Question 1

Suppose that because of the popularity of the low-carb diet,bakeries need fewer workers and steak houses need more workers.This is an example of

Accepted Answer

A)  frictional unemployment created by efficiency wages. 
B)  frictional unemployment created by sectoral shifts. 
C)  structural unemployment created by efficiency wages. 
D)  structural unemployment created by sectoral shifts. 
A)  frictional unemployment created by efficiency wages. 
B)  frictional unemployment created by sectoral shifts. 
C)  structural unemployment created by efficiency wages. 
D)  structural unemployment created by sectoral shifts.

Question 2

Some individuals would like to have a job,but they have given up looking for a job after an unsuccessful search.These individuals are called

Accepted Answer

A)  unattached workers,and they are classified by the Bureau of Labor Statistics as unemployed. 
B)  unattached workers,and they are not classified by the Bureau of Labor Statistics as unemployed. 
C)  discouraged workers,and they are classified by the Bureau of Labor Statistics as unemployed. 
D)  discouraged workers,and they are not classified by the Bureau of Labor Statistics as unemployed. 
A)  unattached workers,and they are classified by the Bureau of Labor Statistics as unemployed. 
B)  unattached workers,and they are not classified by the Bureau of Labor Statistics as unemployed. 
C)  discouraged workers,and they are classified by the Bureau of Labor Statistics as unemployed. 
D)  discouraged workers,and they are not classified by the Bureau of Labor Statistics as unemployed.

Question 3

Teenage unemployment is higher than unemployment of people ages 20 and over.Explain why economists would attribute at least part of this difference to minimum-wage laws.

Accepted Answer

People who are experienced and educated

Question 4

People who report being unemployed but who,in fact,are working for "under the table" pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.

Accepted Answer

A) True 
 B)False

Question 5

When a union raises the wage above the equilibrium level,it

Accepted Answer

A)  reduces both the quantity of labor supplied and the quantity of labor demanded,resulting in unemployment. 
B)  reduces the quantity of labor supplied and raises the quantity of labor demanded,resulting in unemployment. 
C)  raises the quantity of labor supplied and reduces the quantity of labor demanded,resulting in unemployment. 
D)  raises both the quantity of labor supplied and the quantity of labor demanded,resulting in unemployment. 
A)  reduces both the quantity of labor supplied and the quantity of labor demanded,resulting in unemployment. 
B)  reduces the quantity of labor supplied and raises the quantity of labor demanded,resulting in unemployment. 
C)  raises the quantity of labor supplied and reduces the quantity of labor demanded,resulting in unemployment. 
D)  raises both the quantity of labor supplied and the quantity of labor demanded,resulting in unemployment.

Question 6

The natural rate of unemployment

Accepted Answer

A)  arises from a single problem that has a single solution. 
B)  is easy for policymakers to reduce. 
C)  Both (a)and (b)are correct. 
D)  None of the above is correct. 
A)  arises from a single problem that has a single solution. 
B)  is easy for policymakers to reduce. 
C)  Both (a)and (b)are correct. 
D)  None of the above is correct.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The Bureau of Labor Statistics' U-1 measure of joblessness includes only very long-term unemployed.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The Bureau of Labor Statistics' U-1 measure of joblessness is larger than its U-6 measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 11

Workers waiting for jobs to open up is most closely associated with

Accepted Answer

A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  seasonal unemployment. 
D)  structural unemployment. 
A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  seasonal unemployment. 
D)  structural unemployment.

Question 12

Unemployment insurance

Accepted Answer

A)  may improve the ability of the economy to match workers with appropriate jobs. 
B)  reduces the job search efforts of the unemployed. 
C)  increases the amount of frictional unemployment in the economy. 
D)  All of the above are correct. 
A)  may improve the ability of the economy to match workers with appropriate jobs. 
B)  reduces the job search efforts of the unemployed. 
C)  increases the amount of frictional unemployment in the economy. 
D)  All of the above are correct.

Question 13

Table 28-2
2009 Labor Data for Wrexington
  
-Refer to Table 28-2.What was Wrexington's unemployment rate in 2009?

Accepted Answer

A)  8.0 percent 
B)  12.7 percent 
C)  15.9 percent 
D)  22.1 percent 
A)  8.0 percent 
B)  12.7 percent 
C)  15.9 percent 
D)  22.1 percent

Question 14

Which of the following is not correct?

Accepted Answer

A)  It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment. 
B)  The equilibrium wages of the least skilled and least experienced members of the labor force tend to be low,and,therefore,are more likely to fall below the legal minimum wage. 
C)  If the wage is kept below the equilibrium level for any reason,the result is unemployment. 
D)  Minimum-wage laws,unions,and efficiency wages are all reasons wages may be kept above the equilibrium level. 
A)  It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment. 
B)  The equilibrium wages of the least skilled and least experienced members of the labor force tend to be low,and,therefore,are more likely to fall below the legal minimum wage. 
C)  If the wage is kept below the equilibrium level for any reason,the result is unemployment. 
D)  Minimum-wage laws,unions,and efficiency wages are all reasons wages may be kept above the equilibrium level.

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

Most spells of unemployment are short,and most unemployment observed at any given time is long term.How can this be?

Accepted Answer

Most unemployed people in the economy ar

Question 17

Today,unions play a larger role in Europe than they do in the U.S.

Accepted Answer

A) True 
 B)False

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 male labor-force participation rate in Meditor?

Accepted Answer

A)  37 percent 
B)  63 percent 
C)  66.7 percent 
D)  96.3 percent 
A)  37 percent 
B)  63 percent 
C)  66.7 percent 
D)  96.3 percent

Question 19

Table 28-5
2010 Labor Data for Wrexington
  
-Refer to Table 28-5.The unemployment rate of Wrexington in 2010 is about 7.5 percent.

Accepted Answer

A) True 
 B)False

Question 20

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment

Suppose that because of the popularity of the low-carb diet,bakeries need fewer workers and steak houses need more workers.This is an example of

Some individuals would like to have a job,but they have given up looking for a job after an unsuccessful search.These individuals are called

Teenage unemployment is higher than unemployment of people ages 20 and over.Explain why economists would attribute at least part of this difference to minimum-wage laws.

People who report being unemployed but who,in fact,are working for "under the table" pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.

When a union raises the wage above the equilibrium level,it

The natural rate of unemployment

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

The Bureau of Labor Statistics' U-1 measure of joblessness includes only very long-term unemployed.

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

The Bureau of Labor Statistics' U-1 measure of joblessness is larger than its U-6 measure of joblessness.

Workers waiting for jobs to open up is most closely associated with

Unemployment insurance

Table 28-2 2009 Labor Data for Wrexington -Refer to Table 28-2.What was Wrexington's unemployment rate in 2009?

Which of the following is not correct?

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.

Most spells of unemployment are short,and most unemployment observed at any given time is long term.How can this be?

Today,unions play a larger role in Europe than they do in the U.S.

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

Table 28-5 2010 Labor Data for Wrexington -Refer to Table 28-5.The unemployment rate of Wrexington in 2010 is about 7.5 percent.

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being.

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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