Question 1

Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household?

Accepted Answer

A)  employed 
B)  unemployed 
C)  underemployed 
D)  not in the labor force 
A)  employed 
B)  unemployed 
C)  underemployed 
D)  not in the labor force

Question 2

Minimum-wage laws affect all workers.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not correct?

Accepted Answer

A)  Frictional unemployment is inevitable in a dynamic economy. 
B)  Although the unemployment created by sectoral shifts is unfortunate, in the long run such changes lead to higher productivity and higher living standards. 
C)  At least 10 percent of U.S. manufacturing jobs are destroyed every year. 
D)  More than 13 percent of U.S. workers leave their jobs in a typical month. 
A)  Frictional unemployment is inevitable in a dynamic economy. 
B)  Although the unemployment created by sectoral shifts is unfortunate, in the long run such changes lead to higher productivity and higher living standards. 
C)  At least 10 percent of U.S. manufacturing jobs are destroyed every year. 
D)  More than 13 percent of U.S. workers leave their jobs in a typical month.

Question 4

Today, the four industries with the largest employment in the United States are autos, aircraft, communications, and electrical components.

Accepted Answer

A) True 
 B)False

Question 5

People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as

Accepted Answer

A)  cyclically unemployed. 
B)  structurally unemployed. 
C)  frictionally unemployed. 
D)  discouraged workers. 
A)  cyclically unemployed. 
B)  structurally unemployed. 
C)  frictionally unemployed. 
D)  discouraged workers.

Question 6

Which of the following is not an explanation for the existence of structural unemployment?

Accepted Answer

A)  efficiency wages 
B)  job search 
C)  minimum-wage laws 
D)  unions 
A)  efficiency wages 
B)  job search 
C)  minimum-wage laws 
D)  unions

Question 7

The amount of unemployment varies little over time and across countries.

Accepted Answer

A) True 
 B)False

Question 8

According to 2012 data on the U.S. population, which of the following was correct for the adult population of prime working age, ages 25-54?

Accepted Answer

A)  Black females had higher labor-force participation rates and lower unemployment rates compared to white females. 
B)  Black females had similar labor-force participation rates and higher unemployment rates compared to white females. 
C)  Black females had both lower labor-force participation rates and lower unemployment rates compared to white females. 
D)  Black females had lower labor-force participation rates and higher unemployment rates compared to white females. 
A)  Black females had higher labor-force participation rates and lower unemployment rates compared to white females. 
B)  Black females had similar labor-force participation rates and higher unemployment rates compared to white females. 
C)  Black females had both lower labor-force participation rates and lower unemployment rates compared to white females. 
D)  Black females had lower labor-force participation rates and higher unemployment rates compared to white females.

Question 9

Suppose that medical technicians and nurses' aides are not unionized. If the nurses' aides unionize, then the wages of

Accepted Answer

A)  both medical technicians and nurses' aides will rise. 
B)  both medical technicians and nurses' aides will fall. 
C)  medical technicians will rise, and the wages of nurses' aides will fall. 
D)  nurses' aides will rise, and the wages of medical technicians will fall. 
A)  both medical technicians and nurses' aides will rise. 
B)  both medical technicians and nurses' aides will fall. 
C)  medical technicians will rise, and the wages of nurses' aides will fall. 
D)  nurses' aides will rise, and the wages of medical technicians will fall.

Question 10

An increase 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 11

Job search

Accepted Answer

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

Question 12

Figure 28-4  
-Refer to Figure 28-4. If the government imposes a minimum wage of $5, 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 13

The designation "natural" implies that the natural rate of unemployment

Accepted Answer

A)  is desirable. 
B)  is constant over time. 
C)  is impervious to economic policy. 
D)  does not go away on its own even in the long run. 
A)  is desirable. 
B)  is constant over time. 
C)  is impervious to economic policy. 
D)  does not go away on its own even in the long run.

Question 14

Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were unemployed?

Accepted Answer

A)  1.425 million 
B)  1.5 million 
C)  2.5 million 
D)  5 million 
A)  1.425 million 
B)  1.5 million 
C)  2.5 million 
D)  5 million

Question 15

Which of the following is correct?

Accepted Answer

A)  Union membership in the United States peaked in the 1940s and 1950s. 
B)  Unions play a larger role in the United States than in European countries such as Belgium, France, and Germany. 
C)  Because of the popularity of unions, most workers in the United States discuss their wages, benefits, and working conditions with their employers as a group. 
D)  Collective bargaining is the process by which unions negotiate membership dues with the National Labor Relations Board. 
A)  Union membership in the United States peaked in the 1940s and 1950s. 
B)  Unions play a larger role in the United States than in European countries such as Belgium, France, and Germany. 
C)  Because of the popularity of unions, most workers in the United States discuss their wages, benefits, and working conditions with their employers as a group. 
D)  Collective bargaining is the process by which unions negotiate membership dues with the National Labor Relations Board.

Question 16

Jai Li just lost her job, and she has not yet started looking for a new one. The Bureau of Labor Statistics counts Jai Li as

Accepted Answer

A)  unemployed and in the labor force. 
B)  unemployed but not in the labor force. 
C)  in the labor force but not unemployed. 
D)  neither in the labor force nor unemployed. 
A)  unemployed and in the labor force. 
B)  unemployed but not in the labor force. 
C)  in the labor force but not unemployed. 
D)  neither in the labor force nor unemployed.

Question 17

A century ago, the four industries with the largest employment in the United States were cotton goods, woolen goods, men's clothing, and lumber.

Accepted Answer

A) True 
 B)False

Question 18

In the U.S., the National Labor Relations Board is the government agency that enforces workers' right to unionize.

Accepted Answer

A) True 
 B)False

Question 19

Table 28-9
The table below lists the number of people by labor force classification for the country of Shelbyville.
  
-Refer to Table 28-9. What is the size of the labor force, and the size of the adult population?

Accepted Answer

The labor force is 1

Question 20

Who would be included in the labor force?

Accepted Answer

A)  Maggie, who plans to work at the newspaper next year when she turns 16 years old. 
B)  Lisa, who is unhappy with her current job. 
C)  Bart, who is a full-time student and uninterested in finding employment. 
D)  None of the above is correct. 
A)  Maggie, who plans to work at the newspaper next year when she turns 16 years old. 
B)  Lisa, who is unhappy with her current job. 
C)  Bart, who is a full-time student and uninterested in finding employment. 
D)  None of the above is correct.

Exam 20: Unemployment

Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household?

Minimum-wage laws affect all workers.

Which of the following is not correct?

Today, the four industries with the largest employment in the United States are autos, aircraft, communications, and electrical components.

People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as

Which of the following is not an explanation for the existence of structural unemployment?

The amount of unemployment varies little over time and across countries.

According to 2012 data on the U.S. population, which of the following was correct for the adult population of prime working age, ages 25-54?

Suppose that medical technicians and nurses' aides are not unionized. If the nurses' aides unionize, then the wages of

An increase in the minimum wage

Job search

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $5, how many workers will be unemployed?

The designation "natural" implies that the natural rate of unemployment

Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were unemployed?

Which of the following is correct?

Jai Li just lost her job, and she has not yet started looking for a new one. The Bureau of Labor Statistics counts Jai Li as

A century ago, the four industries with the largest employment in the United States were cotton goods, woolen goods, men's clothing, and lumber.

In the U.S., the National Labor Relations Board is the government agency that enforces workers' right to unionize.

Table 28-9 The table below lists the number of people by labor force classification for the country of Shelbyville. -Refer to Table 28-9. What is the size of the labor force, and the size of the adult population?

Who would be included in the labor force?

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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