Question 1

Minimum wages create unemployment in markets where they create a

Accepted Answer

A)  shortage of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S. 
B)  shortage of labor. Minimum wage laws are the predominant reason for unemployment in the U.S. 
C)  surplus of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S. 
D)  surplus of labor. Minimum wage laws are the predominant reason for unemployment in the U.S. 
A)  shortage of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S. 
B)  shortage of labor. Minimum wage laws are the predominant reason for unemployment in the U.S. 
C)  surplus of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S. 
D)  surplus of labor. Minimum wage laws are the predominant reason for unemployment in the U.S.

Question 2

Frictional unemployment results from

Accepted Answer

A)  job searching. It is often thought to explain relatively short spells of unemployment. 
B)  job searching. It is often thought to explain relatively long spells of unemployment 
C)  a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment. 
D)  a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment. 
A)  job searching. It is often thought to explain relatively short spells of unemployment. 
B)  job searching. It is often thought to explain relatively long spells of unemployment 
C)  a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment. 
D)  a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment.

Question 3

Economists would predict that, other things the same, the more generous unemployment compensation a country has, the

Accepted Answer

A)  shorter the duration of each spell of unemployment and the higher the unemployment rate. 
B)  shorter the duration of each spell of unemployment and the lower the unemployment rate. 
C)  longer the duration of each spell of unemployment and the higher the unemployment rate. 
D)  longer the duration of each spell of unemployment and the lower the unemployment rate. 
A)  shorter the duration of each spell of unemployment and the higher the unemployment rate. 
B)  shorter the duration of each spell of unemployment and the lower the unemployment rate. 
C)  longer the duration of each spell of unemployment and the higher the unemployment rate. 
D)  longer the duration of each spell of unemployment and the lower the unemployment rate.

Question 4

The destruction of manufacturing jobs and workers leaving their jobs to find better ones both contribute to structural unemployment.

Accepted Answer

A) True 
 B)False

Question 5

Most spells of unemployment are

Accepted Answer

A)  long, and most unemployment observed at any given time is long term. 
B)  long, but most unemployment observed at any given time is short term. 
C)  short, but most unemployment observed at any given time is long term. 
D)  short, and most unemployment observed at any given time is short term. 
A)  long, and most unemployment observed at any given time is long term. 
B)  long, but most unemployment observed at any given time is short term. 
C)  short, but most unemployment observed at any given time is long term. 
D)  short, and most unemployment observed at any given time is short term.

Question 6

Discouraged workers are included in

Accepted Answer

A)  the number of unemployed. 
B)  frictional unemployment. 
C)  the labor force. 
D)  None of the above is correct. 
A)  the number of unemployed. 
B)  frictional unemployment. 
C)  the labor force. 
D)  None of the above is correct.

Question 7

Frictional unemployment is

Accepted Answer

A)  not inevitable; rather, it can be reduced to zero by well-designed public policies. 
B)  not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance. 
C)  inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms. 
D)  inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium. 
A)  not inevitable; rather, it can be reduced to zero by well-designed public policies. 
B)  not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance. 
C)  inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms. 
D)  inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium.

Question 8

Within the U.S. population, teenagers ages 16-19 have similar rates of labor-force participation than adults of prime working age ages 25-54, regardless of race or gender.

Accepted Answer

A) True 
 B)False

Question 9

Structural unemployment results when the number of jobs is insufficient for the number of workers.

Accepted Answer

A) True 
 B)False

Question 10

Figure 28-7  
-Refer to Figure 28-7. At a minimum wage of $125, how much is the surplus of labor?

Accepted Answer

The answer of Figure 28-7  
-Refer to Figure 28-7....

Question 11

The labor-force participation rate tells us the fraction of the population that

Accepted Answer

A)  is able to participate in the labor market. 
B)  has ever been employed. 
C)  has chosen to participate in the labor market. 
D)  has chosen not to participate in the labor market. 
A)  is able to participate in the labor market. 
B)  has ever been employed. 
C)  has chosen to participate in the labor market. 
D)  has chosen not to participate in the labor market.

Question 12

Wages in excess of their equilibrium level help explain

Accepted Answer

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

Question 13

The Bureau of Labor Statistics computes labor-force participation rates for the entire adult population and for more narrowly defined groups.

Accepted Answer

A) True 
 B)False

Question 14

In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Swedish adult non- institutionalized population was 7.568 million, the labor force was 4.888 million, and the number of people employed was 4.486 million. According to these numbers, the Swedish labor-force participation rate and unemployment rate were about

Accepted Answer

A)  64.6% and 8.2%. 
B)  64.6% and 5.3%. 
C)  59.3% and 8.2%. 
D)  59.3% and 5.3%. 
A)  64.6% and 8.2%. 
B)  64.6% and 5.3%. 
C)  59.3% and 8.2%. 
D)  59.3% and 5.3%.

Question 15

Who is not included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)  Anita, who is on temporary layoff 
B)  Lauren, who has retired and is not looking for work 
C)  Raymond, who does not have a job but has applied for several in the last week 
D)  None of the above is correct. 
A)  Anita, who is on temporary layoff 
B)  Lauren, who has retired and is not looking for work 
C)  Raymond, who does not have a job but has applied for several in the last week 
D)  None of the above is correct.

Question 16

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 17

Adults who were not working but who had jobs from which they were temporarily absent are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 18

If changing consumer preferences increase the demand for satellite radios and decrease the demand for video cassette recorders, the economy will likely exhibit

Accepted Answer

A)  an increase in the natural rate of unemployment. 
B)  a decrease in the natural rate of unemployment. 
C)  frictional unemployment. 
D)  efficiency wages. 
A)  an increase in the natural rate of unemployment. 
B)  a decrease in the natural rate of unemployment. 
C)  frictional unemployment. 
D)  efficiency wages.

Question 19

Unemployment insurance tends to

Accepted Answer

A)  decrease structural unemployment. 
B)  decrease cyclical unemployment. 
C)  increase frictional unemployment. 
D)  increase the number of discouraged workers. 
A)  decrease structural unemployment. 
B)  decrease cyclical unemployment. 
C)  increase frictional unemployment. 
D)  increase the number of discouraged workers.

Question 20

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.

Accepted Answer

People who are experienced and educated

Exam 20: Unemployment

Minimum wages create unemployment in markets where they create a

Frictional unemployment results from

Economists would predict that, other things the same, the more generous unemployment compensation a country has, the

The destruction of manufacturing jobs and workers leaving their jobs to find better ones both contribute to structural unemployment.

Most spells of unemployment are

Discouraged workers are included in

Frictional unemployment is

Within the U.S. population, teenagers ages 16-19 have similar rates of labor-force participation than adults of prime working age ages 25-54, regardless of race or gender.

Structural unemployment results when the number of jobs is insufficient for the number of workers.

Figure 28-7 -Refer to Figure 28-7. At a minimum wage of $125, how much is the surplus of labor?

The labor-force participation rate tells us the fraction of the population that

Wages in excess of their equilibrium level help explain

The Bureau of Labor Statistics computes labor-force participation rates for the entire adult population and for more narrowly defined groups.

Who is not included in the labor force by the Bureau of Labor Statistics?

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?

Adults who were not working but who had jobs from which they were temporarily absent are included in the Bureau of Labor Statistics' "employed" category.

If changing consumer preferences increase the demand for satellite radios and decrease the demand for video cassette recorders, the economy will likely exhibit

Unemployment insurance tends to

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.

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

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