Question 1

The Bureau of Labor Statistics' U­5 measure of joblessness is the official unemployment rate.

Accepted Answer

A) True 
 B)False  False

Question 2

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  True

Question 3

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. C

Question 4

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

Accepted Answer

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

Question 5

Suppose that some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were employed?

Accepted Answer

A)  0.9 million 
B)  14.1 million 
C)  15 million 
D)  23.5 million 
A)  0.9 million 
B)  14.1 million 
C)  15 million 
D)  23.5 million

Question 6

Figure 28-4  
-Refer to Figure 28-4. If 2,000 workers are unemployed, then the minimum wage must be

Accepted Answer

A)  $3. 
B)  $4. 
C)  $5. 
D)  $6. 
A)  $3. 
B)  $4. 
C)  $5. 
D)  $6.

Question 7

To be counted as "employed" in the U.S. labor force statistics, a person

Accepted Answer

A)  must be working for pay and be working full time. 
B)  must be working for pay but does not have to be working full time. 
C)  does not have to be working for pay if they are working for a family business but must be employed full time. 
D)  does not have to be working for pay if they are working for a family business and does not have to be working full time 
A)  must be working for pay and be working full time. 
B)  must be working for pay but does not have to be working full time. 
C)  does not have to be working for pay if they are working for a family business but must be employed full time. 
D)  does not have to be working for pay if they are working for a family business and does not have to be working full time

Question 8

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor.

Accepted Answer

A) True 
 B)False

Question 9

Paying efficiency wages means that wages are

Accepted Answer

A)  above equilibrium, and profits are higher than otherwise. 
B)  above equilibrium, and profits are lower than otherwise. 
C)  below equilibrium, and profits are higher than otherwise. 
D)  below equilibrium, and profits are lower than otherwise. 
A)  above equilibrium, and profits are higher than otherwise. 
B)  above equilibrium, and profits are lower than otherwise. 
C)  below equilibrium, and profits are higher than otherwise. 
D)  below equilibrium, and profits are lower than otherwise.

Question 10

An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

Accepted Answer

A) True 
 B)False

Question 11

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a surplus of labor.

Accepted Answer

A) True 
 B)False

Question 12

Table 28-10
The table below lists the number of people by labor force classification for the country of Springfield.
  
-Refer to Table 28-10. Calculate the U-4 unemployment rate.

Accepted Answer

The answer of Table 28-10
The table below lists the number...

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

Accepted Answer

A) True 
 B)False

Question 15

Suppose that some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were employed?

Accepted Answer

A)  2.76 million 
B)  31.74 million 
C)  34.5 million 
D)  42.32 million 
A)  2.76 million 
B)  31.74 million 
C)  34.5 million 
D)  42.32 million

Question 16

The labor-force participation rate measures the percentage of the

Accepted Answer

A)  total adult population that is in the labor force. 
B)  total adult population that is employed. 
C)  labor force that is employed. 
D)  labor force that is either employed or unemployed. 
A)  total adult population that is in the labor force. 
B)  total adult population that is employed. 
C)  labor force that is employed. 
D)  labor force that is either employed or unemployed.

Question 17

Figure 28-7  
-Refer to Figure 28-7. If the minimum wage is equal to $125, what is the quantity of labor supplied, the quantity of labor demanded, and number unemployed?

Accepted Answer

Labor supplied is 35

Question 18

The labor-force participation rate is computed as

Accepted Answer

A)  Employed ÷ Adult Population) × 100. 
B)  Employed ÷ Labor Force) × 100. 
C)  Labor Force ÷ Adult Population) × 100. 
D)  Adult Population ÷ Labor Force) × 100. 
A)  Employed ÷ Adult Population) × 100. 
B)  Employed ÷ Labor Force) × 100. 
C)  Labor Force ÷ Adult Population) × 100. 
D)  Adult Population ÷ Labor Force) × 100.

Question 19

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 20

The unemployment rate equals the percentage of the adult population that is unemployed.

Accepted Answer

A) True 
 B)False

Exam 20: Unemployment

The Bureau of Labor Statistics' U­5 measure of joblessness is the official unemployment rate.

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

Which of the following is not correct?

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

Suppose that some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were employed?

Figure 28-4 -Refer to Figure 28-4. If 2,000 workers are unemployed, then the minimum wage must be

To be counted as "employed" in the U.S. labor force statistics, a person

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor.

Paying efficiency wages means that wages are

An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a surplus of labor.

Table 28-10 The table below lists the number of people by labor force classification for the country of Springfield. -Refer to Table 28-10. Calculate the U-4 unemployment rate.

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

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

Suppose that some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were employed?

The labor-force participation rate measures the percentage of the

Figure 28-7 -Refer to Figure 28-7. If the minimum wage is equal to $125, what is the quantity of labor supplied, the quantity of labor demanded, and number unemployed?

The labor-force participation rate is computed as

The unemployment rate equals the percentage of the adult population that is unemployed.

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Costs of Production

Firms in Competitive Markets

Monopoly

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

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

Filters

The Bureau of Labor Statistics' U5 measure of joblessness is the official unemployment rate.