Question 1

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

Accepted Answer

A)  50 million 
B)  90 million 
C)  130 million 
D)  135 million 
A)  50 million 
B)  90 million 
C)  130 million 
D)  135 million

Question 2

The labor-force participation rate tells us the fraction of the population that

Accepted Answer

A)  is able to participate in the labor market. 
B)  has ever been employed. 
C)  has chosen to participate in the labor market. 
D)  has chosen not to participate in the labor market. 
A)  is able to participate in the labor market. 
B)  has ever been employed. 
C)  has chosen to participate in the labor market. 
D)  has chosen not to participate in the labor market.

Question 3

Like any cartel,a union is a group of sellers acting together in the hope of exerting their joint market power.

Accepted Answer

A) True 
 B)False

Question 4

When a union is present in a labor market,wages are not determined by the equilibrium of supply and demand.

Accepted Answer

A) True 
 B)False

Question 5

Unions are often thought to cause conflict between different groups of workers -- between the insiders who benefit from high union wages and the outsiders who do not get the union jobs.

Accepted Answer

A) True 
 B)False

Question 6

Economists have found that union workers earn about 30 to 40 percent more than similar workers who do not belong to unions.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not among the four industries with the largest employment in the United States today?

Accepted Answer

A)  lumber 
B)  aircraft 
C)  communications 
D)  electrical components 
A)  lumber 
B)  aircraft 
C)  communications 
D)  electrical components

Question 8

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

Accepted Answer

A)  Census. 
B)  Labor Survey. 
C)  Survey of Economic Indicators. 
D)  Current Population Survey. 
A)  Census. 
B)  Labor Survey. 
C)  Survey of Economic Indicators. 
D)  Current Population Survey.

Question 9

Long-run unemployment arises from a single problem that has a single solution.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is correct?

Accepted Answer

A)  Nearly all economists believe that unions are bad for the economy as a whole. 
B)  Unions raise wages above the competitive equilibrium level. 
C)  Unions increase the level of employment in unionized firms. 
D)  Unions decrease the level of employment in nonunionized firms. 
A)  Nearly all economists believe that unions are bad for the economy as a whole. 
B)  Unions raise wages above the competitive equilibrium level. 
C)  Unions increase the level of employment in unionized firms. 
D)  Unions decrease the level of employment in nonunionized firms.

Question 11

Bob is looking for work after school,but everywhere he fills out an application,the managers say they always have a lot more applications than open positions.Tom has a law degree.Several firms have made him offers,but he thinks he might be able to find a firm where his talents could be put to better use.

Accepted Answer

A)  Bob and Tom are both frictionally unemployed. 
B)  Bob and Tom are both structurally unemployed. 
C)  Bob is frictionally unemployed,and Tom is structurally unemployed. 
D)  Bob is structurally unemployed,and Tom is frictionally unemployed. 
A)  Bob and Tom are both frictionally unemployed. 
B)  Bob and Tom are both structurally unemployed. 
C)  Bob is frictionally unemployed,and Tom is structurally unemployed. 
D)  Bob is structurally unemployed,and Tom is frictionally unemployed.

Question 12

Just after World War II,the labor-force participation rate of men was

Accepted Answer

A)  about 33 percent,and in 2007,it was about 50 percent. 
B)  about 50 percent,and in 2007,it was about 60 percent. 
C)  about 65 percent,and in 2007,it was about 60 percent. 
D)  about 87 percent,and in 2007,it was about 73 percent. 
A)  about 33 percent,and in 2007,it was about 50 percent. 
B)  about 50 percent,and in 2007,it was about 60 percent. 
C)  about 65 percent,and in 2007,it was about 60 percent. 
D)  about 87 percent,and in 2007,it was about 73 percent.

Question 13

Workers in unions reap the benefit of collective bargaining,while workers not in unions bear some of the cost.

Accepted Answer

A) True 
 B)False

Question 14

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 frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 15

Daisy is the newly appointed CEO of a company that manufactures CD drives on an assembly line.Her staff has told her that the output the firm produces,given the number of workers employed,indicates that some workers may be shirking.According to efficiency wage theory,what should she do?

Accepted Answer

A)  pay all workers more than the equilibrium wage rate 
B)  pay all workers below the equilibrium wage rate to make up for the loss from shirking 
C)  make sure that workers are getting paid exactly the equilibrium wage rate 
D)  pay bonuses to workers who report the shirking of other workers 
A)  pay all workers more than the equilibrium wage rate 
B)  pay all workers below the equilibrium wage rate to make up for the loss from shirking 
C)  make sure that workers are getting paid exactly the equilibrium wage rate 
D)  pay bonuses to workers who report the shirking of other workers

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one 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

Minimum-wage laws,unions,and efficiency wages contribute to

Accepted Answer

A)  both structural unemployment and the natural rate of unemployment. 
B)  neither structural unemployment nor the natural rate of unemployment. 
C)  structural unemployment,but not the natural rate of unemployment. 
D)  the natural rate of unemployment,but not structural unemployment. 
A)  both structural unemployment and the natural rate of unemployment. 
B)  neither structural unemployment nor the natural rate of unemployment. 
C)  structural unemployment,but not the natural rate of unemployment. 
D)  the natural rate of unemployment,but not structural unemployment.

Question 19

Figure 28-1  
-Refer to Figure 28-1.At the equilibrium wage,how many workers are unemployed?

Accepted Answer

A)  0 
B)  4000 
C)  5000 
D)  8000 
A)  0 
B)  4000 
C)  5000 
D)  8000

Question 20

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

Accepted Answer

A)  more likely to be working part time and in the communication industry. 
B)  more likely to be working part time and in the leisure and hospitality industry. 
C)  more likely to be working full time and in the communication industry. 
D)  more likely to be working full time and in the leisure and hospitality industry. 
A)  more likely to be working part time and in the communication industry. 
B)  more likely to be working part time and in the leisure and hospitality industry. 
C)  more likely to be working full time and in the communication industry. 
D)  more likely to be working full time and in the leisure and hospitality industry.

Exam 28: Unemployment

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

The labor-force participation rate tells us the fraction of the population that

Like any cartel,a union is a group of sellers acting together in the hope of exerting their joint market power.

When a union is present in a labor market,wages are not determined by the equilibrium of supply and demand.

Unions are often thought to cause conflict between different groups of workers -- between the insiders who benefit from high union wages and the outsiders who do not get the union jobs.

Economists have found that union workers earn about 30 to 40 percent more than similar workers who do not belong to unions.

Which of the following is not among the four industries with the largest employment in the United States today?

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

Long-run unemployment arises from a single problem that has a single solution.

Which of the following is correct?

Just after World War II,the labor-force participation rate of men was

Workers in unions reap the benefit of collective bargaining,while workers not in unions bear some of the cost.

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 frictional unemployment.

Daisy is the newly appointed CEO of a company that manufactures CD drives on an assembly line.Her staff has told her that the output the firm produces,given the number of workers employed,indicates that some workers may be shirking.According to efficiency wage theory,what should she do?

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

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called

Minimum-wage laws,unions,and efficiency wages contribute to

Figure 28-1 -Refer to Figure 28-1.At the equilibrium wage,how many workers are unemployed?

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

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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