Question 1

Table 28-1
Labor Data for Wrexington
  
-Refer to Table 28-1.The unemployment rate of Wrexington in 2004 was

Accepted Answer

A)  10%. 
B)  12.5%. 
C)  14.3%. 
D)  80%. 
A)  10%. 
B)  12.5%. 
C)  14.3%. 
D)  80%.

Question 2

Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)  Azibo,a homemaker not looking for other work 
B)  Kwamie,a full-time student not looking for work 
C)  Geroy,who does not have a job,but is looking for work 
D)  None of the above is correct. 
A)  Azibo,a homemaker not looking for other work 
B)  Kwamie,a full-time student not looking for work 
C)  Geroy,who does not have a job,but is looking for work 
D)  None of the above is correct.

Question 3

The deviation of unemployment from its natural rate is called cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 4

The Bureau of Labor Statistics places people in the "employed" category if they

Accepted Answer

A)  are temporarily absent from their jobs. 
B)  are self-employed. 
C)  work without pay in a family member's business. 
D)  All of the above are correct. 
A)  are temporarily absent from their jobs. 
B)  are self-employed. 
C)  work without pay in a family member's business. 
D)  All of the above are correct.

Question 5

The labor force equals the

Accepted Answer

A)  number of people employed. 
B)  number of people unemployed. 
C)  number of people employed plus the number of people unemployed. 
D)  adult population. 
A)  number of people employed. 
B)  number of people unemployed. 
C)  number of people employed plus the number of people unemployed. 
D)  adult population.

Question 6

More than 3 percent of U.S.workers leave their jobs in a typical month.

Accepted Answer

A) True 
 B)False

Question 7

A firm might offer efficiency wages to reduce worker turnover and thereby reduce production costs.

Accepted Answer

A) True 
 B)False

Question 8

The labor-force participation rate tells us the fraction of the population that is able to participate in the labor market.

Accepted Answer

A) True 
 B)False

Question 9

Following the recession of 2001,there was a month in which employment and the unemployment rate both rose.Assuming the computations were correct,how is it possible for both to have increased?

Accepted Answer

The rate of unemployment is measured as

Question 10

Frictional unemployment is inevitable because the economy is always changing.

Accepted Answer

A) True 
 B)False

Question 11

An economy's natural rate of unemployment is

Accepted Answer

A)  the economy's long-run target level of unemployment. 
B)  the amount of unemployment that the economy normally experiences. 
C)  the lowest rate of unemployment the economy can achieve. 
D)  All of the above are correct. 
A)  the economy's long-run target level of unemployment. 
B)  the amount of unemployment that the economy normally experiences. 
C)  the lowest rate of unemployment the economy can achieve. 
D)  All of the above are correct.

Question 12

The unemployment rate never falls to zero.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  37.5 percent 
B)  62.5 percent 
C)  66.7 percent 
D)  95.8 percent 
A)  37.5 percent 
B)  62.5 percent 
C)  66.7 percent 
D)  95.8 percent

Question 14

The natural unemployment rate includes

Accepted Answer

A)  both frictional and structural unemployment. 
B)  neither frictional nor structural unemployment. 
C)  structural,but not frictional unemployment. 
D)  frictional,but not structural unemployment. 
A)  both frictional and structural unemployment. 
B)  neither frictional nor structural unemployment. 
C)  structural,but not frictional unemployment. 
D)  frictional,but not structural unemployment.

Question 15

Job search is the process of matching workers with appropriate jobs.

Accepted Answer

A) True 
 B)False

Question 16

In Belgium,Norway,and Sweden,the percentage of workers who belong to unions is

Accepted Answer

A)  almost zero. 
B)  less than it is in the United States. 
C)  about the same as it is in the United States. 
D)  greater than it is in the United States. 
A)  almost zero. 
B)  less than it is in the United States. 
C)  about the same as it is in the United States. 
D)  greater than it is in the United States.

Question 17

In 2004,based on concepts similar to those used to estimate U.S.employment figures,the Canadian adult non-institutionalized population was 25.022 million,the labor force was 16.956 million,and the number of people employed was 15.864 million.According to these numbers,the Canadian labor-force participation rate and unemployment rate were about

Accepted Answer

A)  63.4% and 4.4%. 
B)  63.4% and 6.4%. 
C)  67.8% and 4.4%. 
D)  67.8% and 6.4%. 
A)  63.4% and 4.4%. 
B)  63.4% and 6.4%. 
C)  67.8% and 4.4%. 
D)  67.8% and 6.4%.

Question 18

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

Accepted Answer

A)  90 million 
B)  160 million 
C)  230 million 
D)  240 million 
A)  90 million 
B)  160 million 
C)  230 million 
D)  240 million

Question 19

Efficiency wages,minimum-wage laws,and unions all

Accepted Answer

A)  keep wages below the equilibrium level,causing a shortage of labor. 
B)  keep wages below the equilibrium level,causing a surplus of labor. 
C)  keep wages above the equilibrium level,causing a shortage of labor. 
D)  keep wages above the equilibrium level,causing a surplus of labor. 
A)  keep wages below the equilibrium level,causing a shortage of labor. 
B)  keep wages below the equilibrium level,causing a surplus of labor. 
C)  keep wages above the equilibrium level,causing a shortage of labor. 
D)  keep wages above the equilibrium level,causing a surplus of labor.

Question 20

The Wagner Act of 1935

Accepted Answer

A)  prevents unions from acting as cartels. 
B)  allows workers joining a unionized firm to choose not to join the union. 
C)  prevents employers from interfering when workers try to organize a union. 
D)  prevents firms from hiring permanent replacements for workers who are on strike. 
A)  prevents unions from acting as cartels. 
B)  allows workers joining a unionized firm to choose not to join the union. 
C)  prevents employers from interfering when workers try to organize a union. 
D)  prevents firms from hiring permanent replacements for workers who are on strike.

Exam 28: Unemployment

Table 28-1 Labor Data for Wrexington -Refer to Table 28-1.The unemployment rate of Wrexington in 2004 was

Who is included in the labor force by the Bureau of Labor Statistics?

The deviation of unemployment from its natural rate is called cyclical unemployment.

The Bureau of Labor Statistics places people in the "employed" category if they

The labor force equals the

More than 3 percent of U.S.workers leave their jobs in a typical month.

A firm might offer efficiency wages to reduce worker turnover and thereby reduce production costs.

The labor-force participation rate tells us the fraction of the population that is able to participate in the labor market.

Following the recession of 2001,there was a month in which employment and the unemployment rate both rose.Assuming the computations were correct,how is it possible for both to have increased?

Frictional unemployment is inevitable because the economy is always changing.

An economy's natural rate of unemployment is

The unemployment rate never falls to zero.

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

The natural unemployment rate includes

Job search is the process of matching workers with appropriate jobs.

In Belgium,Norway,and Sweden,the percentage of workers who belong to unions is

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

Efficiency wages,minimum-wage laws,and unions all

The Wagner Act of 1935

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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