Question 1

Unemployment generated by the existence of labor unions is structural unemployment and so contributes to the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 2

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-5 unemployment rate.

Accepted Answer

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

Question 3

Suppose that consumers decide to walk to work more frequently and drive cars less. Companies that make walking shoes hire workers, while automobile companies lay off workers. This is an example of

Accepted Answer

A)  frictional unemployment created by sectoral shifts. 
B)  frictional unemployment created by efficiency wages. 
C)  structural unemployment created by efficiency wages. 
D)  structural unemployment created by sectoral shifts. 
A)  frictional unemployment created by sectoral shifts. 
B)  frictional unemployment created by efficiency wages. 
C)  structural unemployment created by efficiency wages. 
D)  structural unemployment created by sectoral shifts.

Question 4

Table 28-11
2010 Labor Data for Tajnia
  
-Refer to Table 28-11. The unemployment rate of Tajnia in 2010 is about 7.5 percent.

Accepted Answer

A) True 
 B)False

Question 5

In the absence of right-to-work laws, workers

Accepted Answer

A)  that went on strike could be permanently replaced. 
B)  might be required to join the union if they worked for a unionized firm. 
C)  would not be able to unionize. 
D)  would not be able to strike. 
A)  that went on strike could be permanently replaced. 
B)  might be required to join the union if they worked for a unionized firm. 
C)  would not be able to unionize. 
D)  would not be able to strike.

Question 6

Ignoring the differences across states, explain the benefit provided to the typical worker in the United States from unemployment insurance.

Accepted Answer

Worker receives 50%

Question 7

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

Accepted Answer

A) True 
 B)False

Question 8

Table 28-2
Labor Data for Aridia
  
-Refer to Table 28-2. The labor-force participation rate of Aridia in 2010 was

Accepted Answer

A)  70%. 
B)  77.8%. 
C)  80%. 
D)  87.5%. 
A)  70%. 
B)  77.8%. 
C)  80%. 
D)  87.5%.

Question 9

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

Accepted Answer

A) True 
 B)False

Question 10

Consider two people who are currently out of work. Tim is not looking for work because there have been many job cuts where he lives, and he doesn't think it likely that he will find work. Bev is not currently looking for work, but she would like a job, and she has looked for work in the past. The Bureau of Labor Statistics considers

Accepted Answer

A)  both Tim and Bev to be marginally attached workers. 
B)  neither Tim nor Bev to be marginally attached workers. 
C)  only Tim to be a marginally attached worker. 
D)  only Bev to be a marginally attached worker. 
A)  both Tim and Bev to be marginally attached workers. 
B)  neither Tim nor Bev to be marginally attached workers. 
C)  only Tim to be a marginally attached worker. 
D)  only Bev to be a marginally attached worker.

Question 11

Maury did not work last week because fire forced an evacuation of his workplace. The Bureau of Labor Statistics counts Maury 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 12

Figure 28-4  
-Refer to Figure 28-4. If 6,000 workers are unemployed, then the minimum wage must be

Accepted Answer

A)  $1. 
B)  $4. 
C)  $6. 
D)  $7. 
A)  $1. 
B)  $4. 
C)  $6. 
D)  $7.

Question 13

Esmerelda worked part­time for her mother's business without pay. Tabitha was absent from work because she had strep throat. Who is counted as "employed" by the Bureau of Labor Statistics?

Accepted Answer

A)  Esmerelda but not Tabitha 
B)  Tabitha but not Esmerelda 
C)  both Esmerelda and Tabitha 
D)  neither Esmerelda nor Tabitha 
A)  Esmerelda but not Tabitha 
B)  Tabitha but not Esmerelda 
C)  both Esmerelda and Tabitha 
D)  neither Esmerelda nor Tabitha

Question 14

Scenario 28-1
Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment.
-Refer to Scenario 28-1. How many people are unemployed?

Accepted Answer

A)  1 million 
B)  3 million 
C)  4 million 
D)  5 million 
A)  1 million 
B)  3 million 
C)  4 million 
D)  5 million

Question 15

Workers waiting for jobs to open up is most closely associated with

Accepted Answer

A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  seasonal unemployment. 
D)  structural unemployment. 
A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  seasonal unemployment. 
D)  structural unemployment.

Question 16

List the four types of efficiency-wage theory.

Accepted Answer

Worker health, worke

Question 17

Ariana is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, then

Accepted Answer

A)  the profits of her firm might increase. 
B)  she will face a shortage of labor. 
C)  the turnover of her workers may increase. 
D)  None of the above is correct. 
A)  the profits of her firm might increase. 
B)  she will face a shortage of labor. 
C)  the turnover of her workers may increase. 
D)  None of the above is correct.

Question 18

Which of the following is not correct?

Accepted Answer

A)  An organized withdrawal of labor from a firm by a union is called a strike. 
B)  The power of a union comes from its ability to strike if the union and the firm do not agree on the terms of employment. 
C)  Economists who study the effects of unions typically find that union workers earn about 25 to 35 percent more than similar workers who do not belong to unions. 
D)  Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost. 
A)  An organized withdrawal of labor from a firm by a union is called a strike. 
B)  The power of a union comes from its ability to strike if the union and the firm do not agree on the terms of employment. 
C)  Economists who study the effects of unions typically find that union workers earn about 25 to 35 percent more than similar workers who do not belong to unions. 
D)  Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

Question 19

Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)  Dia, an unpaid homemaker not looking for other work 
B)  Kevin, a full-time student not looking for work 
C)  Sarah, who does not have a job but is looking for work 
D)  None of the above is correct. 
A)  Dia, an unpaid homemaker not looking for other work 
B)  Kevin, a full-time student not looking for work 
C)  Sarah, who does not have a job but is looking for work 
D)  None of the above is correct.

Question 20

Efficiency wages

Accepted Answer

A)  increase productivity and reduce unemployment. 
B)  increase productivity but increase unemployment. 
C)  decrease productivity but reduce unemployment. 
D)  decrease productivity and increase unemployment. 
A)  increase productivity and reduce unemployment. 
B)  increase productivity but increase unemployment. 
C)  decrease productivity but reduce unemployment. 
D)  decrease productivity and increase unemployment.

Exam 20: Unemployment

Unemployment generated by the existence of labor unions is structural unemployment and so contributes to the natural rate of unemployment.

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-5 unemployment rate.

Suppose that consumers decide to walk to work more frequently and drive cars less. Companies that make walking shoes hire workers, while automobile companies lay off workers. This is an example of

Table 28-11 2010 Labor Data for Tajnia -Refer to Table 28-11. The unemployment rate of Tajnia in 2010 is about 7.5 percent.

In the absence of right-to-work laws, workers

Ignoring the differences across states, explain the benefit provided to the typical worker in the United States from unemployment insurance.

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor-force participation rate of Aridia in 2010 was

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

Maury did not work last week because fire forced an evacuation of his workplace. The Bureau of Labor Statistics counts Maury as

Figure 28-4 -Refer to Figure 28-4. If 6,000 workers are unemployed, then the minimum wage must be

Esmerelda worked part­time for her mother's business without pay. Tabitha was absent from work because she had strep throat. Who is counted as "employed" by the Bureau of Labor Statistics?

Workers waiting for jobs to open up is most closely associated with

List the four types of efficiency-wage theory.

Ariana is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, then

Which of the following is not correct?

Who is included in the labor force by the Bureau of Labor Statistics?

Efficiency wages

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

Esmerelda worked parttime for her mother's business without pay. Tabitha was absent from work because she had strep throat. Who is counted as "employed" by the Bureau of Labor Statistics?