Question 1

Where is the unemployment rate more likely higher?

Accepted Answer

A)  where minimum wages are lower,because people don't take low-paid jobs 
B)  in the public sector,because less workers are unionized 
C)  where EI benefits are higher,because people have less incentive to find jobs 
D)  in the private sector,because minimum wages are higher 
A)  where minimum wages are lower,because people don't take low-paid jobs 
B)  in the public sector,because less workers are unionized 
C)  where EI benefits are higher,because people have less incentive to find jobs 
D)  in the private sector,because minimum wages are higher

Question 2

What does the theory of efficiency wages explain?

Accepted Answer

A)  why setting wages at the equilibrium level may increase unemployment 
B)  why it may be in the best interest of firms to offer wages that are above the equilibrium level 
C)  why the most efficient way to pay workers is to pay them according to their skills 
D)  why it is efficient for firms to set wages at the equilibrium level 
A)  why setting wages at the equilibrium level may increase unemployment 
B)  why it may be in the best interest of firms to offer wages that are above the equilibrium level 
C)  why the most efficient way to pay workers is to pay them according to their skills 
D)  why it is efficient for firms to set wages at the equilibrium level

Question 3

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 4

Cynthia is collecting unemployment insurance benefits.To continue to receive her benefits,she must be looking for work; however,she only applies at places where she is unlikely to be hired because she doesn't really want to work.People like Cynthia make the reported unemployment rate less than the true rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 5

Union workers earn about 10 percent to 20 percent more than similar workers who do not belong to unions.

Accepted Answer

A) True 
 B)False

Question 6

Figure 9-2  
-Refer to the Figure 9-2.If the minimum wage rose from $5 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 7

Who would be counted as unemployed according to official statistics?

Accepted Answer

A)  Shasta,who is currently not working and is waiting for her new job to start 
B)  Mary,who worked only 25 hours last week 
C)  Karen,who neither has a job nor is looking for one 
D)  Kevin,who is a retiree 
A)  Shasta,who is currently not working and is waiting for her new job to start 
B)  Mary,who worked only 25 hours last week 
C)  Karen,who neither has a job nor is looking for one 
D)  Kevin,who is a retiree

Question 8

Table 9-1
This table shows the 2013 data for males and females aged 15 and over in the country of Bolivar.  
-Refer to the Table 9-1.What is the adult male labour-force participation rate in Bolivar?

Accepted Answer

A)  7.40 percent 
B)  33.33 percent 
C)  37.03 percent 
D)  65.22 percent 
A)  7.40 percent 
B)  33.33 percent 
C)  37.03 percent 
D)  65.22 percent

Question 9

How does Statistics Canada define the unemployment rate?

Accepted Answer

A)  as the percentage of those unemployed relative to the percentage employed 
B)  as the percentage of the labour force that is unemployed 
C)  as the percentage of the adult population that is unemployed 
D)  as the percentage of the labour force without full-time employment 
A)  as the percentage of those unemployed relative to the percentage employed 
B)  as the percentage of the labour force that is unemployed 
C)  as the percentage of the adult population that is unemployed 
D)  as the percentage of the labour force without full-time employment

Question 10

Yohanna,the CEO of a corporation operating in Ethiopia,decides to raise the wages of her workers,even though she faces an excess supply of labour.Which of the following is an expected result from her decision?

Accepted Answer

A)  It will increase productivity,according to the efficiency wage theory. 
B)  It will help eliminate the excess supply of labour if she raises it sufficiently. 
C)  It will attract a larger pool of workers to fill vacancies but of lesser quality. 
D)  It will decrease profits,according to the efficiency wage theory. 
A)  It will increase productivity,according to the efficiency wage theory. 
B)  It will help eliminate the excess supply of labour if she raises it sufficiently. 
C)  It will attract a larger pool of workers to fill vacancies but of lesser quality. 
D)  It will decrease profits,according to the efficiency wage theory.

Question 11

Figure 9-2  
-Refer to the Figure 9-2.If the minimum wage is $5 or $6,what is the number of people unemployed,respectively?

Accepted Answer

A)  40 and 0 
B)  20 and 20 
C)  40 and 20 
D)  0 and 0 
A)  40 and 0 
B)  20 and 20 
C)  40 and 20 
D)  0 and 0

Question 12

Which of the following best defines gross job destruction?

Accepted Answer

A)  the sum of job losses across all firms,either by firms reducing their employment or going out of business,in a given year 
B)  the number of jobs created by new firms less jobs lost in established firms in a given year 
C)  the number of job losses due to firms reducing their employment in a given year 
D)  the number of job losses due to firms going out of business in a given year 
A)  the sum of job losses across all firms,either by firms reducing their employment or going out of business,in a given year 
B)  the number of jobs created by new firms less jobs lost in established firms in a given year 
C)  the number of job losses due to firms reducing their employment in a given year 
D)  the number of job losses due to firms going out of business in a given year

Question 13

Unemployment due to job search is best classified as structural unemployment.

Accepted Answer

A) True 
 B)False

Question 14

Table 9-1
This table shows the 2013 data for males and females aged 15 and over in the country of Bolivar.  
-Refer to Table 9-1.What is the adult female population in Bolivar?

Accepted Answer

A)  35 million 
B)  40 million 
C)  95 million 
D)  105 million 
A)  35 million 
B)  40 million 
C)  95 million 
D)  105 million

Question 15

Government policy can do nothing about the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 16

Suppose that there is an excess supply of economics professors.Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Accepted Answer

Standard economic theory suggests that i

Question 17

Which condition causes structural unemployment?

Accepted Answer

A)  Wages are kept above the equilibrium level. 
B)  People choose not to work at the equilibrium wage. 
C)  Some wages are below the equilibrium level. 
D)  Conditions for unemployment insurance benefits relax. 
A)  Wages are kept above the equilibrium level. 
B)  People choose not to work at the equilibrium wage. 
C)  Some wages are below the equilibrium level. 
D)  Conditions for unemployment insurance benefits relax.

Question 18

When a union bargains successfully with an employer,what happens to unemployment and wages in that industry?

Accepted Answer

A)  unemployment and wages increase 
B)  unemployment and wages decrease 
C)  unemployment decreases and wages increase 
D)  unemployment increases and wages decrease 
A)  unemployment and wages increase 
B)  unemployment and wages decrease 
C)  unemployment decreases and wages increase 
D)  unemployment increases and wages decrease

Question 19

Regarding the categories of unemployment,how does a minimum-wage law compare to firms paying higher-than-equilibrium wages?

Accepted Answer

A)  The minimum wage creates frictional unemployment,while firms paying wages above equilibrium create structural unemployment. 
B)  The minimum wage creates structural unemployment,while firms paying wages above equilibrium create frictional unemployment. 
C)  The minimum wage and firms paying wages above equilibrium both create structural unemployment. 
D)  The minimum wage and firms paying wages above equilibrium both create frictional unemployment. 
A)  The minimum wage creates frictional unemployment,while firms paying wages above equilibrium create structural unemployment. 
B)  The minimum wage creates structural unemployment,while firms paying wages above equilibrium create frictional unemployment. 
C)  The minimum wage and firms paying wages above equilibrium both create structural unemployment. 
D)  The minimum wage and firms paying wages above equilibrium both create frictional unemployment.

Question 20

Which cause of unemployment is NOT associated with a wage rate above the equilibrium level?

Accepted Answer

A)  unions 
B)  efficiency wages 
C)  employment insurance 
D)  minimum-wage laws 
A)  unions 
B)  efficiency wages 
C)  employment insurance 
D)  minimum-wage laws

Where is the unemployment rate more likely higher?

What does the theory of efficiency wages explain?

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

Union workers earn about 10 percent to 20 percent more than similar workers who do not belong to unions.

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

Who would be counted as unemployed according to official statistics?

Table 9-1 This table shows the 2013 data for males and females aged 15 and over in the country of Bolivar. -Refer to the Table 9-1.What is the adult male labour-force participation rate in Bolivar?

How does Statistics Canada define the unemployment rate?

Yohanna,the CEO of a corporation operating in Ethiopia,decides to raise the wages of her workers,even though she faces an excess supply of labour.Which of the following is an expected result from her decision?

Figure 9-2 -Refer to the Figure 9-2.If the minimum wage is $5 or $6,what is the number of people unemployed,respectively?

Which of the following best defines gross job destruction?

Unemployment due to job search is best classified as structural unemployment.

Table 9-1 This table shows the 2013 data for males and females aged 15 and over in the country of Bolivar. -Refer to Table 9-1.What is the adult female population in Bolivar?

Government policy can do nothing about the natural rate of unemployment.

Suppose that there is an excess supply of economics professors.Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Which condition causes structural unemployment?

When a union bargains successfully with an employer,what happens to unemployment and wages in that industry?

Regarding the categories of unemployment,how does a minimum-wage law compare to firms paying higher-than-equilibrium wages?

Which cause of unemployment is NOT associated with a wage rate above the equilibrium level?

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

Where is the unemployment rate more likely higher?

What does the theory of efficiency wages explain?

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

Union workers earn about 10 percent to 20 percent more than similar workers who do not belong to unions.

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

Who would be counted as unemployed according to official statistics?

Table 9-1 This table shows the 2013 data for males and females aged 15 and over in the country of Bolivar. -Refer to the Table 9-1.What is the adult male labour-force participation rate in Bolivar?

How does Statistics Canada define the unemployment rate?

Yohanna,the CEO of a corporation operating in Ethiopia,decides to raise the wages of her workers,even though she faces an excess supply of labour.Which of the following is an expected result from her decision?

Figure 9-2 -Refer to the Figure 9-2.If the minimum wage is $5 or $6,what is the number of people unemployed,respectively?

Which of the following best defines gross job destruction?

Unemployment due to job search is best classified as structural unemployment.

Table 9-1 This table shows the 2013 data for males and females aged 15 and over in the country of Bolivar. -Refer to Table 9-1.What is the adult female population in Bolivar?

Government policy can do nothing about the natural rate of unemployment.

Suppose that there is an excess supply of economics professors.Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Which condition causes structural unemployment?

When a union bargains successfully with an employer,what happens to unemployment and wages in that industry?

Regarding the categories of unemployment,how does a minimum-wage law compare to firms paying higher-than-equilibrium wages?

Which cause of unemployment is NOT associated with a wage rate above the equilibrium level?

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