Question 1

Unemployment insurance increases frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 2

A person who is counted as "unemployed" by the Bureau of Labor Statistics

Accepted Answer

A)  is also in the labor force. 
B)  must have recently looked for work or be on temporary layoff. 
C)  must be at least 16 years old. 
D)  All of the above are correct. 
A)  is also in the labor force. 
B)  must have recently looked for work or be on temporary layoff. 
C)  must be at least 16 years old. 
D)  All of the above are correct.

Question 3

When a union raises the wage above the equilibrium level, it

Accepted Answer

A)  reduces both the quantity of labor supplied and the quantity of labor demanded. 
B)  reduces the quantity of labor supplied and raises the quantity of labor demanded. 
C)  raises the quantity of labor supplied and reduces the quantity of labor demanded. 
D)  raises both the quantity of labor supplied and the quantity of labor demanded. 
A)  reduces both the quantity of labor supplied and the quantity of labor demanded. 
B)  reduces the quantity of labor supplied and raises the quantity of labor demanded. 
C)  raises the quantity of labor supplied and reduces the quantity of labor demanded. 
D)  raises both the quantity of labor supplied and the quantity of labor demanded.

Question 4

President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You conclude that

Accepted Answer

A)  one of them must be lying. 
B)  both of them could be telling the truth if the labor force, and employment grew at the exact same rate. 
C)  both of them could be telling the truth if the labor force grew slower than employment. 
D)  both of them could be telling the truth if the labor force grew faster than employment. 
A)  one of them must be lying. 
B)  both of them could be telling the truth if the labor force, and employment grew at the exact same rate. 
C)  both of them could be telling the truth if the labor force grew slower than employment. 
D)  both of them could be telling the truth if the labor force grew faster than employment.

Question 5

Frictional unemployment results from

Accepted Answer

A)  job searching. It is often thought to explain relatively short spells of unemployment. 
B)  job searching. It is often thought to explain relatively long spells of unemployment 
C)  a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment. 
D)  a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment. 
A)  job searching. It is often thought to explain relatively short spells of unemployment. 
B)  job searching. It is often thought to explain relatively long spells of unemployment 
C)  a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment. 
D)  a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment.

Question 6

Figure 28-3  
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then employment will decrease by

Accepted Answer

A)  0 workers. 
B)  2,000 workers. 
C)  3,000 workers. 
D)  4,000 workers. 
A)  0 workers. 
B)  2,000 workers. 
C)  3,000 workers. 
D)  4,000 workers.

Question 7

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Accepted Answer

A) True 
 B)False

Question 8

Adults who are waiting to be recalled to a job from which they had been laid off are counted as "unemployed."

Accepted Answer

A) True 
 B)False

Question 9

Unemployment insurance is designed to offer workers full protection against job loss.

Accepted Answer

A) True 
 B)False

Question 10

Measuring unemployment is the job of the Bureau of Labor Statistics.

Accepted Answer

A) True 
 B)False

Question 11

Economists have found that union workers earn what percent more than similar nonunion workers?

Accepted Answer

A)  0 to 5 
B)  5 to 10 
C)  10 to 20 
D)  20 to 30 
A)  0 to 5 
B)  5 to 10 
C)  10 to 20 
D)  20 to 30

Question 12

Collective bargaining refers to

Accepted Answer

A)  the process by which the government sets exemptions from the minimum wage law. 
B)  setting the same wage for all employees to prevent conflict among workers. 
C)  firms colluding to set the wages of employees below equilibrium. 
D)  the process by which unions and firms agree on the terms of employment. 
A)  the process by which the government sets exemptions from the minimum wage law. 
B)  setting the same wage for all employees to prevent conflict among workers. 
C)  firms colluding to set the wages of employees below equilibrium. 
D)  the process by which unions and firms agree on the terms of employment.

Question 13

Table 28-4
2010 Labor Data for Adults ages 16 and older) in Meditor
  
-Refer to Table 28-4. What is the adult male labor-force participation rate in Meditor?

Accepted Answer

A)  37% 
B)  63% 
C)  66.7% 
D)  96.3% 
A)  37% 
B)  63% 
C)  66.7% 
D)  96.3%

Question 14

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

Accepted Answer

A) True 
 B)False

Question 15

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous four weeks.

Accepted Answer

A) True 
 B)False

Question 16

The labor-force participation rate tells us the fraction of the population that

Accepted Answer

A)  is able to participate in the labor market. 
B)  has ever been employed. 
C)  has chosen to participate in the labor market. 
D)  has chosen not to participate in the labor market. 
A)  is able to participate in the labor market. 
B)  has ever been employed. 
C)  has chosen to participate in the labor market. 
D)  has chosen not to participate in the labor market.

Question 17

A firm might offer efficiency wages in order to attract a better pool of applicants.

Accepted Answer

A) True 
 B)False

Question 18

Figure 28-3  
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be employed?

Accepted Answer

A)  3,000 
B)  4,000 
C)  5,000 
D)  7,000 
A)  3,000 
B)  4,000 
C)  5,000 
D)  7,000

Question 19

The Bureau of Labor Statistics' U­4 measure of joblessness includes discouraged workers.

Accepted Answer

A) True 
 B)False

Question 20

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Accepted Answer

A) True 
 B)False

Unemployment insurance increases frictional unemployment.

A person who is counted as "unemployed" by the Bureau of Labor Statistics

When a union raises the wage above the equilibrium level, it

President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You conclude that

Frictional unemployment results from

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then employment will decrease by

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Adults who are waiting to be recalled to a job from which they had been laid off are counted as "unemployed."

Unemployment insurance is designed to offer workers full protection against job loss.

Measuring unemployment is the job of the Bureau of Labor Statistics.

Economists have found that union workers earn what percent more than similar nonunion workers?

Collective bargaining refers to

Table 28-4 2010 Labor Data for Adults ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult male labor-force participation rate in Meditor?

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous four weeks.

The labor-force participation rate tells us the fraction of the population that

A firm might offer efficiency wages in order to attract a better pool of applicants.

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be employed?

The Bureau of Labor Statistics' U4 measure of joblessness includes discouraged workers.

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

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

Exam 10: Unemployment and Its Natural Rate

Unemployment insurance increases frictional unemployment.

A person who is counted as "unemployed" by the Bureau of Labor Statistics

When a union raises the wage above the equilibrium level, it

President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You conclude that

Frictional unemployment results from

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then employment will decrease by

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Adults who are waiting to be recalled to a job from which they had been laid off are counted as "unemployed."

Unemployment insurance is designed to offer workers full protection against job loss.

Measuring unemployment is the job of the Bureau of Labor Statistics.

Economists have found that union workers earn what percent more than similar nonunion workers?

Collective bargaining refers to

Table 28-4 2010 Labor Data for Adults ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult male labor-force participation rate in Meditor?

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous four weeks.

The labor-force participation rate tells us the fraction of the population that

A firm might offer efficiency wages in order to attract a better pool of applicants.

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be employed?

The Bureau of Labor Statistics' U­4 measure of joblessness includes discouraged workers.

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

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' U4 measure of joblessness includes discouraged workers.