Question 1

Duane owns his own real estate company. The Bureau of Labor Statistics counts Duane 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 2

Most spells of unemployment are short. About half of unemployment spells end with an exit from the labor force.

Accepted Answer

A) True 
 B)False

Question 3

The normal rate of unemployment around which the unemployment rate fluctuates is called cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 4

The Bureau of Labor Statistics' U­2 measure of joblessness includes job losers and job leavers.

Accepted Answer

A) True 
 B)False

Question 5

Of the following groups, who is eligible for unemployment insurance benefits?

Accepted Answer

A)  the unemployed who quit their jobs 
B)  the unemployed who were laid off because their previous employers no longer needed their skills 
C)  the unemployed who were fired for cause 
D)  the unemployed who just entered the labor force 
A)  the unemployed who quit their jobs 
B)  the unemployed who were laid off because their previous employers no longer needed their skills 
C)  the unemployed who were fired for cause 
D)  the unemployed who just entered the labor force

Question 6

A person who is counted as "unemployed" by the Bureau of Labor Statistics

Accepted Answer

A)  is also in the labor force. 
B)  must have recently looked for work or be on temporary layoff. 
C)  must be at least 16 years old. 
D)  All of the above are correct. 
A)  is also in the labor force. 
B)  must have recently looked for work or be on temporary layoff. 
C)  must be at least 16 years old. 
D)  All of the above are correct.

Question 7

The production of which of the following goods was among the four industries with the largest employment in the United States a century ago?

Accepted Answer

A)  horse shoes 
B)  woolen goods 
C)  candles 
D)  minerals from mining 
A)  horse shoes 
B)  woolen goods 
C)  candles 
D)  minerals from mining

Question 8

Minimum-wage laws

Accepted Answer

A)  reduce unemployment. 
B)  cause labor shortages, which further raise wages above equilibrium. 
C)  affect highly-educated workers more than high school dropouts. 
D)  None of the above is correct. 
A)  reduce unemployment. 
B)  cause labor shortages, which further raise wages above equilibrium. 
C)  affect highly-educated workers more than high school dropouts. 
D)  None of the above is correct.

Question 9

The natural rate of unemployment is impervious to economic policy.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Briefly explain the four rationales for efficiency wages.

Accepted Answer

1. Better paid workers are healthier and

Question 12

Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. Other things the same, the unemployment rate

Accepted Answer

A)  increases, and the labor-force participation rate decreases. 
B)  and the labor-force participation rate both increase. 
C)  increases, and the labor-force participation rate is unaffected. 
D)  and the labor-force participation rate are both unaffected. 
A)  increases, and the labor-force participation rate decreases. 
B)  and the labor-force participation rate both increase. 
C)  increases, and the labor-force participation rate is unaffected. 
D)  and the labor-force participation rate are both unaffected.

Question 13

Who among the following would be counted as "unemployed"?

Accepted Answer

A)  Shasta, who is waiting to be recalled to a job from which she has been laid off. 
B)  Karen, who neither has a job nor is looking for one. 
C)  Mary, who worked only 35 hours last week. 
D)  None of the above is correct. 
A)  Shasta, who is waiting to be recalled to a job from which she has been laid off. 
B)  Karen, who neither has a job nor is looking for one. 
C)  Mary, who worked only 35 hours last week. 
D)  None of the above is correct.

Question 14

Minimum-wage laws, unions, and efficiency wages contribute to

Accepted Answer

A)  both structural unemployment and the natural rate of unemployment. 
B)  neither structural unemployment nor the natural rate of unemployment. 
C)  structural unemployment, but not the natural rate of unemployment. 
D)  the natural rate of unemployment, but not structural unemployment. 
A)  both structural unemployment and the natural rate of unemployment. 
B)  neither structural unemployment nor the natural rate of unemployment. 
C)  structural unemployment, but not the natural rate of unemployment. 
D)  the natural rate of unemployment, but not structural unemployment.

Question 15

Which of the following is an example of an efficiency wage?

Accepted Answer

A)  a higher wage paid to a more experienced worker 
B)  a below-equilibrium wage paid by a small business exempt from minimum-wage laws 
C)  an above-equilibrium wage paid by a firm to reduce turnover costs 
D)  a wage tied to participation in a government-sponsored job training program 
A)  a higher wage paid to a more experienced worker 
B)  a below-equilibrium wage paid by a small business exempt from minimum-wage laws 
C)  an above-equilibrium wage paid by a firm to reduce turnover costs 
D)  a wage tied to participation in a government-sponsored job training program

Question 16

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Accepted Answer

A) True 
 B)False

Question 17

Table 28-6
  
-Refer to Table 28-6. What is the U-4 measure of labor underutilization?

Accepted Answer

A)  6.5% 
B)  6.9% 
C)  7.0% 
D)  17.9% 
A)  6.5% 
B)  6.9% 
C)  7.0% 
D)  17.9%

Question 18

Which of the following is not among the four industries with the largest employment in the United States today?

Accepted Answer

A)  lumber 
B)  aircraft 
C)  communications 
D)  electrical components 
A)  lumber 
B)  aircraft 
C)  communications 
D)  electrical components

Question 19

Table 28-2
Labor Data for Aridia
  
-Refer to Table 28-2. The unemployment rate of Aridia in 2012 was

Accepted Answer

A)  6.25%. 
B)  11.1%. 
C)  12.5%. 
D)  56.25%. 
A)  6.25%. 
B)  11.1%. 
C)  12.5%. 
D)  56.25%.

Question 20

Figure 28-4  
-Refer to Figure 28-4. If the government imposes a minimum wage of $7, 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

Exam 20: Unemployment

Duane owns his own real estate company. The Bureau of Labor Statistics counts Duane as

Most spells of unemployment are short. About half of unemployment spells end with an exit from the labor force.

The normal rate of unemployment around which the unemployment rate fluctuates is called cyclical unemployment.

The Bureau of Labor Statistics' U­2 measure of joblessness includes job losers and job leavers.

Of the following groups, who is eligible for unemployment insurance benefits?

A person who is counted as "unemployed" by the Bureau of Labor Statistics

The production of which of the following goods was among the four industries with the largest employment in the United States a century ago?

Minimum-wage laws

The natural rate of unemployment is impervious to economic policy.

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

Briefly explain the four rationales for efficiency wages.

Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. Other things the same, the unemployment rate

Who among the following would be counted as "unemployed"?

Minimum-wage laws, unions, and efficiency wages contribute to

Which of the following is an example of an efficiency wage?

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Table 28-6 -Refer to Table 28-6. What is the U-4 measure of labor underutilization?

Which of the following is not among the four industries with the largest employment in the United States today?

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The unemployment rate of Aridia in 2012 was

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $7, how many workers will be 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' U2 measure of joblessness includes job losers and job leavers.