Question 1

Which of the following would be the most likely effect of an increase in the world price of oil that would create a sectoral shift?

Accepted Answer

A) There would be a decrease in unemployment, and the decrease would be greater in a country with unemployment insurance than in one without. 
B) There would be a decrease in unemployment, but the decrease would be smaller in a country with unemployment insurance than in one without. 
C) There would be an increase in unemployment, and the increase would be greater in a country with unemployment insurance than in one without. 
D) There would be an increase in unemployment, but the increase would be smaller in a country with unemployment insurance than in one without. 
A) There would be a decrease in unemployment, and the decrease would be greater in a country with unemployment insurance than in one without. 
B) There would be a decrease in unemployment, but the decrease would be smaller in a country with unemployment insurance than in one without. 
C) There would be an increase in unemployment, and the increase would be greater in a country with unemployment insurance than in one without. 
D) There would be an increase in unemployment, but the increase would be smaller in a country with unemployment insurance than in one without.

Question 2

What does the labour-force participation rate measure?

Accepted Answer

A) the percentage of the total adult population that is in the labour force 
B) the percentage of the total adult population that is employed 
C) the percentage of the labour force that is employed 
D) the percentage of the labour force that is either employed or unemployed 
A) the percentage of the total adult population that is in the labour force 
B) the percentage of the total adult population that is employed 
C) the percentage of the labour force that is employed 
D) the percentage of the labour force that is either employed or unemployed

Question 3

Some people are counted as out of the labour force because they have made no serious or recent effort to look for work. However, some of these people may want to work even though they are too discouraged to make a serious effort. If these persons were counted as unemployed instead of out of the labour force, how would the labour statistics change?

Accepted Answer

A) The unemployment rate and the labour-force participation rate would be higher. 
B) The unemployment rate would be higher and the labour-force participation rate would be lower. 
C) The unemployment rate would be lower and the labour-force participation rate would be higher. 
D) The unemployment rate and the labour-force participation rate would be lower. 
A) The unemployment rate and the labour-force participation rate would be higher. 
B) The unemployment rate would be higher and the labour-force participation rate would be lower. 
C) The unemployment rate would be lower and the labour-force participation rate would be higher. 
D) The unemployment rate and the labour-force participation rate would be lower.

Question 4

Why did Henry Ford decide to pay $5.00 per day to his workers?

Accepted Answer

A) He was forced by a union to pay $5.00 per day. 
B) He paid $5.00 per day to improve worker nutrition. 
C) He believed that $5.00 a day would increase worker productivity. 
D) He paid $5.00 per day to illustrate that he was a humanitarian. 
A) He was forced by a union to pay $5.00 per day. 
B) He paid $5.00 per day to improve worker nutrition. 
C) He believed that $5.00 a day would increase worker productivity. 
D) He paid $5.00 per day to illustrate that he was a humanitarian.

Question 5

Which of the following is the consensus among economists with respect to unions?

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.

Question 6

Which of the following is most likely to cause frictional unemployment?

Accepted Answer

A) workers leaving the labour force 
B) an economy in recession 
C) an increase in population 
D) changes in the composition of demand among industries or regions 
A) workers leaving the labour force 
B) an economy in recession 
C) an increase in population 
D) changes in the composition of demand among industries or regions

Question 7

In 2000 in Japan, based on concepts similar to those used to compute Canadian employment statistics, the unemployment rate was about 4.8 percent, the labour force participation rate was about 62 percent, and the adult population was about 108 million. How many people were employed?

Accepted Answer

A) about 52 million 
B) about 64 million 
C) about 67 million 
D) about 103 million 
A) about 52 million 
B) about 64 million 
C) about 67 million 
D) about 103 million

Question 8

Curtis is a stockbroker. He has had several job offers, but he has turned them down because he thinks he can find a firm that better matches his tastes and skills. John is an accountant. He has looked for work for some time, but no accounting firms are hiring. Which of the following best describes the nature of their unemployment?

Accepted Answer

A) John and Curtis are both frictionally unemployed. 
B) John and Curtis are both structurally unemployed. 
C) Curtis is frictionally unemployed, and John is structurally unemployed. 
D) Curtis is structurally unemployed, and John is frictionally unemployed. 
A) John and Curtis are both frictionally unemployed. 
B) John and Curtis are both structurally unemployed. 
C) Curtis is frictionally unemployed, and John is structurally unemployed. 
D) Curtis is structurally unemployed, and John is frictionally unemployed.

Question 9

Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labour force instead of as unemployed, how would the labour statistics change?

Accepted Answer

A) The unemployment rate and the labour-force participation rate would be higher. 
B) The unemployment rate and the labour-force participation rate would be lower. 
C) The unemployment rate would be lower and the labour-force participation rate would be higher. 
D) The unemployment rate would be higher and the labour-force participation rate would be lower. 
A) The unemployment rate and the labour-force participation rate would be higher. 
B) The unemployment rate and the labour-force participation rate would be lower. 
C) The unemployment rate would be lower and the labour-force participation rate would be higher. 
D) The unemployment rate would be higher and the labour-force participation rate would be lower.

Question 10

When a union bargains successfully with an employer, which of the following happens to unemployment and wages in that industry?

Accepted Answer

A) unemployment and wages increase 
B) unemployment and wages decrease 
C) unemployment decreases and wages increase 
D) unemployment increases and wages decrease 
A) unemployment and wages increase 
B) unemployment and wages decrease 
C) unemployment decreases and wages increase 
D) unemployment increases and wages decrease

Question 11

What does cyclical unemployment refer to?

Accepted Answer

A) the relation between the probability of unemployment and a worker's changing level of experience 
B) how often a worker is likely to be employed during her lifetime 
C) year-to-year fluctuations of unemployment around its natural rate 
D) long-term trends in unemployment 
A) the relation between the probability of unemployment and a worker's changing level of experience 
B) how often a worker is likely to be employed during her lifetime 
C) year-to-year fluctuations of unemployment around its natural rate 
D) long-term trends in unemployment

Question 12

Which of the following does the natural unemployment rate include?

Accepted Answer

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

Question 13

What is the approximate labour-force participation rate of the Canadian adult population (aged 15 and over)?

Accepted Answer

A) 47 percent 
B) 55 percent 
C) 67 percent 
D) 75 percent 
A) 47 percent 
B) 55 percent 
C) 67 percent 
D) 75 percent

Question 14

Efficiency wages create structural unemployment.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following best defines job search?

Accepted Answer

A) It is a process through which the firms determine the equilibrium wage. 
B) It is an imbalance between labour supply and labour demand. 
C) It is the process of matching workers with appropriate jobs. 
D) It is the process through which firms hire new employees. 
A) It is a process through which the firms determine the equilibrium wage. 
B) It is an imbalance between labour supply and labour demand. 
C) It is the process of matching workers with appropriate jobs. 
D) It is the process through which firms hire new employees.

Question 16

What is the effect of minimum wage laws on unemployment?

Accepted Answer

A) Minimum wage laws are the major cause of natural unemployment. 
B) Minimum wage laws probably increase teenage unemployment. 
C) Minimum wage laws mainly affect skilled workers. 
D) Minimum wage laws have no impact on unemployment. 
A) Minimum wage laws are the major cause of natural unemployment. 
B) Minimum wage laws probably increase teenage unemployment. 
C) Minimum wage laws mainly affect skilled workers. 
D) Minimum wage laws have no impact on unemployment.

Question 17

Which of the following would we predict if a country increases its unemployment compensation?

Accepted Answer

A) The country would have shorter durations of each spell of unemployment, and it would have a higher unemployment. 
B) The country would have shorter durations of each spell of unemployment, and it would have a lower unemployment rate 
C) The country would have longer durations of each spell of unemployment, and it would have a higher unemployment rate. 
D) The country would have longer durations of each spell of unemployment, and it would have a lower unemployment. 
A) The country would have shorter durations of each spell of unemployment, and it would have a higher unemployment. 
B) The country would have shorter durations of each spell of unemployment, and it would have a lower unemployment rate 
C) The country would have longer durations of each spell of unemployment, and it would have a higher unemployment rate. 
D) The country would have longer durations of each spell of unemployment, and it would have a lower unemployment.

Question 18

From time to time, the demand for workers has risen in one region of Canada and fallen in another. Which of the following types of unemployment does this occurrence illustrate?

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 19

In which of the following situations would Statistics Canada count a person as unemployed?

Accepted Answer

A) when that person is not in the labour force 
B) when that person is not looking for work 
C) when that person is under the age of 15 
D) when that person is age 15or over and looking for work 
A) when that person is not in the labour force 
B) when that person is not looking for work 
C) when that person is under the age of 15 
D) when that person is age 15or over and looking for work

Question 20

The table below uses data for the year 2000 provided by Statistics Canada and adjusted to be comparable to U.S. data. All values are in millions. Fill in the blank entries in the table. Show your work.

Accepted Answer

The answer of The table below uses data for the...

Which of the following would be the most likely effect of an increase in the world price of oil that would create a sectoral shift?

What does the labour-force participation rate measure?

Why did Henry Ford decide to pay $5.00 per day to his workers?

Which of the following is the consensus among economists with respect to unions?

Which of the following is most likely to cause frictional unemployment?

In 2000 in Japan, based on concepts similar to those used to compute Canadian employment statistics, the unemployment rate was about 4.8 percent, the labour force participation rate was about 62 percent, and the adult population was about 108 million. How many people were employed?

Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labour force instead of as unemployed, how would the labour statistics change?

When a union bargains successfully with an employer, which of the following happens to unemployment and wages in that industry?

What does cyclical unemployment refer to?

Which of the following does the natural unemployment rate include?

What is the approximate labour-force participation rate of the Canadian adult population (aged 15 and over)?

Efficiency wages create structural unemployment.

Which of the following best defines job search?

What is the effect of minimum wage laws on unemployment?

Which of the following would we predict if a country increases its unemployment compensation?

From time to time, the demand for workers has risen in one region of Canada and fallen in another. Which of the following types of unemployment does this occurrence illustrate?

In which of the following situations would Statistics Canada count a person as unemployed?

The table below uses data for the year 2000 provided by Statistics Canada and adjusted to be comparable to U.S. data. All values are in millions. Fill in the blank entries in the table. Show your work.

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

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 Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 9: Unemployment and Its Natural Rate

Which of the following would be the most likely effect of an increase in the world price of oil that would create a sectoral shift?

What does the labour-force participation rate measure?

Why did Henry Ford decide to pay $5.00 per day to his workers?

Which of the following is the consensus among economists with respect to unions?

Which of the following is most likely to cause frictional unemployment?

In 2000 in Japan, based on concepts similar to those used to compute Canadian employment statistics, the unemployment rate was about 4.8 percent, the labour force participation rate was about 62 percent, and the adult population was about 108 million. How many people were employed?

Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labour force instead of as unemployed, how would the labour statistics change?

When a union bargains successfully with an employer, which of the following happens to unemployment and wages in that industry?

What does cyclical unemployment refer to?

Which of the following does the natural unemployment rate include?

What is the approximate labour-force participation rate of the Canadian adult population (aged 15 and over)?

Efficiency wages create structural unemployment.

Which of the following best defines job search?

What is the effect of minimum wage laws on unemployment?

Which of the following would we predict if a country increases its unemployment compensation?

From time to time, the demand for workers has risen in one region of Canada and fallen in another. Which of the following types of unemployment does this occurrence illustrate?

In which of the following situations would Statistics Canada count a person as unemployed?

The table below uses data for the year 2000 provided by Statistics Canada and adjusted to be comparable to U.S. data. All values are in millions. Fill in the blank entries in the table. Show your work.

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

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 Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters