Question 1

According to the theory of efficiency wages, firms operate more efficiently if wages are above the equilibrium level.

Accepted Answer

A) True 
 B)False

Question 2

Sirius has just finished high school and started looking for his first job, but has not yet found one. Other things the same, the unemployment rate

Accepted Answer

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

Question 3

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

Accepted Answer

A)  8.4% 
B)  9.0% 
C)  9.2% 
D)  35.2% 
A)  8.4% 
B)  9.0% 
C)  9.2% 
D)  35.2%

Question 4

Table 28-5
Labor Force Statistics by Age
Suppose people in the adult population in a small country are classified based on their age.
  
-Refer to Table 28-5. Suppose that the natural rate of unemployment is 5% for those under 55 and 3% for those 55 and older. The cyclical unemployment rate for those under 55 is

Accepted Answer

A)  0.88% which is greater than the cyclical unemployment rate for those 55 and older. 
B)  0.88% which is less than the cyclical unemployment rate for those 55 and older. 
C)  -0.83% which is greater than the cyclical unemployment rate for those 55 and older. 
D)  -0.83% which is less than the cyclical unemployment rate for those 55 and older. 
A)  0.88% which is greater than the cyclical unemployment rate for those 55 and older. 
B)  0.88% which is less than the cyclical unemployment rate for those 55 and older. 
C)  -0.83% which is greater than the cyclical unemployment rate for those 55 and older. 
D)  -0.83% which is less than the cyclical unemployment rate for those 55 and older.

Question 5

A firm may pay efficiency wages in an attempt to

Accepted Answer

A)  reduce incentives to shirk. 
B)  reduce turnover. 
C)  attract a well-qualified pool of applicants. 
D)  All of the above are correct. 
A)  reduce incentives to shirk. 
B)  reduce turnover. 
C)  attract a well-qualified pool of applicants. 
D)  All of the above are correct.

Question 6

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has

Accepted Answer

A)  gradually increased. 
B)  remained constant. 
C)  gradually decreased. 
D)  been eliminated. 
A)  gradually increased. 
B)  remained constant. 
C)  gradually decreased. 
D)  been eliminated.

Question 7

The Bureau of Labor Statistics divides the adult population into two categories: those who are employed and those who are unemployed.

Accepted Answer

A) True 
 B)False

Question 8

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 labor force participation rate?

Accepted Answer

The answer of Table 28-9
The table below lists the number...

Question 9

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 labor-force participation 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 10

The Bureau of Labor Statistics' U­4 measure of joblessness includes discouraged workers.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is correct?

Accepted Answer

A)  The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy. 
B)  The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and a complex economy can achieve zero unemployment. 
C)  The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and a complex economy can achieve zero unemployment. 
D)  The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy. 
A)  The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy. 
B)  The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and a complex economy can achieve zero unemployment. 
C)  The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and a complex economy can achieve zero unemployment. 
D)  The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy.

Question 12

Unions contribute to

Accepted Answer

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

Question 13

Which of the following is the correct formula for calculating the labor force participation rate?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 14

Table 28-1
Sample Population
  
-Refer to Table 28-1. How many in the sample are in the labor force?

Accepted Answer

A)  11 
B)  10 
C)  9 
D)  8 
A)  11 
B)  10 
C)  9 
D)  8

Question 15

Table 28-7
Below is data about the labor market in the city of Productionville.
  
-Refer to Table 28-7. If the local government imposed a minimum wage of $6 in Productionville, how many people would be unemployed?

Accepted Answer

A)  0 
B)  2,000 
C)  3,000 
D)  5,000 
A)  0 
B)  2,000 
C)  3,000 
D)  5,000

Question 16

The labor-force participation rate equals the percentage of the labor force that is either employed or unemployed.

Accepted Answer

A) True 
 B)False

Question 17

Sam has no job but keeps applying to get a job with a business that is unionized. He is qualified and he finds the pay attractive, but the firm is not hiring. Sam is

Accepted Answer

A)  structurally unemployed. Structural unemployment exists even in the long run. 
B)  structurally unemployed. Structural unemployment does not exist in the long run. 
C)  frictionally unemployed. Frictional unemployment exists even in the long run. 
D)  frictionally unemployed. Frictional unemployment does not exist in the long run. 
A)  structurally unemployed. Structural unemployment exists even in the long run. 
B)  structurally unemployed. Structural unemployment does not exist in the long run. 
C)  frictionally unemployed. Frictional unemployment exists even in the long run. 
D)  frictionally unemployed. Frictional unemployment does not exist in the long run.

Question 18

In Belgium, Norway, and Sweden, the percentage of workers who belong to unions is

Accepted Answer

A)  almost zero. 
B)  less than it is in the United States. 
C)  about the same as it is in the United States. 
D)  greater than it is in the United States. 
A)  almost zero. 
B)  less than it is in the United States. 
C)  about the same as it is in the United States. 
D)  greater than it is in the United States.

Question 19

Which of the following is correct?

Accepted Answer

A)  There is consensus among economists that unions are good for the economy. 
B)  There is consensus among economists that unions are bad for the economy. 
C)  There is consensus among economists that, on net, unions have almost no impact on macroeconomic variables. 
D)  There is no consensus among economists about whether unions are good or bad for the economy. 
A)  There is consensus among economists that unions are good for the economy. 
B)  There is consensus among economists that unions are bad for the economy. 
C)  There is consensus among economists that, on net, unions have almost no impact on macroeconomic variables. 
D)  There is no consensus among economists about whether unions are good or bad for the economy.

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 20: Unemployment

According to the theory of efficiency wages, firms operate more efficiently if wages are above the equilibrium level.

Sirius has just finished high school and started looking for his first job, but has not yet found one. Other things the same, the unemployment rate

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

A firm may pay efficiency wages in an attempt to

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has

The Bureau of Labor Statistics divides the adult population into two categories: those who are employed and those who are unemployed.

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 labor force participation rate?

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 labor-force participation rate?

The Bureau of Labor Statistics' U­4 measure of joblessness includes discouraged workers.

Which of the following is correct?

Unions contribute to

Which of the following is the correct formula for calculating the labor force participation rate?

Table 28-1 Sample Population -Refer to Table 28-1. How many in the sample are in the labor force?

Table 28-7 Below is data about the labor market in the city of Productionville. -Refer to Table 28-7. If the local government imposed a minimum wage of $6 in Productionville, how many people would be unemployed?

The labor-force participation rate equals the percentage of the labor force that is either employed or unemployed.

Sam has no job but keeps applying to get a job with a business that is unionized. He is qualified and he finds the pay attractive, but the firm is not hiring. Sam is

In Belgium, Norway, and Sweden, the percentage of workers who belong to unions is

Which of the following is correct?

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

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' U4 measure of joblessness includes discouraged workers.