Question 1

A firm may pay efficiency wages in an attempt to

Accepted Answer

A)  reduce incentives to shirk. 
B)  reduce turnover. 
C)  attract a well-qualified pool of applicants. 
D)  All of the above are correct. 
A)  reduce incentives to shirk. 
B)  reduce turnover. 
C)  attract a well-qualified pool of applicants. 
D)  All of the above are correct.

Question 2

When job search is the explanation for unemployment, workers are searching for the jobs that best suit their tastes and skills, but when the wage is above the equilibrium level, the quantity of labor supplied exceeds the quantity of labor demanded, and workers are unemployed because they are waiting for jobs to open up.

Accepted Answer

A) True 
 B)False

Question 3

Because people move into and out of the labor force so often, statistics on unemployment are difficult to interpret.

Accepted Answer

A) True 
 B)False

Question 4

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Accepted Answer

A) True 
 B)False

Question 5

The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate.

Accepted Answer

A) True 
 B)False

Question 6

Suppose that efficiency wages become more common in the economy. Imposing efficiency wages

Accepted Answer

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

Question 7

The natural rate of unemployment is constant over time.

Accepted Answer

A) True 
 B)False

Question 8

Anna recently graduated from college with a degree in electrical engineering, but she has not yet started working. To be counted as "unemployed" she

Accepted Answer

A)  does not have to have looked for work. 
B)  must have looked for work no more than a week ago. 
C)  must have looked for work no more than four weeks ago. 
D)  must have looked for work no more than twelve weeks ago. 
A)  does not have to have looked for work. 
B)  must have looked for work no more than a week ago. 
C)  must have looked for work no more than four weeks ago. 
D)  must have looked for work no more than twelve weeks ago.

Question 9

Frictional unemployment can be the consequence of

Accepted Answer

A)  workers leaving existing jobs to find ones they like better. 
B)  one industry declining while another is growing. 
C)  changes in the working conditions offered by competing firms. 
D)  All of the above are correct. 
A)  workers leaving existing jobs to find ones they like better. 
B)  one industry declining while another is growing. 
C)  changes in the working conditions offered by competing firms. 
D)  All of the above are correct.

Question 10

The deviation of unemployment from its natural rate is called

Accepted Answer

A)  the normal rate of unemployment. 
B)  deviant unemployment. 
C)  cyclical unemployment. 
D)  fluctuating unemployment. 
A)  the normal rate of unemployment. 
B)  deviant unemployment. 
C)  cyclical unemployment. 
D)  fluctuating unemployment.

Question 11

Unions contribute to

Accepted Answer

A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  seasonal unemployment. 
D)  structural unemployment. 
A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  seasonal unemployment. 
D)  structural unemployment.

Question 12

Suppose that dental hygienists are unionized in the eastern region of the country but not in the western region. If the unionized workers in the eastern region abolished their unions, employment

Accepted Answer

A)  and wages of dental hygienists in the eastern region would rise. 
B)  of dental hygienists in the eastern region would rise, but wages of dental hygienists in the eastern region would fall. 
C)  and wages of dental hygienists in the eastern region would fall. 
D)  of dental hygienists in the eastern region would fall, but wages of dental hygienists in the eastern region would rise. 
A)  and wages of dental hygienists in the eastern region would rise. 
B)  of dental hygienists in the eastern region would rise, but wages of dental hygienists in the eastern region would fall. 
C)  and wages of dental hygienists in the eastern region would fall. 
D)  of dental hygienists in the eastern region would fall, but wages of dental hygienists in the eastern region would rise.

Question 13

The labor-force participation rate equals the percentage of the total adult population that is in the labor force.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  0 workers. 
B)  2,000 workers. 
C)  4,000 workers. 
D)  7,000 workers. 
A)  0 workers. 
B)  2,000 workers. 
C)  4,000 workers. 
D)  7,000 workers.

Question 15

Which of the following is an explanation for the existence of frictional unemployment?

Accepted Answer

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

Question 16

Table 28-7
Below is data about the labor market in the city of Productionville.
  
-Refer to Table 28-7. If the local government imposed a minimum wage of $4 in Productionville, how many people would be unemployed?

Accepted Answer

A)  0 
B)  2,000 
C)  3,000 
D)  10,000 
A)  0 
B)  2,000 
C)  3,000 
D)  10,000

Question 17

Which of the following is not correct?

Accepted Answer

A)  When a union is present in a labor market, wages may not be determined by the equilibrium of supply and demand. 
B)  Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power. 
C)  When unions raise wages above equilibrium, the quantity of labor supplied decreases, and the quantity of labor demanded increases. 
D)  Most workers in the U.S. economy are not members of a union. 
A)  When a union is present in a labor market, wages may not be determined by the equilibrium of supply and demand. 
B)  Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power. 
C)  When unions raise wages above equilibrium, the quantity of labor supplied decreases, and the quantity of labor demanded increases. 
D)  Most workers in the U.S. economy are not members of a union.

Question 18

Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Sheila as

Accepted Answer

A)  unemployed and in the labor force. 
B)  unemployed and not in the labor force. 
C)  employed and in the labor force. 
D)  employed and not in the labor force. 
A)  unemployed and in the labor force. 
B)  unemployed and not in the labor force. 
C)  employed and in the labor force. 
D)  employed and not in the labor force.

Question 19

Which of the following is correct?

Accepted Answer

A)  The Bureau of Labor Statistics uses data collected from those applying for unemployment insurance to compute the unemployment rate. 
B)  The labor force includes all adults who are able to work. 
C)  Unpaid homemakers are counted as "employed" by the Bureau of Labor Statistics. 
D)  People working part time are counted as "employed" by the Bureau of Labor Statistics. 
A)  The Bureau of Labor Statistics uses data collected from those applying for unemployment insurance to compute the unemployment rate. 
B)  The labor force includes all adults who are able to work. 
C)  Unpaid homemakers are counted as "employed" by the Bureau of Labor Statistics. 
D)  People working part time are counted as "employed" by the Bureau of Labor Statistics.

Question 20

Noah is an unpaid stay-at-home father who is not currently searching for paid work. Pete is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)  only Noah 
B)  only Pete 
C)  both Noah and Pete 
D)  neither Noah nor Pete 
A)  only Noah 
B)  only Pete 
C)  both Noah and Pete 
D)  neither Noah nor Pete

A firm may pay efficiency wages in an attempt to

Because people move into and out of the labor force so often, statistics on unemployment are difficult to interpret.

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate.

Suppose that efficiency wages become more common in the economy. Imposing efficiency wages

The natural rate of unemployment is constant over time.

Anna recently graduated from college with a degree in electrical engineering, but she has not yet started working. To be counted as "unemployed" she

Frictional unemployment can be the consequence of

The deviation of unemployment from its natural rate is called

Unions contribute to

Suppose that dental hygienists are unionized in the eastern region of the country but not in the western region. If the unionized workers in the eastern region abolished their unions, employment

The labor-force participation rate equals the percentage of the total adult population that is in the labor force.

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

Which of the following is an explanation for the existence of frictional unemployment?

Table 28-7 Below is data about the labor market in the city of Productionville. -Refer to Table 28-7. If the local government imposed a minimum wage of $4 in Productionville, how many people would be unemployed?

Which of the following is not correct?

Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Sheila as

Which of the following is correct?

Noah is an unpaid stay-at-home father who is not currently searching for paid work. Pete is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?

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

A firm may pay efficiency wages in an attempt to

Because people move into and out of the labor force so often, statistics on unemployment are difficult to interpret.

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate.

Suppose that efficiency wages become more common in the economy. Imposing efficiency wages

The natural rate of unemployment is constant over time.

Anna recently graduated from college with a degree in electrical engineering, but she has not yet started working. To be counted as "unemployed" she

Frictional unemployment can be the consequence of

The deviation of unemployment from its natural rate is called

Unions contribute to

Suppose that dental hygienists are unionized in the eastern region of the country but not in the western region. If the unionized workers in the eastern region abolished their unions, employment

The labor-force participation rate equals the percentage of the total adult population that is in the labor force.

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

Which of the following is an explanation for the existence of frictional unemployment?

Table 28-7 Below is data about the labor market in the city of Productionville. -Refer to Table 28-7. If the local government imposed a minimum wage of $4 in Productionville, how many people would be unemployed?

Which of the following is not correct?

Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Sheila as

Which of the following is correct?

Noah is an unpaid stay-at-home father who is not currently searching for paid work. Pete is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?

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