Question 1

Sectoral shifts temporarily cause unemployment.

Accepted Answer

A) True 
 B)False

Question 2

Table 28-1
Labor Data for Wrexington
  
-Refer to Table 28-1.The number of adults not in the labor force 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 3

Suppose that there is an excess supply of economics professors.Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Accepted Answer

Standard economic theory suggests that i

Question 4

Job search

Accepted Answer

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

Question 5

Which of the following is not correct?

Accepted Answer

A)  Minimum-wage laws are one reason there is always some unemployment in the U.S.economy. 
B)  Minimum-wage laws affect all workers. 
C)  Most U.S.workers have wages well above the legal minimum,so minimum-wage laws do not prevent the wage from adjusting to balance supply and demand. 
D)  Minimum-wage laws matter most for the least skilled and least experienced members of the labor force,such as teenagers. 
A)  Minimum-wage laws are one reason there is always some unemployment in the U.S.economy. 
B)  Minimum-wage laws affect all workers. 
C)  Most U.S.workers have wages well above the legal minimum,so minimum-wage laws do not prevent the wage from adjusting to balance supply and demand. 
D)  Minimum-wage laws matter most for the least skilled and least experienced members of the labor force,such as teenagers.

Question 6

Unemployment insurance causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment.

Accepted Answer

A) True 
 B)False

Question 7

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Accepted Answer

A) True 
 B)False

Question 8

Within the U.S.population,women ages 20 and older have similar rates of labor-force participation as men.

Accepted Answer

A) True 
 B)False

Question 9

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 10

When a minimum-wage law forces the wage to remain above the level that balances supply and demand,the result is a

Accepted Answer

A)  shortage of labor and a shortage of jobs. 
B)  shortage of labor and a surplus of jobs. 
C)  surplus of labor and a shortage of jobs. 
D)  surplus of labor and a surplus of jobs. 
A)  shortage of labor and a shortage of jobs. 
B)  shortage of labor and a surplus of jobs. 
C)  surplus of labor and a shortage of jobs. 
D)  surplus of labor and a surplus of jobs.

Question 11

Cyclical unemployment

Accepted Answer

A)  has a different explanation than does the natural rate of unemployment. 
B)  refers to the year-to-year fluctuation in unemployment around an economy's natural rate of unemployment. 
C)  is closely associated with short-run ups and downs of economic activity. 
D)  All of the above are correct. 
A)  has a different explanation than does the natural rate of unemployment. 
B)  refers to the year-to-year fluctuation in unemployment around an economy's natural rate of unemployment. 
C)  is closely associated with short-run ups and downs of economic activity. 
D)  All of the above are correct.

Question 12

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Accepted Answer

A) True 
 B)False

Question 13

Satchel loses his job and immediately begins looking for another.Other things the same,the unemployment rate

Accepted Answer

A)  increases and the labor-force participation rate decreases. 
B)  and the labor-force participation rate both increase. 
C)  increases and the labor-force participation rate is unaffected. 
D)  is unaffected and the labor-force participation rate decreases. 
A)  increases and the labor-force participation rate decreases. 
B)  and the labor-force participation rate both increase. 
C)  increases and the labor-force participation rate is unaffected. 
D)  is unaffected and the labor-force participation rate decreases.

Question 14

When a minimum-wage law forces the wage to remain above the level that balances supply and demand,it reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level.

Accepted Answer

A) True 
 B)False

Question 15

Over the past several decades in the United States,the labor-force participation rate of women has

Accepted Answer

A)  increased and the labor-force participation rate of men has increased. 
B)  increased and the labor-force participation rate of men has decreased. 
C)  decreased and the labor-force participation rate of men has increased. 
D)  decreased and the labor-force participation rate of men has decreased. 
A)  increased and the labor-force participation rate of men has increased. 
B)  increased and the labor-force participation rate of men has decreased. 
C)  decreased and the labor-force participation rate of men has increased. 
D)  decreased and the labor-force participation rate of men has decreased.

Question 16

Which of the following is not a requirement for the Bureau of Labor Statistics to place someone in the "unemployed" category?

Accepted Answer

A)  The person must not have been employed. 
B)  The person must not have been fired from their previous job. 
C)  The person must have tried to find employment during the previous 4 weeks. 
D)  The person must have been available for work. 
A)  The person must not have been employed. 
B)  The person must not have been fired from their previous job. 
C)  The person must have tried to find employment during the previous 4 weeks. 
D)  The person must have been available for work.

Question 17

Table 28-1
Labor Data for Wrexington
  
-Refer to Table 28-1.The unemployment 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 18

According to the theory of efficiency wages,firms operate more efficiently if wages are above the equilibrium level.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not correct?

Accepted Answer

A)  When a union is present in a labor market,wages are not determined by the equilibrium of supply and demand. 
B)  Like any cartel,a union is a group of sellers acting together in the hope of exerting their joint market power. 
C)  The process by which unions and firms agree on the terms of employment is called a strike. 
D)  Most workers in the U.S.economy are not members of a union. 
A)  When a union is present in a labor market,wages are not determined by the equilibrium of supply and demand. 
B)  Like any cartel,a union is a group of sellers acting together in the hope of exerting their joint market power. 
C)  The process by which unions and firms agree on the terms of employment is called a strike. 
D)  Most workers in the U.S.economy are not members of a union.

Question 20

Some persons are counted as out of the labor force because they have made no serious or recent effort to look for work.However,some of these individuals may want to work even though they are too discouraged to make a serious effort to look for work.If these individuals were counted as unemployed instead of out of the labor force,then

Accepted Answer

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

Exam 28: Unemployment

Sectoral shifts temporarily cause unemployment.

Table 28-1 Labor Data for Wrexington -Refer to Table 28-1.The number of adults not in the labor force of Wrexington

Suppose that there is an excess supply of economics professors.Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Job search

Which of the following is not correct?

Unemployment insurance causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment.

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Within the U.S.population,women ages 20 and older have similar rates of labor-force participation as men.

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

When a minimum-wage law forces the wage to remain above the level that balances supply and demand,the result is a

Cyclical unemployment

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Satchel loses his job and immediately begins looking for another.Other things the same,the unemployment rate

When a minimum-wage law forces the wage to remain above the level that balances supply and demand,it reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level.

Over the past several decades in the United States,the labor-force participation rate of women has

Which of the following is not a requirement for the Bureau of Labor Statistics to place someone in the "unemployed" category?

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

According to the theory of efficiency wages,firms operate more efficiently if wages are above the equilibrium level.

Which of the following is not correct?

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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