Question 1

Adults who were waiting to be recalled to a job from which they had been laid off are included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False  True

Question 2

Zeeman is a college student who is not working or looking for a job.The Bureau of Labor Statistics counts Zeeman as

Accepted Answer

A)  unemployed and in the labor force. 
B)  unemployed,but not in the labor force. 
C)  in the labor force,but not unemployed. 
D)  neither in the labor force nor unemployed. 
A)  unemployed and in the labor force. 
B)  unemployed,but not in the labor force. 
C)  in the labor force,but not unemployed. 
D)  neither in the labor force nor unemployed. D

Question 3

Unions do not cause which of the following?

Accepted Answer

A)  frictional unemployment 
B)  the wage to rise above the equilibrium level 
C)  conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs 
D)  reduced wages in nonunionized industries 
A)  frictional unemployment 
B)  the wage to rise above the equilibrium level 
C)  conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs 
D)  reduced wages in nonunionized industries A

Question 4

The Bureau of Labor Statistics' U-3 measure of joblessness is the official unemployment rate.

Accepted Answer

A) True 
 B)False

Question 5

The process by which unions and firms agree on the terms of employment is called collective bargaining.

Accepted Answer

A) True 
 B)False

Question 6

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 7

According to the theory of efficiency wages,firms operate more efficiently if wages are below the equilibrium level.

Accepted Answer

A) True 
 B)False

Question 8

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

Accepted Answer

A)  14 years old. 
B)  16 years old. 
C)  18 years old. 
D)  21 years old. 
A)  14 years old. 
B)  16 years old. 
C)  18 years old. 
D)  21 years old.

Question 9

Public policy,without intending to do so,can increase frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 10

Economists at the Congressional Budget Office estimated that for 2007,the U.S.natural rate of unemployment was

Accepted Answer

A)  2.6 percent. 
B)  3.1 percent. 
C)  4.8 percent. 
D)  6 percent. 
A)  2.6 percent. 
B)  3.1 percent. 
C)  4.8 percent. 
D)  6 percent.

Question 11

Eponine works part-time as a babysitter.The Bureau of Labor Statistics counts Eponine 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 12

Today,the four industries with the largest employment in the United States are autos,aircraft,communications,and electrical components.

Accepted Answer

A) True 
 B)False

Question 13

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Accepted Answer

A) True 
 B)False

Question 14

Data show that at least 10 percent of U.S.manufacturing jobs are destroyed every year.

Accepted Answer

A) True 
 B)False

Question 15

The Bureau of Labor Statistics' household survey and establishment survey both yield information about unemployment.

Accepted Answer

A) True 
 B)False

Question 16

The efficiency-wage theory of worker health is

Accepted Answer

A)  more relevant for explaining unemployment in less developed countries than in rich countries. 
B)  more relevant for explaining unemployment in rich countries than in less developed countries. 
C)  equally relevant for explaining unemployment in less developed countries and in rich countries. 
D)  not relevant for explaining unemployment. 
A)  more relevant for explaining unemployment in less developed countries than in rich countries. 
B)  more relevant for explaining unemployment in rich countries than in less developed countries. 
C)  equally relevant for explaining unemployment in less developed countries and in rich countries. 
D)  not relevant for explaining unemployment.

Question 17

Table 28-1
Labor Data for Wrexington
  
-Refer to Table 28-1.The unemployment rate of Wrexington in 2005 was

Accepted Answer

A)  20%. 
B)  31.6%. 
C)  46.2%. 
D)  63.3%. 
A)  20%. 
B)  31.6%. 
C)  46.2%. 
D)  63.3%.

Question 18

Figure 28-1  
-Refer to Figure 28-1.If the government imposes a minimum wage of $4,then how many workers will be employed?

Accepted Answer

A)  3000 
B)  4000 
C)  5000 
D)  7000 
A)  3000 
B)  4000 
C)  5000 
D)  7000

Question 19

A firm might offer efficiency wages in order to reduce shirking.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not a contention of advocates of unions?

Accepted Answer

A)  Unions are a necessary antidote to the market power of the firms that hire workers. 
B)  In the case of a "company town," a union may balance the firm's market power and protect the workers from being at the mercy of the firm's owners. 
C)  The introduction of a union benefits all workers in a firm. 
D)  Unions are important for helping firms respond efficiently to workers' concerns. 
A)  Unions are a necessary antidote to the market power of the firms that hire workers. 
B)  In the case of a "company town," a union may balance the firm's market power and protect the workers from being at the mercy of the firm's owners. 
C)  The introduction of a union benefits all workers in a firm. 
D)  Unions are important for helping firms respond efficiently to workers' concerns.

Exam 28: Unemployment

Adults who were waiting to be recalled to a job from which they had been laid off are included in the Bureau of Labor Statistics' "unemployed" category.

Zeeman is a college student who is not working or looking for a job.The Bureau of Labor Statistics counts Zeeman as

Unions do not cause which of the following?

The Bureau of Labor Statistics' U-3 measure of joblessness is the official unemployment rate.

The process by which unions and firms agree on the terms of employment is called collective bargaining.

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

According to the theory of efficiency wages,firms operate more efficiently if wages are below the equilibrium level.

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

Public policy,without intending to do so,can increase frictional unemployment.

Economists at the Congressional Budget Office estimated that for 2007,the U.S.natural rate of unemployment was

Eponine works part-time as a babysitter.The Bureau of Labor Statistics counts Eponine as

Today,the four industries with the largest employment in the United States are autos,aircraft,communications,and electrical components.

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Data show that at least 10 percent of U.S.manufacturing jobs are destroyed every year.

The Bureau of Labor Statistics' household survey and establishment survey both yield information about unemployment.

The efficiency-wage theory of worker health is

Table 28-1 Labor Data for Wrexington -Refer to Table 28-1.The unemployment rate of Wrexington in 2005 was

Figure 28-1 -Refer to Figure 28-1.If the government imposes a minimum wage of $4,then how many workers will be employed?

A firm might offer efficiency wages in order to reduce shirking.

Which of the following is not a contention of advocates of unions?

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

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

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 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 Trade-Off Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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