Question 1

If jobless persons who had given up searching suddenly resumed active searches for paying jobs-but had not yet found any-the unemployment rate would:

Accepted Answer

A) rise 
B) fall 
C) stay the same 
D) more information is needed 
A) rise 
B) fall 
C) stay the same 
D) more information is needed

Question 2

refer to the following information:  In Littleville, which has 1000 residents, 400 people do not currently work.  Of these 400 persons, 240 are under age 16, 10 are institutionalized, 25 have become discouraged and quit seeking work, and 75 others are either full-time students or home-makers.  Of the 600 people who do work, 150 work part-time but wish to work full-time.
-What is the official unemployment rate in Littleville?

Accepted Answer

A) 400/1000 
B) 50/650 
C) 50/600 
D) 65/650 
A) 400/1000 
B) 50/650 
C) 50/600 
D) 65/650

Question 3

refer to the following information:  The small town of East MacNeil has 1000 residents age 16 or older.  During the survey week, 200 adult residents did not work—20 workers were home sick from their jobs, 10 shopkeepers were unable to open their stores due to bad weather, 50 were actively seeking work, 25 others had previously given up actively looking, and the others were either full-time students or home-makers.  Of the 800 at work, 80 worked part-time but would have preferred full-time work.
-The size of the labor force in East MacNeil is:

Accepted Answer

A) 800 persons 
B) 850 persons 
C) 880 persons 
D) 1000 persons 
A) 800 persons 
B) 850 persons 
C) 880 persons 
D) 1000 persons

Question 4

Which one of the following is a true statement?

Accepted Answer

A) Higher levels of education are associated with higher levels of structural unemployment 
B) During a recession,cyclical unemployment rises but structural unemployment falls 
C) Historically,technological change has created more jobs than it has made obsolete 
D) During a recession,most unemployment is structural unemployment 
A) Higher levels of education are associated with higher levels of structural unemployment 
B) During a recession,cyclical unemployment rises but structural unemployment falls 
C) Historically,technological change has created more jobs than it has made obsolete 
D) During a recession,most unemployment is structural unemployment

Question 5

The unemployment rate for:

Accepted Answer

A) blue-collar workers is substantially higher than for white-collar workers 
B) females is about double that for males 
C) teenagers is about 25% higher than for those age 20 and over 
D) African Americans is about four times that of whites 
A) blue-collar workers is substantially higher than for white-collar workers 
B) females is about double that for males 
C) teenagers is about 25% higher than for those age 20 and over 
D) African Americans is about four times that of whites

Question 6

Implicit contracts suggest that:

Accepted Answer

A) firms may lay off workers in return for granting then an "insurance policy" against wage reductions 
B) firms may pay workers a lower wage in return for granting them an "insurance policy" against layoff 
C) firms have a higher wage bill in recessions than during periods of economic expansion 
D) firms have an incentive to contract with workers to pay them the going market wage 
A) firms may lay off workers in return for granting then an "insurance policy" against wage reductions 
B) firms may pay workers a lower wage in return for granting them an "insurance policy" against layoff 
C) firms have a higher wage bill in recessions than during periods of economic expansion 
D) firms have an incentive to contract with workers to pay them the going market wage

Question 7

refer to the following information:  In Littleville, which has 1000 residents, 400 people do not currently work.  Of these 400 persons, 240 are under age 16, 10 are institutionalized, 25 have become discouraged and quit seeking work, and 75 others are either full-time students or home-makers.  Of the 600 people who do work, 150 work part-time but wish to work full-time.
-The number of officially employed persons in Littleville is:

Accepted Answer

A) 450 
B) 525 
C) 600 
D) 675 
A) 450 
B) 525 
C) 600 
D) 675

Question 8

Structural unemployment is characterized by:

Accepted Answer

A) a geographical or skill-based mismatch between available jobs and job seekers 
B) deficient aggregate demand 
C) unemployment in excess of the natural rate 
D) wage rigidity 
A) a geographical or skill-based mismatch between available jobs and job seekers 
B) deficient aggregate demand 
C) unemployment in excess of the natural rate 
D) wage rigidity

Question 9

_____ of the unemployment rate differential between black and white men can be explained by characteristics like education and job experience,which suggests that discriminations plays _____ in the unemployment gap.

Accepted Answer

A) Nearly all; little or no role 
B) Less than half; a role 
C) Nearly all; a role 
D) Less than half; little or no role 
A) Nearly all; little or no role 
B) Less than half; a role 
C) Nearly all; a role 
D) Less than half; little or no role

Question 10

Which of the following is a true statement?

Accepted Answer

A) Unemployment rates are greater for occupations requiring greater amounts of human capital 
B) Historically,the black unemployment rate has been about twice that for whites 
C) Historically,unemployment rates are very similar for all skill levels 
D) Historically,the unemployment rate for females has been twice that of males 
A) Unemployment rates are greater for occupations requiring greater amounts of human capital 
B) Historically,the black unemployment rate has been about twice that for whites 
C) Historically,unemployment rates are very similar for all skill levels 
D) Historically,the unemployment rate for females has been twice that of males

Question 11

refer to the following aggregate demand-aggregate supply diagram
 
-If aggregate demand is given by AD1,the economy will:

Accepted Answer

A) achieve the full-employment level of output 
B) fall short of the full-employment level of output 
C) exceed the full-employment level of output 
D) experience frictional unemployment but not cyclical unemployment 
A) achieve the full-employment level of output 
B) fall short of the full-employment level of output 
C) exceed the full-employment level of output 
D) experience frictional unemployment but not cyclical unemployment

Question 12

refer to the following aggregate demand-aggregate supply diagram
 
-If aggregate demand is given by AD2,the economy will:

Accepted Answer

A) achieve the full-employment level of output in the short run 
B) fall short of the full-employment level of output 
C) exceed the full-employment level of output in the short run 
D) experience frictional unemployment but not cyclical unemployment 
A) achieve the full-employment level of output in the short run 
B) fall short of the full-employment level of output 
C) exceed the full-employment level of output in the short run 
D) experience frictional unemployment but not cyclical unemployment

Question 13

When the economy is at full-employment:

Accepted Answer

A) the unemployment rate is zero 
B) unemployment is at its natural rate 
C) the actual rate of inflation is less than expected 
D) there is neither voluntary nor involuntary unemployment 
A) the unemployment rate is zero 
B) unemployment is at its natural rate 
C) the actual rate of inflation is less than expected 
D) there is neither voluntary nor involuntary unemployment

Question 14

Demand-deficient unemployment occurs when:

Accepted Answer

A) a decrease in aggregate demand causes a decrease in the demand for labor,with little reduction in real wage rates 
B) an increase in aggregate supply reduces wage rates,causing fewer people to seek jobs 
C) a decrease in aggregate demand causes a decrease in wage rates,causing fewer people to seek jobs 
D) a decrease in aggregate supply reduces consumer demand,thereby reducing the demand for labor 
A) a decrease in aggregate demand causes a decrease in the demand for labor,with little reduction in real wage rates 
B) an increase in aggregate supply reduces wage rates,causing fewer people to seek jobs 
C) a decrease in aggregate demand causes a decrease in wage rates,causing fewer people to seek jobs 
D) a decrease in aggregate supply reduces consumer demand,thereby reducing the demand for labor

Question 15

refer to the following aggregate demand-aggregate supply diagram
 
-The full-employment level of output is given by:

Accepted Answer

A) Q1 
B) Q2 
C) Q3 
D) Q3 - Q1 
A) Q1 
B) Q2 
C) Q3 
D) Q3 - Q1

Question 16

Which of the following is not a source of downward wage rigidity?

Accepted Answer

A) Unions appear to prefer layoffs to wage reductions,as the former affects only workers without seniority,while the latter would affect all workers 
B) Firms appear to prefer layoffs to wage reductions,as the former allows the firm to "hoard" workers in whom they have invested specific training 
C) Implicit contracts between employers and their workers 
D) Layoffs are discouraged due to the method used to finance unemployment compensation insurance 
A) Unions appear to prefer layoffs to wage reductions,as the former affects only workers without seniority,while the latter would affect all workers 
B) Firms appear to prefer layoffs to wage reductions,as the former allows the firm to "hoard" workers in whom they have invested specific training 
C) Implicit contracts between employers and their workers 
D) Layoffs are discouraged due to the method used to finance unemployment compensation insurance

Question 17

refer to the following diagram:
 
-Which one of the following would reduce the unemployment rate while leaving the size of the labor force unchanged?

Accepted Answer

A) An increase in flow 1 
B) An increase in flow 2 
C) An increase in flow 3 
D) An increase in flow 6 
A) An increase in flow 1 
B) An increase in flow 2 
C) An increase in flow 3 
D) An increase in flow 6

Question 18

Of the 3.8 million workers displaced from their jobs between 2003 and 2005,by 2006 most:

Accepted Answer

A) were still unemployed 
B) were employed in new jobs,with nearly all workers earning less than before 
C) had dropped out of the labor force 
D) were employed in new jobs,with about half the workers earning more than before 
A) were still unemployed 
B) were employed in new jobs,with nearly all workers earning less than before 
C) had dropped out of the labor force 
D) were employed in new jobs,with about half the workers earning more than before

Question 19

According to the text,the current consensus estimate of the natural rate of unemployment is approximately:

Accepted Answer

A) 2% - 3% 
B) 3% - 4% 
C) 4% - 5% 
D) 5% - 6% 
A) 2% - 3% 
B) 3% - 4% 
C) 4% - 5% 
D) 5% - 6%

Question 20

Crowding out occurs when:

Accepted Answer

A) unemployment rises as a result of downward wage rigidity 
B) unemployment rises because workers are displaced 
C) government borrowing pushes up interest rates,causing private investment to fall 
D) government borrowing pushes up interest rates,causing fiscal policy to overshoot the expansion of aggregate demand 
A) unemployment rises as a result of downward wage rigidity 
B) unemployment rises because workers are displaced 
C) government borrowing pushes up interest rates,causing private investment to fall 
D) government borrowing pushes up interest rates,causing fiscal policy to overshoot the expansion of aggregate demand

If jobless persons who had given up searching suddenly resumed active searches for paying jobs-but had not yet found any-the unemployment rate would:

Which one of the following is a true statement?

The unemployment rate for:

Implicit contracts suggest that:

Structural unemployment is characterized by:

_ of the unemployment rate differential between black and white men can be explained by characteristics like education and job experience,which suggests that discriminations plays _ in the unemployment gap.

Which of the following is a true statement?

refer to the following aggregate demand-aggregate supply diagram -If aggregate demand is given by AD₁,the economy will:

refer to the following aggregate demand-aggregate supply diagram -If aggregate demand is given by AD₂,the economy will:

When the economy is at full-employment:

Demand-deficient unemployment occurs when:

refer to the following aggregate demand-aggregate supply diagram -The full-employment level of output is given by:

Which of the following is not a source of downward wage rigidity?

refer to the following diagram: -Which one of the following would reduce the unemployment rate while leaving the size of the labor force unchanged?

Of the 3.8 million workers displaced from their jobs between 2003 and 2005,by 2006 most:

According to the text,the current consensus estimate of the natural rate of unemployment is approximately:

Crowding out occurs when:

Labor Economics: Introduction and Overview

The Theory of Individual Labor Supply

Population, Participation Rates, and Hours of Work

Labor Quality: Investing in Human Capital

The Demand for Labor

Wage Determination and the Allocation of Labor

Alternative Pay Schemes and Labor Efficiency

The Wage Structure

Mobility,Migration,and Efficiency

Labor Unions and Collective Bargaining

The Economic Impact of Unions

Government and the Labor Market: Employment, Expenditures, and Taxation

Government and the Labor Market: Legislation and Regulation

Labor Market Discrimination

Job Search: External and Internal

The Distribution of Personal Earnings

Labor Productivity: Wages,Prices,and Employment

Filters

Exam 18: Employment and Unemployment

If jobless persons who had given up searching suddenly resumed active searches for paying jobs-but had not yet found any-the unemployment rate would:

Which one of the following is a true statement?

The unemployment rate for:

Implicit contracts suggest that:

Structural unemployment is characterized by:

_____ of the unemployment rate differential between black and white men can be explained by characteristics like education and job experience,which suggests that discriminations plays _____ in the unemployment gap.

Which of the following is a true statement?

refer to the following aggregate demand-aggregate supply diagram -If aggregate demand is given by AD1,the economy will:

refer to the following aggregate demand-aggregate supply diagram -If aggregate demand is given by AD2,the economy will:

When the economy is at full-employment:

Demand-deficient unemployment occurs when:

refer to the following aggregate demand-aggregate supply diagram -The full-employment level of output is given by:

Which of the following is not a source of downward wage rigidity?

refer to the following diagram: -Which one of the following would reduce the unemployment rate while leaving the size of the labor force unchanged?

Of the 3.8 million workers displaced from their jobs between 2003 and 2005,by 2006 most:

According to the text,the current consensus estimate of the natural rate of unemployment is approximately:

Crowding out occurs when:

Labor Economics: Introduction and Overview

The Theory of Individual Labor Supply

Population, Participation Rates, and Hours of Work

Labor Quality: Investing in Human Capital

The Demand for Labor

Wage Determination and the Allocation of Labor

Alternative Pay Schemes and Labor Efficiency

The Wage Structure

Mobility,Migration,and Efficiency

Labor Unions and Collective Bargaining

The Economic Impact of Unions

Government and the Labor Market: Employment, Expenditures, and Taxation

Government and the Labor Market: Legislation and Regulation

Labor Market Discrimination

Job Search: External and Internal

The Distribution of Personal Earnings

Labor Productivity: Wages,Prices,and Employment

Filters

_ of the unemployment rate differential between black and white men can be explained by characteristics like education and job experience,which suggests that discriminations plays _ in the unemployment gap.

refer to the following aggregate demand-aggregate supply diagram -If aggregate demand is given by AD₁,the economy will:

refer to the following aggregate demand-aggregate supply diagram -If aggregate demand is given by AD₂,the economy will: