Question 1

The natural rate of unemployment is the desirable rate of unemployment for an economy.

Accepted Answer

A) True 
 B)False

Question 2

A minimum wage that is below the equilibrium wage rate does not raise unemployment.

Accepted Answer

A) True 
 B)False

Question 3

Suppose that the adult population in the town of Springfield is 225 million. If 40 million are unemployed and 100 million are employed, then the unemployment rate is approximately

Accepted Answer

A)  29%. 
B)  18%. 
C)  24%. 
D)  6%. 
A)  29%. 
B)  18%. 
C)  24%. 
D)  6%.

Question 4

If an unemployed person quits looking for work, then, eventually the unemployment rate

Accepted Answer

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

Question 5

Most spells of unemployment are long, and most unemployment observed at any given time is long-term.

Accepted Answer

A) True 
 B)False

Question 6

If the wage is kept above the equilibrium wage for any reason, the result is

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 7

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

Accepted Answer

A)  Miguel, who is on temporary layoff 
B)  Reta, who worked only 15 hours last week 
C)  Marisa, who neither has a job nor is looking for one 
D)  None of the above is correct. 
A)  Miguel, who is on temporary layoff 
B)  Reta, who worked only 15 hours last week 
C)  Marisa, who neither has a job nor is looking for one 
D)  None of the above is correct.

Question 8

Access to which of the following explains the lower growth rate for the American economy in the 21st century compared to the previous 250 years?

Accepted Answer

A)  food stamps 
B)  Social Security disability payments 
C)  Pell grants 
D)  All of the above are correct. 
A)  food stamps 
B)  Social Security disability payments 
C)  Pell grants 
D)  All of the above are correct.

Question 9

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

Accepted Answer

A) True 
 B)False

Question 10

Minimum-wage laws can keep wages

Accepted Answer

A)  above equilibrium and cause a surplus of labor. 
B)  above equilibrium and cause a shortage of labor. 
C)  below equilibrium and cause a surplus of labor. 
D)  below equilibrium and cause a shortage of labor. 
A)  above equilibrium and cause a surplus of labor. 
B)  above equilibrium and cause a shortage of labor. 
C)  below equilibrium and cause a surplus of labor. 
D)  below equilibrium and cause a shortage of labor.

Question 11

Who would be included in the labor force?

Accepted Answer

A)  Louie, who is waiting for his new job to start 
B)  Daisey, who has become discouraged looking for a job and has quit looking 
C)  Donald, an unpaid stay-at-home father 
D)  None of the above is correct. 
A)  Louie, who is waiting for his new job to start 
B)  Daisey, who has become discouraged looking for a job and has quit looking 
C)  Donald, an unpaid stay-at-home father 
D)  None of the above is correct.

Question 12

According to 2012 data on the U.S. population, which of the following groups of teenagers ages (16-19) had the highest 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 13

Table 28-2
Labor Data for Aridia
  
-Refer to Table 28-2. The unemployment rate of Aridia in 2011 was

Accepted Answer

A)  20%. 
B)  31.6%. 
C)  46.2%. 
D)  63.3%. 
A)  20%. 
B)  31.6%. 
C)  46.2%. 
D)  63.3%.

Question 14

Unions are often thought to cause conflict between different groups of workers -- between the insiders who benefit from high union wages and the outsiders who do not get the union jobs.

Accepted Answer

A) True 
 B)False

Question 15

Unpaid stay­at­home fathers are included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 16

Because people move into and out of the labor force so often, statistics on unemployment are difficult to interpret.

Accepted Answer

A) True 
 B)False

Question 17

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

Accepted Answer

A) True 
 B)False

Question 18

Marginally attached workers are people who are

Accepted Answer

A)  looking for a better job than they currently have. 
B)  not working and are not looking for work, but would work if asked. 
C)  working part-time while they go to school or get training for a better job. 
D)  only a few years from retirement. 
A)  looking for a better job than they currently have. 
B)  not working and are not looking for work, but would work if asked. 
C)  working part-time while they go to school or get training for a better job. 
D)  only a few years from retirement.

Question 19

Unemployment data is collected

Accepted Answer

A)  through a monthly survey of about 20,000 firms. 
B)  through a monthly survey of about 60,000 households. 
C)  from unemployment insurance claims. 
D)  All of the above are correct. 
A)  through a monthly survey of about 20,000 firms. 
B)  through a monthly survey of about 60,000 households. 
C)  from unemployment insurance claims. 
D)  All of the above are correct.

Question 20

Which of the following is correct?

Accepted Answer

A)  The Bureau of Labor Statistics uses data collected from those applying for unemployment insurance to compute the unemployment rate. 
B)  The labor force includes all adults who are able to work. 
C)  Unpaid homemakers are counted as "employed" by the Bureau of Labor Statistics. 
D)  People working part time are counted as "employed" by the Bureau of Labor Statistics. 
A)  The Bureau of Labor Statistics uses data collected from those applying for unemployment insurance to compute the unemployment rate. 
B)  The labor force includes all adults who are able to work. 
C)  Unpaid homemakers are counted as "employed" by the Bureau of Labor Statistics. 
D)  People working part time are counted as "employed" by the Bureau of Labor Statistics.

Exam 20: Unemployment

The natural rate of unemployment is the desirable rate of unemployment for an economy.

A minimum wage that is below the equilibrium wage rate does not raise unemployment.

Suppose that the adult population in the town of Springfield is 225 million. If 40 million are unemployed and 100 million are employed, then the unemployment rate is approximately

If an unemployed person quits looking for work, then, eventually the unemployment rate

Most spells of unemployment are long, and most unemployment observed at any given time is long-term.

If the wage is kept above the equilibrium wage for any reason, the result is

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

Access to which of the following explains the lower growth rate for the American economy in the 21st century compared to the previous 250 years?

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

Minimum-wage laws can keep wages

Who would be included in the labor force?

According to 2012 data on the U.S. population, which of the following groups of teenagers ages (16-19) had the highest unemployment rate?

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The unemployment rate of Aridia in 2011 was

Unions are often thought to cause conflict between different groups of workers -- between the insiders who benefit from high union wages and the outsiders who do not get the union jobs.

Unpaid stay­at­home fathers are included in the Bureau of Labor Statistics' "unemployed" category.

Because people move into and out of the labor force so often, statistics on unemployment are difficult to interpret.

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

Marginally attached workers are people who are

Unemployment data is collected

Which of the following is correct?

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

Unpaid stayathome fathers are included in the Bureau of Labor Statistics' "unemployed" category.