Question 1

Figure 28-2  
-Refer to Figure 28-2. If the minimum wage is $5 or $6, what is the number of people unemployed, respectively?

Accepted Answer

A) 40 and 0 
B) 20 and 20 
C) 40 and 20 
D) 0 and 0 
A) 40 and 0 
B) 20 and 20 
C) 40 and 20 
D) 0 and 0

Question 2

If the minimum wage was currently above the equilibrium wage, what would a decrease in the minimum wage do to the quantity demanded and quantity supplied of labour?

Accepted Answer

A) It would increase both the quantity demanded and the quantity supplied of labour. 
B) It would decrease both the quantity demanded and the quantity supplied of labour. 
C) It would increase the quantity of labour demanded and decrease the quantity supplied. 
D) It would decrease the quantity of labour demanded and increase the quantity supplied. 
A) It would increase both the quantity demanded and the quantity supplied of labour. 
B) It would decrease both the quantity demanded and the quantity supplied of labour. 
C) It would increase the quantity of labour demanded and decrease the quantity supplied. 
D) It would decrease the quantity of labour demanded and increase the quantity supplied.

Question 3

How is the labour-force participation rate computed?

Accepted Answer

A) as the number of adults in the labour force divided by the adult population times 100 
B) as the number of adults in the labour force divided by the number of unemployed times 100 
C) as the number of adults in the labour force divided by the unemployment rate times 100 
D) as the number of adults in the labour force times the participation rate times 100 
A) as the number of adults in the labour force divided by the adult population times 100 
B) as the number of adults in the labour force divided by the number of unemployed times 100 
C) as the number of adults in the labour force divided by the unemployment rate times 100 
D) as the number of adults in the labour force times the participation rate times 100

Question 4

According to your text, which of the following is not a reason that actual labour markets experience unemployment?

Accepted Answer

A) unions 
B) job search 
C) flexible wages 
D) minimum-wage legislation 
A) unions 
B) job search 
C) flexible wages 
D) minimum-wage legislation

Question 5

Tom is looking for work after school, but everywhere he fills out an application he is told that so have lots of others. Simon has a law degree. Several firms have made him offers, but he thinks he might be able to find a firm where his talents could be put to better use. To which categories of unemployment the two persons belong?

Accepted Answer

A) Tom and Simon are both frictionally unemployed. 
B) Tom and Simon are both structurally unemployed. 
C) Tom is frictionally unemployed, and Simon is structurally unemployed. 
D) Tom is structurally unemployed, and Simon is frictionally unemployed. 
A) Tom and Simon are both frictionally unemployed. 
B) Tom and Simon are both structurally unemployed. 
C) Tom is frictionally unemployed, and Simon is structurally unemployed. 
D) Tom is structurally unemployed, and Simon is frictionally unemployed.

Question 6

Figure 28-1  
-Refer to Figure 28-1. If there was no minimum wage and then the government instituted a minimum wage of $6, what would happen to employment in this market?

Accepted Answer

A) Employment would rise by 10. 
B) Employment would fall by 20. 
C) Unemployment would increase by 10. 
D) Unemployment would increase by 20. 
A) Employment would rise by 10. 
B) Employment would fall by 20. 
C) Unemployment would increase by 10. 
D) Unemployment would increase by 20.

Question 7

Statistics Canada provides labour data as presented in the table below. Based on this data, answer the following questions.
   
a.What was the labour force in June 2010?
b.What was the participation rate?
c.What was the unemployment rate?
d.What was the employment rate?

Accepted Answer

a.Labour force = unemployed + employed (

Question 8

In 2007, how much did the government budget for the EI program?

Accepted Answer

A) about $5 billion 
B) about $10 billion 
C) about $12 million 
D) about $18 billion 
A) about $5 billion 
B) about $10 billion 
C) about $12 million 
D) about $18 billion

Question 9

Some people are unemployed because they are searching for a very specific job. How are these people best classified?

Accepted Answer

A) as cyclically unemployed 
B) as structurally unemployed 
C) as frictionally unemployed 
D) as discouraged workers 
A) as cyclically unemployed 
B) as structurally unemployed 
C) as frictionally unemployed 
D) as discouraged workers

Question 10

Government policy can do nothing about the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following best defines the labour force?

Accepted Answer

A) the number of employed 
B) the population minus the number of unemployed 
C) the population aged 15or over 
D) the number of unemployed plus the number of employed 
A) the number of employed 
B) the population minus the number of unemployed 
C) the population aged 15or over 
D) the number of unemployed plus the number of employed

Question 12

How is the unemployment rate computed?

Accepted Answer

A) as the number of unemployed divided by the labour force times 100 
B) as the number of unemployed divided by the number of people employed times 100 
C) as the number of unemployed divided by the adult population times 100 
D) as the number of unemployed times the participation rate times 100 
A) as the number of unemployed divided by the labour force times 100 
B) as the number of unemployed divided by the number of people employed times 100 
C) as the number of unemployed divided by the adult population times 100 
D) as the number of unemployed times the participation rate times 100

Question 13

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 labour force in Dan?

Accepted Answer

A) 90 million 
B) 150 million 
C) 160 million 
D) 230 million 
A) 90 million 
B) 150 million 
C) 160 million 
D) 230 million

Question 14

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws. (Hint: who is likely to get paid more?)

Accepted Answer

People who are experienced and educated

Question 15

Which of the following best defines collective bargaining?

Accepted Answer

A) It is the process by which the government sets exemptions from the minimum wage law. 
B) It is setting the same wage for all employees to prevent jealousy among workers. 
C) It is the situation when firms collude to set the wages of employees in order to keep them below equilibrium. 
D) It is the process by which unions and firms agree on the terms of employment. 
A) It is the process by which the government sets exemptions from the minimum wage law. 
B) It is setting the same wage for all employees to prevent jealousy among workers. 
C) It is the situation when firms collude to set the wages of employees in order to keep them below equilibrium. 
D) It is the process by which unions and firms agree on the terms of employment.

Question 16

How do sectoral shifts in the economy affect unemployment?

Accepted Answer

A) They create structural unemployment. 
B) They reduce unemployment. 
C) They increase unemployment due to job search. 
D) Overall, they leave unemployment unchanged. 
A) They create structural unemployment. 
B) They reduce unemployment. 
C) They increase unemployment due to job search. 
D) Overall, they leave unemployment unchanged.

Question 17

In Canada, about what fraction of the time do spells of unemployment end with the person leaving the labour force?

Accepted Answer

A) 1/5 of the time 
B) 1/4 of the time 
C) 1/3 of the time 
D) 1/2 of the time 
A) 1/5 of the time 
B) 1/4 of the time 
C) 1/3 of the time 
D) 1/2 of the time

Question 18

Which of the following explanations of the natural rate of unemployment is most important for the Canadian economy?

Accepted Answer

A) job search 
B) minimum-wage laws 
C) unions 
D) Economists have not determined the answer to this question. 
A) job search 
B) minimum-wage laws 
C) unions 
D) Economists have not determined the answer to this question.

Question 19

Figure 28-1  
-Refer to Figure 28-1. If there was a minimum wage of $4 and then the government instituted a minimum wage of $5, what would happen to employment in this market?

Accepted Answer

A) Unemployment would be unchanged. 
B) Unemployment would drop by 10. 
C) Unemployment would rise by 10. 
D) Unemployment would rise by 20. 
A) Unemployment would be unchanged. 
B) Unemployment would drop by 10. 
C) Unemployment would rise by 10. 
D) Unemployment would rise by 20.

Question 20

Mary Sue is the newly appointed CEO of a company that manufactures CD drives on an assembly line. Her staff has told her that the output the firm produces, given the number of workers employed, indicates that some workers may be shirking. According to efficiency wage theory, which of the following should she do?

Accepted Answer

A) pay all workers more than the equilibrium wage rate 
B) pay all workers below the equilibrium wage rate to make up for the loss from shirking 
C) make sure that workers are getting paid exactly the equilibrium wage rate 
D) reduce production 
A) pay all workers more than the equilibrium wage rate 
B) pay all workers below the equilibrium wage rate to make up for the loss from shirking 
C) make sure that workers are getting paid exactly the equilibrium wage rate 
D) reduce production

Figure 28-2 -Refer to Figure 28-2. If the minimum wage is $5 or $6, what is the number of people unemployed, respectively?

If the minimum wage was currently above the equilibrium wage, what would a decrease in the minimum wage do to the quantity demanded and quantity supplied of labour?

How is the labour-force participation rate computed?

According to your text, which of the following is not a reason that actual labour markets experience unemployment?

Figure 28-1 -Refer to Figure 28-1. If there was no minimum wage and then the government instituted a minimum wage of $6, what would happen to employment in this market?

Statistics Canada provides labour data as presented in the table below. Based on this data, answer the following questions. a.What was the labour force in June 2010? b.What was the participation rate? c.What was the unemployment rate? d.What was the employment rate?

In 2007, how much did the government budget for the EI program?

Some people are unemployed because they are searching for a very specific job. How are these people best classified?

Government policy can do nothing about the natural rate of unemployment.

Which of the following best defines the labour force?

How is the unemployment rate computed?

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 labour force in Dan?

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws. (Hint: who is likely to get paid more?)

Which of the following best defines collective bargaining?

How do sectoral shifts in the economy affect unemployment?

In Canada, about what fraction of the time do spells of unemployment end with the person leaving the labour force?

Which of the following explanations of the natural rate of unemployment is most important for the Canadian economy?

Figure 28-1 -Refer to Figure 28-1. If there was a minimum wage of $4 and then the government instituted a minimum wage of $5, what would happen to employment in this market?

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

Figure 28-2 -Refer to Figure 28-2. If the minimum wage is $5 or $6, what is the number of people unemployed, respectively?

If the minimum wage was currently above the equilibrium wage, what would a decrease in the minimum wage do to the quantity demanded and quantity supplied of labour?

How is the labour-force participation rate computed?

According to your text, which of the following is not a reason that actual labour markets experience unemployment?

Figure 28-1 -Refer to Figure 28-1. If there was no minimum wage and then the government instituted a minimum wage of $6, what would happen to employment in this market?

Statistics Canada provides labour data as presented in the table below. Based on this data, answer the following questions. a.What was the labour force in June 2010? b.What was the participation rate? c.What was the unemployment rate? d.What was the employment rate?

In 2007, how much did the government budget for the EI program?

Some people are unemployed because they are searching for a very specific job. How are these people best classified?

Government policy can do nothing about the natural rate of unemployment.

Which of the following best defines the labour force?

How is the unemployment rate computed?

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 labour force in Dan?

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws. (Hint: who is likely to get paid more?)

Which of the following best defines collective bargaining?

How do sectoral shifts in the economy affect unemployment?

In Canada, about what fraction of the time do spells of unemployment end with the person leaving the labour force?

Which of the following explanations of the natural rate of unemployment is most important for the Canadian economy?

Figure 28-1 -Refer to Figure 28-1. If there was a minimum wage of $4 and then the government instituted a minimum wage of $5, what would happen to employment in this market?

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