Question 1

Adelina owns her own business.Odilon is an unpaid worker in his family's business.Who is included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)  only Adelina 
B)  only Odilon 
C)  both Adelina and Odilon 
D)  neither Adelina nor Odilon 
A)  only Adelina 
B)  only Odilon 
C)  both Adelina and Odilon 
D)  neither Adelina nor Odilon

Question 2

Which of the following is correct?

Accepted Answer

A)  Unemployment insurance raises structural unemployment because it reduces the job search efforts of the unemployed. 
B)  Most economists are skeptical of the value of unemployment insurance primarily because they believe that it results in a poorer match between workers and jobs. 
C)  Studies show that when the unemployed become ineligible for benefits,the probability of their finding a job rises markedly. 
D)  All of the above are correct. 
A)  Unemployment insurance raises structural unemployment because it reduces the job search efforts of the unemployed. 
B)  Most economists are skeptical of the value of unemployment insurance primarily because they believe that it results in a poorer match between workers and jobs. 
C)  Studies show that when the unemployed become ineligible for benefits,the probability of their finding a job rises markedly. 
D)  All of the above are correct.

Question 3

Since 1960,the natural rate of unemployment in the U.S.has been between

Accepted Answer

A)  0.4 and 0.6 percent. 
B)  4 and 6 percent. 
C)  14 and 16 percent. 
D)  40 and 60 percent. 
A)  0.4 and 0.6 percent. 
B)  4 and 6 percent. 
C)  14 and 16 percent. 
D)  40 and 60 percent.

Question 4

Economists have found that union workers earn what percent more than similar nonunion workers?

Accepted Answer

A)  0 to 5 
B)  5 to 10 
C)  10 to 20 
D)  20 to 30 
A)  0 to 5 
B)  5 to 10 
C)  10 to 20 
D)  20 to 30

Question 5

The natural rate of unemployment

Accepted Answer

A)  is the economy's desirable level of unemployment. 
B)  cannot be affected by economic policy. 
C)  Both (a)and (b)are correct. 
D)  None of the above is correct. 
A)  is the economy's desirable level of unemployment. 
B)  cannot be affected by economic policy. 
C)  Both (a)and (b)are correct. 
D)  None of the above is correct.

Question 6

Table 28-1
Labor Data for Wrexington
  
-Refer to Table 28-1.The labor-force participation rate of Wrexington

Accepted Answer

A)  increased from 2004 to 2005 and increased from 2005 to 2006. 
B)  increased from 2004 to 2005 and decreased from 2005 to 2006. 
C)  decreased from 2004 to 2005 and increased from 2005 to 2006. 
D)  decreased from 2004 to 2005 and decreased from 2005 to 2006. 
A)  increased from 2004 to 2005 and increased from 2005 to 2006. 
B)  increased from 2004 to 2005 and decreased from 2005 to 2006. 
C)  decreased from 2004 to 2005 and increased from 2005 to 2006. 
D)  decreased from 2004 to 2005 and decreased from 2005 to 2006.

Question 7

Some people who are employed or who are not making serious effort to find employment will report themselves as unemployed.Some people who want to find work will be counted as out of the labor force.

Accepted Answer

A)  Both the first and the second fact tend to make the reported unemployment rate lower than the actual unemployment rate. 
B)  Both the first and the second fact tend to make the reported unemployment rate higher than the actual unemployment rate. 
C)  The first fact tends to make the reported unemployment rate higher than the actual unemployment rate,while the second fact tends to make the reported unemployment rate lower than the actual unemployment rate. 
D)  The first fact tends to make the reported unemployment rate lower than the actual unemployment rate,while the second fact tends to make the reported unemployment rate higher than the actual unemployment rate. 
A)  Both the first and the second fact tend to make the reported unemployment rate lower than the actual unemployment rate. 
B)  Both the first and the second fact tend to make the reported unemployment rate higher than the actual unemployment rate. 
C)  The first fact tends to make the reported unemployment rate higher than the actual unemployment rate,while the second fact tends to make the reported unemployment rate lower than the actual unemployment rate. 
D)  The first fact tends to make the reported unemployment rate lower than the actual unemployment rate,while the second fact tends to make the reported unemployment rate higher than the actual unemployment rate.

Question 8

Some of a firm's workers are made worse off by the introduction of a union.

Accepted Answer

A) True 
 B)False

Question 9

The Bureau of Labor Statistics produces data on unemployment

Accepted Answer

A)  weekly. 
B)  monthly. 
C)  quarterly. 
D)  yearly. 
A)  weekly. 
B)  monthly. 
C)  quarterly. 
D)  yearly.

Question 10

The Bureau of Labor Statistics reported in 2005 that there were 28.19 million people over age 25 who had no high school degree or its equivalent,11.73 million of whom were employed and 1.04 million of whom were unemployed.What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)  41.6% and 3.7% 
B)  41.6% and 8.1% 
C)  45.3% and 3.7% 
D)  45.3% and 8.1% 
A)  41.6% and 3.7% 
B)  41.6% and 8.1% 
C)  45.3% and 3.7% 
D)  45.3% and 8.1%

Question 11

In an ideal labor market,wages would adjust to balance the quantity of labor supplied and the quantity of labor demanded,ensuring that all workers are always fully employed.

Accepted Answer

A) True 
 B)False

Question 12

Data on the unemployment rate in the U.S.since 1960 show that the unemployment rate is

Accepted Answer

A)  always zero. 
B)  sometimes zero. 
C)  rarely zero. 
D)  never zero. 
A)  always zero. 
B)  sometimes zero. 
C)  rarely zero. 
D)  never zero.

Question 13

Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

Accepted Answer

A) True 
 B)False

Question 14

Unemployment insurance increases frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 15

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

Changes in the composition of demand among industries or regions are called sectoral shifts.

Accepted Answer

A) True 
 B)False

Question 17

Advocates of unions contend that unions are a necessary antidote to the market power of the firms that hire workers and that unions are important for helping firms respond efficiently to workers' concerns.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not correct?

Accepted Answer

A)  A union is a worker association that bargains with employers over wages,benefits,and working conditions. 
B)  Unions play a much larger role in the U.S.labor market now than they did in the past. 
C)  Unions play a large role in many European countries. 
D)  A union is a type of cartel. 
A)  A union is a worker association that bargains with employers over wages,benefits,and working conditions. 
B)  Unions play a much larger role in the U.S.labor market now than they did in the past. 
C)  Unions play a large role in many European countries. 
D)  A union is a type of cartel.

Question 19

The natural rate of unemployment is constant over time.

Accepted Answer

A) True 
 B)False

Question 20

Unions

Accepted Answer

A)  do not affect the natural rate of unemployment. 
B)  lower the wages of unionized workers. 
C)  raise the profits of unionized firms. 
D)  lower the wages of nonunionized workers. 
A)  do not affect the natural rate of unemployment. 
B)  lower the wages of unionized workers. 
C)  raise the profits of unionized firms. 
D)  lower the wages of nonunionized workers.

Exam 28: Unemployment

Adelina owns her own business.Odilon is an unpaid worker in his family's business.Who is included in the Bureau of Labor Statistics' "employed" category?

Which of the following is correct?

Since 1960,the natural rate of unemployment in the U.S.has been between

Economists have found that union workers earn what percent more than similar nonunion workers?

The natural rate of unemployment

Table 28-1 Labor Data for Wrexington -Refer to Table 28-1.The labor-force participation rate of Wrexington

Some people who are employed or who are not making serious effort to find employment will report themselves as unemployed.Some people who want to find work will be counted as out of the labor force.

Some of a firm's workers are made worse off by the introduction of a union.

The Bureau of Labor Statistics produces data on unemployment

In an ideal labor market,wages would adjust to balance the quantity of labor supplied and the quantity of labor demanded,ensuring that all workers are always fully employed.

Data on the unemployment rate in the U.S.since 1960 show that the unemployment rate is

Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

Unemployment insurance increases frictional unemployment.

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

Changes in the composition of demand among industries or regions are called sectoral shifts.

Advocates of unions contend that unions are a necessary antidote to the market power of the firms that hire workers and that unions are important for helping firms respond efficiently to workers' concerns.

Which of the following is not correct?

The natural rate of unemployment is constant over time.

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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