Question 1

Danielle did not work last week because flooding forced an evacuation of her workplace. The Bureau of Labor Statistics counts Danielle 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 2

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

Accepted Answer

A) Cambry, a full-time student who is not looking for work 
B) Eric, who is on temporary layoff 
C) Carson, who has retired and is not looking for work 
D) All of the above are correct. 
A) Cambry, a full-time student who is not looking for work 
B) Eric, who is on temporary layoff 
C) Carson, who has retired and is not looking for work 
D) All of the above are correct.

Question 3

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

Accepted Answer

A) cyclical unemployment. 
B) frictional unemployment. 
C) natural rate of unemployment. 
D) structural unemployment. 
A) cyclical unemployment. 
B) frictional unemployment. 
C) natural rate of unemployment. 
D) structural unemployment.

Question 4

In the U.S., the National Labor Relations Board is the government agency that enforces workers' right to unionize.

Accepted Answer

A) True 
 B)False

Question 5

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

Accepted Answer

A) True 
 B)False

Question 6

The Bureau of Labor Statistics places people in the "employed" category if they

Accepted Answer

A) are without a job, but are available for work and have tried to find a job during the previous 4 weeks. 
B) work without pay in a family member's business. 
C) are waiting to be recalled to a job from which they had been laid off. 
D) All of the above are correct. 
A) are without a job, but are available for work and have tried to find a job during the previous 4 weeks. 
B) work without pay in a family member's business. 
C) are waiting to be recalled to a job from which they had been laid off. 
D) All of the above are correct.

Question 7

The Bureau of Labor Statistics' U-5 measure of joblessness is the official unemployment rate.

Accepted Answer

A) True 
 B)False

Question 8

Minimum wage laws help explain the natural rate of unemployment if they create a surplus in any labor market.

Accepted Answer

A) True 
 B)False

Question 9

In June 2009 the BLS reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was

Accepted Answer

A) 154/234.9. 
B) 141.6/234.9. 
C) 141.6/154. 
D) None of the above are correct. 
A) 154/234.9. 
B) 141.6/234.9. 
C) 141.6/154. 
D) None of the above are correct.

Question 10

The BLS counts discouraged workers as

Accepted Answer

A) employed. Including them as employed makes the unemployment rate lower than otherwise. 
B) unemployed. Including them as unemployed makes the unemployment rate higher than otherwise. 
C) out of the labor force. If the were counted as unemployed the unemployment rate would be higher. 
D) None of the above is correct. 
A) employed. Including them as employed makes the unemployment rate lower than otherwise. 
B) unemployed. Including them as unemployed makes the unemployment rate higher than otherwise. 
C) out of the labor force. If the were counted as unemployed the unemployment rate would be higher. 
D) None of the above is correct.

Question 11

Which of the following is not correct?

Accepted Answer

A) Most people who become unemployed will soon find jobs. 
B) In an ideal labor market, wages would adjust to ensure that all workers are always fully employed. 
C) The unemployment rate occasionally falls to zero. 
D) There are always some workers without jobs, even when the overall economy is doing well. 
A) Most people who become unemployed will soon find jobs. 
B) In an ideal labor market, wages would adjust to ensure that all workers are always fully employed. 
C) The unemployment rate occasionally falls to zero. 
D) There are always some workers without jobs, even when the overall economy is doing well.

Question 12

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about

Accepted Answer

A) 600 households. 
B) 6,000 households. 
C) 60,000 households. 
D) 6,000,000 households. 
A) 600 households. 
B) 6,000 households. 
C) 60,000 households. 
D) 6,000,000 households.

Question 13

Frictional unemployment is inevitable because

Accepted Answer

A) sectoral shifts are always happening. 
B) there is a federal minimum-wage law in the U.S. 
C) some people do not want to be employed. 
D) unions are very popular in the U.S. 
A) sectoral shifts are always happening. 
B) there is a federal minimum-wage law in the U.S. 
C) some people do not want to be employed. 
D) unions are very popular in the U.S.

Question 14

More than 30 percent of U.S. workers leave their jobs in a typical month.

Accepted Answer

A) True 
 B)False

Question 15

A firm might offer efficiency wages to reduce worker turnover and thereby reduce production costs.

Accepted Answer

A) True 
 B)False

Question 16

The demand for labor by a certain firm is independent of the demand for that firm's product.

Accepted Answer

A) True 
 B)False

Question 17

Job search is the process of matching workers with appropriate jobs.

Accepted Answer

A) True 
 B)False

Question 18

Mario was laid off two months ago. He has not searched for other work because he is expecting to be recalled to work. In the U.S. labor force statistics Mario is counted 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) 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) not in the labor force.

Question 19

U.S. Department of Labor data show that minimum-wage workers tend to be young, less educated, more likely to be working part time, and concentrated in the leisure and hospitality industry.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is correct?

Accepted Answer

A) There is consensus among economists that unions are good for the economy. 
B) There is consensus among economists that unions are bad for the economy. 
C) There is consensus among economists that, on net, unions have almost no impact on macroeconomic variables. 
D) There is no consensus among economists about whether unions are good or bad for the economy. 
A) There is consensus among economists that unions are good for the economy. 
B) There is consensus among economists that unions are bad for the economy. 
C) There is consensus among economists that, on net, unions have almost no impact on macroeconomic variables. 
D) There is no consensus among economists about whether unions are good or bad for the economy.

Exam 15: Unemployment

Danielle did not work last week because flooding forced an evacuation of her workplace. The Bureau of Labor Statistics counts Danielle as

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

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

In the U.S., the National Labor Relations Board is the government agency that enforces workers' right to unionize.

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

The Bureau of Labor Statistics places people in the "employed" category if they

The Bureau of Labor Statistics' U-5 measure of joblessness is the official unemployment rate.

Minimum wage laws help explain the natural rate of unemployment if they create a surplus in any labor market.

In June 2009 the BLS reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was

The BLS counts discouraged workers as

Which of the following is not correct?

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about

Frictional unemployment is inevitable because

More than 30 percent of U.S. workers leave their jobs in a typical month.

A firm might offer efficiency wages to reduce worker turnover and thereby reduce production costs.

The demand for labor by a certain firm is independent of the demand for that firm's product.

Job search is the process of matching workers with appropriate jobs.

Mario was laid off two months ago. He has not searched for other work because he is expecting to be recalled to work. In the U.S. labor force statistics Mario is counted as

U.S. Department of Labor data show that minimum-wage workers tend to be young, less educated, more likely to be working part time, and concentrated in the leisure and hospitality industry.

Which of the following is correct?

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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