Question 1

Which of these is NOT an implication of the model of job search?

Accepted Answer

A)  Virtually all individuals will be underemployed. 
B)  Workers with identical skill levels will generally receive different wages if their reservation wages differ. 
C)  If the cost of being unemployed falls, a person's reservation wage will fall. 
D)  Search unemployment is a rational strategy in a world of imperfect information. 
A)  Virtually all individuals will be underemployed. 
B)  Workers with identical skill levels will generally receive different wages if their reservation wages differ. 
C)  If the cost of being unemployed falls, a person's reservation wage will fall. 
D)  Search unemployment is a rational strategy in a world of imperfect information.

Question 2

What is the reservation wage? How does an individual's reservation wage affect the duration of a spell of unemployment? How does an individual's reservation wage affect the individual's expected wage?

Accepted Answer

@#IMG-DLM&_TB3580_00_TB3580_00

Question 3

Which of the following does NOT explain why firms and employees may prefer layoffs to wage reductions?

Accepted Answer

A)  Employees may possess firm-specific training. 
B)  Employees may possess general training. 
C)  Firms may have implicitly promised a wage path to their employees. 
D)  Experienced workers may prefer a certain income stream to an uncertain income stream. 
A)  Employees may possess firm-specific training. 
B)  Employees may possess general training. 
C)  Firms may have implicitly promised a wage path to their employees. 
D)  Experienced workers may prefer a certain income stream to an uncertain income stream.

Question 4

The unemployment rate tells us

Accepted Answer

A)  the percentage of the population that is not working. 
B)  the percentage of the population that is searching for work. 
C)  the percentage of the labor force that has been laid off. 
D)  the percentage of the labor force that is not working. 
A)  the percentage of the population that is not working. 
B)  the percentage of the population that is searching for work. 
C)  the percentage of the labor force that has been laid off. 
D)  the percentage of the labor force that is not working.

Question 5

Paying efficiency wages to reduce turnover may be profit-maximizing for companies,but it also contributes to ________ unemployment.

Accepted Answer

A)  frictional 
B)  regional 
C)  cyclical 
D)  structural 
A)  frictional 
B)  regional 
C)  cyclical 
D)  structural

Question 6

Suppose that a country has two types of workers-young workers and older workers.Young workers make up 10 percent of the labor force and normally have a group unemployment rate of 15 percent.Older workers comprise the rest of the labor force and normally have a group unemployment rate of 5 percent.What is the country's natural rate of unemployment? If twenty years earlier,the country experienced a baby boom such that the labor force composition of young workers now jumps to 20 percent,what is the country's new natural rate of unemployment? Comment on your calculations.

Accepted Answer

Initially,the natural rate of unemployme

Question 7

Wait unemployment is a form of ________ unemployment.

Accepted Answer

A)  structural 
B)  frictional 
C)  cyclical 
D)  structural and cyclical 
A)  structural 
B)  frictional 
C)  cyclical 
D)  structural and cyclical

Question 8

Does the unemployment insurance payroll tax encourage layoffs? Why or why not?

Accepted Answer

Labor economists believe that the means

Question 9

A construction worker who is not working due to a snow storm would be counted as ________ unemployed.

Accepted Answer

A)  frictionally 
B)  structurally 
C)  cyclically 
D)  seasonally 
A)  frictionally 
B)  structurally 
C)  cyclically 
D)  seasonally

Question 10

A retraining program to teach unemployed auto workers how to program computers would help to reduce ________ unemployment.

Accepted Answer

A)  frictional 
B)  cyclical 
C)  seasonal 
D)  structural 
A)  frictional 
B)  cyclical 
C)  seasonal 
D)  structural

Question 11

The largest source of unemployed workers is ________ and the second largest is ________.

Accepted Answer

A)  job losers; new entrants 
B)  job losers; reentrants 
C)  job leavers; new entrants 
D)  job leavers; reentrants 
A)  job losers; new entrants 
B)  job losers; reentrants 
C)  job leavers; new entrants 
D)  job leavers; reentrants

Question 12

Unemployment tends to go up when aggregate demand falls mainly because

Accepted Answer

A)  when wages fall, workers seek alternative employment. 
B)  unions renegotiate for lower wages, making it difficult for job searchers to find suitable jobs. 
C)  wage rates tend to be downward rigid. 
D)  most human capital is general and not firm-specific. 
A)  when wages fall, workers seek alternative employment. 
B)  unions renegotiate for lower wages, making it difficult for job searchers to find suitable jobs. 
C)  wage rates tend to be downward rigid. 
D)  most human capital is general and not firm-specific.

Question 13

An increase in an individual's reservation wage

Accepted Answer

A)  will increase the duration of the individual's unemployment but not affect the expected wage. 
B)  will increase the individual's expected wage but not affect the duration of unemployment. 
C)  will not change the individual's duration of unemployment. 
D)  will increase both the individual's duration of unemployment and expected wage. 
A)  will increase the duration of the individual's unemployment but not affect the expected wage. 
B)  will increase the individual's expected wage but not affect the duration of unemployment. 
C)  will not change the individual's duration of unemployment. 
D)  will increase both the individual's duration of unemployment and expected wage.

Question 14

European policies which make it difficult to dismiss workers and reduce wage flexibility have probably

Accepted Answer

A)  increased the rate of job creation. 
B)  decreased the unemployment rate. 
C)  decreased the rate of long-term unemployment. 
D)  increased the costs of doing business. 
A)  increased the rate of job creation. 
B)  decreased the unemployment rate. 
C)  decreased the rate of long-term unemployment. 
D)  increased the costs of doing business.

Question 15

A nation has full employment when

Accepted Answer

A)  wages and prices are stable. 
B)  unemployment is at its lowest level. 
C)  unemployment rates are the same across all demographic groups. 
D)  workers are earning a living wage. 
A)  wages and prices are stable. 
B)  unemployment is at its lowest level. 
C)  unemployment rates are the same across all demographic groups. 
D)  workers are earning a living wage.

Question 16

If the unemployment rate increases,

Accepted Answer

A)  the employment rate must decrease. 
B)  the employment rate must increase. 
C)  the employment rate will generally decrease by the same amount. 
D)  the employment rate may either increase or decrease. 
A)  the employment rate must decrease. 
B)  the employment rate must increase. 
C)  the employment rate will generally decrease by the same amount. 
D)  the employment rate may either increase or decrease.

Question 17

Which of the following describes the wage curve?

Accepted Answer

A)  Workers with higher wages are less likely to become unemployed. 
B)  Regions with higher wages have lower regional unemployment rates. 
C)  As more workers seek jobs, market wages fall. 
D)  As regional wages increase, the number of persons seeking jobs goes up. 
A)  Workers with higher wages are less likely to become unemployed. 
B)  Regions with higher wages have lower regional unemployment rates. 
C)  As more workers seek jobs, market wages fall. 
D)  As regional wages increase, the number of persons seeking jobs goes up.

Question 18

What is the wage curve? What is the efficiency wage explanation of the wage curve?

Accepted Answer

The wage curve is a stable inverse relat

Question 19

If all employers pay an efficiency wage,then

Accepted Answer

A)  more employees would shirk. 
B)  unemployment would be higher. 
C)  firms would be better able to monitor their employees productivity. 
D)  all of the above 
A)  more employees would shirk. 
B)  unemployment would be higher. 
C)  firms would be better able to monitor their employees productivity. 
D)  all of the above

Question 20

Experience rating is

Accepted Answer

A)  assigning a higher UI tax to employers who lay off workers frequently. 
B)  assigning a higher UI tax to employers who have a large number of experienced workers. 
C)  assigning a higher UI tax to employers who have a large number of inexperienced workers. 
D)  assigning a higher UI tax to employers who have not been in business for very long because these businesses are likely to fail. 
A)  assigning a higher UI tax to employers who lay off workers frequently. 
B)  assigning a higher UI tax to employers who have a large number of experienced workers. 
C)  assigning a higher UI tax to employers who have a large number of inexperienced workers. 
D)  assigning a higher UI tax to employers who have not been in business for very long because these businesses are likely to fail.

Which of these is NOT an implication of the model of job search?

What is the reservation wage? How does an individual's reservation wage affect the duration of a spell of unemployment? How does an individual's reservation wage affect the individual's expected wage?

Which of the following does NOT explain why firms and employees may prefer layoffs to wage reductions?

The unemployment rate tells us

Paying efficiency wages to reduce turnover may be profit-maximizing for companies,but it also contributes to ________ unemployment.

Wait unemployment is a form of ________ unemployment.

Does the unemployment insurance payroll tax encourage layoffs? Why or why not?

A construction worker who is not working due to a snow storm would be counted as ________ unemployed.

A retraining program to teach unemployed auto workers how to program computers would help to reduce ________ unemployment.

The largest source of unemployed workers is and the second largest is .

Unemployment tends to go up when aggregate demand falls mainly because

An increase in an individual's reservation wage

European policies which make it difficult to dismiss workers and reduce wage flexibility have probably

A nation has full employment when

If the unemployment rate increases,

Which of the following describes the wage curve?

What is the wage curve? What is the efficiency wage explanation of the wage curve?

If all employers pay an efficiency wage,then

Experience rating is

Introduction

Overview of the Labor Market

The Demand for Labor

Labor Demand Elasticities

Frictions in the Labor Market

Supply of Labor to the Economy: The Decision to Work

Labor Supply: Household Production, the Family, and the Life Cycle

Compensating Wage Differentials and Labor Markets

Investments in Human Capital: Education and Training

Worker Mobility: Migration, Immigration, and Turnover

Pay and Productivity: Wage Determination within the Firm

Gender,Race,and Ethnicity in the Labor Market

Unions and the Labor Market

Inequality in Earnings

The Labor-Market Effects of International Trade and Production Sharing

Filters

Exam 14: Unemployment

Which of these is NOT an implication of the model of job search?

What is the reservation wage? How does an individual's reservation wage affect the duration of a spell of unemployment? How does an individual's reservation wage affect the individual's expected wage?

Which of the following does NOT explain why firms and employees may prefer layoffs to wage reductions?

The unemployment rate tells us

Paying efficiency wages to reduce turnover may be profit-maximizing for companies,but it also contributes to ________ unemployment.

Wait unemployment is a form of ________ unemployment.

Does the unemployment insurance payroll tax encourage layoffs? Why or why not?

A construction worker who is not working due to a snow storm would be counted as ________ unemployed.

A retraining program to teach unemployed auto workers how to program computers would help to reduce ________ unemployment.

The largest source of unemployed workers is ________ and the second largest is ________.

Unemployment tends to go up when aggregate demand falls mainly because

An increase in an individual's reservation wage

European policies which make it difficult to dismiss workers and reduce wage flexibility have probably

A nation has full employment when

If the unemployment rate increases,

Which of the following describes the wage curve?

What is the wage curve? What is the efficiency wage explanation of the wage curve?

If all employers pay an efficiency wage,then

Experience rating is

Introduction

Overview of the Labor Market

The Demand for Labor

Labor Demand Elasticities

Frictions in the Labor Market

Supply of Labor to the Economy: The Decision to Work

Labor Supply: Household Production, the Family, and the Life Cycle

Compensating Wage Differentials and Labor Markets

Investments in Human Capital: Education and Training

Worker Mobility: Migration, Immigration, and Turnover

Pay and Productivity: Wage Determination within the Firm

Gender,Race,and Ethnicity in the Labor Market

Unions and the Labor Market

Inequality in Earnings

The Labor-Market Effects of International Trade and Production Sharing

Filters

The largest source of unemployed workers is and the second largest is .