Question 1

Employment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

Accepted Answer

A) True 
 B)False

Question 2

What is,approximately,the percentage of unionized public workers in Canada?

Accepted Answer

A)  30 percent 
B)  40 percent 
C)  60 percent 
D)  70 percent 
A)  30 percent 
B)  40 percent 
C)  60 percent 
D)  70 percent

Question 3

Why did Henry Ford decide to pay $5 per day to his workers?

Accepted Answer

A)  He was forced by a union to pay $5 per day. 
B)  He paid $5 per day to improve worker nutrition. 
C)  He believed that $5 a day would increase worker productivity. 
D)  He paid $5 per day to illustrate that he was a humanitarian. 
A)  He was forced by a union to pay $5 per day. 
B)  He paid $5 per day to improve worker nutrition. 
C)  He believed that $5 a day would increase worker productivity. 
D)  He paid $5 per day to illustrate that he was a humanitarian.

Question 4

What is the theory of efficiency wages? Give a couple of explanations for how efficiency wages might work.

Accepted Answer

According to the theory of efficiency wa

Question 5

Four employers have justified their actions as follows.Whose logic is consistent with the logic of efficiency wage theory?

Accepted Answer

A)  Jay develops a new assembly line technology that limits the amount shirking workers may do,so he reduces what he pays his employees so as to make it closer to the equilibrium wage. 
B)  Kay pays her workers less than the equilibrium wage so they won't have the time or money to look for work somewhere else. 
C)  Ray pays his workers in a developing country more than the going wage,hoping that they will get a better diet and so be more productive. 
D)  Ms.Fay pays her workers the market wages,but she hires more supervisors to make sure workers do not shirk. 
A)  Jay develops a new assembly line technology that limits the amount shirking workers may do,so he reduces what he pays his employees so as to make it closer to the equilibrium wage. 
B)  Kay pays her workers less than the equilibrium wage so they won't have the time or money to look for work somewhere else. 
C)  Ray pays his workers in a developing country more than the going wage,hoping that they will get a better diet and so be more productive. 
D)  Ms.Fay pays her workers the market wages,but she hires more supervisors to make sure workers do not shirk.

Question 6

Figure 9-1
This figure shows the effect of a minimum-wage law.  
-Refer to the Figure 9-1.Which of the following describes the equilibrium point in the diagram where there is an absence of the minimum-wage law?

Accepted Answer

A)  $4 and 20 workers 
B)  $5 and 30 workers 
C)  $5 and 40 workers 
D)  $6 and 40 workers 
A)  $4 and 20 workers 
B)  $5 and 30 workers 
C)  $5 and 40 workers 
D)  $6 and 40 workers

Question 7

From time to time,the demand for workers has risen in one region of Canada and fallen in another.Which type of unemployment does this occurrence illustrate?

Accepted Answer

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

Question 8

Suppose the market for landscape workers in Kitchener,Ontario,can be described by the following labour demand and supply equations: LD = 340 - 10w and LS = 100 + 20w.
a)Calculate the equilibrium wage and employment in this market.
b)Suppose the local government passes a bill requiring all employers in this industry to provide bottled water to each worker to protect them from hot weather.This has been estimated to cost employers $1 per worker per hour.This way,workers do not need to purchase water by themselves,so that the bill effectively increases the wage by $1 per hour.What are the new labour demand and supply equations?
c)Calculate the new equilibrium wage and employment.Draw a graph to show the change.

Accepted Answer

a)The equilibrium equation is LD = LS,or

Question 9

Last year,a government reported an increase in the number of people who were employed and an increase in the unemployment rate.Which statement would best explain the report?

Accepted Answer

A)  There was an increase in labour force. 
B)  There was a decrease in labour force. 
C)  There was an increase in adult population. 
D)  There was a decrease in adult population. 
A)  There was an increase in labour force. 
B)  There was a decrease in labour force. 
C)  There was an increase in adult population. 
D)  There was a decrease in adult population.

Question 10

Which statement ranks categories from smallest to largest according to recent Canadian statistics?

Accepted Answer

A)  unemployed,employed,not in labour force 
B)  unemployed,not in labour force,employed 
C)  not in labour force,employed,unemployed 
D)  not in labour force,unemployed,employed 
A)  unemployed,employed,not in labour force 
B)  unemployed,not in labour force,employed 
C)  not in labour force,employed,unemployed 
D)  not in labour force,unemployed,employed

Question 11

Consider these facts: (1)Some people who are employed or who are not making a serious effort to find employment will report themselves as unemployed.(2)Some people who want to find work will be counted as out of the labour force.How do these facts affect the reported unemployment rate?

Accepted Answer

A)  Both the first and the second facts tend to make the reported unemployment rate lower than the actual unemployment rate. 
B)  Both the first and the second facts tend to make the reported unemployment rate higher than the actual unemployment rate. 
C)  The first fact tends to make the reported unemployment rate higher than the actual unemployment rate.The second fact tends to make the reported unemployment rate lower than the actual rate. 
D)  The first fact tends to make the reported unemployment rate lower than the actual unemployment rate.The second fact tends to make the reported unemployment rate higher than the actual rate. 
A)  Both the first and the second facts tend to make the reported unemployment rate lower than the actual unemployment rate. 
B)  Both the first and the second facts tend to make the reported unemployment rate higher than the actual unemployment rate. 
C)  The first fact tends to make the reported unemployment rate higher than the actual unemployment rate.The second fact tends to make the reported unemployment rate lower than the actual rate. 
D)  The first fact tends to make the reported unemployment rate lower than the actual unemployment rate.The second fact tends to make the reported unemployment rate higher than the actual rate.

Question 12

What do the laws governing the activity of labour unions achieve?

Accepted Answer

A)  They prevent unions from acting as cartels. 
B)  They allow workers joining a unionized firm to choose not to join the union. 
C)  They allow workers the right to representation and collective bargaining. 
D)  They limit the number of unionized organizations. 
A)  They prevent unions from acting as cartels. 
B)  They allow workers joining a unionized firm to choose not to join the union. 
C)  They allow workers the right to representation and collective bargaining. 
D)  They limit the number of unionized organizations.

Question 13

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 in Bolivar?

Accepted Answer

A)  75 million 
B)  90 million 
C)  100 million 
D)  120 million 
A)  75 million 
B)  90 million 
C)  100 million 
D)  120 million

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 the Table 9-1.What is the adult labour force in Bolivar?

Accepted Answer

A)  90 million 
B)  135 million 
C)  160 million 
D)  230 million 
A)  90 million 
B)  135 million 
C)  160 million 
D)  230 million

Question 15

Which country has the lowest percentage of unionized workers?

Accepted Answer

A)  United States 
B)  Canada 
C)  Sweden 
D)  Denmark 
A)  United States 
B)  Canada 
C)  Sweden 
D)  Denmark

Question 16

Which cause of unemployment is NOT associated with an excess supply of labour?

Accepted Answer

A)  minimum-wage laws 
B)  unions 
C)  job search 
D)  efficiency wages 
A)  minimum-wage laws 
B)  unions 
C)  job search 
D)  efficiency wages

Question 17

When a union bargains successfully with employers,what happens to quantity of labour supplied and demanded in that industry?

Accepted Answer

A)  Both the quantity of labour supplied and the quantity of labour demanded increase. 
B)  Both the quantity of labour supplied and the quantity of labour demanded decrease. 
C)  The quantity of labour supplied increases and the quantity of labour demanded decreases. 
D)  The quantity of labour supplied decreases the quantity of labour demanded increases. 
A)  Both the quantity of labour supplied and the quantity of labour demanded increase. 
B)  Both the quantity of labour supplied and the quantity of labour demanded decrease. 
C)  The quantity of labour supplied increases and the quantity of labour demanded decreases. 
D)  The quantity of labour supplied decreases the quantity of labour demanded increases.

Question 18

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.(Hint: Who is likely to get paid more?)

Accepted Answer

People who are experienced and educated

Question 19

In 2014,how much did the government budget for the EI program?

Accepted Answer

A)  about $5 billion 
B)  about $10 billion 
C)  about $12 million 
D)  about $17 billion 
A)  about $5 billion 
B)  about $10 billion 
C)  about $12 million 
D)  about $17 billion

Question 20

Right-to-work laws allow striking union members to be permanently replaced.

Accepted Answer

A) True 
 B)False

Employment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

What is,approximately,the percentage of unionized public workers in Canada?

Why did Henry Ford decide to pay $5 per day to his workers?

What is the theory of efficiency wages? Give a couple of explanations for how efficiency wages might work.

Four employers have justified their actions as follows.Whose logic is consistent with the logic of efficiency wage theory?

Figure 9-1 This figure shows the effect of a minimum-wage law. -Refer to the Figure 9-1.Which of the following describes the equilibrium point in the diagram where there is an absence of the minimum-wage law?

From time to time,the demand for workers has risen in one region of Canada and fallen in another.Which type of unemployment does this occurrence illustrate?

Last year,a government reported an increase in the number of people who were employed and an increase in the unemployment rate.Which statement would best explain the report?

Which statement ranks categories from smallest to largest according to recent Canadian statistics?

Consider these facts: (1)Some people who are employed or who are not making a serious effort to find employment will report themselves as unemployed.(2)Some people who want to find work will be counted as out of the labour force.How do these facts affect the reported unemployment rate?

What do the laws governing the activity of labour unions achieve?

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 in Bolivar?

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 labour force in Bolivar?

Which country has the lowest percentage of unionized workers?

Which cause of unemployment is NOT associated with an excess supply of labour?

When a union bargains successfully with employers,what happens to quantity of labour supplied and demanded in that industry?

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.(Hint: Who is likely to get paid more?)

In 2014,how much did the government budget for the EI program?

Right-to-work laws allow striking union members to be permanently replaced.

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

Employment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

What is,approximately,the percentage of unionized public workers in Canada?

Why did Henry Ford decide to pay $5 per day to his workers?

What is the theory of efficiency wages? Give a couple of explanations for how efficiency wages might work.

Four employers have justified their actions as follows.Whose logic is consistent with the logic of efficiency wage theory?

Figure 9-1 This figure shows the effect of a minimum-wage law. -Refer to the Figure 9-1.Which of the following describes the equilibrium point in the diagram where there is an absence of the minimum-wage law?

From time to time,the demand for workers has risen in one region of Canada and fallen in another.Which type of unemployment does this occurrence illustrate?

Last year,a government reported an increase in the number of people who were employed and an increase in the unemployment rate.Which statement would best explain the report?

Which statement ranks categories from smallest to largest according to recent Canadian statistics?

Consider these facts: (1)Some people who are employed or who are not making a serious effort to find employment will report themselves as unemployed.(2)Some people who want to find work will be counted as out of the labour force.How do these facts affect the reported unemployment rate?

What do the laws governing the activity of labour unions achieve?

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 in Bolivar?

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 labour force in Bolivar?

Which country has the lowest percentage of unionized workers?

Which cause of unemployment is NOT associated with an excess supply of labour?

When a union bargains successfully with employers,what happens to quantity of labour supplied and demanded in that industry?

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.(Hint: Who is likely to get paid more?)

In 2014,how much did the government budget for the EI program?

Right-to-work laws allow striking union members to be permanently replaced.

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