Question 1

Which of the following would be considered unemployed?

Accepted Answer

A)  Mark,laid off from his job as a bricklayer,returned to school full-time. 
B)  Sarah,a stay-at-home mom who earned nearly $80,000 per year in her previous job. 
C)  Tim,a 13-year-old high school student,is looking for a part-time job. 
D)  Janice,a senior in college,started job hunting early in the hope that she would have secured a job by the time she graduates in May. 
A)  Mark,laid off from his job as a bricklayer,returned to school full-time. 
B)  Sarah,a stay-at-home mom who earned nearly $80,000 per year in her previous job. 
C)  Tim,a 13-year-old high school student,is looking for a part-time job. 
D)  Janice,a senior in college,started job hunting early in the hope that she would have secured a job by the time she graduates in May.

Question 2

Both unions and minimum wages:

Accepted Answer

A)  increase the quantity of labor demanded and reduce unemployment. 
B)  decrease the quantity of labor demanded and increase unemployment. 
C)  increase the quantity of labor supplied and reduce unemployment. 
D)  decrease the quantity of labor supplied and increase unemployment. 
A)  increase the quantity of labor demanded and reduce unemployment. 
B)  decrease the quantity of labor demanded and increase unemployment. 
C)  increase the quantity of labor supplied and reduce unemployment. 
D)  decrease the quantity of labor supplied and increase unemployment.

Question 3

Which of the following is NOT part of natural unemployment?

Accepted Answer

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

Question 4

Over the past few decades,the U.S.economy has switched from a primarily manufacturing economy to a service economy.Many individuals working in manufacturing positions lost their jobs,and many new jobs opened up in services.For those who lost jobs in manufacturing,this is an example of:

Accepted Answer

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

Question 5

Cyclical unemployment can turn into structural unemployment if:

Accepted Answer

A)  workers remain on unemployment benefits for too long. 
B)  a recession lasts longer than a year. 
C)  the government extends the unemployment benefits. 
D)  the economy develops stagflation. 
A)  workers remain on unemployment benefits for too long. 
B)  a recession lasts longer than a year. 
C)  the government extends the unemployment benefits. 
D)  the economy develops stagflation.

Question 6

The persistently higher unemployment rates among European countries compared to the United States reflect higher structural unemployment in Europe.

Accepted Answer

A) True 
 B)False

Question 7

Which type of unemployment is likely to be higher when real GDP growth is lower?

Accepted Answer

A)  structural unemployment 
B)  frictional unemployment 
C)  cyclical unemployment 
D)  natural unemployment 
A)  structural unemployment 
B)  frictional unemployment 
C)  cyclical unemployment 
D)  natural unemployment

Question 8

A worker repairing VHS cassette-tape players was laid off because most of his customers have started using DVD players.This worker is now:

Accepted Answer

A)  a discouraged worker. 
B)  frictionally unemployed. 
C)  cyclically unemployed. 
D)  structurally unemployed. 
A)  a discouraged worker. 
B)  frictionally unemployed. 
C)  cyclically unemployed. 
D)  structurally unemployed.

Question 9

Someone who recently moved to Florida because of its warmer climate will need to spend some time looking for a new job.This is an example of:

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 10

Unemployment correlated with the business cycle 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 11

Frictional unemployment is the result of economy-wide shocks that force workers to restructure their skills.

Accepted Answer

A) True 
 B)False

Question 12

If the equilibrium wage is $9 in the market for hotel workers and $8 in the market for restaurant workers and both markets have similar elasticities of labor supply and demand,then a minimum wage of $10 in both markets will:

Accepted Answer

A)  cause more unemployment among hotel workers than restaurant workers. 
B)  cause more unemployment among restaurant workers than restaurant workers. 
C)  cause the same amount of unemployment in both markets. 
D)  have no effect in either market. 
A)  cause more unemployment among hotel workers than restaurant workers. 
B)  cause more unemployment among restaurant workers than restaurant workers. 
C)  cause the same amount of unemployment in both markets. 
D)  have no effect in either market.

Question 13

Which of the following is NOT a reason the unemployment rate is considered to be an incomplete indicator of the overall health of the labor market?

Accepted Answer

A)  It does not measure how well people are matched to the jobs they do. 
B)  It does not count discouraged workers. 
C)  It does not correctly define the adult population. 
D)  It counts part-time workers who would like to work full time as employed. 
A)  It does not measure how well people are matched to the jobs they do. 
B)  It does not count discouraged workers. 
C)  It does not correctly define the adult population. 
D)  It counts part-time workers who would like to work full time as employed.

Question 14

Creative destruction occurs at the level of the:

Accepted Answer

A)  firm. 
B)  industry. 
C)  entire economy. 
D)  firm,industry,and entire economy. 
A)  firm. 
B)  industry. 
C)  entire economy. 
D)  firm,industry,and entire economy.

Question 15

If minimum wages are higher relative to the median wage,then minimum wage will affect:

Accepted Answer

A)  more people and create more unemployment. 
B)  more people and create less unemployment. 
C)  fewer people and create more unemployment. 
D)  fewer people and create less unemployment. 
A)  more people and create more unemployment. 
B)  more people and create less unemployment. 
C)  fewer people and create more unemployment. 
D)  fewer people and create less unemployment.

Question 16

Discuss the major economic factors that explain the rising labor force participation rate of women after World War II.

Accepted Answer

Incentives are a key factor that explain

Question 17

The median wage is half the wage that the worker earns in a single hour.

Accepted Answer

A) True 
 B)False

Question 18

_____ reduce the quantity of labor demanded.

Accepted Answer

A)  Minimum wages only 
B)  Union wages only 
C)  Both minimum wages and union wages 
D)  Neither minimum wages nor union wages 
A)  Minimum wages only 
B)  Union wages only 
C)  Both minimum wages and union wages 
D)  Neither minimum wages nor union wages

Question 19

Over time,the actual unemployment rate varies around the natural rate.

Accepted Answer

A) True 
 B)False

Question 20

Higher unemployment benefits tend to:

Accepted Answer

A)  increase the unemployment rate. 
B)  reduce the unemployment rate. 
C)  have no impact on the unemployment rate. 
D)  have an unpredictable impact on the unemployment rate. 
A)  increase the unemployment rate. 
B)  reduce the unemployment rate. 
C)  have no impact on the unemployment rate. 
D)  have an unpredictable impact on the unemployment rate.

Exam 11: Unemployment and Labor Force Participation

Which of the following would be considered unemployed?

Both unions and minimum wages:

Which of the following is NOT part of natural unemployment?

Over the past few decades,the U.S.economy has switched from a primarily manufacturing economy to a service economy.Many individuals working in manufacturing positions lost their jobs,and many new jobs opened up in services.For those who lost jobs in manufacturing,this is an example of:

Cyclical unemployment can turn into structural unemployment if:

The persistently higher unemployment rates among European countries compared to the United States reflect higher structural unemployment in Europe.

Which type of unemployment is likely to be higher when real GDP growth is lower?

A worker repairing VHS cassette-tape players was laid off because most of his customers have started using DVD players.This worker is now:

Someone who recently moved to Florida because of its warmer climate will need to spend some time looking for a new job.This is an example of:

Unemployment correlated with the business cycle is called:

Frictional unemployment is the result of economy-wide shocks that force workers to restructure their skills.

If the equilibrium wage is $9 in the market for hotel workers and $8 in the market for restaurant workers and both markets have similar elasticities of labor supply and demand,then a minimum wage of $10 in both markets will:

Which of the following is NOT a reason the unemployment rate is considered to be an incomplete indicator of the overall health of the labor market?

Creative destruction occurs at the level of the:

If minimum wages are higher relative to the median wage,then minimum wage will affect:

Discuss the major economic factors that explain the rising labor force participation rate of women after World War II.

The median wage is half the wage that the worker earns in a single hour.

_____ reduce the quantity of labor demanded.

Over time,the actual unemployment rate varies around the natural rate.

Higher unemployment benefits tend to:

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