Question 1

The natural unemployment rates run higher for European countries than the United States.Briefly discuss some of the major reasons.

Accepted Answer

The natural unemployment rate includes b

Question 2

During recessions the unemployment rate:

Accepted Answer

A)  decreases. 
B)  increases. 
C)  remains relatively constant. 
D)  fluctuates randomly. 
A)  decreases. 
B)  increases. 
C)  remains relatively constant. 
D)  fluctuates randomly.

Question 3

Which of the following is NOT a factor that can increase structural unemployment?

Accepted Answer

A)  oil shock 
B)  globalization 
C)  early employment bonuses 
D)  fundamental technology 
A)  oil shock 
B)  globalization 
C)  early employment bonuses 
D)  fundamental technology

Question 4

If employers can fire an employee for any reason,other things being equal:

Accepted Answer

A)  it will be easier for job seekers to find employment. 
B)  it will be more difficult for job seekers to find employment. 
C)  the long-term unemployment rate will be higher. 
D)  labor markets will be less flexible and dynamic. 
A)  it will be easier for job seekers to find employment. 
B)  it will be more difficult for job seekers to find employment. 
C)  the long-term unemployment rate will be higher. 
D)  labor markets will be less flexible and dynamic.

Question 5

During a typical nonrecession year,the duration for at least half of the unemployed is:

Accepted Answer

A)  less than 1 week. 
B)  less than 14 weeks. 
C)  between 15 and 26 weeks. 
D)  more than 27 weeks. 
A)  less than 1 week. 
B)  less than 14 weeks. 
C)  between 15 and 26 weeks. 
D)  more than 27 weeks.

Question 6

Use the following to answer questions 
Figure: Labor Market  
-(Figure: Labor Market)Refer to the figure.What is the unemployment rate in this market as a result of the implementation of a $10 minimum wage?

Accepted Answer

A)  20% 
B)  25% 
C)  50% 
D)  100% 
A)  20% 
B)  25% 
C)  50% 
D)  100%

Question 7

The shift toward more of a service economy and less of a manufacturing economy in the United States has caused an increase in:

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 8

The presence of discouraged workers causes the measured unemployment rate to be:

Accepted Answer

A)  correctly stated. 
B)  overstated. 
C)  understated. 
D)  either overstated,understated,or correctly stated. 
A)  correctly stated. 
B)  overstated. 
C)  understated. 
D)  either overstated,understated,or correctly stated.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The aging of the population typically results in a lower labor force participation rate as well as higher taxes for younger workers.

Accepted Answer

A) True 
 B)False

Question 11

The employment-at-will doctrine makes labor markets more flexible and more dynamic.

Accepted Answer

A) True 
 B)False

Question 12

If a national government improves its unemployment benefits,its unemployment rate will most likely:

Accepted Answer

A)  increase. 
B)  decrease. 
C)  remain the same. 
D)  follow the global trend,regardless of national policy. 
A)  increase. 
B)  decrease. 
C)  remain the same. 
D)  follow the global trend,regardless of national policy.

Question 13

What type of laws affect young,minority,and unemployed workers most negatively?

Accepted Answer

A)  employment-at-will 
B)  employment protection 
C)  constructive discharge 
D)  fair labor 
A)  employment-at-will 
B)  employment protection 
C)  constructive discharge 
D)  fair labor

Question 14

Use the following to answer questions 
Figure: Labor Market  
-(Figure: Labor Market)Refer to the figure.What is the number of people who are employed at the market wage? How many people end up unemployed due to the implementation of a $10 minimum wage?

Accepted Answer

A)  40;20 
B)  40;40 
C)  60;40 
D)  60;20 
A)  40;20 
B)  40;40 
C)  60;40 
D)  60;20

Question 15

A discouraged worker is a:

Accepted Answer

A)  person working for fewer hours than he or she prefers. 
B)  worker being discouraged by his or her employer when asking for a promotion. 
C)  person who has given up looking for work but would still like a job if one is available. 
D)  unemployed person who has temporary part-time employment. 
A)  person working for fewer hours than he or she prefers. 
B)  worker being discouraged by his or her employer when asking for a promotion. 
C)  person who has given up looking for work but would still like a job if one is available. 
D)  unemployed person who has temporary part-time employment.

Question 16

Which of the following elements increases structural unemployment?

Accepted Answer

A)  active labor market policies 
B)  bonuses for early employment 
C)  job-search assistance programs 
D)  employment protection laws 
A)  active labor market policies 
B)  bonuses for early employment 
C)  job-search assistance programs 
D)  employment protection laws

Question 17

Europe has unemployment that is more persistent and longer in duration than unemployment in the United States.This suggests that Europe has higher:

Accepted Answer

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

Question 18

A minimum wage is:

Accepted Answer

A)  an employment protection law. 
B)  a labor market price ceiling. 
C)  the equilibrium wage in an unskilled labor market. 
D)  a labor market price floor. 
A)  an employment protection law. 
B)  a labor market price ceiling. 
C)  the equilibrium wage in an unskilled labor market. 
D)  a labor market price floor.

Question 19

Figure: Business Cycles & Unemployment   Which panel in the figure shows the expected relationship between real GDP growth and unemployment?

Accepted Answer

A)  Panel A 
B)  Panel B 
C)  Panel C 
D)  Panel D 
A)  Panel A 
B)  Panel B 
C)  Panel C 
D)  Panel D

Question 20

According to the Bureau of Labor Statistics,which of the following would be counted as unemployed?

Accepted Answer

A)  discouraged workers 
B)  workers who are overqualified for their current position 
C)  workers who have a part-time job but want a full-time job 
D)  new graduates who are looking for their first job 
A)  discouraged workers 
B)  workers who are overqualified for their current position 
C)  workers who have a part-time job but want a full-time job 
D)  new graduates who are looking for their first job

Exam 11: Unemployment and Labor Force Participation

The natural unemployment rates run higher for European countries than the United States.Briefly discuss some of the major reasons.

During recessions the unemployment rate:

Which of the following is NOT a factor that can increase structural unemployment?

If employers can fire an employee for any reason,other things being equal:

During a typical nonrecession year,the duration for at least half of the unemployed is:

Use the following to answer questions Figure: Labor Market -(Figure: Labor Market)Refer to the figure.What is the unemployment rate in this market as a result of the implementation of a $10 minimum wage?

The shift toward more of a service economy and less of a manufacturing economy in the United States has caused an increase in:

The presence of discouraged workers causes the measured unemployment rate to be:

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

The aging of the population typically results in a lower labor force participation rate as well as higher taxes for younger workers.

The employment-at-will doctrine makes labor markets more flexible and more dynamic.

If a national government improves its unemployment benefits,its unemployment rate will most likely:

What type of laws affect young,minority,and unemployed workers most negatively?

Use the following to answer questions Figure: Labor Market -(Figure: Labor Market)Refer to the figure.What is the number of people who are employed at the market wage? How many people end up unemployed due to the implementation of a $10 minimum wage?

A discouraged worker is a:

Which of the following elements increases structural unemployment?

Europe has unemployment that is more persistent and longer in duration than unemployment in the United States.This suggests that Europe has higher:

A minimum wage is:

Figure: Business Cycles & Unemployment Which panel in the figure shows the expected relationship between real GDP growth and unemployment?

According to the Bureau of Labor Statistics,which of the following would be counted as unemployed?

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

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