Question 1

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

Accepted Answer

A)  $2. 
B)  $4. 
C)  $5. 
D)  $6. 
A)  $2. 
B)  $4. 
C)  $5. 
D)  $6.

Question 2

Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category.

Accepted Answer

A) True 
 B)False

Question 3

Government-run employment agencies and public training programs both seek to reduce frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 4

Discuss the labor-force participation trends for men and women since 1950.

Accepted Answer

The labor-force participation rates for

Question 5

Job search

Accepted Answer

A)  is one reason economies always experience some unemployment. 
B)  is the process of matching workers with appropriate jobs. 
C)  would not be a problem if all workers and all jobs were the same. 
D)  All of the above are correct. 
A)  is one reason economies always experience some unemployment. 
B)  is the process of matching workers with appropriate jobs. 
C)  would not be a problem if all workers and all jobs were the same. 
D)  All of the above are correct.

Question 6

Minimum-wage laws are most likely to affect the wages paid to

Accepted Answer

A)  teenagers. 
B)  people with advanced technical training. 
C)  people who are self-employed. 
D)  union members. 
A)  teenagers. 
B)  people with advanced technical training. 
C)  people who are self-employed. 
D)  union members.

Question 7

The Bureau of Labor Statistics reported in 2005 that there were 28.19 million people over age 25 who had no high school degree or its equivalent, 11.73 million of whom were employed and 1.04 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)  45.3% and 3.7% 
B)  45.3% and 8.1% 
C)  41.6% and 3.7% 
D)  41.6% and 8.1% 
A)  45.3% and 3.7% 
B)  45.3% and 8.1% 
C)  41.6% and 3.7% 
D)  41.6% and 8.1%

Question 8

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate. All workers are equally able to do either job. Initially, both labor markets are perfectly competitive. If a union organizes workers in one of the markets, then the wage rates will tend to

Accepted Answer

A)  rise in both markets. 
B)  fall in both markets 
C)  rise for the union jobs, but remain unchanged for the nonunion jobs. 
D)  rise for the union jobs and fall for the nonunion jobs. 
A)  rise in both markets. 
B)  fall in both markets 
C)  rise for the union jobs, but remain unchanged for the nonunion jobs. 
D)  rise for the union jobs and fall for the nonunion jobs.

Question 9

Which of the following helps to reduce frictional unemployment?

Accepted Answer

A)  government-run employment agencies 
B)  public training programs 
C)  the Internet 
D)  All of the above are correct. 
A)  government-run employment agencies 
B)  public training programs 
C)  the Internet 
D)  All of the above are correct.

Question 10

President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You conclude that

Accepted Answer

A)  one of them must be lying. 
B)  both of them could be telling the truth if the labor force, and employment grew at the exact same rate. 
C)  both of them could be telling the truth if the labor force grew slower than employment. 
D)  both of them could be telling the truth if the labor force grew faster than employment. 
A)  one of them must be lying. 
B)  both of them could be telling the truth if the labor force, and employment grew at the exact same rate. 
C)  both of them could be telling the truth if the labor force grew slower than employment. 
D)  both of them could be telling the truth if the labor force grew faster than employment.

Question 11

The deviation of unemployment from its natural rate is called

Accepted Answer

A)  the economic rate of unemployment. 
B)  cyclical unemployment. 
C)  frictional unemployment. 
D)  structural unemployment. 
A)  the economic rate of unemployment. 
B)  cyclical unemployment. 
C)  frictional unemployment. 
D)  structural unemployment.

Question 12

Unions

Accepted Answer

A)  raise the wages of unionized workers and raise unemployment. 
B)  raise the wages of unionized workers and reduce unemployment. 
C)  reduce the wages of unionized workers and raise unemployment. 
D)  reduce the wages of unionized workers and reduce unemployment. 
A)  raise the wages of unionized workers and raise unemployment. 
B)  raise the wages of unionized workers and reduce unemployment. 
C)  reduce the wages of unionized workers and raise unemployment. 
D)  reduce the wages of unionized workers and reduce unemployment.

Question 13

The Internet my reduce frictional unemployment because it .

Accepted Answer

reduces the search c

Question 14

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Accepted Answer

According to the theory of efficiency wa

Question 15

Data on unemployment indicate that most people who become unemployed will soon find jobs.

Accepted Answer

A) True 
 B)False

Question 16

A typical American worker covered by unemployment insurance receives

Accepted Answer

A)  50 percent of his former wages for 26 weeks. 
B)  50 percent of his former wages for 52 weeks. 
C)  100 percent of his former wages for 26 weeks. 
D)  100 percent of his former wages for 52 weeks. 
A)  50 percent of his former wages for 26 weeks. 
B)  50 percent of his former wages for 52 weeks. 
C)  100 percent of his former wages for 26 weeks. 
D)  100 percent of his former wages for 52 weeks.

Question 17

Just after World War II, the labor-force participation rate of women was

Accepted Answer

A)  about 25 percent, and in 2012, it was about 50 percent. 
B)  about 33 percent, and in 2012, it was about 60 percent. 
C)  about 50 percent, and in 2012, it was about 70 percent. 
D)  about 60 percent, and in 2012, it was about 80 percent. 
A)  about 25 percent, and in 2012, it was about 50 percent. 
B)  about 33 percent, and in 2012, it was about 60 percent. 
C)  about 50 percent, and in 2012, it was about 70 percent. 
D)  about 60 percent, and in 2012, it was about 80 percent.

Question 18

More generous unemployment insurance would

Accepted Answer

A)  raise structural unemployment. 
B)  raise frictional unemployment. 
C)  lower structural unemployment. 
D)  lower frictional unemployment. 
A)  raise structural unemployment. 
B)  raise frictional unemployment. 
C)  lower structural unemployment. 
D)  lower frictional unemployment.

Question 19

Josh is a full-time college student who is not working or looking for a job. The Bureau of Labor Statistics counts Josh 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 20

Table 28-3
2009 Labor Data for Baltivia
  
-Refer to Table 28-3. How many people were in Baltivia's labor force in 2009?

Accepted Answer

A)  11,000 
B)  12,600 
C)  13,380 
D)  20,000 
A)  11,000 
B)  12,600 
C)  13,380 
D)  20,000

Exam 20: Unemployment

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

Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category.

Government-run employment agencies and public training programs both seek to reduce frictional unemployment.

Discuss the labor-force participation trends for men and women since 1950.

Job search

Minimum-wage laws are most likely to affect the wages paid to

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate. All workers are equally able to do either job. Initially, both labor markets are perfectly competitive. If a union organizes workers in one of the markets, then the wage rates will tend to

Which of the following helps to reduce frictional unemployment?

President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You conclude that

The deviation of unemployment from its natural rate is called

Unions

The Internet my reduce frictional unemployment because it .

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Data on unemployment indicate that most people who become unemployed will soon find jobs.

A typical American worker covered by unemployment insurance receives

Just after World War II, the labor-force participation rate of women was

More generous unemployment insurance would

Josh is a full-time college student who is not working or looking for a job. The Bureau of Labor Statistics counts Josh as

Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. How many people were in Baltivia's labor force in 2009?

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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