Question 1

The Bureau of Labor Statistics is part of the U.S.Department of

Accepted Answer

A)  the Treasury. 
B)  Commerce. 
C)  Labor. 
D)  the Interior. 
A)  the Treasury. 
B)  Commerce. 
C)  Labor. 
D)  the Interior.

Question 2

Studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed.

Accepted Answer

A) True 
 B)False

Question 3

The Bureau of Labor Statistics defines the labor-force participation rate as the percentage of the total adult population that is in the labor force.

Accepted Answer

A) True 
 B)False

Question 4

The labor force minus the number of employed equals the number of unemployed.

Accepted Answer

A) True 
 B)False

Question 5

The normal rate of unemployment around which the unemployment rate fluctuates is called

Accepted Answer

A)  the normal rate of unemployment. 
B)  the natural rate of unemployment. 
C)  cyclical unemployment. 
D)  fluctuating unemployment. 
A)  the normal rate of unemployment. 
B)  the natural rate of unemployment. 
C)  cyclical unemployment. 
D)  fluctuating unemployment.

Question 6

Every adult who was not employed during the previous 4 weeks is included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is correct for people ages 20 and over?

Accepted Answer

A)  Blacks have higher rates of labor-force participation and lower rates of unemployment compared to whites. 
B)  Blacks have higher rates of labor-force participation and higher rates of unemployment compared to whites. 
C)  Blacks have similar rates of labor-force participation and lower rates of unemployment compared to whites. 
D)  Blacks have similar rates of labor-force participation and higher rates of unemployment compared to whites. 
A)  Blacks have higher rates of labor-force participation and lower rates of unemployment compared to whites. 
B)  Blacks have higher rates of labor-force participation and higher rates of unemployment compared to whites. 
C)  Blacks have similar rates of labor-force participation and lower rates of unemployment compared to whites. 
D)  Blacks have similar rates of labor-force participation and higher rates of unemployment compared to whites.

Question 8

In 2007,the U.S.natural rate of unemployment was estimated to be 4.8 percent,which was close to the actual rate of unemployment of 4.6 percent.

Accepted Answer

A) True 
 B)False

Question 9

When a union bargains successfully with employers,in that industry,

Accepted Answer

A)  both the quantity of labor supplied and the quantity of labor demanded increase. 
B)  both the quantity of labor supplied and the quantity of labor demanded decrease. 
C)  the quantity of labor supplied increases and the quantity of labor demanded decreases. 
D)  the quantity of labor demanded increases and the quantity of labor supplied decreases. 
A)  both the quantity of labor supplied and the quantity of labor demanded increase. 
B)  both the quantity of labor supplied and the quantity of labor demanded decrease. 
C)  the quantity of labor supplied increases and the quantity of labor demanded decreases. 
D)  the quantity of labor demanded increases and the quantity of labor supplied decreases.

Question 10

Frictional unemployment is often the result of changes in the demand for labor among different firms.

Accepted Answer

A) True 
 B)False

Question 11

President Bigego is running for re-election against Senator 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.You conclude that

Accepted Answer

A)  one of them must be lying. 
B)  both of them could be telling the truth if the labor force and employment grew at the exact same rate. 
C)  both of them could be telling the truth if the labor force grew slower than employment. 
D)  both of them could be telling the truth if the labor force grew faster than employment. 
A)  one of them must be lying. 
B)  both of them could be telling the truth if the labor force and employment grew at the exact same rate. 
C)  both of them could be telling the truth if the labor force grew slower than employment. 
D)  both of them could be telling the truth if the labor force grew faster than employment.

Question 12

Not all unemployment ends with the job seeker finding a job.

Accepted Answer

A) True 
 B)False

Question 13

Quinn,the CEO of a corporation operating in a relatively poor country where wages are low,decides to raise the wages of her workers even though she faces an excess supply of labor.Her decision

Accepted Answer

A)  might increase profits if it means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive. 
B)  will help eliminate the excess supply of labor. 
C)  may cause her workers to increase shirking. 
D)  All of the above are correct. 
A)  might increase profits if it means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive. 
B)  will help eliminate the excess supply of labor. 
C)  may cause her workers to increase shirking. 
D)  All of the above are correct.

Question 14

Egzon is working part-time.Dijana is on temporary layoff.Who is included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)  only Egzon 
B)  only Dijana 
C)  both Egzon and Dijana 
D)  neither Egzon nor Dijana 
A)  only Egzon 
B)  only Dijana 
C)  both Egzon and Dijana 
D)  neither Egzon nor Dijana

Question 15

There is no easy way for policymakers to reduce the economy's natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 16

Even though the difference in labor-force participation rates of U.S.males and females has narrowed,the labor-force participation rate of males remains higher than that of females.

Accepted Answer

A) True 
 B)False

Question 17

Unemployment that exists because there is a shortage of jobs is

Accepted Answer

A)  frictional unemployment,which contributes to the natural rate of unemployment. 
B)  frictional unemployment,which does not contribute to the natural rate of unemployment. 
C)  structural unemployment,which contributes to the natural rate of unemployment. 
D)  structural unemployment,which does not contribute to the natural rate of unemployment. 
A)  frictional unemployment,which contributes to the natural rate of unemployment. 
B)  frictional unemployment,which does not contribute to the natural rate of unemployment. 
C)  structural unemployment,which contributes to the natural rate of unemployment. 
D)  structural unemployment,which does not contribute to the natural rate of unemployment.

Question 18

According to 2007 data on the U.S.population,which of the following groups of teenagers (ages 16-19)has the highest unemployment rate?

Accepted Answer

A)  white males 
B)  white females 
C)  black males 
D)  black females 
A)  white males 
B)  white females 
C)  black males 
D)  black females

Question 19

Since unemployment rates are consistently higher in Canada and some Western European countries than in the United States,it appears that the natural rate of unemployment is lower in the United States.What might explain this difference?

Accepted Answer

The text offers two explanations for the

Question 20

Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household?

Accepted Answer

A)  employed 
B)  unemployed 
C)  underemployed 
D)  not in the labor force 
A)  employed 
B)  unemployed 
C)  underemployed 
D)  not in the labor force

Exam 28: Unemployment

The Bureau of Labor Statistics is part of the U.S.Department of

Studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed.

The Bureau of Labor Statistics defines the labor-force participation rate as the percentage of the total adult population that is in the labor force.

The labor force minus the number of employed equals the number of unemployed.

The normal rate of unemployment around which the unemployment rate fluctuates is called

Every adult who was not employed during the previous 4 weeks is included in the Bureau of Labor Statistics' "unemployed" category.

Which of the following is correct for people ages 20 and over?

In 2007,the U.S.natural rate of unemployment was estimated to be 4.8 percent,which was close to the actual rate of unemployment of 4.6 percent.

When a union bargains successfully with employers,in that industry,

Frictional unemployment is often the result of changes in the demand for labor among different firms.

President Bigego is running for re-election against Senator 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.You conclude that

Not all unemployment ends with the job seeker finding a job.

Quinn,the CEO of a corporation operating in a relatively poor country where wages are low,decides to raise the wages of her workers even though she faces an excess supply of labor.Her decision

Egzon is working part-time.Dijana is on temporary layoff.Who is included in the Bureau of Labor Statistics' "employed" category?

There is no easy way for policymakers to reduce the economy's natural rate of unemployment.

Even though the difference in labor-force participation rates of U.S.males and females has narrowed,the labor-force participation rate of males remains higher than that of females.

Unemployment that exists because there is a shortage of jobs is

According to 2007 data on the U.S.population,which of the following groups of teenagers (ages 16-19)has the highest unemployment rate?

Since unemployment rates are consistently higher in Canada and some Western European countries than in the United States,it appears that the natural rate of unemployment is lower in the United States.What might explain this difference?

Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household?

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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