Question 1

Which of the following people would NOT be included in the labour force?

Accepted Answer

A) Karen, who works most of the week in a steel factory 
B) Beth, who is waiting for her new job at the bank to start 
C) Dave, who does not have a job, but is looking for work 
D) Jeremiah, who does only voluntary work for charity organizations 
A) Karen, who works most of the week in a steel factory 
B) Beth, who is waiting for her new job at the bank to start 
C) Dave, who does not have a job, but is looking for work 
D) Jeremiah, who does only voluntary work for charity organizations

Question 2

Dawn is the CEO of a corporation that hires nonunion labour. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, which of the following is most likely to happen?

Accepted Answer

A) The profits of her firm may increase. 
B) The higher wages will induce her workers to shirk. 
C) The turnover of her workers may increase. 
D) She will face a shortage of labour. 
A) The profits of her firm may increase. 
B) The higher wages will induce her workers to shirk. 
C) The turnover of her workers may increase. 
D) She will face a shortage of labour.

Question 3

Regarding the categories of unemployment, which of the following best describes how the effect of sectoral changes compares to the effect of firms paying higher-than-equilibrium wages?

Accepted Answer

A) Sectoral changes create frictional unemployment, while firms paying wages above equilibrium create structural unemployment. 
B) Sectoral changes create structural unemployment, while firms paying wages above equilibrium create frictional unemployment. 
C) Sectoral changes and firms paying wages above equilibrium both create structural unemployment. 
D) Sectoral changes and firms paying wages above equilibrium both create frictional unemployment. 
A) Sectoral changes create frictional unemployment, while firms paying wages above equilibrium create structural unemployment. 
B) Sectoral changes create structural unemployment, while firms paying wages above equilibrium create frictional unemployment. 
C) Sectoral changes and firms paying wages above equilibrium both create structural unemployment. 
D) Sectoral changes and firms paying wages above equilibrium both create frictional unemployment.

Question 4

Most spells of unemployment are short, and most unemployment observed at any given time is long term. How can this be?

Accepted Answer

Most unemployed people in the economy ar

Question 5

Which of the following people would NOT be included in the labour force?

Accepted Answer

A) Jay, who is on temporary layoff 
B) Mike, who has retired and is not looking for work 
C) Jane, who does not have a job, but has applied for several in the last week 
D) Joan, who has a job but is looking for a new one 
A) Jay, who is on temporary layoff 
B) Mike, who has retired and is not looking for work 
C) Jane, who does not have a job, but has applied for several in the last week 
D) Joan, who has a job but is looking for a new one

Question 6

Based on evidence given in your text, which of the following is an effect of employment-insurance benefits on the job-search efforts of the unemployed?

Accepted Answer

A) Unemployment-insurance benefits decrease the job-search effort of the unemployed. 
B) Unemployment-insurance benefits have no effect on the job-search effort of the unemployed. 
C) Unemployment-insurance benefits increase the job-search effort of the unemployed. 
D) Unemployment-insurance benefits have an uncertain effect on the job-search effort of the unemployed. 
A) Unemployment-insurance benefits decrease the job-search effort of the unemployed. 
B) Unemployment-insurance benefits have no effect on the job-search effort of the unemployed. 
C) Unemployment-insurance benefits increase the job-search effort of the unemployed. 
D) Unemployment-insurance benefits have an uncertain effect on the job-search effort of the unemployed.

Question 7

Which one of the following people would be counted as unemployed according to official statistics?

Accepted Answer

A) Shasta, who is currently not working and is waiting for her new job to start 
B) Mary, who worked only 35 hours last week 
C) Karen, who neither has a job nor is looking for one 
D) Kevin, who is a retiree 
A) Shasta, who is currently not working and is waiting for her new job to start 
B) Mary, who worked only 35 hours last week 
C) Karen, who neither has a job nor is looking for one 
D) Kevin, who is a retiree

Question 8

How is Latoya, a homemaker who works as a volunteer at the local Red Cross and is currently not looking for a job, counted?

Accepted Answer

A) as employed and in the labour force 
B) as unemployed and in the labour force 
C) as unemployed and not in the labour force 
D) as not in the labour force 
A) as employed and in the labour force 
B) as unemployed and in the labour force 
C) as unemployed and not in the labour force 
D) as not in the labour force

Question 9

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

Accepted Answer

A) the minimum wage 
B) a worker leaving a job to find one with better benefits 
C) labour unions 
D) an increase in the income tax 
A) the minimum wage 
B) a worker leaving a job to find one with better benefits 
C) labour unions 
D) an increase in the income tax

Question 10

Which of the following countries has the lowest percentage of unionized workers?

Accepted Answer

A) the United States 
B) Canada 
C) Sweden 
D) Denmark 
A) the United States 
B) Canada 
C) Sweden 
D) Denmark

Question 11

Which of the following impacts does employment insurance have on the labour market?

Accepted Answer

A) It reduces search effort and raises unemployment. 
B) It reduces search efforts and lowers unemployment. 
C) It increases search effort and raises unemployment. 
D) It increases search effort and decreases unemployment. 
A) It reduces search effort and raises unemployment. 
B) It reduces search efforts and lowers unemployment. 
C) It increases search effort and raises unemployment. 
D) It increases search effort and decreases unemployment.

Question 12

Approximately what percentage of all Canadian workers are union members?

Accepted Answer

A) 95 percent 
B) 25 percent 
C) 50 percent 
D) 5 percent 
A) 95 percent 
B) 25 percent 
C) 50 percent 
D) 5 percent

Question 13

How often is data on unemployment reported?

Accepted Answer

A) weekly 
B) monthly 
C) quarterly 
D) yearly 
A) weekly 
B) monthly 
C) quarterly 
D) yearly

Question 14

Table 28-1. This table shows the 2007 data for males and females aged 15 and over in the country of Dan.
  
-Refer to Table 28-1. What is the adult male population in Dan?

Accepted Answer

A) 85 million 
B) 105 million 
C) 120 million 
D) 135 million 
A) 85 million 
B) 105 million 
C) 120 million 
D) 135 million

Question 15

Which of the following is most likely to happen when someone becomes unemployed?

Accepted Answer

A) It is likely that the person will be unemployed a long time and that most of the unemployed he or she joins have been unemployed a long time. 
B) It is likely that the person will be unemployed for a long time, even though most of the unemployed he or she joins have been unemployed for a short time. 
C) It is likely that the person will be unemployed for a short time, even though most of the unemployed he or she joins have been unemployed for a long time. 
D) It is likely that the person will be unemployed for a short time, and that most of the unemployed he or she joins have been unemployed for a short time. 
A) It is likely that the person will be unemployed a long time and that most of the unemployed he or she joins have been unemployed a long time. 
B) It is likely that the person will be unemployed for a long time, even though most of the unemployed he or she joins have been unemployed for a short time. 
C) It is likely that the person will be unemployed for a short time, even though most of the unemployed he or she joins have been unemployed for a long time. 
D) It is likely that the person will be unemployed for a short time, and that most of the unemployed he or she joins have been unemployed for a short time.

Question 16

Tara has just finished school, but she is going to roam around the country awhile before she starts looking for work. Which of the following best characterizes the changes that occur in labour statistics?

Accepted Answer

A) The unemployment rate increases, and the labour-force participation rate increases. 
B) The unemployment rate is unaffected, and the labour-force participation rate is unaffected. 
C) The unemployment rate increases, and the labour-force participation rate decreases. 
D) The unemployment rate increases, and the labour-force participation rate is unaffected. 
A) The unemployment rate increases, and the labour-force participation rate increases. 
B) The unemployment rate is unaffected, and the labour-force participation rate is unaffected. 
C) The unemployment rate increases, and the labour-force participation rate decreases. 
D) The unemployment rate increases, and the labour-force participation rate is unaffected.

Question 17

Which of the following is most likely to reduce the natural rate of unemployment?

Accepted Answer

A) the Internet providing more readily available information about available jobs 
B) provincial legislators voting for increasing the minimum wage 
C) passing laws that make it more difficult to monitor the efforts of workers 
D) firms offering higher-than-equilibrium wages to attract better job candidates 
A) the Internet providing more readily available information about available jobs 
B) provincial legislators voting for increasing the minimum wage 
C) passing laws that make it more difficult to monitor the efforts of workers 
D) firms offering higher-than-equilibrium wages to attract better job candidates

Question 18

Which of the following is characteristic of the relationship between unemployment insurance and job-search effort?

Accepted Answer

A) Unemployment insurance raises structural unemployment because it reduces the job search of the unemployed. 
B) Most economists are sceptical of the value of unemployment insurance because they believe that it results in a poorer match between workers and jobs. 
C) A typical unemployed worker near the end of the time in which he or she can receive benefits increases job-search efforts. 
D) Unemployed people need to put less job-search effort now than they did in 1971 because in 1971 the conditions to receive unemployment benefits were stricter than today. 
A) Unemployment insurance raises structural unemployment because it reduces the job search of the unemployed. 
B) Most economists are sceptical of the value of unemployment insurance because they believe that it results in a poorer match between workers and jobs. 
C) A typical unemployed worker near the end of the time in which he or she can receive benefits increases job-search efforts. 
D) Unemployed people need to put less job-search effort now than they did in 1971 because in 1971 the conditions to receive unemployment benefits were stricter than today.

Question 19

Full-time students, retirees, and unpaid stay-at-home fathers are counted as unemployed.

Accepted Answer

A) True 
 B)False

Question 20

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

Which of the following people would NOT be included in the labour force?

Dawn is the CEO of a corporation that hires nonunion labour. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, which of the following is most likely to happen?

Regarding the categories of unemployment, which of the following best describes how the effect of sectoral changes compares to the effect of firms paying higher-than-equilibrium wages?

Most spells of unemployment are short, and most unemployment observed at any given time is long term. How can this be?

Which of the following people would NOT be included in the labour force?

Based on evidence given in your text, which of the following is an effect of employment-insurance benefits on the job-search efforts of the unemployed?

Which one of the following people would be counted as unemployed according to official statistics?

How is Latoya, a homemaker who works as a volunteer at the local Red Cross and is currently not looking for a job, counted?

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

Which of the following countries has the lowest percentage of unionized workers?

Which of the following impacts does employment insurance have on the labour market?

Approximately what percentage of all Canadian workers are union members?

How often is data on unemployment reported?

Table 28-1. This table shows the 2007 data for males and females aged 15 and over in the country of Dan. -Refer to Table 28-1. What is the adult male population in Dan?

Which of the following is most likely to happen when someone becomes unemployed?

Tara has just finished school, but she is going to roam around the country awhile before she starts looking for work. Which of the following best characterizes the changes that occur in labour statistics?

Which of the following is most likely to reduce the natural rate of unemployment?

Which of the following is characteristic of the relationship between unemployment insurance and job-search effort?

Full-time students, retirees, and unpaid stay-at-home fathers are counted as unemployed.

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.

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 people would NOT be included in the labour force?

Dawn is the CEO of a corporation that hires nonunion labour. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, which of the following is most likely to happen?

Regarding the categories of unemployment, which of the following best describes how the effect of sectoral changes compares to the effect of firms paying higher-than-equilibrium wages?

Most spells of unemployment are short, and most unemployment observed at any given time is long term. How can this be?

Which of the following people would NOT be included in the labour force?

Based on evidence given in your text, which of the following is an effect of employment-insurance benefits on the job-search efforts of the unemployed?

Which one of the following people would be counted as unemployed according to official statistics?

How is Latoya, a homemaker who works as a volunteer at the local Red Cross and is currently not looking for a job, counted?

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

Which of the following countries has the lowest percentage of unionized workers?

Which of the following impacts does employment insurance have on the labour market?

Approximately what percentage of all Canadian workers are union members?

How often is data on unemployment reported?

Table 28-1. This table shows the 2007 data for males and females aged 15 and over in the country of Dan. -Refer to Table 28-1. What is the adult male population in Dan?

Which of the following is most likely to happen when someone becomes unemployed?

Tara has just finished school, but she is going to roam around the country awhile before she starts looking for work. Which of the following best characterizes the changes that occur in labour statistics?

Which of the following is most likely to reduce the natural rate of unemployment?

Which of the following is characteristic of the relationship between unemployment insurance and job-search effort?

Full-time students, retirees, and unpaid stay-at-home fathers are counted as unemployed.

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.

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