Question 1

The unemployment that results from the process of matching workers and jobs is called frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 2

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate.All workers are equally able to do either job.Initially,both labor markets are perfectly competitive.If a union organizes workers in one of the markets,then the wage rates will tend to

Accepted Answer

A)  rise in both markets. 
B)  fall in both markets 
C)  rise for the union jobs,but remain unchanged for the nonunion jobs. 
D)  rise for the union jobs and fall for the nonunion jobs. 
A)  rise in both markets. 
B)  fall in both markets 
C)  rise for the union jobs,but remain unchanged for the nonunion jobs. 
D)  rise for the union jobs and fall for the nonunion jobs.

Question 3

The unemployment rate is computed as the number of unemployed

Accepted Answer

A)  divided by the labor force,all times 100. 
B)  divided by the number of employed,all times 100. 
C)  divided by the adult population,all times 100. 
D)  times the labor-force participation rate,all times 100. 
A)  divided by the labor force,all times 100. 
B)  divided by the number of employed,all times 100. 
C)  divided by the adult population,all times 100. 
D)  times the labor-force participation rate,all times 100.

Question 4

The Bureau of Labor Statistics defines the labor-force participation rate as the percentage of the labor force that is employed.

Accepted Answer

A) True 
 B)False

Question 5

Suppose that some people report themselves as unemployed when,in fact,they are working in the underground economy.If these persons were counted as employed,then

Accepted Answer

A)  both the unemployment rate and labor-force participation rate would be higher. 
B)  both the unemployment rate and labor-force participation rate would be lower. 
C)  the unemployment rate would be higher and the labor-force participation rate would be higher. 
D)  the unemployment rate would be lower and the labor-force participation rate would be unaffected. 
A)  both the unemployment rate and labor-force participation rate would be higher. 
B)  both the unemployment rate and labor-force participation rate would be lower. 
C)  the unemployment rate would be higher and the labor-force participation rate would be higher. 
D)  the unemployment rate would be lower and the labor-force participation rate would be unaffected.

Question 6

U.S.Department of Labor data show that minimum-wage workers tend to be

Accepted Answer

A)  young and less educated. 
B)  young and more educated. 
C)  old and less educated. 
D)  old and more educated. 
A)  young and less educated. 
B)  young and more educated. 
C)  old and less educated. 
D)  old and more educated.

Question 7

The adult population must equal the sum of the employed and the unemployed.

Accepted Answer

A) True 
 B)False

Question 8

The Bureau of Labor Statistics reported in 2005 that there were 59.98 million people over age 25 whose highest level of education was a high school degree or equivalent,36.40 million of whom were employed and 1.93 million of whom were unemployed.What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)  60.7% and 3.2% 
B)  60.7% and 5.0% 
C)  63.9% and 3.2% 
D)  63.9% and 5.0% 
A)  60.7% and 3.2% 
B)  60.7% and 5.0% 
C)  63.9% and 3.2% 
D)  63.9% and 5.0%

Question 9

When the wage is above the equilibrium level,

Accepted Answer

A)  the labor market is functioning more efficiently than it otherwise would function. 
B)  there is a shortage of labor. 
C)  the quantity of labor supplied exceeds the quantity of labor demanded. 
D)  job search is the primary explanation for the unemployment that is observed. 
A)  the labor market is functioning more efficiently than it otherwise would function. 
B)  there is a shortage of labor. 
C)  the quantity of labor supplied exceeds the quantity of labor demanded. 
D)  job search is the primary explanation for the unemployment that is observed.

Question 10

Table 28-2
2009 Labor Data for Wrexington
  
-Refer to Table 28-2.How many people were in Wrexington's labor force in 2009?

Accepted Answer

A)  11,000 
B)  12,600 
C)  13,380 
D)  20,000 
A)  11,000 
B)  12,600 
C)  13,380 
D)  20,000

Question 11

The amount of unemployment that a country typically experiences is a determinant of that country's standard of living.

Accepted Answer

A) True 
 B)False

Question 12

When unions raise wages in some sectors of the economy,the supply of labor in other sectors of the economy

Accepted Answer

A)  decreases,raising wages in industries that are not unionized. 
B)  decreases,reducing wages in industries that are not unionized. 
C)  increases,raising wages in industries that are not unionized. 
D)  increases,reducing wages in industries that are not unionized. 
A)  decreases,raising wages in industries that are not unionized. 
B)  decreases,reducing wages in industries that are not unionized. 
C)  increases,raising wages in industries that are not unionized. 
D)  increases,reducing wages in industries that are not unionized.

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 female population in Meditor?

Accepted Answer

A)  40 million 
B)  70 million 
C)  100 million 
D)  105 million 
A)  40 million 
B)  70 million 
C)  100 million 
D)  105 million

Question 14

Who would be included in the labor force?

Accepted Answer

A)  Homer,who is waiting for his new job to start 
B)  Michelle,who has become discouraged looking for a job and has quit looking 
C)  Derrick,an unpaid homemaker 
D)  None of the above would be included in the labor force. 
A)  Homer,who is waiting for his new job to start 
B)  Michelle,who has become discouraged looking for a job and has quit looking 
C)  Derrick,an unpaid homemaker 
D)  None of the above would be included in the labor force.

Question 15

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed,were available for work,and had tried to find employment during the previous 4 weeks.

Accepted Answer

A) True 
 B)False

Question 16

Meredith is looking for work as a computer programmer.Although her prospects are good,she hasn't yet taken a job.Julie is looking for work in a steel mill.Every time she shows up for an interview,there are more people looking for work than their are openings.Someone waiting in line with her tells her it has been that way for a long time.

Accepted Answer

A)  Meredith and Julie are both frictionally unemployed. 
B)  Meredith and Julie are both structurally unemployed. 
C)  Meredith is frictionally unemployed,and Julie is structurally unemployed. 
D)  Meredith is structurally unemployed,and Julie is frictionally unemployed. 
A)  Meredith and Julie are both frictionally unemployed. 
B)  Meredith and Julie are both structurally unemployed. 
C)  Meredith is frictionally unemployed,and Julie is structurally unemployed. 
D)  Meredith is structurally unemployed,and Julie is frictionally unemployed.

Question 17

Data on the unemployment rate in the U.S.since 1960 show that the economy always has some unemployment and that the amount changes from year to year.

Accepted Answer

A) True 
 B)False

Question 18

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 60,000 households,called the Current Population Survey.

Accepted Answer

A) True 
 B)False

Question 19

The table below uses data for the year 2003 provided by the Bureau of Labor Statistics and adjusted to be comparable to U.S.data.All values are in thousands.Fill in the blank entries in the table.

Accepted Answer

The answer of The table below uses data for the...

Question 20

More generous unemployment insurance would

Accepted Answer

A)  raise structural unemployment. 
B)  raise frictional unemployment. 
C)  lower structural unemployment. 
D)  lower frictional unemployment. 
A)  raise structural unemployment. 
B)  raise frictional unemployment. 
C)  lower structural unemployment. 
D)  lower frictional unemployment.

Exam 28: Unemployment

The unemployment that results from the process of matching workers and jobs is called frictional unemployment.

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate.All workers are equally able to do either job.Initially,both labor markets are perfectly competitive.If a union organizes workers in one of the markets,then the wage rates will tend to

The unemployment rate is computed as the number of unemployed

The Bureau of Labor Statistics defines the labor-force participation rate as the percentage of the labor force that is employed.

Suppose that some people report themselves as unemployed when,in fact,they are working in the underground economy.If these persons were counted as employed,then

U.S.Department of Labor data show that minimum-wage workers tend to be

The adult population must equal the sum of the employed and the unemployed.

When the wage is above the equilibrium level,

Table 28-2 2009 Labor Data for Wrexington -Refer to Table 28-2.How many people were in Wrexington's labor force in 2009?

The amount of unemployment that a country typically experiences is a determinant of that country's standard of living.

When unions raise wages in some sectors of the economy,the supply of labor in other sectors of the economy

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

Who would be included in the labor force?

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed,were available for work,and had tried to find employment during the previous 4 weeks.

Data on the unemployment rate in the U.S.since 1960 show that the economy always has some unemployment and that the amount changes from year to year.

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 60,000 households,called the Current Population Survey.

The table below uses data for the year 2003 provided by the Bureau of Labor Statistics and adjusted to be comparable to U.S.data.All values are in thousands.Fill in the blank entries in the table.

More generous unemployment insurance would

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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