Question 1

When a minimum-wage law forces the wage to remain above the level that balances supply and demand,there are

Accepted Answer

A)  more workers willing to work than there are jobs,so some workers are unemployed. 
B)  fewer workers willing to work than there are jobs,so some workers are unemployed. 
C)  more workers willing to work than there are jobs,so unemployment decreases. 
D)  fewer workers willing to work than there are jobs,so unemployment decreases. 
A)  more workers willing to work than there are jobs,so some workers are unemployed. 
B)  fewer workers willing to work than there are jobs,so some workers are unemployed. 
C)  more workers willing to work than there are jobs,so unemployment decreases. 
D)  fewer workers willing to work than there are jobs,so unemployment decreases.

Question 2

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called structural unemployment.

Accepted Answer

A) True 
 B)False

Question 3

Suppose some country had an adult population of about 46 million,a labor-force participation rate of 75 percent,and an unemployment rate of 8 percent.How many people were employed?

Accepted Answer

A)  2.76 million 
B)  31.74 million 
C)  34.5 million 
D)  42.32 million 
A)  2.76 million 
B)  31.74 million 
C)  34.5 million 
D)  42.32 million

Question 4

The Bureau of Labor Statistics produces data on

Accepted Answer

A)  unemployment. 
B)  types of employment. 
C)  length of the average workweek. 
D)  All of the above are correct. 
A)  unemployment. 
B)  types of employment. 
C)  length of the average workweek. 
D)  All of the above are correct.

Question 5

The Bureau of Labor Statistics places each adult (aged 16 and older)of each surveyed household into one of three categories: employed,unemployed,and not in the labor force.

Accepted Answer

A) True 
 B)False

Question 6

Both full-time and part-time workers are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 7

Some degree of unemployment is inevitable in a complex economy.

Accepted Answer

A) True 
 B)False

Question 8

A firm may pay efficiency wages in an attempt to

Accepted Answer

A)  reduce incentives to shirk. 
B)  reduce turnover. 
C)  attract a well-qualified pool of applicants. 
D)  All of the above are correct. 
A)  reduce incentives to shirk. 
B)  reduce turnover. 
C)  attract a well-qualified pool of applicants. 
D)  All of the above are correct.

Question 9

If the wage is kept above the equilibrium wage for any reason,the result is

Accepted Answer

A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  seasonal unemployment. 
D)  structural unemployment. 
A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  seasonal unemployment. 
D)  structural unemployment.

Question 10

The natural rate of unemployment is the

Accepted Answer

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

Question 11

Suppose that grocery clerks and nurses are not unionized.If the nurses unionize,then

Accepted Answer

A)  the wages of both grocery clerks and nurses will rise. 
B)  the wages of both grocery clerks and nurses will fall. 
C)  the wages of grocery clerks will rise and the wages of nurses will fall. 
D)  the wages of nurses will rise and the wages of grocery clerks will fall. 
A)  the wages of both grocery clerks and nurses will rise. 
B)  the wages of both grocery clerks and nurses will fall. 
C)  the wages of grocery clerks will rise and the wages of nurses will fall. 
D)  the wages of nurses will rise and the wages of grocery clerks will fall.

Question 12

Over the past several decades,the difference between the labor-force participation rates of men and women in the U.S.has gradually decreased.

Accepted Answer

A) True 
 B)False

Question 13

Evidence from research studies by economists

Accepted Answer

A)  shows that increased unemployment benefits decrease the job search efforts of the unemployed. 
B)  shows that increased unemployment benefits have virtually no effect on the job search efforts of the unemployed. 
C)  shows that increased unemployment benefits increase the job search efforts of the unemployed. 
D)  is conflicting on what increased unemployment benefits do to the job search efforts of the unemployed. 
A)  shows that increased unemployment benefits decrease the job search efforts of the unemployed. 
B)  shows that increased unemployment benefits have virtually no effect on the job search efforts of the unemployed. 
C)  shows that increased unemployment benefits increase the job search efforts of the unemployed. 
D)  is conflicting on what increased unemployment benefits do to the job search efforts of the unemployed.

Question 14

Suppose that a large number of men who used to work or seek work now no longer do either.Other things the same,this makes

Accepted Answer

A)  the number of people unemployed rise but does not change the labor force. 
B)  the number of people unemployed rise but makes the labor force fall. 
C)  both the number of people unemployed and the labor force fall. 
D)  the number of people unemployed fall but does not change the labor force. 
A)  the number of people unemployed rise but does not change the labor force. 
B)  the number of people unemployed rise but makes the labor force fall. 
C)  both the number of people unemployed and the labor force fall. 
D)  the number of people unemployed fall but does not change the labor force.

Question 15

Because people move into and out of the labor force so often,statistics on unemployment are difficult to interpret.

Accepted Answer

A) True 
 B)False

Question 16

Table 28-3
2003 Labor Data for Adults (age 16 and older)in Meditor
  
-Refer to Table 28-3.What is the adult female unemployment rate in Meditor?

Accepted Answer

A)  4.8 percent 
B)  5 percent 
C)  7.1 percent 
D)  7.7 percent 
A)  4.8 percent 
B)  5 percent 
C)  7.1 percent 
D)  7.7 percent

Question 17

Suppose that efficiency wages become more common in the economy.Economists would predict that this would

Accepted Answer

A)  increase the quantity demanded and decrease the quantity supplied of labor,thereby decreasing the natural rate of unemployment. 
B)  decrease the quantity demanded and increase the quantity supplied of labor,thereby increasing the natural rate of unemployment. 
C)  increase the quantity demanded and decrease the quantity supplied of labor,thereby increasing the natural rate of unemployment. 
D)  decrease the quantity demanded and increase the quantity supplied of labor,thereby decreasing the natural rate of unemployment. 
A)  increase the quantity demanded and decrease the quantity supplied of labor,thereby decreasing the natural rate of unemployment. 
B)  decrease the quantity demanded and increase the quantity supplied of labor,thereby increasing the natural rate of unemployment. 
C)  increase the quantity demanded and decrease the quantity supplied of labor,thereby increasing the natural rate of unemployment. 
D)  decrease the quantity demanded and increase the quantity supplied of labor,thereby decreasing the natural rate of unemployment.

Question 18

Suppose some country had an adult population of about 25 million,a labor-force participation rate of 60 percent,and an unemployment rate of 6 percent.How many people were unemployed?

Accepted Answer

A)  0.846 million 
B)  0.9 million 
C)  1.5 million 
D)  6 million 
A)  0.846 million 
B)  0.9 million 
C)  1.5 million 
D)  6 million

Question 19

Which of the following is an explanation for the existence of frictional unemployment?

Accepted Answer

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

Question 20

Jouke is on a temporary layoff from his factory job.The Bureau of Labor Statistics counts Jouke 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.

Exam 28: Unemployment

When a minimum-wage law forces the wage to remain above the level that balances supply and demand,there are

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called structural unemployment.

Suppose some country had an adult population of about 46 million,a labor-force participation rate of 75 percent,and an unemployment rate of 8 percent.How many people were employed?

The Bureau of Labor Statistics produces data on

The Bureau of Labor Statistics places each adult (aged 16 and older)of each surveyed household into one of three categories: employed,unemployed,and not in the labor force.

Both full-time and part-time workers are included in the Bureau of Labor Statistics' "employed" category.

Some degree of unemployment is inevitable in a complex economy.

A firm may pay efficiency wages in an attempt to

If the wage is kept above the equilibrium wage for any reason,the result is

The natural rate of unemployment is the

Suppose that grocery clerks and nurses are not unionized.If the nurses unionize,then

Over the past several decades,the difference between the labor-force participation rates of men and women in the U.S.has gradually decreased.

Evidence from research studies by economists

Suppose that a large number of men who used to work or seek work now no longer do either.Other things the same,this makes

Because people move into and out of the labor force so often,statistics on unemployment are difficult to interpret.

Table 28-3 2003 Labor Data for Adults (age 16 and older)in Meditor -Refer to Table 28-3.What is the adult female unemployment rate in Meditor?

Suppose that efficiency wages become more common in the economy.Economists would predict that this would

Suppose some country had an adult population of about 25 million,a labor-force participation rate of 60 percent,and an unemployment rate of 6 percent.How many people were unemployed?

Which of the following is an explanation for the existence of frictional unemployment?

Jouke is on a temporary layoff from his factory job.The Bureau of Labor Statistics counts Jouke as

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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