Question 1

The introduction of a union into an industry creates a

Accepted Answer

A)  surplus of labor and so raises unemployment. 
B)  surplus of labor and so reduces unemployment. 
C)  shortage of labor and so raises unemployment. 
D)  shortage of labor and so reduces unemployment. 
A)  surplus of labor and so raises unemployment. 
B)  surplus of labor and so reduces unemployment. 
C)  shortage of labor and so raises unemployment. 
D)  shortage of labor and so reduces unemployment.

Question 2

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 $5 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 3

Cyclical unemployment is caused by

Accepted Answer

A)  frictional and structural unemployment 
B)  frictional but not structural unemployment 
C)  structural but not frictional unemployment 
D)  neither frictional nor structural unemployment 
A)  frictional and structural unemployment 
B)  frictional but not structural unemployment 
C)  structural but not frictional unemployment 
D)  neither frictional nor structural unemployment

Question 4

Discouraged workers are people who want to work but have given up trying to find a job after an unsuccessful search.

Accepted Answer

A) True 
 B)False

Question 5

Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labor force instead of as unemployed, then

Accepted Answer

A)  both the unemployment rate and labor-force participation rate would be higher. 
B)  both the unemployment rate and labor-force participation rate would be lower. 
C)  the unemployment rate would be lower, and the labor-force participation rate would be higher. 
D)  the unemployment rate would be higher, and the labor-force participation rate would be lower. 
A)  both the unemployment rate and labor-force participation rate would be higher. 
B)  both the unemployment rate and labor-force participation rate would be lower. 
C)  the unemployment rate would be lower, and the labor-force participation rate would be higher. 
D)  the unemployment rate would be higher, and the labor-force participation rate would be lower.

Question 6

Figure 28-3  
-Refer to Figure 28-3. If the government imposes a minimum wage of $4, then unemployment will increase by

Accepted Answer

A)  0 workers. 
B)  2,000 workers. 
C)  4,000 workers. 
D)  5,000 workers. 
A)  0 workers. 
B)  2,000 workers. 
C)  4,000 workers. 
D)  5,000 workers.

Question 7

The Bureau of Labor Statistics reported in 2005 that there were 59.98 million people over age 25 whose highest level of education was a high school degree or equivalent, 36.40 million of whom were employed and 1.93 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)  60.7% and 3.2% 
B)  60.7% and 5.0% 
C)  63.9% and 3.2% 
D)  63.9% and 5.0% 
A)  60.7% and 3.2% 
B)  60.7% and 5.0% 
C)  63.9% and 3.2% 
D)  63.9% and 5.0%

Question 8

Someone who is without work but is not looking for work is included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following do unions not cause?

Accepted Answer

A)  frictional unemployment 
B)  the wage to rise above the equilibrium level 
C)  conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs 
D)  reduced wages in industries without unions 
A)  frictional unemployment 
B)  the wage to rise above the equilibrium level 
C)  conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs 
D)  reduced wages in industries without unions

Question 10

In the 1990's Ireland made unemployment benefits less generous. This change would likely have reduced

Accepted Answer

A)  both structural unemployment and the natural rate of unemployment. 
B)  structural unemployment but not the natural rate of unemployment. 
C)  both frictional unemployment and the natural rate of unemployment. 
D)  frictional unemployment but not the natural rate of unemployment. 
A)  both structural unemployment and the natural rate of unemployment. 
B)  structural unemployment but not the natural rate of unemployment. 
C)  both frictional unemployment and the natural rate of unemployment. 
D)  frictional unemployment but not the natural rate of unemployment.

Question 11

The natural unemployment rate includes

Accepted Answer

A)  both frictional and structural unemployment. 
B)  neither frictional nor structural unemployment. 
C)  structural but not frictional unemployment. 
D)  frictional but not structural unemployment. 
A)  both frictional and structural unemployment. 
B)  neither frictional nor structural unemployment. 
C)  structural but not frictional unemployment. 
D)  frictional but not structural unemployment.

Question 12

Most economists believe unions are bad for the economy as a whole.

Accepted Answer

A) True 
 B)False

Question 13

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Accepted Answer

A) True 
 B)False

Question 14

One explanation for long-run unemployment is that it takes time for workers to search for the jobs that are best suited for them.

Accepted Answer

A) True 
 B)False

Question 15

The Bureau of Labor Statistics produces data on unemployment

Accepted Answer

A)  weekly. 
B)  monthly. 
C)  quarterly. 
D)  yearly. 
A)  weekly. 
B)  monthly. 
C)  quarterly. 
D)  yearly.

Question 16

Today, unions play a larger role in Europe than they do in the U.S.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not a commonly-cited explanation for the dramatically increasing labor-force participation rates for women from 1950 to the present?

Accepted Answer

A)  availability of reliable birth control 
B)  invention of household labor-saving devices such as dishwashers and microwave ovens 
C)  an increasing number of women who work to support their parents 
D)  changing social attitudes about working mothers 
A)  availability of reliable birth control 
B)  invention of household labor-saving devices such as dishwashers and microwave ovens 
C)  an increasing number of women who work to support their parents 
D)  changing social attitudes about working mothers

Question 18

Explain how the actions of labor unions generate greater unemployment.

Accepted Answer

Labor unions push wa

Question 19

Within the U.S. population, teenagers ages 16-19 have lower rates of labor-force participation than adults of prime working age ages 25-54, regardless of race or gender.

Accepted Answer

A) True 
 B)False

Question 20

Christopher is an unpaid, stay-at-home father who works as a volunteer at the local Habitat for Humanity chapter. Currently, Christopher is not looking for a paid job. The Bureau of Labor Statistics counts Christopher 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.

Exam 20: Unemployment

The introduction of a union into an industry creates a

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 $5 in Productionville, how many people would be unemployed?

Cyclical unemployment is caused by

Discouraged workers are people who want to work but have given up trying to find a job after an unsuccessful search.

Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labor force instead of as unemployed, then

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $4, then unemployment will increase by

Someone who is without work but is not looking for work is included in the Bureau of Labor Statistics' "unemployed" category.

Which of the following do unions not cause?

In the 1990's Ireland made unemployment benefits less generous. This change would likely have reduced

The natural unemployment rate includes

Most economists believe unions are bad for the economy as a whole.

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

One explanation for long-run unemployment is that it takes time for workers to search for the jobs that are best suited for them.

The Bureau of Labor Statistics produces data on unemployment

Today, unions play a larger role in Europe than they do in the U.S.

Which of the following is not a commonly-cited explanation for the dramatically increasing labor-force participation rates for women from 1950 to the present?

Explain how the actions of labor unions generate greater unemployment.

Within the U.S. population, teenagers ages 16-19 have lower rates of labor-force participation than adults of prime working age ages 25-54, regardless of race or gender.

Christopher is an unpaid, stay-at-home father who works as a volunteer at the local Habitat for Humanity chapter. Currently, Christopher is not looking for a paid job. The Bureau of Labor Statistics counts Christopher as

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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