Question 1

Maxine,the owner of a furniture company,decides to raise the wages of her workers even though she faces an excess supply of labor.Her decision

Accepted Answer

A)  might increase profits if it attracts a better pool of workers to apply for her firm's jobs. 
B)  will increase the excess supply of labor. 
C)  may increase the quality of her work force. 
D)  All of the above are correct. 
A)  might increase profits if it attracts a better pool of workers to apply for her firm's jobs. 
B)  will increase the excess supply of labor. 
C)  may increase the quality of her work force. 
D)  All of the above are correct.

Question 2

When a minimum-wage law forces the wage to remain above the level that balances supply and demand,there are more workers willing to work than there are jobs,so some workers are unemployed.

Accepted Answer

A) True 
 B)False

Question 3

Structural unemployment is often thought to explain relatively short spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 4

Table 28-1
Labor Data for Wrexington
  
-Refer to Table 28-1.The number of adults not in the labor force of Wrexington in 2004 was

Accepted Answer

A)  200 
B)  400 
C)  600 
D)  1800 
A)  200 
B)  400 
C)  600 
D)  1800

Question 5

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 in Meditor?

Accepted Answer

A)  90 million 
B)  150 million 
C)  160 million 
D)  230 million 
A)  90 million 
B)  150 million 
C)  160 million 
D)  230 million

Question 6

The Bureau of Labor Statistics defines discouraged workers as marginally attached workers who have given a job-market related reason for not currently looking for a job.

Accepted Answer

A) True 
 B)False

Question 7

If a union and a firm cannot reach an agreement on the terms of employment,then the union can organize a withdrawal of labor from the firm,called a strike.

Accepted Answer

A) True 
 B)False

Question 8

From time to time,the demand for workers has risen in one region of the United States and fallen in another.This illustrates

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 9

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

Accepted Answer

A)  Cemal,a full-time student who is not looking for work 
B)  Halim,who is on temporary layoff 
C)  Zeynep,who has retired and is not looking for work 
D)  All of the above are correct. 
A)  Cemal,a full-time student who is not looking for work 
B)  Halim,who is on temporary layoff 
C)  Zeynep,who has retired and is not looking for work 
D)  All of the above are correct.

Question 10

Minimum-wage laws matter most for the least skilled and least experienced members of the labor force,such as teenagers.

Accepted Answer

A) True 
 B)False

Question 11

Marginally attached workers are people who

Accepted Answer

A)  are looking for a better job than they currently have. 
B)  are not working and are not looking for work,but would work if asked. 
C)  are working part-time while they go to school or get training for a better job. 
D)  are only a few years from retirement. 
A)  are looking for a better job than they currently have. 
B)  are not working and are not looking for work,but would work if asked. 
C)  are working part-time while they go to school or get training for a better job. 
D)  are only a few years from retirement.

Question 12

Between the 1940s and today,union membership in the U.S.

Accepted Answer

A)  rose from about one-eighth to one-third of the labor force. 
B)  rose from about one-third to one-half of the labor force. 
C)  fell from about one-half to one-third of the labor force. 
D)  fell from about one-third to one-eighth of the labor force. 
A)  rose from about one-eighth to one-third of the labor force. 
B)  rose from about one-third to one-half of the labor force. 
C)  fell from about one-half to one-third of the labor force. 
D)  fell from about one-third to one-eighth of the labor force.

Question 13

Frictional unemployment is thought to explain

Accepted Answer

A)  relatively short spells of unemployment,as is structural unemployment. 
B)  relatively long spells of unemployment,as is structural unemployment. 
C)  relatively short spells of unemployment,while structural unemployment is thought to explain relatively long spells of unemployment. 
D)  relatively long spells of unemployment,while structural unemployment is thought to explain relatively short spells of unemployment. 
A)  relatively short spells of unemployment,as is structural unemployment. 
B)  relatively long spells of unemployment,as is structural unemployment. 
C)  relatively short spells of unemployment,while structural unemployment is thought to explain relatively long spells of unemployment. 
D)  relatively long spells of unemployment,while structural unemployment is thought to explain relatively short spells of unemployment.

Question 14

Minimum-wage laws and unions are similar to each other but different from efficiency wages in that minimum-wage law and unions

Accepted Answer

A)  cause unemployment,but efficiency wages do not. 
B)  cause the quantity of labor supplied to exceed the quantity of labor demanded,but efficiency wages do not. 
C)  cause wages to be above the equilibrium level. 
D)  prevent firms from lowering wages in the presence of a surplus of workers. 
A)  cause unemployment,but efficiency wages do not. 
B)  cause the quantity of labor supplied to exceed the quantity of labor demanded,but efficiency wages do not. 
C)  cause wages to be above the equilibrium level. 
D)  prevent firms from lowering wages in the presence of a surplus of workers.

Question 15

Minimum-wage laws can keep wages

Accepted Answer

A)  above equilibrium and cause a surplus of labor. 
B)  above equilibrium and cause a shortage of labor. 
C)  below equilibrium and cause a surplus of labor. 
D)  below equilibrium and cause a shortage of labor. 
A)  above equilibrium and cause a surplus of labor. 
B)  above equilibrium and cause a shortage of labor. 
C)  below equilibrium and cause a surplus of labor. 
D)  below equilibrium and cause a shortage of labor.

Question 16

Which of the following is not a cause of frictional unemployment?

Accepted Answer

A)  the destruction of manufacturing jobs 
B)  a worker leaving a job to find one with better benefits 
C)  minimum-wage laws 
D)  unemployment insurance 
A)  the destruction of manufacturing jobs 
B)  a worker leaving a job to find one with better benefits 
C)  minimum-wage laws 
D)  unemployment insurance

Question 17

The unemployed who quit their jobs,were fired for cause,or just entered the labor force are eligible for unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 18

People who are unemployed because of job search are best classified as

Accepted Answer

A)  cyclically unemployed. 
B)  structurally unemployed. 
C)  frictionally unemployed. 
D)  discouraged workers. 
A)  cyclically unemployed. 
B)  structurally unemployed. 
C)  frictionally unemployed. 
D)  discouraged workers.

Question 19

If all workers and all jobs were the same such that all workers were equally well suited for all jobs,then there would be no

Accepted Answer

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

Question 20

Which of the following is not correct?

Accepted Answer

A)  Unions raise the wages above the level that would prevail in competitive markets. 
B)  Unions reduce the quantity of labor demanded,cause some workers to be unemployed,and reduce the wages in the rest of the economy. 
C)  Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable. 
D)  All of the above are correct. 
A)  Unions raise the wages above the level that would prevail in competitive markets. 
B)  Unions reduce the quantity of labor demanded,cause some workers to be unemployed,and reduce the wages in the rest of the economy. 
C)  Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable. 
D)  All of the above are correct.

Exam 28: Unemployment

Maxine,the owner of a furniture company,decides to raise the wages of her workers even though she faces an excess supply of labor.Her decision

When a minimum-wage law forces the wage to remain above the level that balances supply and demand,there are more workers willing to work than there are jobs,so some workers are unemployed.

Structural unemployment is often thought to explain relatively short spells of unemployment.

Table 28-1 Labor Data for Wrexington -Refer to Table 28-1.The number of adults not in the labor force of Wrexington in 2004 was

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 in Meditor?

The Bureau of Labor Statistics defines discouraged workers as marginally attached workers who have given a job-market related reason for not currently looking for a job.

If a union and a firm cannot reach an agreement on the terms of employment,then the union can organize a withdrawal of labor from the firm,called a strike.

From time to time,the demand for workers has risen in one region of the United States and fallen in another.This illustrates

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

Minimum-wage laws matter most for the least skilled and least experienced members of the labor force,such as teenagers.

Marginally attached workers are people who

Between the 1940s and today,union membership in the U.S.

Frictional unemployment is thought to explain

Minimum-wage laws and unions are similar to each other but different from efficiency wages in that minimum-wage law and unions

Minimum-wage laws can keep wages

Which of the following is not a cause of frictional unemployment?

The unemployed who quit their jobs,were fired for cause,or just entered the labor force are eligible for unemployment insurance.

People who are unemployed because of job search are best classified as

If all workers and all jobs were the same such that all workers were equally well suited for all jobs,then there would be no

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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