Question 1

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 Census.

Accepted Answer

A) True 
 B)False

Question 2

Most spells of unemployment are long,and most unemployment observed at any given time is long-term.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

Accepted Answer

A)  Efficiency wages increase worker health and therefore increase worker productivity. 
B)  Efficiency wages decrease worker turnover and therefore decrease hiring and training costs. 
C)  Efficiency wages decrease worker shirking and therefore increase worker productivity. 
D)  Efficiency wages decrease a country's natural rate of unemployment and therefore increase its standard of living. 
A)  Efficiency wages increase worker health and therefore increase worker productivity. 
B)  Efficiency wages decrease worker turnover and therefore decrease hiring and training costs. 
C)  Efficiency wages decrease worker shirking and therefore increase worker productivity. 
D)  Efficiency wages decrease a country's natural rate of unemployment and therefore increase its standard of living.

Question 4

The introduction of a union into a firm benefits all of that firm's workers.

Accepted Answer

A) True 
 B)False

Question 5

Someone who is without work but is not looking for work is included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Discouraged workers are people who want to work but have given up trying to find a job after an unsuccessful search.

Accepted Answer

A) True 
 B)False

Question 8

Three possible reasons for an above-equilibrium wage are minimum-wage laws,unions,and efficiency wages.

Accepted Answer

A) True 
 B)False

Question 9

Suppose that the adult population is 6 million,the number of employed is 3.8 million,and the labor-force participation rate is 70%.What is the unemployment rate?

Accepted Answer

A)  6.7% 
B)  9.5% 
C)  10.5% 
D)  28% 
A)  6.7% 
B)  9.5% 
C)  10.5% 
D)  28%

Question 10

Other things the same,countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Accepted Answer

A) True 
 B)False

Question 11

In the absence of right-to-work laws,workers

Accepted Answer

A)  that went on strike could be permanently replaced. 
B)  might be required to join the union if they worked for a unionized firm. 
C)  would not be able to unionize. 
D)  would not be able to strike. 
A)  that went on strike could be permanently replaced. 
B)  might be required to join the union if they worked for a unionized firm. 
C)  would not be able to unionize. 
D)  would not be able to strike.

Question 12

The amount of unemployment varies

Accepted Answer

A)  little over time and across countries. 
B)  little over time,but substantially across countries. 
C)  substantially over time,but little across countries. 
D)  substantially over time and across countries. 
A)  little over time and across countries. 
B)  little over time,but substantially across countries. 
C)  substantially over time,but little across countries. 
D)  substantially over time and across countries.

Question 13

Public policy cannot reduce the economy's natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 14

The amount of unemployment varies little over time and across countries.

Accepted Answer

A) True 
 B)False

Question 15

The destruction of manufacturing jobs and workers leaving their jobs to find better ones both contribute to frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 16

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 17

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

Accepted Answer

A)  the natural rate of unemployment. 
B)  cyclical unemployment. 
C)  structural unemployment. 
D)  frictional unemployment. 
A)  the natural rate of unemployment. 
B)  cyclical unemployment. 
C)  structural unemployment. 
D)  frictional unemployment.

Question 18

Jai Li just lost her job,and she hasn't yet started looking for a new one.The Bureau of Labor Statistics counts Jai Li as

Accepted Answer

A)  unemployed and in the labor force. 
B)  unemployed,but not in the labor force. 
C)  in the labor force,but not unemployed. 
D)  neither in the labor force nor unemployed. 
A)  unemployed and in the labor force. 
B)  unemployed,but not in the labor force. 
C)  in the labor force,but not unemployed. 
D)  neither in the labor force nor unemployed.

Question 19

A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job

Accepted Answer

A)  is counted as out of the labor force but should be counted as unemployed. 
B)  is counted as unemployed but should be counted as out of the labor force. 
C)  is correctly counted as out of the labor force. 
D)  is correctly counted as unemployed. 
A)  is counted as out of the labor force but should be counted as unemployed. 
B)  is counted as unemployed but should be counted as out of the labor force. 
C)  is correctly counted as out of the labor force. 
D)  is correctly counted as unemployed.

Question 20

For the Bureau of Labor Statistics to place someone in the "unemployed" category,that person must

Accepted Answer

A)  have worked 10 or fewer hours during the previous week. 
B)  have tried to find employment during the previous year. 
C)  not have been laid off. 
D)  None of the above is correct. 
A)  have worked 10 or fewer hours during the previous week. 
B)  have tried to find employment during the previous year. 
C)  not have been laid off. 
D)  None of the above is correct.

Exam 28: Unemployment

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 Census.

Most spells of unemployment are long,and most unemployment observed at any given time is long-term.

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

The introduction of a union into a firm benefits all of that firm's workers.

Someone who is without work but is not looking for work is included in the Bureau of Labor Statistics' "unemployed" category.

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

Discouraged workers are people who want to work but have given up trying to find a job after an unsuccessful search.

Three possible reasons for an above-equilibrium wage are minimum-wage laws,unions,and efficiency wages.

Suppose that the adult population is 6 million,the number of employed is 3.8 million,and the labor-force participation rate is 70%.What is the unemployment rate?

Other things the same,countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

In the absence of right-to-work laws,workers

The amount of unemployment varies

Public policy cannot reduce the economy's natural rate of unemployment.

The amount of unemployment varies little over time and across countries.

The destruction of manufacturing jobs and workers leaving their jobs to find better ones both contribute to frictional unemployment.

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

Jai Li just lost her job,and she hasn't yet started looking for a new one.The Bureau of Labor Statistics counts Jai Li as

A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job

For the Bureau of Labor Statistics to place someone in the "unemployed" category,that person must

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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