Question 1

Someone who is without work but is not looking for work would be counted as unemployed.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a possible effect of unions?

Accepted Answer

A) Unions decrease the natural rate of unemployment. 
B) Unions decrease the wages of workers in the union. 
C) Unions raise the profits of firms they work for. 
D) Unions cause wages of nonunionized workers to fall. 
A) Unions decrease the natural rate of unemployment. 
B) Unions decrease the wages of workers in the union. 
C) Unions raise the profits of firms they work for. 
D) Unions cause wages of nonunionized workers to fall.

Question 3

Prime Minister Bigego is running for re-election against Finance Minister Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. Which of the following can you conclude?

Accepted Answer

A) One of them must be lying. 
B) Both of them could be telling the truth if the labour force participation rate and the labour force both fell. 
C) Both of them could be telling the truth if the labour force grew slower than employment. 
D) Both of them could be telling the truth if the labour force grew faster than employment. 
A) One of them must be lying. 
B) Both of them could be telling the truth if the labour force participation rate and the labour force both fell. 
C) Both of them could be telling the truth if the labour force grew slower than employment. 
D) Both of them could be telling the truth if the labour force grew faster than employment.

Question 4

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 female unemployment rate in Dan?

Accepted Answer

A) 4.76 percent 
B) 5.56 percent 
C) 7.14 percent 
D) 7.69 percent 
A) 4.76 percent 
B) 5.56 percent 
C) 7.14 percent 
D) 7.69 percent

Question 5

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 population in Dan?

Accepted Answer

A) 90 million 
B) 150 million 
C) 160 million 
D) 240 million 
A) 90 million 
B) 150 million 
C) 160 million 
D) 240 million

Question 6

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 labour force in Dan?

Accepted Answer

A) 85 million 
B) 90 million 
C) 100 million 
D) 120 million 
A) 85 million 
B) 90 million 
C) 100 million 
D) 120 million

Question 7

What is the theory of efficiency wages? Give a couple of explanations for how efficiency wages might work.

Accepted Answer

According to the theory of efficiency wa

Question 8

Which of the following is characteristic of the natural rate of unemployment?

Accepted Answer

A) It is a constant. 
B) It is the desirable rate of unemployment. 
C) It is a variable that cannot be altered by economic policy. 
D) It is the amount of unemployment that the economy normally experiences. 
A) It is a constant. 
B) It is the desirable rate of unemployment. 
C) It is a variable that cannot be altered by economic policy. 
D) It is the amount of unemployment that the economy normally experiences.

Question 9

Arnie is the owner of a firm that produces bottled water in Alberta. There are many such firms in the area. Arnie decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

Accepted Answer

A) The higher the wage, the less often his workers will choose to leave his firm. 
B) The higher the wage, the lower will be the cost of obtaining needed supplies. 
C) The higher the wage, the more he can charge for his water. 
D) The higher the wage, the less competition will be in the industry. 
A) The higher the wage, the less often his workers will choose to leave his firm. 
B) The higher the wage, the lower will be the cost of obtaining needed supplies. 
C) The higher the wage, the more he can charge for his water. 
D) The higher the wage, the less competition will be in the industry.

Question 10

Which of the following causes of unemployment is NOT associated with an excess supply of labour?

Accepted Answer

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

Question 11

Anna has just finished school and started looking for a job, but has not yet found one. To which of the following pairs of categories does Anna now belong?

Accepted Answer

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

Question 12

When unions raise wages in some sectors of the economy, which of the following happens to the supply of labour in other sectors of the economy?

Accepted Answer

A) It decreases, raising wages in industries that are not unionized. 
B) It decreases, reducing wages in industries that are not unionized. 
C) It increases, raising wages in industries that are not unionized. 
D) It increases, reducing wages in industries that are not unionized. 
A) It decreases, raising wages in industries that are not unionized. 
B) It decreases, reducing wages in industries that are not unionized. 
C) It increases, raising wages in industries that are not unionized. 
D) It increases, reducing wages in industries that are not unionized.

Question 13

According to economists, how should the reported unemployment rate be viewed?

Accepted Answer

A) as a useful but imperfect measure of joblessness 
B) as clearly smaller than the true unemployment rate 
C) as clearly larger than the true unemployment rate 
D) as being very close to the true unemployment rate 
A) as a useful but imperfect measure of joblessness 
B) as clearly smaller than the true unemployment rate 
C) as clearly larger than the true unemployment rate 
D) as being very close to the true unemployment rate

Question 14

Right-to-work laws allow striking union members to be permanently replaced.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following causes of unemployment is NOT associated with a wage rate above the equilibrium level?

Accepted Answer

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

Question 16

Which of the following best defines the natural rate of unemployment?

Accepted Answer

A) It is the unemployment rate that would prevail with zero inflation. 
B) It is the rate associated with the highest possible level of GDP. 
C) It is the difference between the long-run and short-run unemployment rates. 
D) It is the amount of unemployment that the economy normally experiences. 
A) It is the unemployment rate that would prevail with zero inflation. 
B) It is the rate associated with the highest possible level of GDP. 
C) It is the difference between the long-run and short-run unemployment rates. 
D) It is the amount of unemployment that the economy normally experiences.

Question 17

Which of the following lists includes all the categories into which Statistics Canada divides the adult population?

Accepted Answer

A) employed or unemployed 
B) discouraged workers, employed, or unemployed 
C) employed, unemployed, or not in the labour force 
D) discouraged workers, employed, or not in the labour force 
A) employed or unemployed 
B) discouraged workers, employed, or unemployed 
C) employed, unemployed, or not in the labour force 
D) discouraged workers, employed, or not in the labour force

Question 18

How does the labour-force participation rate of women just after World War II compare to the same statistic today?

Accepted Answer

A) Today, labour-force participation rate of women is about 2.1 times the one after World War II. 
B) Today, labour-force participation rate of women is about 2.6 times the one after World War II. 
C) Today, labour-force participation rate of women is about 3.2 times the one after World War II. 
D) Today, labour-force participation rate of women is about 4.2 times the one after World War II. 
A) Today, labour-force participation rate of women is about 2.1 times the one after World War II. 
B) Today, labour-force participation rate of women is about 2.6 times the one after World War II. 
C) Today, labour-force participation rate of women is about 3.2 times the one after World War II. 
D) Today, labour-force participation rate of women is about 4.2 times the one after World War II.

Question 19

Consider an economy where population increases, which in turn causes both the demand for goods and services and the supply of labour increase.
a.In a labour supply and demand diagram, analyze the effects of the increase in population on the equilibrium wage and employment
b.What happens to wage and unemployment if a minimum wage law exists?

Accepted Answer

a.The increase in demand for goods and s

Question 20

The unemployment rate is defined as the percentage of the labour force that is unemployed. The labour-force participation rate is the percentage of the adult population that is either employed or unemployed.

Accepted Answer

A) True 
 B)False

Someone who is without work but is not looking for work would be counted as unemployed.

Which of the following is a possible effect of unions?

Prime Minister Bigego is running for re-election against Finance Minister Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. Which of the following can you conclude?

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 female unemployment rate in Dan?

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 population in Dan?

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 labour force in Dan?

What is the theory of efficiency wages? Give a couple of explanations for how efficiency wages might work.

Which of the following is characteristic of the natural rate of unemployment?

Arnie is the owner of a firm that produces bottled water in Alberta. There are many such firms in the area. Arnie decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

Which of the following causes of unemployment is NOT associated with an excess supply of labour?

Anna has just finished school and started looking for a job, but has not yet found one. To which of the following pairs of categories does Anna now belong?

When unions raise wages in some sectors of the economy, which of the following happens to the supply of labour in other sectors of the economy?

According to economists, how should the reported unemployment rate be viewed?

Right-to-work laws allow striking union members to be permanently replaced.

Which of the following causes of unemployment is NOT associated with a wage rate above the equilibrium level?

Which of the following best defines the natural rate of unemployment?

Which of the following lists includes all the categories into which Statistics Canada divides the adult population?

How does the labour-force participation rate of women just after World War II compare to the same statistic today?

The unemployment rate is defined as the percentage of the labour force that is unemployed. The labour-force participation rate is the percentage of the adult population that is either employed or unemployed.

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

Someone who is without work but is not looking for work would be counted as unemployed.

Which of the following is a possible effect of unions?

Prime Minister Bigego is running for re-election against Finance Minister Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. Which of the following can you conclude?

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 female unemployment rate in Dan?

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 population in Dan?

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 labour force in Dan?

What is the theory of efficiency wages? Give a couple of explanations for how efficiency wages might work.

Which of the following is characteristic of the natural rate of unemployment?

Arnie is the owner of a firm that produces bottled water in Alberta. There are many such firms in the area. Arnie decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

Which of the following causes of unemployment is NOT associated with an excess supply of labour?

Anna has just finished school and started looking for a job, but has not yet found one. To which of the following pairs of categories does Anna now belong?

When unions raise wages in some sectors of the economy, which of the following happens to the supply of labour in other sectors of the economy?

According to economists, how should the reported unemployment rate be viewed?

Right-to-work laws allow striking union members to be permanently replaced.

Which of the following causes of unemployment is NOT associated with a wage rate above the equilibrium level?

Which of the following best defines the natural rate of unemployment?

Which of the following lists includes all the categories into which Statistics Canada divides the adult population?

How does the labour-force participation rate of women just after World War II compare to the same statistic today?

The unemployment rate is defined as the percentage of the labour force that is unemployed. The labour-force participation rate is the percentage of the adult population that is either employed or unemployed.

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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