Question 1

Efficiency wages create a labor

Accepted Answer

A)  surplus and so increase unemployment. 
B)  surplus and so decrease unemployment. 
C)  shortage and so increase unemployment. 
D)  shortage and so decrease unemployment. 
A)  surplus and so increase unemployment. 
B)  surplus and so decrease unemployment. 
C)  shortage and so increase unemployment. 
D)  shortage and so decrease unemployment.

Question 2

The labor-force participation rate tells us the fraction of the population that is able to participate in the labor market.

Accepted Answer

A) True 
 B)False

Question 3

Anna recently graduated from college with a degree in electrical engineering, but she has not yet started working. To be counted as "unemployed" she

Accepted Answer

A)  does not have to have looked for work. 
B)  must have looked for work no more than a week ago. 
C)  must have looked for work no more than four weeks ago. 
D)  must have looked for work no more than twelve weeks ago. 
A)  does not have to have looked for work. 
B)  must have looked for work no more than a week ago. 
C)  must have looked for work no more than four weeks ago. 
D)  must have looked for work no more than twelve weeks ago.

Question 4

Table 28-11
2010 Labor Data for Tajnia
  
-Refer to Table 28-11. The labor force of Tajnia in 2010 is 10,000.

Accepted Answer

A) True 
 B)False

Question 5

Table 28-11
2010 Labor Data for Tajnia
  
-Refer to Table 28-11. The labor-force participation rate of Tajnia in 2010 is about 40.8 percent.

Accepted Answer

A) True 
 B)False

Question 6

Suppose that the Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to

Accepted Answer

A)  frictional unemployment created by efficiency wages. 
B)  structural unemployment created by efficiency wages. 
C)  frictional unemployment created by sectoral shifts. 
D)  structural unemployment created by sectoral shifts. 
A)  frictional unemployment created by efficiency wages. 
B)  structural unemployment created by efficiency wages. 
C)  frictional unemployment created by sectoral shifts. 
D)  structural unemployment created by sectoral shifts.

Question 7

There are always some workers without jobs, even when the overall economy is doing well.

Accepted Answer

A) True 
 B)False

Question 8

Eric was laid off two months ago. He has not searched for other work because he is expecting to be recalled to work. The Bureau of Labor Statistics counts Eric as

Accepted Answer

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

Question 9

Bob is looking for work after school, but everywhere he fills out an application, the managers say they always have a lot more applications than open positions. Tom has a law degree. Several firms have made him offers, but he thinks he might be able to find a firm where his talents could be put to better use.

Accepted Answer

A)  Bob and Tom are both frictionally unemployed. 
B)  Bob and Tom are both structurally unemployed. 
C)  Bob is frictionally unemployed, and Tom is structurally unemployed. 
D)  Bob is structurally unemployed, and Tom is frictionally unemployed. 
A)  Bob and Tom are both frictionally unemployed. 
B)  Bob and Tom are both structurally unemployed. 
C)  Bob is frictionally unemployed, and Tom is structurally unemployed. 
D)  Bob is structurally unemployed, and Tom is frictionally unemployed.

Question 10

Sectoral shifts contribute to structural unemployment.

Accepted Answer

A) True 
 B)False

Question 11

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate sometimes is close to zero.

Accepted Answer

A) True 
 B)False

Question 12

Meredith is looking for work as a computer programmer. Although her prospects are good, she has not yet taken a job. Julie is looking for work in a steel mill. Every time she shows up for an interview, there are more people looking for work than there are openings. Someone waiting in line with her tells her it has been that way for a long time.

Accepted Answer

A)  Meredith and Julie are both frictionally unemployed. 
B)  Meredith and Julie are both structurally unemployed. 
C)  Meredith is frictionally unemployed, and Julie is structurally unemployed. 
D)  Meredith is structurally unemployed, and Julie is frictionally unemployed. 
A)  Meredith and Julie are both frictionally unemployed. 
B)  Meredith and Julie are both structurally unemployed. 
C)  Meredith is frictionally unemployed, and Julie is structurally unemployed. 
D)  Meredith is structurally unemployed, and Julie is frictionally unemployed.

Question 13

Frictional unemployment is often thought to explain relatively long spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 14

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, a labor force of 154 million and employment of 141.6 million. Based on these numbers the unemployment rate was

Accepted Answer

A)  93.3/234.9. 
B)  12.4/234.9. 
C)  93.3/154. 
D)  12.4/154. 
A)  93.3/234.9. 
B)  12.4/234.9. 
C)  93.3/154. 
D)  12.4/154.

Question 15

Which of the following is a cause of the changing role of women in American society over the past several decades?

Accepted Answer

A)  new technologies that have reduced the amount of time required to complete routine household tasks 
B)  improved birth control 
C)  changing political and social attitudes 
D)  All of the above are correct. 
A)  new technologies that have reduced the amount of time required to complete routine household tasks 
B)  improved birth control 
C)  changing political and social attitudes 
D)  All of the above are correct.

Question 16

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about

Accepted Answer

A)  600 households. 
B)  6,000 households. 
C)  60,000 households. 
D)  6,000,000 households. 
A)  600 households. 
B)  6,000 households. 
C)  60,000 households. 
D)  6,000,000 households.

Question 17

A firm might offer efficiency wages to reduce worker turnover and thereby reduce production costs.

Accepted Answer

A) True 
 B)False

Question 18

Every adult who was not employed during the previous four weeks is included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 19

Wanda quit her job because she was unhappy at work. Arnold was fired from his landscaping job because his company was downsizing. Who is eligible for unemployment insurance benefits?

Accepted Answer

A)  both Wanda and Arnold 
B)  Wanda but not Arnold 
C)  Arnold but not Wanda 
D)  neither Wanda nor Arnold 
A)  both Wanda and Arnold 
B)  Wanda but not Arnold 
C)  Arnold but not Wanda 
D)  neither Wanda nor Arnold

Question 20

The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?

Accepted Answer

A)  total unemployed + marginally attached workers)/adult population 
B)  total unemployed + marginally attached workers + part-time employed for economic reasons)/adult population 
C)  total unemployed + marginally attached workers)/labor force + marginally attached workers) 
D)  total unemployed + marginally attached workers + part time employed for economic reasons)/labor force + marginally attached workers) 
A)  total unemployed + marginally attached workers)/adult population 
B)  total unemployed + marginally attached workers + part-time employed for economic reasons)/adult population 
C)  total unemployed + marginally attached workers)/labor force + marginally attached workers) 
D)  total unemployed + marginally attached workers + part time employed for economic reasons)/labor force + marginally attached workers)

Exam 20: Unemployment

Efficiency wages create a labor

The labor-force participation rate tells us the fraction of the population that is able to participate in the labor market.

Anna recently graduated from college with a degree in electrical engineering, but she has not yet started working. To be counted as "unemployed" she

Table 28-11 2010 Labor Data for Tajnia -Refer to Table 28-11. The labor force of Tajnia in 2010 is 10,000.

Table 28-11 2010 Labor Data for Tajnia -Refer to Table 28-11. The labor-force participation rate of Tajnia in 2010 is about 40.8 percent.

Suppose that the Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to

There are always some workers without jobs, even when the overall economy is doing well.

Eric was laid off two months ago. He has not searched for other work because he is expecting to be recalled to work. The Bureau of Labor Statistics counts Eric as

Sectoral shifts contribute to structural unemployment.

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate sometimes is close to zero.

Frictional unemployment is often thought to explain relatively long spells of unemployment.

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, a labor force of 154 million and employment of 141.6 million. Based on these numbers the unemployment rate was

Which of the following is a cause of the changing role of women in American society over the past several decades?

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about

A firm might offer efficiency wages to reduce worker turnover and thereby reduce production costs.

Every adult who was not employed during the previous four weeks is included in the Bureau of Labor Statistics' "unemployed" category.

Wanda quit her job because she was unhappy at work. Arnold was fired from his landscaping job because his company was downsizing. Who is eligible for unemployment insurance benefits?

The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?

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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