Question 1

An economy's natural rate of unemployment refers to the amount of unemployment that the economy normally experiences.

Accepted Answer

A) True 
 B)False

Question 2

Adults who are waiting to be recalled to a job from which they had been laid off are counted as "unemployed."

Accepted Answer

A) True 
 B)False

Question 3

Explain the effect of right-to-work laws on the collective bargaining power of labor unions.

Accepted Answer

Right-to-work laws decrease th

Question 4

Figure 28-1  
-Refer to Figure 28-1. Which of the following correctly identifies lines A and B?

Accepted Answer

A)  Line A is the unemployment rate, and line B is the natural rate of unemployment. 
B)  Line A is the labor force participation rate, and line B is the adult population. 
C)  Line A is the employment rate, and line B is the adult population. 
D)  Line A is the labor force participation rate, and line B is the unemployment rate. 
A)  Line A is the unemployment rate, and line B is the natural rate of unemployment. 
B)  Line A is the labor force participation rate, and line B is the adult population. 
C)  Line A is the employment rate, and line B is the adult population. 
D)  Line A is the labor force participation rate, and line B is the unemployment rate.

Question 5

Table 28-2
Labor Data for Aridia
  
-Refer to Table 28-2. The number of adults not in the labor force of Aridia

Accepted Answer

A)  increased both from 2010 to 2011 and from 2011 to 2012. 
B)  increased from 2010 to 2011 but decreased from 2011 to 2012. 
C)  decreased from 2010 to 2011 but increased from 2011 to 2012. 
D)  decreased both from 2010 to 2011 and from 2011 to 2012. 
A)  increased both from 2010 to 2011 and from 2011 to 2012. 
B)  increased from 2010 to 2011 but decreased from 2011 to 2012. 
C)  decreased from 2010 to 2011 but increased from 2011 to 2012. 
D)  decreased both from 2010 to 2011 and from 2011 to 2012.

Question 6

Which of the following is correct?

Accepted Answer

A)  In unionized industries, wages are below the level that would prevail in competitive markets. 
B)  The introduction of a union in an industry reduces the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and reduces wages in the rest of the economy. 
C)  There is a strong consensus among economists that unions are bad for the U.S. economy. 
D)  All of the above are correct. 
A)  In unionized industries, wages are below the level that would prevail in competitive markets. 
B)  The introduction of a union in an industry reduces the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and reduces wages in the rest of the economy. 
C)  There is a strong consensus among economists that unions are bad for the U.S. economy. 
D)  All of the above are correct.

Question 7

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

Accepted Answer

A)  Efficiency wages increase worker health and therefore increase worker productivity. 
B)  Efficiency wages decrease worker turnover and therefore decrease hiring and training costs. 
C)  Efficiency wages decrease worker shirking and therefore increase worker productivity. 
D)  Efficiency wages are below the equilibrium wage rate but still attract a sufficient number of workers. 
A)  Efficiency wages increase worker health and therefore increase worker productivity. 
B)  Efficiency wages decrease worker turnover and therefore decrease hiring and training costs. 
C)  Efficiency wages decrease worker shirking and therefore increase worker productivity. 
D)  Efficiency wages are below the equilibrium wage rate but still attract a sufficient number of workers.

Question 8

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had decreased.

Accepted Answer

A) True 
 B)False

Question 9

Cyclical unemployment refers to

Accepted Answer

A)  the relationship between the probability of unemployment and a worker's changing level of experience. 
B)  how often a worker is likely to be employed during her lifetime. 
C)  year-to-year fluctuations of unemployment around its natural rate. 
D)  long-term trends in unemployment. 
A)  the relationship between the probability of unemployment and a worker's changing level of experience. 
B)  how often a worker is likely to be employed during her lifetime. 
C)  year-to-year fluctuations of unemployment around its natural rate. 
D)  long-term trends in unemployment.

Question 10

When a union bargains successfully with employers, in that industry,

Accepted Answer

A)  both wages and unemployment increase. 
B)  wages increase and unemployment decreases. 
C)  wages decrease and unemployment increases. 
D)  both wages and unemployment decrease. 
A)  both wages and unemployment increase. 
B)  wages increase and unemployment decreases. 
C)  wages decrease and unemployment increases. 
D)  both wages and unemployment decrease.

Question 11

Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

Accepted Answer

A) True 
 B)False

Question 12

The Bureau of Labor Statistics defines the unemployment rate as the percentage of

Accepted Answer

A)  those unemployed relative to those employed. 
B)  the labor force that is unemployed. 
C)  the adult population that is unemployed. 
D)  the adult population that is unemployed or not in the labor force. 
A)  those unemployed relative to those employed. 
B)  the labor force that is unemployed. 
C)  the adult population that is unemployed. 
D)  the adult population that is unemployed or not in the labor force.

Question 13

Within the U.S. population, blacks of prime working age ages 25-54 have similar rates of unemployment than whites of prime working age ages 25-54, regardless of gender.

Accepted Answer

A) True 
 B)False

Question 14

According to 2012 data on the U.S. population, which of the following groups of adults of prime working age ages (25-54) had the lowest unemployment rate?

Accepted Answer

A)  white males 
B)  white females 
C)  black males 
D)  black females 
A)  white males 
B)  white females 
C)  black males 
D)  black females

Question 15

Table 28-3
2009 Labor Data for Baltivia
  
-Refer to Table 28-3. How many people were unemployed in Baltivia in 2009?

Accepted Answer

A)  1,400 
B)  1,600 
C)  2,000 
D)  2,780 
A)  1,400 
B)  1,600 
C)  2,000 
D)  2,780

Question 16

Which of the following is not correct?

Accepted Answer

A)  Most people who become unemployed will soon find jobs. 
B)  In an ideal labor market, wages would adjust to ensure that all workers are always fully employed. 
C)  The unemployment rate occasionally falls to zero. 
D)  There are always some workers without jobs, even when the overall economy is doing well. 
A)  Most people who become unemployed will soon find jobs. 
B)  In an ideal labor market, wages would adjust to ensure that all workers are always fully employed. 
C)  The unemployment rate occasionally falls to zero. 
D)  There are always some workers without jobs, even when the overall economy is doing well.

Question 17

The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

Accepted Answer

A)  higher production costs and higher profits. 
B)  higher production costs and lower profits. 
C)  lower production costs and higher profits. 
D)  lower production costs and lower profits. 
A)  higher production costs and higher profits. 
B)  higher production costs and lower profits. 
C)  lower production costs and higher profits. 
D)  lower production costs and lower profits.

Question 18

The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

Accepted Answer

A) True 
 B)False

Question 19

The Bureau of Labor Statistics counts discouraged workers as

Accepted Answer

A)  employed. Including them as employed makes the unemployment rate lower than otherwise. 
B)  unemployed. Including them as unemployed makes the unemployment rate higher than otherwise. 
C)  out of the labor force. If the were counted as unemployed the unemployment rate would be higher. 
D)  None of the above is correct. 
A)  employed. Including them as employed makes the unemployment rate lower than otherwise. 
B)  unemployed. Including them as unemployed makes the unemployment rate higher than otherwise. 
C)  out of the labor force. If the were counted as unemployed the unemployment rate would be higher. 
D)  None of the above is correct.

Question 20

The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to

Accepted Answer

A)  decrease, raising wages in industries that are not unionized. 
B)  decrease, reducing wages in industries that are not unionized. 
C)  increase, raising wages in industries that are not unionized. 
D)  increase, reducing wages in industries that are not unionized. 
A)  decrease, raising wages in industries that are not unionized. 
B)  decrease, reducing wages in industries that are not unionized. 
C)  increase, raising wages in industries that are not unionized. 
D)  increase, reducing wages in industries that are not unionized.

Exam 20: Unemployment

An economy's natural rate of unemployment refers to the amount of unemployment that the economy normally experiences.

Adults who are waiting to be recalled to a job from which they had been laid off are counted as "unemployed."

Explain the effect of right-to-work laws on the collective bargaining power of labor unions.

Figure 28-1 -Refer to Figure 28-1. Which of the following correctly identifies lines A and B?

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The number of adults not in the labor force of Aridia

Which of the following is correct?

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had decreased.

Cyclical unemployment refers to

When a union bargains successfully with employers, in that industry,

Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

The Bureau of Labor Statistics defines the unemployment rate as the percentage of

Within the U.S. population, blacks of prime working age ages 25-54 have similar rates of unemployment than whites of prime working age ages 25-54, regardless of gender.

According to 2012 data on the U.S. population, which of the following groups of adults of prime working age ages (25-54) had the lowest unemployment rate?

Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. How many people were unemployed in Baltivia in 2009?

Which of the following is not correct?

The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

The Bureau of Labor Statistics counts discouraged workers as

The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to

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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