Question 1

The introduction of a union into a firm benefits all of that firm's workers.

Accepted Answer

A) True 
 B)False

Question 2

Most job search in the U.S. economy takes place with the help of the government.

Accepted Answer

A) True 
 B)False

Question 3

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

Accepted Answer

A) True 
 B)False

Question 4

Suppose that some people report themselves as unemployed when, in fact, they are working in the underground economy. If these persons were counted as employed, then

Accepted Answer

A)  both the unemployment rate and labor-force participation rate would be higher. 
B)  both the unemployment rate and labor-force participation rate would be lower. 
C)  the unemployment rate would be higher, and the labor-force participation rate would be higher. 
D)  the unemployment rate would be lower, and the labor-force participation rate would be unaffected. 
A)  both the unemployment rate and labor-force participation rate would be higher. 
B)  both the unemployment rate and labor-force participation rate would be lower. 
C)  the unemployment rate would be higher, and the labor-force participation rate would be higher. 
D)  the unemployment rate would be lower, and the labor-force participation rate would be unaffected.

Question 5

People who are unemployed because they are in search of a job that suits their skills are included within

Accepted Answer

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

Question 6

Teenagers have more frequent unemployment spells so, on average, they spend more time searching for jobs. Other thing the same, this means that teenagers have a

Accepted Answer

A)  higher unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be higher. 
B)  higher unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment. 
C)  lower unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be lower. 
D)  lower unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment. 
A)  higher unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be higher. 
B)  higher unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment. 
C)  lower unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be lower. 
D)  lower unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment.

Question 7

Suppose that a well-respected study published in Child Psychology Today finds that a very high proportion of children raised by stay-at-home fathers are accepted to Harvard University. If a large number of previously working fathers quit their jobs and become stay-at-home dads, which of the following will occur, all else equal?
I The unemployment rate will decrease.
Ii The size of the labor force will decrease.
Iii The number of unemployed people will increase.
Iv) The unemployment rate will increase.

Accepted Answer

A)  i) and ii) only 
B)  ii) and iv) only 
C)  i), ii), and iii) only 
D)  ii), iii), and iv) only 
A)  i) and ii) only 
B)  ii) and iv) only 
C)  i), ii), and iii) only 
D)  ii), iii), and iv) only

Question 8

Table 28-2
Labor Data for Aridia
  
-Refer to Table 28-2. The labor-force participation rate of Aridia

Accepted Answer

A)  increased both from 2010 to 2011 and from 2011 to 2012. 
B)  increased from 2010 to 2011 but decreased from 2011 to 2012. 
C)  decreased from 2010 to 2011 but increased from 2011 to 2012. 
D)  decreased both from 2010 to 2011 and from 2011 to 2012. 
A)  increased both from 2010 to 2011 and from 2011 to 2012. 
B)  increased from 2010 to 2011 but decreased from 2011 to 2012. 
C)  decreased from 2010 to 2011 but increased from 2011 to 2012. 
D)  decreased both from 2010 to 2011 and from 2011 to 2012.

Question 9

List the main employment characteristics over which a labor union negotiates for its workers.

Accepted Answer

higher wages, better

Question 10

Discuss the labor-force participation trends for men and women since 1950.

Accepted Answer

The labor-force participation rates for

Question 11

Figure 28-4  
-Refer to Figure 28-4. If the government imposes a minimum wage of $2, how many workers will be unemployed?

Accepted Answer

A)  0 
B)  2,000 
C)  4,000 
D)  6,000 
A)  0 
B)  2,000 
C)  4,000 
D)  6,000

Question 12

Who would be included in the labor force?

Accepted Answer

A)  Louie, who is waiting for his new job to start 
B)  Daisey, who has become discouraged looking for a job and has quit looking 
C)  Donald, an unpaid stay-at-home father 
D)  None of the above is correct. 
A)  Louie, who is waiting for his new job to start 
B)  Daisey, who has become discouraged looking for a job and has quit looking 
C)  Donald, an unpaid stay-at-home father 
D)  None of the above is correct.

Question 13

Table 28-3
2009 Labor Data for Baltivia
  
-Refer to Table 28-3. What was Baltivia's unemployment rate in 2009?

Accepted Answer

A)  8.0% 
B)  12.7% 
C)  15.9% 
D)  22.1% 
A)  8.0% 
B)  12.7% 
C)  15.9% 
D)  22.1%

Question 14

The Bureau of Labor Statistics reported in 2005 that there were 53.23 million people over age 25 who had at least a bachelor's degree, 40.59 million of whom were employed and 0.98 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)  76.3% and 1.8% 
B)  76.3% and 2.4% 
C)  78.1% and 1.8% 
D)  78.1% and 2.4% 
A)  76.3% and 1.8% 
B)  76.3% and 2.4% 
C)  78.1% and 1.8% 
D)  78.1% and 2.4%

Question 15

Unions

Accepted Answer

A)  raise the wages of unionized workers and raise unemployment. 
B)  raise the wages of unionized workers and reduce unemployment. 
C)  reduce the wages of unionized workers and raise unemployment. 
D)  reduce the wages of unionized workers and reduce unemployment. 
A)  raise the wages of unionized workers and raise unemployment. 
B)  raise the wages of unionized workers and reduce unemployment. 
C)  reduce the wages of unionized workers and raise unemployment. 
D)  reduce the wages of unionized workers and reduce unemployment.

Question 16

Minimum wages are the predominant reason for unemployment in the U.S. economy.

Accepted Answer

A) True 
 B)False

Question 17

Table 28-2
Labor Data for Aridia
  
-Refer to Table 28-2. The labor force of Aridia

Accepted Answer

A)  increased both from 2010 to 2011 and from 2011 to 2012. 
B)  increased from 2010 to 2011 but decreased from 2011 to 2012. 
C)  decreased from 2010 to 2011 but increased from 2011 to 2012. 
D)  decreased both from 2010 to 2011 and from 2011 to 2012. 
A)  increased both from 2010 to 2011 and from 2011 to 2012. 
B)  increased from 2010 to 2011 but decreased from 2011 to 2012. 
C)  decreased from 2010 to 2011 but increased from 2011 to 2012. 
D)  decreased both from 2010 to 2011 and from 2011 to 2012.

Question 18

The natural rate of unemployment is the desirable rate of unemployment for an economy.

Accepted Answer

A) True 
 B)False

Question 19

Table 28-7
Below is data about the labor market in the city of Productionville.
  
-Refer to Table 28-7. If the local government imposed a minimum wage of $8 in Productionville, how many people would be unemployed?

Accepted Answer

A)  0 
B)  2,000 
C)  5,000 
D)  10,000 
A)  0 
B)  2,000 
C)  5,000 
D)  10,000

Question 20

Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were unemployed?

Accepted Answer

A)  1.425 million 
B)  1.5 million 
C)  2.5 million 
D)  5 million 
A)  1.425 million 
B)  1.5 million 
C)  2.5 million 
D)  5 million

The introduction of a union into a firm benefits all of that firm's workers.

Most job search in the U.S. economy takes place with the help of the government.

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

Suppose that some people report themselves as unemployed when, in fact, they are working in the underground economy. If these persons were counted as employed, then

People who are unemployed because they are in search of a job that suits their skills are included within

Teenagers have more frequent unemployment spells so, on average, they spend more time searching for jobs. Other thing the same, this means that teenagers have a

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor-force participation rate of Aridia

List the main employment characteristics over which a labor union negotiates for its workers.

Discuss the labor-force participation trends for men and women since 1950.

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $2, how many workers will be unemployed?

Who would be included in the labor force?

Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. What was Baltivia's unemployment rate in 2009?

The Bureau of Labor Statistics reported in 2005 that there were 53.23 million people over age 25 who had at least a bachelor's degree, 40.59 million of whom were employed and 0.98 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Unions

Minimum wages are the predominant reason for unemployment in the U.S. economy.

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor force of Aridia

The natural rate of unemployment is the desirable rate of unemployment for an economy.

Table 28-7 Below is data about the labor market in the city of Productionville. -Refer to Table 28-7. If the local government imposed a minimum wage of $8 in Productionville, how many people would be unemployed?

Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were unemployed?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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Exam 10: Unemployment and Its Natural Rate

The introduction of a union into a firm benefits all of that firm's workers.

Most job search in the U.S. economy takes place with the help of the government.

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

Suppose that some people report themselves as unemployed when, in fact, they are working in the underground economy. If these persons were counted as employed, then

People who are unemployed because they are in search of a job that suits their skills are included within

Teenagers have more frequent unemployment spells so, on average, they spend more time searching for jobs. Other thing the same, this means that teenagers have a

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor-force participation rate of Aridia

List the main employment characteristics over which a labor union negotiates for its workers.

Discuss the labor-force participation trends for men and women since 1950.

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $2, how many workers will be unemployed?

Who would be included in the labor force?

Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. What was Baltivia's unemployment rate in 2009?

The Bureau of Labor Statistics reported in 2005 that there were 53.23 million people over age 25 who had at least a bachelor's degree, 40.59 million of whom were employed and 0.98 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Unions

Minimum wages are the predominant reason for unemployment in the U.S. economy.

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor force of Aridia

The natural rate of unemployment is the desirable rate of unemployment for an economy.

Table 28-7 Below is data about the labor market in the city of Productionville. -Refer to Table 28-7. If the local government imposed a minimum wage of $8 in Productionville, how many people would be unemployed?

Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were unemployed?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters