Question 1

Structural unemployment is often thought to explain relatively short spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 2

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was

Accepted Answer

A)  154/234.9. 
B)  141.6/234.9. 
C)  141.6/154. 
D)  None of the above is correct. 
A)  154/234.9. 
B)  141.6/234.9. 
C)  141.6/154. 
D)  None of the above is correct.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Public policy can reduce frictional 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

The labor force minus the number of employed equals the number of unemployed.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is the correct formula for calculating the unemployment rate?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 8

A firm might offer efficiency wages in order to reduce shirking.

Accepted Answer

A) True 
 B)False

Question 9

Minimum wage laws help explain the natural rate of unemployment if they create a surplus in any labor market.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  0 
B)  3,000 
C)  4,000 
D)  7,000 
A)  0 
B)  3,000 
C)  4,000 
D)  7,000

Question 11

Compare the 2012 unemployment rates and labor-force participation rates of whites, blacks, adults of prime working age ages 25-54), and teenagers ages 16-19).

Accepted Answer

For adults:
Adult white men have the hig

Question 12

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 13

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 14

Table 28-6
  
-Refer to Table 28-6. What is the U-1 measure of labor underutilization?

Accepted Answer

A)  1.6% 
B)  3.1% 
C)  6.2% 
D)  7.0% 
A)  1.6% 
B)  3.1% 
C)  6.2% 
D)  7.0%

Question 15

The introduction of a union into a firm benefits all of that firm's workers.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is correct?

Accepted Answer

A)  Unemployment insurance raises structural unemployment because it reduces the job search efforts of the unemployed. 
B)  Most economists are skeptical of the value of unemployment insurance primarily because they believe that it results in a poorer match between workers and jobs. 
C)  Studies show that when the unemployed become ineligible for benefits, the probability of their finding a job rises markedly. 
D)  All of the above are correct. 
A)  Unemployment insurance raises structural unemployment because it reduces the job search efforts of the unemployed. 
B)  Most economists are skeptical of the value of unemployment insurance primarily because they believe that it results in a poorer match between workers and jobs. 
C)  Studies show that when the unemployed become ineligible for benefits, the probability of their finding a job rises markedly. 
D)  All of the above are correct.

Question 17

According to the theory of efficiency wages, it may be profitable for firms to keep wages high even in the presence of a surplus of labor.

Accepted Answer

A) True 
 B)False

Question 18

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 600 households, called the Current Population Survey.

Accepted Answer

A) True 
 B)False

Question 19

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are not eligible for unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 20

An increase in the minimum wage

Accepted Answer

A)  reduces structural unemployment. 
B)  reduces frictional unemployment, 
C)  increases structural unemployment. 
D)  increases frictional unemployment. 
A)  reduces structural unemployment. 
B)  reduces frictional unemployment, 
C)  increases structural unemployment. 
D)  increases frictional unemployment.

Exam 20: Unemployment

Structural unemployment is often thought to explain relatively short spells of unemployment.

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was

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

Public policy can reduce frictional unemployment.

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

The labor force minus the number of employed equals the number of unemployed.

Which of the following is the correct formula for calculating the unemployment rate?

A firm might offer efficiency wages in order to reduce shirking.

Minimum wage laws help explain the natural rate of unemployment if they create a surplus in any labor market.

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

Compare the 2012 unemployment rates and labor-force participation rates of whites, blacks, adults of prime working age ages 25-54), and teenagers ages 16-19).

A firm may pay efficiency wages in an attempt to

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

Table 28-6 -Refer to Table 28-6. What is the U-1 measure of labor underutilization?

The introduction of a union into a firm benefits all of that firm's workers.

Which of the following is correct?

According to the theory of efficiency wages, it may be profitable for firms to keep wages high even in the presence of a surplus of labor.

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 600 households, called the Current Population Survey.

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are not eligible for unemployment insurance.

An increase in the minimum wage

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 includes marginally attached workers.