Question 1

Efficiency wages

Accepted Answer

A)  increase frictional unemployment by keeping wages above equilibrium. 
B)  decrease frictional unemployment by keeping wages at equilibrium. 
C)  increase structural unemployment by keeping wages above equilibrium. 
D)  decrease structural unemployment by keeping wages at equilibrium. 
A)  increase frictional unemployment by keeping wages above equilibrium. 
B)  decrease frictional unemployment by keeping wages at equilibrium. 
C)  increase structural unemployment by keeping wages above equilibrium. 
D)  decrease structural unemployment by keeping wages at equilibrium.

Question 2

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

Accepted Answer

A)  90 million 
B)  150 million 
C)  160 million 
D)  230 million 
A)  90 million 
B)  150 million 
C)  160 million 
D)  230 million

Question 3

Adam is looking for a job in marketing. He has had some offers and his prospects are promising, but he has not yet accepted a job. Amanda lost her job working for Mercury Bicycles because many customers decided they prefer bicycles manufactured by Ultimate Bicycles instead. Who is frictionally unemployed?

Accepted Answer

A)  Adam but not Amanda 
B)  Amanda but not Adam 
C)  both Adam and Amanda 
D)  neither Amanda nor Adam 
A)  Adam but not Amanda 
B)  Amanda but not Adam 
C)  both Adam and Amanda 
D)  neither Amanda nor Adam

Question 4

Some persons are counted as out of the labor force because they have made no serious or recent effort to look for work. However, some of these individuals may want to work even though they are too discouraged to make a serious effort to look for work. If these individuals were counted as unemployed instead of out of the labor force, then

Accepted Answer

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

Question 5

Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

Accepted Answer

A) True 
 B)False

Question 6

Figure 28-3  
-Refer to Figure 28-3. At the equilibrium wage, how many workers are unemployed?

Accepted Answer

A)  0 
B)  4,000 
C)  5,000 
D)  8,000 
A)  0 
B)  4,000 
C)  5,000 
D)  8,000

Question 7

Unemployment data is collected

Accepted Answer

A)  through a monthly survey of about 20,000 firms. 
B)  through a monthly survey of about 60,000 households. 
C)  from unemployment insurance claims. 
D)  All of the above are correct. 
A)  through a monthly survey of about 20,000 firms. 
B)  through a monthly survey of about 60,000 households. 
C)  from unemployment insurance claims. 
D)  All of the above are correct.

Question 8

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

Accepted Answer

A)  Efficiency wages increase worker health and therefore increase worker productivity. 
B)  Efficiency wages decrease worker turnover and therefore decrease hiring and training costs. 
C)  Efficiency wages decrease worker shirking and therefore increase worker productivity. 
D)  Efficiency wages are below the equilibrium wage rate but still attract a sufficient number of workers. 
A)  Efficiency wages increase worker health and therefore increase worker productivity. 
B)  Efficiency wages decrease worker turnover and therefore decrease hiring and training costs. 
C)  Efficiency wages decrease worker shirking and therefore increase worker productivity. 
D)  Efficiency wages are below the equilibrium wage rate but still attract a sufficient number of workers.

Question 9

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

Accepted Answer

A) True 
 B)False

Question 10

The Bureau of Labor Statistics' U­1 measure of joblessness is smaller than its U­6 measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 11

Table 28-2
Labor Data for Aridia
  
-Refer to Table 28-2. The labor-force participation rate of Aridia in 2010 was

Accepted Answer

A)  70%. 
B)  77.8%. 
C)  80%. 
D)  87.5%. 
A)  70%. 
B)  77.8%. 
C)  80%. 
D)  87.5%.

Question 12

The natural unemployment rate includes

Accepted Answer

A)  both frictional and structural unemployment. 
B)  neither frictional nor structural unemployment. 
C)  structural but not frictional unemployment. 
D)  frictional but not structural unemployment. 
A)  both frictional and structural unemployment. 
B)  neither frictional nor structural unemployment. 
C)  structural but not frictional unemployment. 
D)  frictional but not structural unemployment.

Question 13

A firm may pay efficiency wages in an attempt to

Accepted Answer

A)  entice workers to work the night shift rather than the day shift. 
B)  improve productivity by reducing turnover. 
C)  reduce costs by attracting the least-skilled workers to apply for job vacancies. 
D)  All of the above are correct. 
A)  entice workers to work the night shift rather than the day shift. 
B)  improve productivity by reducing turnover. 
C)  reduce costs by attracting the least-skilled workers to apply for job vacancies. 
D)  All of the above are correct.

Question 14

Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force participation rate is 70%. What is the unemployment rate?

Accepted Answer

A)  6.7% 
B)  9.5% 
C)  10.5% 
D)  28% 
A)  6.7% 
B)  9.5% 
C)  10.5% 
D)  28%

Question 15

Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level?

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 16

The production of which of the following goods was among the four industries with the largest employment in the United States a century ago?

Accepted Answer

A)  horse shoes 
B)  woolen goods 
C)  candles 
D)  minerals from mining 
A)  horse shoes 
B)  woolen goods 
C)  candles 
D)  minerals from mining

Question 17

Sectoral shifts temporarily cause unemployment.

Accepted Answer

A) True 
 B)False

Question 18

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is

Accepted Answer

A)  cyclical unemployment amounting to 0.5 percent of the labor force. 
B)  frictional unemployment amounting to 0.5 percent of the labor force. 
C)  structural unemployment amounting to 0.5 percent of the labor force. 
D)  search unemployment amounting to 0.5 percent of the labor force. 
A)  cyclical unemployment amounting to 0.5 percent of the labor force. 
B)  frictional unemployment amounting to 0.5 percent of the labor force. 
C)  structural unemployment amounting to 0.5 percent of the labor force. 
D)  search unemployment amounting to 0.5 percent of the labor force.

Efficiency wages

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

Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

Figure 28-3 -Refer to Figure 28-3. At the equilibrium wage, how many workers are unemployed?

Unemployment data is collected

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

The Bureau of Labor Statistics' U1 measure of joblessness is smaller than its U6 measure of joblessness.

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor-force participation rate of Aridia in 2010 was

The natural unemployment rate includes

A firm may pay efficiency wages in an attempt to

Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force participation rate is 70%. What is the unemployment rate?

Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level?

The production of which of the following goods was among the four industries with the largest employment in the United States a century ago?

Sectoral shifts temporarily cause unemployment.

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is

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

Efficiency wages

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

Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

Figure 28-3 -Refer to Figure 28-3. At the equilibrium wage, how many workers are unemployed?

Unemployment data is collected

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

The Bureau of Labor Statistics' U­1 measure of joblessness is smaller than its U­6 measure of joblessness.

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor-force participation rate of Aridia in 2010 was

The natural unemployment rate includes

A firm may pay efficiency wages in an attempt to

Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force participation rate is 70%. What is the unemployment rate?

Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level?

The production of which of the following goods was among the four industries with the largest employment in the United States a century ago?

Sectoral shifts temporarily cause unemployment.

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is

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 is smaller than its U6 measure of joblessness.