Question 1

In which situation would Statistics Canada count a person as unemployed?

Accepted Answer

A)  when that person is not in the labour force 
B)  when that person is not looking for work 
C)  when that person is under the age of 15 
D)  when that person is age 15 or over and looking for work 
A)  when that person is not in the labour force 
B)  when that person is not looking for work 
C)  when that person is under the age of 15 
D)  when that person is age 15 or over and looking for work

Question 2

Which statement is characteristic of the natural rate of unemployment?

Accepted Answer

A)  It is a consistent rate,year after year. 
B)  It is the desirable rate of unemployment. 
C)  It is a variable that cannot be altered by economic policy. 
D)  It is the amount of unemployment that the economy normally experiences. 
A)  It is a consistent rate,year after year. 
B)  It is the desirable rate of unemployment. 
C)  It is a variable that cannot be altered by economic policy. 
D)  It is the amount of unemployment that the economy normally experiences.

Question 3

What is the approximate labour-force participation rate of the Canadian adult population (aged 15 and over)?

Accepted Answer

A)  47 percent 
B)  55 percent 
C)  66 percent 
D)  75 percent 
A)  47 percent 
B)  55 percent 
C)  66 percent 
D)  75 percent

Question 4

Why have labour-force participation rates for women in Canada increased since World War II while labour-force participation rates for men have decreased?

Accepted Answer

Labour-force participation rates for wom

Question 5

Which province has the highest percentage of unionized workers?

Accepted Answer

A)  Ontario 
B)  Newfoundland and Labrador 
C)  British Columbia 
D)  Quebec 
A)  Ontario 
B)  Newfoundland and Labrador 
C)  British Columbia 
D)  Quebec

Question 6

What impact would an increase in the minimum wage have on the quantity demanded and quantity supplied of labour?

Accepted Answer

A)  It would increase both the quantity demanded and the quantity supplied of labour. 
B)  It would decrease both the quantity demanded and the quantity supplied of labour. 
C)  It would increase the quantity of labour demanded while decreasing the quantity supplied. 
D)  It would decrease the quantity of labour demanded while increasing the quantity supplied. 
A)  It would increase both the quantity demanded and the quantity supplied of labour. 
B)  It would decrease both the quantity demanded and the quantity supplied of labour. 
C)  It would increase the quantity of labour demanded while decreasing the quantity supplied. 
D)  It would decrease the quantity of labour demanded while increasing the quantity supplied.

Question 7

What impact does employment insurance have on the labour market?

Accepted Answer

A)  It reduces search effort and raises unemployment. 
B)  It reduces discouraged search efforts and lowers unemployment. 
C)  It increases successful search efforts and reduces unemployment. 
D)  It increases search effort and increases unemployment. 
A)  It reduces search effort and raises unemployment. 
B)  It reduces discouraged search efforts and lowers unemployment. 
C)  It increases successful search efforts and reduces unemployment. 
D)  It increases search effort and increases unemployment.

Question 8

Who would be counted as unemployed according to official statistics?

Accepted Answer

A)  Brian,a full-time student who is not looking for work 
B)  Kate,who is waiting to be recalled after a temporary layoff 
C)  Heath,who has retired and is not looking for work 
D)  James,who has just graduated from university and is taking a year off to volunteer abroad 
A)  Brian,a full-time student who is not looking for work 
B)  Kate,who is waiting to be recalled after a temporary layoff 
C)  Heath,who has retired and is not looking for work 
D)  James,who has just graduated from university and is taking a year off to volunteer abroad

Question 9

Mary Sue is the newly appointed CEO of a company that manufactures USB flash 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)  reduce production 
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)  reduce production

Question 10

Figure 9-1
This figure shows the effect of a minimum-wage law.  
-Refer to the Figure 9-1.If there was a minimum wage of $4 and then the government instituted a minimum wage of $5,what would happen to employment in this market?

Accepted Answer

A)  Unemployment would be unchanged. 
B)  Unemployment would drop by 10. 
C)  Unemployment would rise by 10. 
D)  Unemployment would rise by 20. 
A)  Unemployment would be unchanged. 
B)  Unemployment would drop by 10. 
C)  Unemployment would rise by 10. 
D)  Unemployment would rise by 20.

Question 11

Figure 9-2  
-Refer to the Figure 9-2.If the minimum wage fell from $7 to $5,what would happen to unemployment?

Accepted Answer

A)  It would fall by 20. 
B)  It would fall by 40. 
C)  It would be unchanged. 
D)  It would rise by 20. 
A)  It would fall by 20. 
B)  It would fall by 40. 
C)  It would be unchanged. 
D)  It would rise by 20.

Question 12

Which of the following constitutes the labour force?

Accepted Answer

A)  the number of people who are employed 
B)  the number of people who are unemployed 
C)  the number of people employed plus the number of people unemployed 
D)  the number of people in the adult population 
A)  the number of people who are employed 
B)  the number of people who are unemployed 
C)  the number of people employed plus the number of people unemployed 
D)  the number of people in the adult population

Question 13

Which term refers to unemployment that is the result of a well-functioning economy that rewards innovation and new ideas?

Accepted Answer

A)  frictional unemployment 
B)  cyclical unemployment 
C)  structural unemployment 
D)  innovative unemployment 
A)  frictional unemployment 
B)  cyclical unemployment 
C)  structural unemployment 
D)  innovative unemployment

Question 14

In Canada in recent years,how does the unemployment rate among those aged 15 to 24 compare with that of older adults?

Accepted Answer

A)  less than that of older adults 
B)  about the same as that of older adults 
C)  much higher than that of older adults 
D)  approximately half that of older adults 
A)  less than that of older adults 
B)  about the same as that of older adults 
C)  much higher than that of older adults 
D)  approximately half that of older adults

Question 15

What is the effect of anything that makes the efficiency wage rise relative to the market-clearing wage?

Accepted Answer

A)  It increases both the quantity demanded and the quantity supplied of labour. 
B)  It decreases both the quantity demanded and the quantity supplied of labour. 
C)  It increases the quantity demanded and decreases the quantity supplied of labour. 
D)  It decreases the quantity demanded and increases the quantity supplied of labour. 
A)  It increases both the quantity demanded and the quantity supplied of labour. 
B)  It decreases both the quantity demanded and the quantity supplied of labour. 
C)  It increases the quantity demanded and decreases the quantity supplied of labour. 
D)  It decreases the quantity demanded and increases the quantity supplied of labour.

Question 16

What is most likely to reduce the natural rate of unemployment?

Accepted Answer

A)  the Internet providing more readily available information about available jobs 
B)  provincial legislators voting for increasing the minimum wage 
C)  passing laws that make it more difficult to monitor the efforts of workers 
D)  firms offering higher-than-equilibrium wages to reduce worker turnover 
A)  the Internet providing more readily available information about available jobs 
B)  provincial legislators voting for increasing the minimum wage 
C)  passing laws that make it more difficult to monitor the efforts of workers 
D)  firms offering higher-than-equilibrium wages to reduce worker turnover

Question 17

Figure 9-2  
-Refer to the Figure 9-2.If the minimum wage rose from $6 to $7,what would happen to unemployment?

Accepted Answer

A)  It would rise by 40. 
B)  It would rise by 20. 
C)  It would fall by 20. 
D)  It would fall by 40. 
A)  It would rise by 40. 
B)  It would rise by 20. 
C)  It would fall by 20. 
D)  It would fall by 40.

Question 18

How is the unemployment rate computed?

Accepted Answer

A)  by counting the number of employment insurance applications filed 
B)  by dividing the number of unemployed by the number of persons in the labour force 
C)  by determining the number of unemployed in the population aged 18 and older 
D)  by counting the number of working-age persons who don't have a job 
A)  by counting the number of employment insurance applications filed 
B)  by dividing the number of unemployed by the number of persons in the labour force 
C)  by determining the number of unemployed in the population aged 18 and older 
D)  by counting the number of working-age persons who don't have a job

Question 19

Approximately what percentage of all Canadian workers are union members?

Accepted Answer

A)  5 percent 
B)  30 percent 
C)  50 percent 
D)  95 percent 
A)  5 percent 
B)  30 percent 
C)  50 percent 
D)  95 percent

Question 20

Which statement best defines "job search"?

Accepted Answer

A)  It is a process through which the firms determine the equilibrium wage. 
B)  It is an imbalance between labour supply and labour demand. 
C)  It is the process of matching workers with appropriate jobs. 
D)  It is the process through which firms hire new employees. 
A)  It is a process through which the firms determine the equilibrium wage. 
B)  It is an imbalance between labour supply and labour demand. 
C)  It is the process of matching workers with appropriate jobs. 
D)  It is the process through which firms hire new employees.

In which situation would Statistics Canada count a person as unemployed?

Which statement is characteristic of the natural rate of unemployment?

What is the approximate labour-force participation rate of the Canadian adult population (aged 15 and over)?

Why have labour-force participation rates for women in Canada increased since World War II while labour-force participation rates for men have decreased?

Which province has the highest percentage of unionized workers?

What impact would an increase in the minimum wage have on the quantity demanded and quantity supplied of labour?

What impact does employment insurance have on the labour market?

Who would be counted as unemployed according to official statistics?

Mary Sue is the newly appointed CEO of a company that manufactures USB flash 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?

Figure 9-1 This figure shows the effect of a minimum-wage law. -Refer to the Figure 9-1.If there was a minimum wage of $4 and then the government instituted a minimum wage of $5,what would happen to employment in this market?

Figure 9-2 -Refer to the Figure 9-2.If the minimum wage fell from $7 to $5,what would happen to unemployment?

Which of the following constitutes the labour force?

Which term refers to unemployment that is the result of a well-functioning economy that rewards innovation and new ideas?

In Canada in recent years,how does the unemployment rate among those aged 15 to 24 compare with that of older adults?

What is the effect of anything that makes the efficiency wage rise relative to the market-clearing wage?

What is most likely to reduce the natural rate of unemployment?

Figure 9-2 -Refer to the Figure 9-2.If the minimum wage rose from $6 to $7,what would happen to unemployment?

How is the unemployment rate computed?

Approximately what percentage of all Canadian workers are union members?

Which statement best defines "job search"?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 9: Unemployment and Its Natural Rate

In which situation would Statistics Canada count a person as unemployed?

Which statement is characteristic of the natural rate of unemployment?

What is the approximate labour-force participation rate of the Canadian adult population (aged 15 and over)?

Why have labour-force participation rates for women in Canada increased since World War II while labour-force participation rates for men have decreased?

Which province has the highest percentage of unionized workers?

What impact would an increase in the minimum wage have on the quantity demanded and quantity supplied of labour?

What impact does employment insurance have on the labour market?

Who would be counted as unemployed according to official statistics?

Mary Sue is the newly appointed CEO of a company that manufactures USB flash 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?

Figure 9-1 This figure shows the effect of a minimum-wage law. -Refer to the Figure 9-1.If there was a minimum wage of $4 and then the government instituted a minimum wage of $5,what would happen to employment in this market?

Figure 9-2 -Refer to the Figure 9-2.If the minimum wage fell from $7 to $5,what would happen to unemployment?

Which of the following constitutes the labour force?

Which term refers to unemployment that is the result of a well-functioning economy that rewards innovation and new ideas?

In Canada in recent years,how does the unemployment rate among those aged 15 to 24 compare with that of older adults?

What is the effect of anything that makes the efficiency wage rise relative to the market-clearing wage?

What is most likely to reduce the natural rate of unemployment?

Figure 9-2 -Refer to the Figure 9-2.If the minimum wage rose from $6 to $7,what would happen to unemployment?

How is the unemployment rate computed?

Approximately what percentage of all Canadian workers are union members?

Which statement best defines "job search"?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters