Question 1

Minimum-wage laws

Accepted Answer

A)  create frictional unemployment, while firms paying wages above equilibrium to reduce worker turnover creates structural unemployment. 
B)  create structural unemployment, while firms paying wages above equilibrium to reduce worker turnover creates frictional unemployment. 
C)  and firms paying wages above equilibrium to reduce worker turnover both create structural unemployment. 
D)  and firms paying wages above equilibrium to reduce worker turnover both create frictional unemployment. 
A)  create frictional unemployment, while firms paying wages above equilibrium to reduce worker turnover creates structural unemployment. 
B)  create structural unemployment, while firms paying wages above equilibrium to reduce worker turnover creates frictional unemployment. 
C)  and firms paying wages above equilibrium to reduce worker turnover both create structural unemployment. 
D)  and firms paying wages above equilibrium to reduce worker turnover both create frictional unemployment.

Question 2

Figure 28-4  
-Refer to Figure 28-4. If the government imposes a minimum wage of $6, how many workers will be unemployed?

Accepted Answer

A)  0 
B)  2,000 
C)  4,000 
D)  6,000 
A)  0 
B)  2,000 
C)  4,000 
D)  6,000

Question 3

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of households called the

Accepted Answer

A)  Census. 
B)  Labor Survey. 
C)  Survey of Economic Indicators. 
D)  Current Population Survey. 
A)  Census. 
B)  Labor Survey. 
C)  Survey of Economic Indicators. 
D)  Current Population Survey.

Question 4

Within the U.S. population, women of prime working age ages 25-54 have lower rates of labor-force participation than men of prime working age ages 25-54, regardless of race.

Accepted Answer

A) True 
 B)False

Question 5

Efficiency wages, minimum-wage laws, and unions all keep wages

Accepted Answer

A)  below the equilibrium level, causing a shortage of labor. 
B)  below the equilibrium level, causing a surplus of labor. 
C)  above the equilibrium level, causing a shortage of labor. 
D)  above the equilibrium level, causing a surplus of labor. 
A)  below the equilibrium level, causing a shortage of labor. 
B)  below the equilibrium level, causing a surplus of labor. 
C)  above the equilibrium level, causing a shortage of labor. 
D)  above the equilibrium level, causing a surplus of labor.

Question 6

Octavia does not currently have a job, but she has applied for several jobs in the previous week. Eve is an unpaid stay-at-home mom who has not searched for work in recent years. Who does the Bureau of Labor Statistics count as "out of the labor force"?

Accepted Answer

A)  Octavia but not Eve 
B)  Eve but not Octavia 
C)  both Octavia and Eve 
D)  neither Octavia nor Eve 
A)  Octavia but not Eve 
B)  Eve but not Octavia 
C)  both Octavia and Eve 
D)  neither Octavia nor Eve

Question 7

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 8

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 $8 in Productionville, how many people would be unemployed?

Accepted Answer

A)  0 
B)  2,000 
C)  5,000 
D)  10,000 
A)  0 
B)  2,000 
C)  5,000 
D)  10,000

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

More than 30 percent of U.S. workers leave their jobs in a typical month.

Accepted Answer

A) True 
 B)False

Question 13

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

Accepted Answer

A)  Juan Carlos, a full-time student who is not looking for work 
B)  Kevin, who is on temporary layoff 
C)  Andrea, who has retired and is not looking for work 
D)  All of the above are correct. 
A)  Juan Carlos, a full-time student who is not looking for work 
B)  Kevin, who is on temporary layoff 
C)  Andrea, who has retired and is not looking for work 
D)  All of the above are correct.

Question 14

Table 28-8
Below is data about the labor market in the state of Northwoods.
  
-Refer to Table 28-8. If the state government imposed a minimum wage of $8, how many people would be unemployed?

Accepted Answer

A)  0 
B)  10,000 
C)  20,000 
D)  40,000 
A)  0 
B)  10,000 
C)  20,000 
D)  40,000

Question 15

When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than if many of its workers were idle.

Accepted Answer

A) True 
 B)False

Question 16

The adult population in the town of Bedrock is 75 thousand. Within Bedrock, 5 thousand are unemployed, and 40 thousand are employed. Calculate the number of people not in the labor force.

Accepted Answer

The answer of The adult population in the town of...

Question 17

If the minimum wage is currently above the equilibrium wage, then a decrease in the minimum wage

Accepted Answer

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

Question 18

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate is

Accepted Answer

A)  always zero. 
B)  sometimes zero. 
C)  rarely zero. 
D)  never zero. 
A)  always zero. 
B)  sometimes zero. 
C)  rarely zero. 
D)  never zero.

Question 19

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 20

When a minimum-wage law forces the wage to remain above the equilibrium level, it

Accepted Answer

A)  raises both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level. 
B)  raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level. 
C)  reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level. 
D)  reduces both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level. 
A)  raises both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level. 
B)  raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level. 
C)  reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level. 
D)  reduces both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level.

Exam 20: Unemployment

Minimum-wage laws

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $6, how many workers will be unemployed?

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of households called the

Within the U.S. population, women of prime working age ages 25-54 have lower rates of labor-force participation than men of prime working age ages 25-54, regardless of race.

Efficiency wages, minimum-wage laws, and unions all keep wages

Octavia does not currently have a job, but she has applied for several jobs in the previous week. Eve is an unpaid stay-at-home mom who has not searched for work in recent years. Who does the Bureau of Labor Statistics count as "out of the labor force"?

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

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

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

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 $8 in Productionville, how many people would be unemployed?

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

More than 30 percent of U.S. workers leave their jobs in a typical month.

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

Table 28-8 Below is data about the labor market in the state of Northwoods. -Refer to Table 28-8. If the state government imposed a minimum wage of $8, how many people would be unemployed?

When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than if many of its workers were idle.

The adult population in the town of Bedrock is 75 thousand. Within Bedrock, 5 thousand are unemployed, and 40 thousand are employed. Calculate the number of people not in the labor force.

If the minimum wage is currently above the equilibrium wage, then a decrease in the minimum wage

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate is

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?

When a minimum-wage law forces the wage to remain above the equilibrium level, it

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' U1 measure of joblessness is larger than its U6 measure of joblessness.