Question 1

Which of the following is not an explanation for the existence of structural unemployment?

Accepted Answer

A)  efficiency wages 
B)  job search 
C)  minimum-wage laws 
D)  unions 
A)  efficiency wages 
B)  job search 
C)  minimum-wage laws 
D)  unions

Question 2

When a union bargains successfully with employers, in that industry,

Accepted Answer

A)  both wages and unemployment increase. 
B)  wages increase and unemployment decreases. 
C)  wages decrease and unemployment increases. 
D)  both wages and unemployment decrease. 
A)  both wages and unemployment increase. 
B)  wages increase and unemployment decreases. 
C)  wages decrease and unemployment increases. 
D)  both wages and unemployment decrease.

Question 3

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 4

Frictional unemployment is inevitable because the economy is always changing.

Accepted Answer

A) True 
 B)False

Question 5

Job search

Accepted Answer

A)  and firms paying wages above equilibrium to improve worker health both create frictional unemployment. 
B)  creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment. 
C)  creates structural unemployment, while firms paying wages above equilibrium to improve worker health creates frictional unemployment. 
D)  and firms paying wages above equilibrium to improve worker health both create structural unemployment. 
A)  and firms paying wages above equilibrium to improve worker health both create frictional unemployment. 
B)  creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment. 
C)  creates structural unemployment, while firms paying wages above equilibrium to improve worker health creates frictional unemployment. 
D)  and firms paying wages above equilibrium to improve worker health both create structural unemployment.

Question 6

Table 28-6
  
-Refer to Table 28-6. What is the U-2 measure of labor underutilization?

Accepted Answer

A)  1.5% 
B)  3.1% 
C)  4.7% 
D)  6.2% 
A)  1.5% 
B)  3.1% 
C)  4.7% 
D)  6.2%

Question 7

In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Swedish adult non- institutionalized population was 7.568 million, the labor force was 4.888 million, and the number of people employed was 4.486 million. According to these numbers, the Swedish labor-force participation rate and unemployment rate were about

Accepted Answer

A)  64.6% and 8.2%. 
B)  64.6% and 5.3%. 
C)  59.3% and 8.2%. 
D)  59.3% and 5.3%. 
A)  64.6% and 8.2%. 
B)  64.6% and 5.3%. 
C)  59.3% and 8.2%. 
D)  59.3% and 5.3%.

Question 8

When the wage is above the equilibrium level,

Accepted Answer

A)  the labor market is functioning more efficiently than it otherwise would function. 
B)  there is a shortage of labor. 
C)  the quantity of labor supplied exceeds the quantity of labor demanded. 
D)  job search is the primary explanation for the unemployment that is observed. 
A)  the labor market is functioning more efficiently than it otherwise would function. 
B)  there is a shortage of labor. 
C)  the quantity of labor supplied exceeds the quantity of labor demanded. 
D)  job search is the primary explanation for the unemployment that is observed.

Question 9

Within the U.S. population, teenagers ages 16-19) have similar rates of unemployment than adults of prime working age ages 25-54), regardless of race or gender.

Accepted Answer

A) True 
 B)False

Question 10

Suppose that garbage collectors and landscaping workers have no unions. Now suppose that garbage collectors form unions. What does this do the labor supply and wages of landscaping workers?

Accepted Answer

A)  Both labor supply and wages increase. 
B)  Labor supply increases, and wages decrease. 
C)  Labor supply decreases, and wages increase. 
D)  Both labor supply and wages increase 
A)  Both labor supply and wages increase. 
B)  Labor supply increases, and wages decrease. 
C)  Labor supply decreases, and wages increase. 
D)  Both labor supply and wages increase

Question 11

Most spells of unemployment are

Accepted Answer

A)  long, and most unemployment observed at any given time is long term. 
B)  long, but most unemployment observed at any given time is short term. 
C)  short, but most unemployment observed at any given time is long term. 
D)  short, and most unemployment observed at any given time is short term. 
A)  long, and most unemployment observed at any given time is long term. 
B)  long, but most unemployment observed at any given time is short term. 
C)  short, but most unemployment observed at any given time is long term. 
D)  short, and most unemployment observed at any given time is short term.

Question 12

Cyclical unemployment

Accepted Answer

A)  has a different explanation than does the natural rate of unemployment. 
B)  refers to the year­to­year fluctuation in unemployment around an economy's natural rate of unemployment. 
C)  is closely associated with short-run ups and downs of economic activity. 
D)  All of the above are correct. 
A)  has a different explanation than does the natural rate of unemployment. 
B)  refers to the year­to­year fluctuation in unemployment around an economy's natural rate of unemployment. 
C)  is closely associated with short-run ups and downs of economic activity. 
D)  All of the above are correct.

Question 13

Figure 28-4  
-Refer to Figure 28-4. If the government imposes a minimum wage of $7, 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 14

According to the theory of efficiency wages, firms operate more efficiently if wages are below the equilibrium level.

Accepted Answer

A) True 
 B)False

Question 15

People who are unemployed because of job search are best classified as

Accepted Answer

A)  cyclically unemployed. 
B)  structurally unemployed. 
C)  frictionally unemployed. 
D)  discouraged workers. 
A)  cyclically unemployed. 
B)  structurally unemployed. 
C)  frictionally unemployed. 
D)  discouraged workers.

Question 16

Which of the following do unions not cause?

Accepted Answer

A)  frictional unemployment 
B)  the wage to rise above the equilibrium level 
C)  conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs 
D)  reduced wages in industries without unions 
A)  frictional unemployment 
B)  the wage to rise above the equilibrium level 
C)  conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs 
D)  reduced wages in industries without unions

Question 17

If the minimum wage is currently above the equilibrium wage, then a decrease in the minimum wage

Accepted Answer

A)  increases both the quantity demanded and the quantity supplied of labor. 
B)  decreases both the quantity demanded and the quantity supplied of labor. 
C)  increases the quantity of labor demanded but decreases the quantity of labor supplied. 
D)  decreases the quantity of labor demanded but increases the quantity of labor supplied. 
A)  increases both the quantity demanded and the quantity supplied of labor. 
B)  decreases both the quantity demanded and the quantity supplied of labor. 
C)  increases the quantity of labor demanded but decreases the quantity of labor supplied. 
D)  decreases the quantity of labor demanded but increases the quantity of labor supplied.

Question 18

Table 28-2
Labor Data for Aridia
  
-Refer to Table 28-2. The labor force of Aridia in 2011 was

Accepted Answer

A)  1,300. 
B)  1,900. 
C)  2,400. 
D)  3,000. 
A)  1,300. 
B)  1,900. 
C)  2,400. 
D)  3,000.

Question 19

Efficiency wages

Accepted Answer

A)  may increase productivity. 
B)  will increase unemployment. 
C)  may improve worker health. 
D)  All of the above are correct. 
A)  may increase productivity. 
B)  will increase unemployment. 
C)  may improve worker health. 
D)  All of the above are correct.

Question 20

The Bureau of Labor Statistics divides the adult population into three categories: employed, unemployed, and not in the labor force.

Accepted Answer

A) True 
 B)False

Which of the following is not an explanation for the existence of structural unemployment?

When a union bargains successfully with employers, in that industry,

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Frictional unemployment is inevitable because the economy is always changing.

Job search

Table 28-6 -Refer to Table 28-6. What is the U-2 measure of labor underutilization?

When the wage is above the equilibrium level,

Within the U.S. population, teenagers ages 16-19) have similar rates of unemployment than adults of prime working age ages 25-54), regardless of race or gender.

Suppose that garbage collectors and landscaping workers have no unions. Now suppose that garbage collectors form unions. What does this do the labor supply and wages of landscaping workers?

Most spells of unemployment are

Cyclical unemployment

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $7, how many workers will be unemployed?

According to the theory of efficiency wages, firms operate more efficiently if wages are below the equilibrium level.

People who are unemployed because of job search are best classified as

Which of the following do unions not cause?

If the minimum wage is currently above the equilibrium wage, then a decrease in the minimum wage

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor force of Aridia in 2011 was

Efficiency wages

The Bureau of Labor Statistics divides the adult population into three categories: employed, unemployed, and not in the labor force.

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

Which of the following is not an explanation for the existence of structural unemployment?

When a union bargains successfully with employers, in that industry,

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Frictional unemployment is inevitable because the economy is always changing.

Job search

Table 28-6 -Refer to Table 28-6. What is the U-2 measure of labor underutilization?

When the wage is above the equilibrium level,

Within the U.S. population, teenagers ages 16-19) have similar rates of unemployment than adults of prime working age ages 25-54), regardless of race or gender.

Suppose that garbage collectors and landscaping workers have no unions. Now suppose that garbage collectors form unions. What does this do the labor supply and wages of landscaping workers?

Most spells of unemployment are

Cyclical unemployment

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $7, how many workers will be unemployed?

According to the theory of efficiency wages, firms operate more efficiently if wages are below the equilibrium level.

People who are unemployed because of job search are best classified as

Which of the following do unions not cause?

If the minimum wage is currently above the equilibrium wage, then a decrease in the minimum wage

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor force of Aridia in 2011 was

Efficiency wages

The Bureau of Labor Statistics divides the adult population into three categories: employed, unemployed, and not in the labor force.

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