Question 1

Active labor market policies protect workers who have jobs.

Accepted Answer

A) True 
 B)False

Question 2

Increases in the minimum wage will most likely lead to:

Accepted Answer

A)  higher living standards for low-income workers. 
B)  higher unemployment. 
C)  lower wages in complement industries. 
D)  increases in worker education programs. 
A)  higher living standards for low-income workers. 
B)  higher unemployment. 
C)  lower wages in complement industries. 
D)  increases in worker education programs.

Question 3

The labor force consists of:

Accepted Answer

A)  employed workers only. 
B)  adults who do not have a job but who are looking for work. 
C)  employed workers and adults who do not have jobs but who are looking for work. 
D)  all adult noninstitutionalized civilians. 
A)  employed workers only. 
B)  adults who do not have a job but who are looking for work. 
C)  employed workers and adults who do not have jobs but who are looking for work. 
D)  all adult noninstitutionalized civilians.

Question 4

Which of the following is a case of cyclical unemployment?

Accepted Answer

A)  Glenn quit his job to move to another state. 
B)  Grace is an accountant temporarily unemployed since tax season has ended. 
C)  Garrett lost his job after the company closed during last year's recession. 
D)  Gwyneth is still seeking a job that will use her skills in statistics. 
A)  Glenn quit his job to move to another state. 
B)  Grace is an accountant temporarily unemployed since tax season has ended. 
C)  Garrett lost his job after the company closed during last year's recession. 
D)  Gwyneth is still seeking a job that will use her skills in statistics.

Question 5

When it occurs at the industry level,Joseph Schumpeter's "creative destruction" results in:

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 6

Identify both the factors that can increase structural unemployment and the policies that can decrease it.

Accepted Answer

Large,long-lasting shocks that require t

Question 7

Which of the following policies will NOT reduce structural unemployment?

Accepted Answer

A)  job retraining 
B)  work tests 
C)  job-search assistance 
D)  raising unemployment benefits 
A)  job retraining 
B)  work tests 
C)  job-search assistance 
D)  raising unemployment benefits

Question 8

The level of labor force participation will be higher as the number of unemployed workers is lower.

Accepted Answer

A) True 
 B)False

Question 9

All individuals who do not have a job are counted as unemployed.

Accepted Answer

A) True 
 B)False

Question 10

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.What is this country's unemployment rate?

Accepted Answer

A) 10% 
B) 16.7% 
C) 25% 
D) 40% 
A) 10% 
B) 16.7% 
C) 25% 
D) 40%

Question 11

(Figure: Labor Supply and Demand)Refer to the figure.What is the quantity of labor that is unemployed as a result of the labor union's action to increase its wage demands to $11 an hour?

Accepted Answer

A)  700 
B)  1,100 
C)  1,800 
D)  2,700 
A)  700 
B)  1,100 
C)  1,800 
D)  2,700

Question 12

Which of the following best describes the effects of a major labor union that maintains a union wage above the market wage?

Accepted Answer

A)  The quantity of labor demanded exceeds the quantity of labor supplied,and the unemployment rate increases. 
B)  The quantity of labor demanded exceeds the quantity of labor supplied,and the unemployment rate decreases. 
C)  The quantity of labor supplied exceeds the quantity of labor demanded,and the unemployment rate increases. 
D)  The quantity of labor supplied exceeds the quantity of labor demanded,and the unemployment rate decreases. 
A)  The quantity of labor demanded exceeds the quantity of labor supplied,and the unemployment rate increases. 
B)  The quantity of labor demanded exceeds the quantity of labor supplied,and the unemployment rate decreases. 
C)  The quantity of labor supplied exceeds the quantity of labor demanded,and the unemployment rate increases. 
D)  The quantity of labor supplied exceeds the quantity of labor demanded,and the unemployment rate decreases.

Question 13

Structural unemployment has been a more serious problem in Europe than in the United States because of:

Accepted Answer

A)  a low level of labor regulations. 
B)  active labor unions. 
C)  more generous unemployment benefits. 
D)  much tighter government control. 
A)  a low level of labor regulations. 
B)  active labor unions. 
C)  more generous unemployment benefits. 
D)  much tighter government control.

Question 14

What factors might increase structural unemployment and what factors might decrease structural unemployment in a given country?

Accepted Answer

Factors that increase structural unemplo

Question 15

Which of the following is an example of an active labor market policy?

Accepted Answer

A)  minimum wage laws 
B)  paying unemployed workers who find a job 
C)  extending unemployment benefits 
D)  worker unions 
A)  minimum wage laws 
B)  paying unemployed workers who find a job 
C)  extending unemployment benefits 
D)  worker unions

Question 16

Individuals who have given up looking for work but still would take a job are considered:

Accepted Answer

A)  unemployed workers. 
B)  displaced workers. 
C)  discouraged workers. 
D)  part of the labor force. 
A)  unemployed workers. 
B)  displaced workers. 
C)  discouraged workers. 
D)  part of the labor force.

Question 17

Which type of unemployment increased the most during the 2007-2009 recession?

Accepted Answer

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

Question 18

The labor force consists of all of the adult,noninstitutionalized civilians in a nation.

Accepted Answer

A) True 
 B)False

Question 19

Labor unions tend to decrease unemployment.

Accepted Answer

A) True 
 B)False

Question 20

Individuals who are structurally unemployed tend to be unemployed for long periods of time.

Accepted Answer

A) True 
 B)False

Active labor market policies protect workers who have jobs.

Increases in the minimum wage will most likely lead to:

The labor force consists of:

Which of the following is a case of cyclical unemployment?

When it occurs at the industry level,Joseph Schumpeter's "creative destruction" results in:

Identify both the factors that can increase structural unemployment and the policies that can decrease it.

Which of the following policies will NOT reduce structural unemployment?

The level of labor force participation will be higher as the number of unemployed workers is lower.

All individuals who do not have a job are counted as unemployed.

(Figure: Labor Supply and Demand)Refer to the figure.What is the quantity of labor that is unemployed as a result of the labor union's action to increase its wage demands to $11 an hour?

Which of the following best describes the effects of a major labor union that maintains a union wage above the market wage?

Structural unemployment has been a more serious problem in Europe than in the United States because of:

What factors might increase structural unemployment and what factors might decrease structural unemployment in a given country?

Which of the following is an example of an active labor market policy?

Individuals who have given up looking for work but still would take a job are considered:

Which type of unemployment increased the most during the 2007-2009 recession?

The labor force consists of all of the adult,noninstitutionalized civilians in a nation.

Labor unions tend to decrease unemployment.

Individuals who are structurally unemployed tend to be unemployed for long periods of time.

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

Active labor market policies protect workers who have jobs.

Increases in the minimum wage will most likely lead to:

The labor force consists of:

Which of the following is a case of cyclical unemployment?

When it occurs at the industry level,Joseph Schumpeter's "creative destruction" results in:

Identify both the factors that can increase structural unemployment and the policies that can decrease it.

Which of the following policies will NOT reduce structural unemployment?

The level of labor force participation will be higher as the number of unemployed workers is lower.

All individuals who do not have a job are counted as unemployed.

(Figure: Labor Supply and Demand)Refer to the figure.What is the quantity of labor that is unemployed as a result of the labor union's action to increase its wage demands to $11 an hour?

Which of the following best describes the effects of a major labor union that maintains a union wage above the market wage?

Structural unemployment has been a more serious problem in Europe than in the United States because of:

What factors might increase structural unemployment and what factors might decrease structural unemployment in a given country?

Which of the following is an example of an active labor market policy?

Individuals who have given up looking for work but still would take a job are considered:

Which type of unemployment increased the most during the 2007-2009 recession?

The labor force consists of all of the adult,noninstitutionalized civilians in a nation.

Labor unions tend to decrease unemployment.

Individuals who are structurally unemployed tend to be unemployed for long periods of time.

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