Question 1

Only paid workers are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 2

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the

Accepted Answer

A)  number of people unemployed. 
B)  number of jobs the economy has gained or lost. 
C)  size of the labor force. 
D)  number of people who own their own businesses. 
A)  number of people unemployed. 
B)  number of jobs the economy has gained or lost. 
C)  size of the labor force. 
D)  number of people who own their own businesses.

Question 3

Measuring unemployment is the job of the

Accepted Answer

A)  Congressional Budget Office. 
B)  Department of Commerce. 
C)  Council of Economic Advisers. 
D)  Bureau of Labor Statistics. 
A)  Congressional Budget Office. 
B)  Department of Commerce. 
C)  Council of Economic Advisers. 
D)  Bureau of Labor Statistics.

Question 4

Who of the following is not included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)  those who worked in their own business 
B)  those who worked as unpaid workers in a family member's business 
C)  those waiting to be recalled to a job from which they had been laid off 
D)  those who were temporarily absent from work because of vacation. 
A)  those who worked in their own business 
B)  those who worked as unpaid workers in a family member's business 
C)  those waiting to be recalled to a job from which they had been laid off 
D)  those who were temporarily absent from work because of vacation.

Question 5

Susan is a plant manager in charge of a factory in a relatively poor country. Even though market wages are low, she decides to raise the wages of her workers. Her decision

Accepted Answer

A)  might increase profits if it means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive. 
B)  will help eliminate the excess supply of labor. 
C)  may cause her workers to reduce the effort they expend at their jobs. 
D)  All of the above are correct. 
A)  might increase profits if it means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive. 
B)  will help eliminate the excess supply of labor. 
C)  may cause her workers to reduce the effort they expend at their jobs. 
D)  All of the above are correct.

Question 6

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Accepted Answer

A) True 
 B)False

Question 7

Almost nine-tenths of all spells of unemployment end when the unemployed person finds a job.

Accepted Answer

A) True 
 B)False

Question 8

Table 28-6
  
-Refer to Table 28-6. What is the U-1 measure of labor underutilization?

Accepted Answer

A)  1.6% 
B)  3.1% 
C)  6.2% 
D)  7.0% 
A)  1.6% 
B)  3.1% 
C)  6.2% 
D)  7.0%

Question 9

The Bureau of Labor Statistics' U­1 measure of joblessness includes only very long­term unemployed.

Accepted Answer

A) True 
 B)False

Question 10

Table 28-6
  
-Refer to Table 28-6. What is the U-4 measure of labor underutilization?

Accepted Answer

A)  6.5% 
B)  6.9% 
C)  7.0% 
D)  17.9% 
A)  6.5% 
B)  6.9% 
C)  7.0% 
D)  17.9%

Question 11

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

Accepted Answer

A)  increases, and the labor-force participation rate decreases. 
B)  and the labor-force participation rate both increase. 
C)  increases, and the labor-force participation rate is unaffected. 
D)  is unaffected, and the labor-force participation rate decreases. 
A)  increases, and the labor-force participation rate decreases. 
B)  and the labor-force participation rate both increase. 
C)  increases, and the labor-force participation rate is unaffected. 
D)  is unaffected, and the labor-force participation rate decreases.

Question 12

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no

Accepted Answer

A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  natural rate of unemployment. 
D)  structural unemployment. 
A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  natural rate of unemployment. 
D)  structural unemployment.

Question 13

If the number of people unemployed rose but the number of people employed and the adult population stayed the same, then the labor force participation rate would rise.

Accepted Answer

A) True 
 B)False

Question 14

Frictional unemployment is

Accepted Answer

A)  not inevitable; rather, it can be reduced to zero by well-designed public policies. 
B)  not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance. 
C)  inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms. 
D)  inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium. 
A)  not inevitable; rather, it can be reduced to zero by well-designed public policies. 
B)  not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance. 
C)  inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms. 
D)  inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium.

Question 15

Suppose that roofers are not unionized. If roofers unionize, then the supply of labor in other sectors of the economy will

Accepted Answer

A)  decrease, raising wages in industries that are not unionized. 
B)  decrease, reducing wages in industries that are not unionized. 
C)  increase, raising wages in industries that are not unionized. 
D)  increase, reducing wages in industries that are not unionized. 
A)  decrease, raising wages in industries that are not unionized. 
B)  decrease, reducing wages in industries that are not unionized. 
C)  increase, raising wages in industries that are not unionized. 
D)  increase, reducing wages in industries that are not unionized.

Question 16

Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

Accepted Answer

A) True 
 B)False

Question 17

Suppose that medical technicians and nurses' aides are not unionized. If the nurses' aides unionize, then the wages of

Accepted Answer

A)  both medical technicians and nurses' aides will rise. 
B)  both medical technicians and nurses' aides will fall. 
C)  medical technicians will rise, and the wages of nurses' aides will fall. 
D)  nurses' aides will rise, and the wages of medical technicians will fall. 
A)  both medical technicians and nurses' aides will rise. 
B)  both medical technicians and nurses' aides will fall. 
C)  medical technicians will rise, and the wages of nurses' aides will fall. 
D)  nurses' aides will rise, and the wages of medical technicians will fall.

Question 18

Table 28-10
The table below lists the number of people by labor force classification for the country of Springfield.
  
-Refer to Table 28-10. Calculate the U-4 unemployment rate.

Accepted Answer

The answer of Table 28-10
The table below lists the number...

Question 19

Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category.

Accepted Answer

A) True 
 B)False

Question 20

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

Accepted Answer

A)  14 years old. 
B)  16 years old. 
C)  18 years old. 
D)  21 years old. 
A)  14 years old. 
B)  16 years old. 
C)  18 years old. 
D)  21 years old.

Only paid workers are included in the Bureau of Labor Statistics' "employed" category.

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the

Measuring unemployment is the job of the

Who of the following is not included in the Bureau of Labor Statistics' "employed" category?

Susan is a plant manager in charge of a factory in a relatively poor country. Even though market wages are low, she decides to raise the wages of her workers. Her decision

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Almost nine-tenths of all spells of unemployment end when the unemployed person finds a job.

Table 28-6 -Refer to Table 28-6. What is the U-1 measure of labor underutilization?

The Bureau of Labor Statistics' U1 measure of joblessness includes only very longterm unemployed.

Table 28-6 -Refer to Table 28-6. What is the U-4 measure of labor underutilization?

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no

If the number of people unemployed rose but the number of people employed and the adult population stayed the same, then the labor force participation rate would rise.

Frictional unemployment is

Suppose that roofers are not unionized. If roofers unionize, then the supply of labor in other sectors of the economy will

Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

Suppose that medical technicians and nurses' aides are not unionized. If the nurses' aides unionize, then the wages of

Table 28-10 The table below lists the number of people by labor force classification for the country of Springfield. -Refer to Table 28-10. Calculate the U-4 unemployment rate.

Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category.

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

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

Only paid workers are included in the Bureau of Labor Statistics' "employed" category.

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the

Measuring unemployment is the job of the

Who of the following is not included in the Bureau of Labor Statistics' "employed" category?

Susan is a plant manager in charge of a factory in a relatively poor country. Even though market wages are low, she decides to raise the wages of her workers. Her decision

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Almost nine-tenths of all spells of unemployment end when the unemployed person finds a job.

Table 28-6 -Refer to Table 28-6. What is the U-1 measure of labor underutilization?

The Bureau of Labor Statistics' U­1 measure of joblessness includes only very long­term unemployed.

Table 28-6 -Refer to Table 28-6. What is the U-4 measure of labor underutilization?

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no

If the number of people unemployed rose but the number of people employed and the adult population stayed the same, then the labor force participation rate would rise.

Frictional unemployment is

Suppose that roofers are not unionized. If roofers unionize, then the supply of labor in other sectors of the economy will

Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

Suppose that medical technicians and nurses' aides are not unionized. If the nurses' aides unionize, then the wages of

Table 28-10 The table below lists the number of people by labor force classification for the country of Springfield. -Refer to Table 28-10. Calculate the U-4 unemployment rate.

Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category.

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

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

The Bureau of Labor Statistics' U1 measure of joblessness includes only very longterm unemployed.