Question 1

The Bureau of Labor Statistics' U­5 measure of joblessness includes marginally attached workers.

Accepted Answer

A) True 
 B)False

Question 2

The Bureau of Labor Statistics defines the unemployment rate as the percentage of

Accepted Answer

A)  those unemployed relative to those employed. 
B)  the labor force that is unemployed. 
C)  the adult population that is unemployed. 
D)  the adult population that is unemployed or not in the labor force. 
A)  those unemployed relative to those employed. 
B)  the labor force that is unemployed. 
C)  the adult population that is unemployed. 
D)  the adult population that is unemployed or not in the labor force.

Question 3

Public policy can reduce frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 4

Provide a definition of the natural rate of unemployment.

Accepted Answer

The amount of unempl

Question 5

In the long run the unemployment rate equals

Accepted Answer

A)  zero. 
B)  the cyclical rate of unemployment. 
C)  the natural rate of unemployment. 
D)  the sum of the cyclical and natural rate of unemployment. 
A)  zero. 
B)  the cyclical rate of unemployment. 
C)  the natural rate of unemployment. 
D)  the sum of the cyclical and natural rate of unemployment.

Question 6

Explain the effect of right-to-work laws on the collective bargaining power of labor unions.

Accepted Answer

Right-to-work laws decrease th

Question 7

Who would be included in the labor force?

Accepted Answer

A)  Maggie, who plans to work at the newspaper next year when she turns 16 years old. 
B)  Lisa, who is unhappy with her current job. 
C)  Bart, who is a full-time student and uninterested in finding employment. 
D)  None of the above is correct. 
A)  Maggie, who plans to work at the newspaper next year when she turns 16 years old. 
B)  Lisa, who is unhappy with her current job. 
C)  Bart, who is a full-time student and uninterested in finding employment. 
D)  None of the above is correct.

Question 8

The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.

Accepted Answer

A) True 
 B)False

Question 9

Unemployment generated by the existence of labor unions is structural unemployment and so contributes to the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 10

Unions

Accepted Answer

A)  do not affect the natural rate of unemployment. 
B)  lower the wages of unionized workers. 
C)  raise the profits of unionized firms. 
D)  lower the wages of workers in industries without unions. 
A)  do not affect the natural rate of unemployment. 
B)  lower the wages of unionized workers. 
C)  raise the profits of unionized firms. 
D)  lower the wages of workers in industries without unions.

Question 11

Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings but has not yet been offered one that best suits her tastes and skills. Sandy is

Accepted Answer

A)  structurally unemployed. Structural unemployment exists even in the long run. 
B)  structurally unemployed. There is no structural unemployment in the long run. 
C)  frictionally unemployed. Frictional unemployment exists even in the long run. 
D)  frictionally unemployed. There is no frictional unemployment in the long run. 
A)  structurally unemployed. Structural unemployment exists even in the long run. 
B)  structurally unemployed. There is no structural unemployment in the long run. 
C)  frictionally unemployed. Frictional unemployment exists even in the long run. 
D)  frictionally unemployed. There is no frictional unemployment in the long run.

Question 12

The Bureau of Labor Statistics computes unemployment rates for the entire adult population and for more narrowly defined groups.

Accepted Answer

A) True 
 B)False

Question 13

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Accepted Answer

A) True 
 B)False

Question 14

Briefly compare the structural unemployment that arises from minimum-wage laws to the frictional unemployment that arises from the process of job search.

Accepted Answer

Minimum-wage laws create unemployment be

Question 15

If the minimum wage were currently above the equilibrium wage, then a decrease in the minimum wage that kept it above the equilibrium wage would

Accepted Answer

A)  increase the surplus of labor. 
B)  reduce the surplus of labor. 
C)  increase the shortage of labor. 
D)  reduce the shortage of labor, 
A)  increase the surplus of labor. 
B)  reduce the surplus of labor. 
C)  increase the shortage of labor. 
D)  reduce the shortage of labor,

Question 16

Other things the same, an increase in wages above their equilibrium level

Accepted Answer

A)  increases frictional unemployment but leaves the natural rate of unemployment unchanged. 
B)  increases frictional unemployment and increases the natural rate of unemployment. 
C)  increases structural unemployment but leaves the natural rate of unemployment unchanged. 
D)  increases structural unemployment and increases the natural rate of unemployment. 
A)  increases frictional unemployment but leaves the natural rate of unemployment unchanged. 
B)  increases frictional unemployment and increases the natural rate of unemployment. 
C)  increases structural unemployment but leaves the natural rate of unemployment unchanged. 
D)  increases structural unemployment and increases the natural rate of unemployment.

Question 17

The Bureau of Labor Statistics places people in the "employed" category if they

Accepted Answer

A)  are without a job, but are available for work and have tried to find a job during the previous four weeks. 
B)  work without pay in a family member's business. 
C)  are waiting to be recalled to a job from which they had been laid off. 
D)  All of the above are correct. 
A)  are without a job, but are available for work and have tried to find a job during the previous four weeks. 
B)  work without pay in a family member's business. 
C)  are waiting to be recalled to a job from which they had been laid off. 
D)  All of the above are correct.

Question 18

According to 2012 data on the U.S. population, which of the following groups of adults of prime working age ages 25-54) had the lowest unemployment rate?

Accepted Answer

A)  white males 
B)  white females 
C)  black males 
D)  black females 
A)  white males 
B)  white females 
C)  black males 
D)  black females

Question 19

There are always some workers without jobs, even when the overall economy is doing well.

Accepted Answer

A) True 
 B)False

Question 20

People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium 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.

The Bureau of Labor Statistics' U5 measure of joblessness includes marginally attached workers.

The Bureau of Labor Statistics defines the unemployment rate as the percentage of

Public policy can reduce frictional unemployment.

Provide a definition of the natural rate of unemployment.

In the long run the unemployment rate equals

Explain the effect of right-to-work laws on the collective bargaining power of labor unions.

Who would be included in the labor force?

The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.

Unemployment generated by the existence of labor unions is structural unemployment and so contributes to the natural rate of unemployment.

Unions

Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings but has not yet been offered one that best suits her tastes and skills. Sandy is

The Bureau of Labor Statistics computes unemployment rates for the entire adult population and for more narrowly defined groups.

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Briefly compare the structural unemployment that arises from minimum-wage laws to the frictional unemployment that arises from the process of job search.

If the minimum wage were currently above the equilibrium wage, then a decrease in the minimum wage that kept it above the equilibrium wage would

Other things the same, an increase in wages above their equilibrium level

The Bureau of Labor Statistics places people in the "employed" category if they

According to 2012 data on the U.S. population, which of the following groups of adults of prime working age ages 25-54) had the lowest unemployment rate?

There are always some workers without jobs, even when the overall economy is doing well.

People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as

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 Bureau of Labor Statistics' U­5 measure of joblessness includes marginally attached workers.

The Bureau of Labor Statistics defines the unemployment rate as the percentage of

Public policy can reduce frictional unemployment.

Provide a definition of the natural rate of unemployment.

In the long run the unemployment rate equals

Explain the effect of right-to-work laws on the collective bargaining power of labor unions.

Who would be included in the labor force?

The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.

Unemployment generated by the existence of labor unions is structural unemployment and so contributes to the natural rate of unemployment.

Unions

Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings but has not yet been offered one that best suits her tastes and skills. Sandy is

The Bureau of Labor Statistics computes unemployment rates for the entire adult population and for more narrowly defined groups.

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Briefly compare the structural unemployment that arises from minimum-wage laws to the frictional unemployment that arises from the process of job search.

If the minimum wage were currently above the equilibrium wage, then a decrease in the minimum wage that kept it above the equilibrium wage would

Other things the same, an increase in wages above their equilibrium level

The Bureau of Labor Statistics places people in the "employed" category if they

According to 2012 data on the U.S. population, which of the following groups of adults of prime working age ages 25-54) had the lowest unemployment rate?

There are always some workers without jobs, even when the overall economy is doing well.

People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as

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' U5 measure of joblessness includes marginally attached workers.