Question 1

Historical data support that long-term unemployment increases with higher costs of hiring and firing employees.

Accepted Answer

A) True 
 B)False

Question 2

A country has 50 million people,30 million of whom are adults.Of the adults,5 million are not interested in working,another 5 million are interested in working but have given up looking for work,and 5 million are still looking for work.Of those who do have jobs,5 million are working part time but would like to work full time,and the remaining 10 million are working full time.How many people in this country are in the labor force?

Accepted Answer

A)  15 million 
B)  20 million 
C)  25 million 
D)  30 million 
A)  15 million 
B)  20 million 
C)  25 million 
D)  30 million

Question 3

Structural unemployment is associated with:

Accepted Answer

A)  higher rates of output. 
B)  lower levels of stress. 
C)  higher levels of happiness. 
D)  higher rates of suicide. 
A)  higher rates of output. 
B)  lower levels of stress. 
C)  higher levels of happiness. 
D)  higher rates of suicide.

Question 4

The phrase "persistent long-term unemployment" means:

Accepted Answer

A)  that a substantial fraction of the unemployed have been so for more than one year. 
B)  that the unemployment problem has lasted for a long time. 
C)  that a substantial fraction of the unemployed have been so for more than one year and that this problem has lasted for a long time. 
D)  that a small fraction of the unemployed have been so for more than one year but that this problem has not lasted for a long time. 
A)  that a substantial fraction of the unemployed have been so for more than one year. 
B)  that the unemployment problem has lasted for a long time. 
C)  that a substantial fraction of the unemployed have been so for more than one year and that this problem has lasted for a long time. 
D)  that a small fraction of the unemployed have been so for more than one year but that this problem has not lasted for a long time.

Question 5

What information does the World Bank's "rigidity of employment index" provide?

Accepted Answer

A)  a summary of the average length of unemployment over a 5-year period 
B)  a measure of the effects of shrinking manufacturing firms in developed nations 
C)  a summary of firms' costs for hiring,firing,and adjusting employment hours 
D)  a measure of the available government assistance for workers seeking employment 
A)  a summary of the average length of unemployment over a 5-year period 
B)  a measure of the effects of shrinking manufacturing firms in developed nations 
C)  a summary of firms' costs for hiring,firing,and adjusting employment hours 
D)  a measure of the available government assistance for workers seeking employment

Question 6

Compared to the United States,unemployment rates in Western Europe tend to be:

Accepted Answer

A)  lower because of more labor regulations. 
B)  lower because of fewer labor regulations. 
C)  higher because of more labor regulations. 
D)  higher because of fewer labor regulations. 
A)  lower because of more labor regulations. 
B)  lower because of fewer labor regulations. 
C)  higher because of more labor regulations. 
D)  higher because of fewer labor regulations.

Question 7

When the unemployment rate is equal to the natural rate,frictional and structural unemployment are zero.

Accepted Answer

A) True 
 B)False

Question 8

The minimum wage lowers the price of labor from the market wage to the minimum wage and as labor becomes less expensive,firms increase employment.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is NOT true of structural unemployment?

Accepted Answer

A)  It is persistent over time. 
B)  It is long-term in duration. 
C)  It results from industry restructuring. 
D)  It results from scarcity of information. 
A)  It is persistent over time. 
B)  It is long-term in duration. 
C)  It results from industry restructuring. 
D)  It results from scarcity of information.

Question 10

A nation has an adult population of 30 million people.There are 20 million employed people and 5 million people looking for work.What is the unemployment rate? What is the labor force participation rate?

Accepted Answer

The answer of A nation has an adult population of...

Question 11

Job-search programs and work tests for unemployed workers are likely to be sponsored by:

Accepted Answer

A)  firms. 
B)  unions. 
C)  governments. 
D)  workers. 
A)  firms. 
B)  unions. 
C)  governments. 
D)  workers.

Question 12

Which doctrine indicates that an employee may quit and an employer may fire an employee at any time for any reason?

Accepted Answer

A)  laissez faire 
B)  employment-at-will 
C)  rational ignorance 
D)  equal pay for equal work 
A)  laissez faire 
B)  employment-at-will 
C)  rational ignorance 
D)  equal pay for equal work

Question 13

A part-time worker who wishes to have a full-time job counts as fully employed.

Accepted Answer

A) True 
 B)False

Question 14

When not in a recession,the largest fraction of unemployment in the United States lasts:

Accepted Answer

A)  less than 5 weeks. 
B)  between 5 and 14 weeks. 
C)  between 15 and 26 weeks. 
D)  more than 27 weeks. 
A)  less than 5 weeks. 
B)  between 5 and 14 weeks. 
C)  between 15 and 26 weeks. 
D)  more than 27 weeks.

Question 15

The short-term unemployment caused by the ordinary difficulties of matching employee to employer is called:

Accepted Answer

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

Question 16

The unemployment rate measures the:

Accepted Answer

A)  quality of jobs. 
B)  number of discouraged workers. 
C)  number of underemployed workers. 
D)  share of the labor force that is unemployed. 
A)  quality of jobs. 
B)  number of discouraged workers. 
C)  number of underemployed workers. 
D)  share of the labor force that is unemployed.

Question 17

When information about jobs becomes scarcer,frictional unemployment tends to decrease.

Accepted Answer

A) True 
 B)False

Question 18

A taxi driver with a PhD in chemistry counts as fully employed.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is TRUE of the effects of employment protection laws?

Accepted Answer

A)  They make labor markets more flexible in adjusting for changes in market conditions. 
B)  They reduce the duration of unemployment. 
C)  They reduce the unemployment rates among young and minority workers. 
D)  They create employment security for workers with a job. 
A)  They make labor markets more flexible in adjusting for changes in market conditions. 
B)  They reduce the duration of unemployment. 
C)  They reduce the unemployment rates among young and minority workers. 
D)  They create employment security for workers with a job.

Question 20

When unions exert a great deal of influence,the effect on labor markets is similar to that of a minimum wage.

Accepted Answer

A) True 
 B)False

Historical data support that long-term unemployment increases with higher costs of hiring and firing employees.

Structural unemployment is associated with:

The phrase "persistent long-term unemployment" means:

What information does the World Bank's "rigidity of employment index" provide?

Compared to the United States,unemployment rates in Western Europe tend to be:

When the unemployment rate is equal to the natural rate,frictional and structural unemployment are zero.

The minimum wage lowers the price of labor from the market wage to the minimum wage and as labor becomes less expensive,firms increase employment.

Which of the following is NOT true of structural unemployment?

A nation has an adult population of 30 million people.There are 20 million employed people and 5 million people looking for work.What is the unemployment rate? What is the labor force participation rate?

Job-search programs and work tests for unemployed workers are likely to be sponsored by:

Which doctrine indicates that an employee may quit and an employer may fire an employee at any time for any reason?

A part-time worker who wishes to have a full-time job counts as fully employed.

When not in a recession,the largest fraction of unemployment in the United States lasts:

The short-term unemployment caused by the ordinary difficulties of matching employee to employer is called:

The unemployment rate measures the:

When information about jobs becomes scarcer,frictional unemployment tends to decrease.

A taxi driver with a PhD in chemistry counts as fully employed.

Which of the following is TRUE of the effects of employment protection laws?

When unions exert a great deal of influence,the effect on labor markets is similar to that of a minimum wage.

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

Price Ceilings and Floors

GDP and the Measurement of Progress

The Wealth of Nations and Economic Growth

Growth,capital Accumulation

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Inflation and the Quantity Theory of Money

Business Fluctuations

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

The Federal Budget- Taxes and Spending

Fiscal Policy

International Trade

International Finance

Political Economy and Public Choice

Filters

Exam 11: Unemployment and Labor Force Participation

Historical data support that long-term unemployment increases with higher costs of hiring and firing employees.

Structural unemployment is associated with:

The phrase "persistent long-term unemployment" means:

What information does the World Bank's "rigidity of employment index" provide?

Compared to the United States,unemployment rates in Western Europe tend to be:

When the unemployment rate is equal to the natural rate,frictional and structural unemployment are zero.

The minimum wage lowers the price of labor from the market wage to the minimum wage and as labor becomes less expensive,firms increase employment.

Which of the following is NOT true of structural unemployment?

A nation has an adult population of 30 million people.There are 20 million employed people and 5 million people looking for work.What is the unemployment rate? What is the labor force participation rate?

Job-search programs and work tests for unemployed workers are likely to be sponsored by:

Which doctrine indicates that an employee may quit and an employer may fire an employee at any time for any reason?

A part-time worker who wishes to have a full-time job counts as fully employed.

When not in a recession,the largest fraction of unemployment in the United States lasts:

The short-term unemployment caused by the ordinary difficulties of matching employee to employer is called:

The unemployment rate measures the:

When information about jobs becomes scarcer,frictional unemployment tends to decrease.

A taxi driver with a PhD in chemistry counts as fully employed.

Which of the following is TRUE of the effects of employment protection laws?

When unions exert a great deal of influence,the effect on labor markets is similar to that of a minimum wage.

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

Price Ceilings and Floors

GDP and the Measurement of Progress

The Wealth of Nations and Economic Growth

Growth,capital Accumulation

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Inflation and the Quantity Theory of Money

Business Fluctuations

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

The Federal Budget- Taxes and Spending

Fiscal Policy

International Trade

International Finance

Political Economy and Public Choice

Filters