 
C) raise the profits of unionized firms. 
D) lower the wages of workers in industries without unions. 
A) do not affect the natural rate of unemployment. 
B) lower the wages of unionized workers. 
C) raise the profits of unionized firms. 
D) lower the wages of workers in industries without unions.

Question 2

Which of the following is not a contention of advocates of unions?

Accepted Answer

A) Unions are a necessary antidote to the market power of the firms that hire workers. 
B) In the case of a "company town," a union may balance the firm's market power and protect the workers from being at the mercy of the firm's owners. 
C) The introduction of a union benefits all workers in a firm. 
D) Unions are important for helping firms respond efficiently to workers' concerns. 
A) Unions are a necessary antidote to the market power of the firms that hire workers. 
B) In the case of a "company town," a union may balance the firm's market power and protect the workers from being at the mercy of the firm's owners. 
C) The introduction of a union benefits all workers in a firm. 
D) Unions are important for helping firms respond efficiently to workers' concerns.

Question 3

Which list contains two periods when the U.S. unemployment rate was below the natural rate of unemployment?

Accepted Answer

A) 1965-1968, 1981-1984 
B) 1965-1968, 1997-2000 
C) 1981-1984, 1991-1994 
D) 1991-1994, 1997-2000 
A) 1965-1968, 1981-1984 
B) 1965-1968, 1997-2000 
C) 1981-1984, 1991-1994 
D) 1991-1994, 1997-2000

Question 4

Adults who were not working but who had jobs from which they were temporarily absent are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 5

Data show that at least 10 percent of U.S. manufacturing jobs are destroyed every year.

Accepted Answer

A) True 
 B)False

Question 6

Over the past several decades in the United States, the labor-force participation rate of women has

Accepted Answer

A) increased and the labor-force participation rate of men has increased. 
B) increased and the labor-force participation rate of men has decreased. 
C) decreased and the labor-force participation rate of men has increased. 
D) decreased and the labor-force participation rate of men has decreased. 
A) increased and the labor-force participation rate of men has increased. 
B) increased and the labor-force participation rate of men has decreased. 
C) decreased and the labor-force participation rate of men has increased. 
D) decreased and the labor-force participation rate of men has decreased.

Question 7

The efficiency-wage theory of worker health is

Accepted Answer

A) more relevant for explaining unemployment in less developed countries than in rich countries. 
B) more relevant for explaining unemployment in rich countries than in less developed countries. 
C) equally relevant for explaining unemployment in less developed countries and in rich countries. 
D) not relevant for explaining unemployment. 
A) more relevant for explaining unemployment in less developed countries than in rich countries. 
B) more relevant for explaining unemployment in rich countries than in less developed countries. 
C) equally relevant for explaining unemployment in less developed countries and in rich countries. 
D) not relevant for explaining unemployment.

Question 8

According to the theory of efficiency wages, firms operate more efficiently if wages are below the equilibrium level.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Unions contribute to

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 11

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 600 households, called the Current Population Survey.

Accepted Answer

A) True 
 B)False

Question 12

In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Italian adult non-institutionalized population was 51.070 million, the labor force was 24.710 million, and the number of people employed was 22.765 million. According to these numbers, the Italian labor-force participation rate and unemployment rate were about

Accepted Answer

A) 48.4% and 7.9%. 
B) 48.4% and 3.8%. 
C) 44.6% and 7.9% 
D) 44.6% and 3.8% 
A) 48.4% and 7.9%. 
B) 48.4% and 3.8%. 
C) 44.6% and 7.9% 
D) 44.6% and 3.8%

Question 13

Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household?

Accepted Answer

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

Question 14

Efficiency wages

Accepted Answer

A) increase frictional unemployment by keeping wages above equilibrium. 
B) decrease frictional unemployment by keeping wages at equilibrium. 
C) increase structural unemployment by keeping wages above equilibrium. 
D) decrease structural unemployment by keeping wages at equilibrium. 
A) increase frictional unemployment by keeping wages above equilibrium. 
B) decrease frictional unemployment by keeping wages at equilibrium. 
C) increase structural unemployment by keeping wages above equilibrium. 
D) decrease structural unemployment by keeping wages at equilibrium.

Question 15

Most economists believe unions are bad for the economy as a whole.

Accepted Answer

A) True 
 B)False

Question 16

The Bureau of Labor Statistics' household survey and establishment survey both yield information about unemployment.

Accepted Answer

A) True 
 B)False

Question 17

According to 2009 data on the U.S. population, which of the following groups of adults (ages 20 and older) 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 18

Figure 15-1  
-Refer to Figure 15-1. If the government imposes a minimum wage of $8, then employment will decrease by

Accepted Answer

A) 0 workers. 
B) 2000 workers. 
C) 3000 workers. 
D) 4000 workers. 
A) 0 workers. 
B) 2000 workers. 
C) 3000 workers. 
D) 4000 workers.

Question 19

Sample Population
 \(\begin{array}{|l|l|}
\hline \text { Person } & \text { Status } \
\hline \text { Allen } & \text { Unpaid stay at home dad. Has not looked for a job in several years. } \
\hline \text { Ben } & \text { College president. } \
\hline \text { Allison } & \text { Part-time welder. Actively looking for full time work. } \
\hline \text { Brittany } & \text { Self-employed full-time wedding singer. } \
\hline \text { Cathy } & \text { Full-time physician's assistant. } \
\hline \text { Calvin } & \text { Retired finance professor. Last applied for work } 10 \text { weeks ago. } \
\hline \text { Diane } & \text { Laid-off fork-lift operator expecting to be recalled. } \
\hline \text { David } & \text { Works for a bicycle store. Age 70. } \
\hline \text { Evelyn } & \text { Manager of health food store. } \
\hline \text { Eli } & \text { Museum guard. Was not at work last week due to ilness. } \
\hline \text { Flora } & \text { Has never been employed. Looked for a job last week. } \
\hline \text { Frank } & \text { Fired from job as an investment banker. Last looked for work three weeks ago. } \
\hline
\end{array}\)

-Refer to Sample Population. How many in the sample are in the labor force?

Accepted Answer

A) 10 
B) 9 
C) 8 
D) None of the above is correct. 
A) 10 
B) 9 
C) 8 
D) None of the above is correct.

Question 20

Which of the following does not create unemployment by keeping wages above the equilibrium level?

Accepted Answer

A) efficiency wages 
B) job search 
C) minimum-wage laws 
D) unions 
A) efficiency wages 
B) job search 
C) minimum-wage laws 
D) unions

Exam 15: Unemployment

Unions

Which of the following is not a contention of advocates of unions?

Which list contains two periods when the U.S. unemployment rate was below the natural rate of unemployment?

Adults who were not working but who had jobs from which they were temporarily absent are included in the Bureau of Labor Statistics' "employed" category.

Data show that at least 10 percent of U.S. manufacturing jobs are destroyed every year.

Over the past several decades in the United States, the labor-force participation rate of women has

The efficiency-wage theory of worker health is

According to the theory of efficiency wages, firms operate more efficiently if wages are below the equilibrium level.

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

Unions contribute to

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 600 households, called the Current Population Survey.

Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household?

Efficiency wages

Most economists believe unions are bad for the economy as a whole.

The Bureau of Labor Statistics' household survey and establishment survey both yield information about unemployment.

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

Figure 15-1 -Refer to Figure 15-1. If the government imposes a minimum wage of $8, then employment will decrease by

Which of the following does not create unemployment by keeping wages above the equilibrium level?

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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