Question 1

Figure 28-1  
-Refer to Figure 28-1.If the government imposes a minimum wage of $8,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 2

The introduction of a union into an industry

Accepted Answer

A)  raises wages and employment in that industry. 
B)  lowers wages and employment in that industry. 
C)  lowers wages and raises employment in that industry. 
D)  raises wages and lowers employment in that industry. 
A)  raises wages and employment in that industry. 
B)  lowers wages and employment in that industry. 
C)  lowers wages and raises employment in that industry. 
D)  raises wages and lowers employment in that industry.

Question 3

The Bureau of Labor Statistics' household survey and establishment survey both yield the same results about total employment.

Accepted Answer

A) True 
 B)False

Question 4

Unions

Accepted Answer

A)  and firms paying wages above equilibrium to improve worker effort both create frictional unemployment. 
B)  creates frictional unemployment,while firms paying wages above equilibrium to improve worker effort creates structural unemployment. 
C)  creates structural unemployment,while firms paying wages above equilibrium to improve worker effort creates frictional unemployment. 
D)  and firms paying wages above equilibrium to improve worker effort both create structural unemployment. 
A)  and firms paying wages above equilibrium to improve worker effort both create frictional unemployment. 
B)  creates frictional unemployment,while firms paying wages above equilibrium to improve worker effort creates structural unemployment. 
C)  creates structural unemployment,while firms paying wages above equilibrium to improve worker effort creates frictional unemployment. 
D)  and firms paying wages above equilibrium to improve worker effort both create structural unemployment.

Question 5

Cyclical unemployment refers to

Accepted Answer

A)  the relationship between the probability of unemployment and a worker's changing level of experience. 
B)  how often a worker is likely to be employed during her lifetime. 
C)  year-to-year fluctuations of unemployment around its natural rate. 
D)  long-term trends in unemployment. 
A)  the relationship between the probability of unemployment and a worker's changing level of experience. 
B)  how often a worker is likely to be employed during her lifetime. 
C)  year-to-year fluctuations of unemployment around its natural rate. 
D)  long-term trends in unemployment.

Question 6

The efficiency-wage theory of worker quality suggests that if firms respond to a surplus of labor by reducing the wage,then

Accepted Answer

A)  the most competent applicants will likely apply for that firm's jobs. 
B)  the most competent applicants will likely not apply for that firm's jobs. 
C)  unemployment will increase. 
D)  the quality of the firm's work force will increase. 
A)  the most competent applicants will likely apply for that firm's jobs. 
B)  the most competent applicants will likely not apply for that firm's jobs. 
C)  unemployment will increase. 
D)  the quality of the firm's work force will increase.

Question 7

According to 2007 data on the U.S.population,which of the following groups of adults (ages 20 and older)has the lowest labor-force participation 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 8

Every week,the Bureau of Labor Statistics produces data on unemployment.

Accepted Answer

A) True 
 B)False

Question 9

Jenna is searching for a job that suits her tastes about where to live and coworkers.Mary is looking for a job that makes best use of her skills.

Accepted Answer

A)  Jenna and Mary are both frictionally unemployed. 
B)  Jenna and Mary are both structurally unemployed. 
C)  Jenna is frictionally unemployed,and Mary is structurally unemployed. 
D)  Jenna is structurally unemployed,and Mary is frictionally unemployed. 
A)  Jenna and Mary are both frictionally unemployed. 
B)  Jenna and Mary are both structurally unemployed. 
C)  Jenna is frictionally unemployed,and Mary is structurally unemployed. 
D)  Jenna is structurally unemployed,and Mary is frictionally unemployed.

Question 10

Table 28-4
  
-Refer to Table 28-4.What is the U-4 measure of labor underutilization?

Accepted Answer

A)  6.5 percent 
B)  6.9 percent 
C)  7.0 percent 
D)  17.9 percent 
A)  6.5 percent 
B)  6.9 percent 
C)  7.0 percent 
D)  17.9 percent

Question 11

Most job search in the U.S.economy takes place with the help of the government.

Accepted Answer

A) True 
 B)False

Question 12

Pollee is the CEO of a corporation that hires nonunion labor.According to the theory of efficiency wages,if she decides to pay her workers more than the competitive equilibrium wage,then

Accepted Answer

A)  the profits of her firm might increase. 
B)  the higher wages will induce her workers to shirk. 
C)  the turnover of her workers may increase. 
D)  she will face a shortage of labor. 
A)  the profits of her firm might increase. 
B)  the higher wages will induce her workers to shirk. 
C)  the turnover of her workers may increase. 
D)  she will face a shortage of labor.

Question 13

In 2002,the demand for construction workers increased and the demands for textile and steel workers diminished.This is an example of

Accepted Answer

A)  frictional unemployment created by efficiency wages. 
B)  structural unemployment created by efficiency wages. 
C)  frictional unemployment created by sectoral shifts. 
D)  structural unemployment created by sectoral shifts. 
A)  frictional unemployment created by efficiency wages. 
B)  structural unemployment created by efficiency wages. 
C)  frictional unemployment created by sectoral shifts. 
D)  structural unemployment created by sectoral shifts.

Question 14

A firm might offer efficiency wages in order to attract a better pool of applicants.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not an explanation for the existence of structural unemployment?

Accepted Answer

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

Question 16

The Bureau of Labor Statistics defines the unemployment rate as the percentage of

Accepted Answer

A)  those unemployed relative to those employed. 
B)  the labor force that is unemployed. 
C)  the adult population that is unemployed. 
D)  the adult population that is unemployed or not in the labor force. 
A)  those unemployed relative to those employed. 
B)  the labor force that is unemployed. 
C)  the adult population that is unemployed. 
D)  the adult population that is unemployed or not in the labor force.

Question 17

Public policy can reduce frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 18

Of the following groups,who is eligible for unemployment insurance benefits?

Accepted Answer

A)  the unemployed who quit their jobs 
B)  the unemployed who were laid off because their previous employers no longer needed their skills 
C)  the unemployed who were fired for cause 
D)  the unemployed who just entered the labor force 
A)  the unemployed who quit their jobs 
B)  the unemployed who were laid off because their previous employers no longer needed their skills 
C)  the unemployed who were fired for cause 
D)  the unemployed who just entered the labor force

Question 19

In the early 1900s,Henry Ford introduced

Accepted Answer

A)  a high-wage policy,and this policy produced many of the effects predicted by efficiency-wage theory. 
B)  a high-wage policy,and this policy produced none of the effects predicted by efficiency-wage theory. 
C)  a low-wage policy,and this policy produced many of the effects predicted by efficiency-wage theory. 
D)  a low-wage policy,and this policy produced none of the effects predicted by efficiency-wage theory. 
A)  a high-wage policy,and this policy produced many of the effects predicted by efficiency-wage theory. 
B)  a high-wage policy,and this policy produced none of the effects predicted by efficiency-wage theory. 
C)  a low-wage policy,and this policy produced many of the effects predicted by efficiency-wage theory. 
D)  a low-wage policy,and this policy produced none of the effects predicted by efficiency-wage theory.

Question 20

Rupert is collecting unemployment insurance benefits.To continue to receive his benefits,he must be looking for work.Because he'd like to continue collecting benefits rather than take a job,he applies at places that are unlikely to hire him.People like Rupert make the reported unemployment rate less than it would otherwise be.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment

Figure 28-1 -Refer to Figure 28-1.If the government imposes a minimum wage of $8,then how many workers will be employed?

The introduction of a union into an industry

The Bureau of Labor Statistics' household survey and establishment survey both yield the same results about total employment.

Unions

Cyclical unemployment refers to

The efficiency-wage theory of worker quality suggests that if firms respond to a surplus of labor by reducing the wage,then

According to 2007 data on the U.S.population,which of the following groups of adults (ages 20 and older)has the lowest labor-force participation rate?

Every week,the Bureau of Labor Statistics produces data on unemployment.

Jenna is searching for a job that suits her tastes about where to live and coworkers.Mary is looking for a job that makes best use of her skills.

Table 28-4 -Refer to Table 28-4.What is the U-4 measure of labor underutilization?

Most job search in the U.S.economy takes place with the help of the government.

Pollee is the CEO of a corporation that hires nonunion labor.According to the theory of efficiency wages,if she decides to pay her workers more than the competitive equilibrium wage,then

In 2002,the demand for construction workers increased and the demands for textile and steel workers diminished.This is an example of

A firm might offer efficiency wages in order to attract a better pool of applicants.

Which of the following is not an explanation for the existence of structural unemployment?

The Bureau of Labor Statistics defines the unemployment rate as the percentage of

Public policy can reduce frictional unemployment.

Of the following groups,who is eligible for unemployment insurance benefits?

In the early 1900s,Henry Ford introduced

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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