Question 1

Unions

Accepted Answer

A)  do not affect the natural rate of unemployment. 
B)  lower the wages of unionized workers. 
C)  raise the profits of unionized firms. 
D)  lower the wages of workers in industries without unions. 
A)  do not affect the natural rate of unemployment. 
B)  lower the wages of unionized workers. 
C)  raise the profits of unionized firms. 
D)  lower the wages of workers in industries without unions.

Question 2

Economists have found that union workers earn what percent more than similar nonunion workers?

Accepted Answer

A)  0 to 5 
B)  5 to 10 
C)  10 to 20 
D)  20 to 30 
A)  0 to 5 
B)  5 to 10 
C)  10 to 20 
D)  20 to 30

Question 3

The Bureau of Labor Statistics divides the adult population into three categories: employed, unemployed, and not in the labor force.

Accepted Answer

A) True 
 B)False

Question 4

All else equal, which of the following would increase the unemployment rate? i) an increase in the number of women who return to work after being stay-at-home mothers
Ii) a preference among older men to retire early
Iii) an increase in the maximum number of weeks for which someone can receive government unemployment benefits
Iv) an increase in the number of previously unemployed women who stop looking for work and become discouraged workers

Accepted Answer

A)  i) and ii) only 
B)  iii) only 
C)  ii) and iii) only 
D)  ii), iii), and iv) only 
A)  i) and ii) only 
B)  iii) only 
C)  ii) and iii) only 
D)  ii), iii), and iv) only

Question 5

Some of a firm's workers are made worse off by the introduction of a union.

Accepted Answer

A) True 
 B)False

Question 6

Providing training for unemployed individuals is primarily intended to reduce

Accepted Answer

A)  frictional unemployment. 
B)  seasonal unemployment. 
C)  structural unemployment. 
D)  cyclical unemployment. 
A)  frictional unemployment. 
B)  seasonal unemployment. 
C)  structural unemployment. 
D)  cyclical unemployment.

Question 7

The deviation of unemployment from its natural rate is called

Accepted Answer

A)  the normal rate of unemployment. 
B)  deviant unemployment. 
C)  cyclical unemployment. 
D)  fluctuating unemployment. 
A)  the normal rate of unemployment. 
B)  deviant unemployment. 
C)  cyclical unemployment. 
D)  fluctuating unemployment.

Question 8

The invention of the telegraph led to the loss of jobs for those who had delivered mail by horse but created jobs for telegraph operators and delivery persons. This is an example of

Accepted Answer

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

Question 9

In an ideal labor market, wages would adjust to balance the quantity of labor supplied and the quantity of labor demanded, ensuring that all workers are always fully employed.

Accepted Answer

A) True 
 B)False

Question 10

A survey showed that in each of the past 12 months there was one person who was unemployed who worked in all other months. There were also two people who were unemployed for all 12 months. What percentage of the unemployment spells during the year was short term, and what percentage of the unemployment in a given month was long term?

Accepted Answer

A)  75% was short term; 33.3% was long term 
B)  75% was short term; 66.7% was long term 
C)  85.7% was short term; 33.3% was long term 
D)  85.7% was short term; 66.7% was long term 
A)  75% was short term; 33.3% was long term 
B)  75% was short term; 66.7% was long term 
C)  85.7% was short term; 33.3% was long term 
D)  85.7% was short term; 66.7% was long term

Question 11

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 12

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is

Accepted Answer

A)  cyclical unemployment amounting to 0.5 percent of the labor force. 
B)  frictional unemployment amounting to 0.5 percent of the labor force. 
C)  structural unemployment amounting to 0.5 percent of the labor force. 
D)  search unemployment amounting to 0.5 percent of the labor force. 
A)  cyclical unemployment amounting to 0.5 percent of the labor force. 
B)  frictional unemployment amounting to 0.5 percent of the labor force. 
C)  structural unemployment amounting to 0.5 percent of the labor force. 
D)  search unemployment amounting to 0.5 percent of the labor force.

Question 13

Table 28-4
2010 Labor Data for Adults ages 16 and older) in Meditor
  
-Refer to Table 28-4. What is the adult male labor-force participation rate in Meditor?

Accepted Answer

A)  37% 
B)  63% 
C)  66.7% 
D)  96.3% 
A)  37% 
B)  63% 
C)  66.7% 
D)  96.3%

Question 14

If a union and a firm cannot reach an agreement on the terms of employment, then the union can organize a withdrawal of labor from the firm, called a strike.

Accepted Answer

A) True 
 B)False

Question 15

Briefly describe how labor unions can affect wages in non-unionized industries.

Accepted Answer

If labor unions raise wages above the eq

Question 16

Table 28-8
Below is data about the labor market in the state of Northwoods.
  
-Refer to Table 28-8. If the state government imposed a minimum wage of $10, how many people would be unemployed?

Accepted Answer

A)  0 
B)  10,000 
C)  20,000 
D)  40,000 
A)  0 
B)  10,000 
C)  20,000 
D)  40,000

Question 17

Table 28-4
2010 Labor Data for Adults ages 16 and older) in Meditor
  
-Refer to Table 28-4. What is the adult male unemployment rate in Meditor?

Accepted Answer

A)  3.7% 
B)  5.0% 
C)  5.6% 
D)  5.9% 
A)  3.7% 
B)  5.0% 
C)  5.6% 
D)  5.9%

Question 18

Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Sheila 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)  employed and 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)  employed and not in the labor force.

Question 19

The adult population in the town of Shelbyville is 150 thousand. If 100 thousand people are employed and 20 thousand are unemployed, then the labor force participation rate is approximately

Accepted Answer

A)  67%. 
B)  80%. 
C)  16%. 
D)  13%. 
A)  67%. 
B)  80%. 
C)  16%. 
D)  13%.

Question 20

Unemployment insurance causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment.

Accepted Answer

A) True 
 B)False

Exam 20: Unemployment

Unions

Economists have found that union workers earn what percent more than similar nonunion workers?

The Bureau of Labor Statistics divides the adult population into three categories: employed, unemployed, and not in the labor force.

Some of a firm's workers are made worse off by the introduction of a union.

Providing training for unemployed individuals is primarily intended to reduce

The deviation of unemployment from its natural rate is called

The invention of the telegraph led to the loss of jobs for those who had delivered mail by horse but created jobs for telegraph operators and delivery persons. This is an example of

In an ideal labor market, wages would adjust to balance the quantity of labor supplied and the quantity of labor demanded, ensuring that all workers are always fully employed.

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no frictional unemployment.

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is

Table 28-4 2010 Labor Data for Adults ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult male labor-force participation rate in Meditor?

If a union and a firm cannot reach an agreement on the terms of employment, then the union can organize a withdrawal of labor from the firm, called a strike.

Briefly describe how labor unions can affect wages in non-unionized industries.

Table 28-8 Below is data about the labor market in the state of Northwoods. -Refer to Table 28-8. If the state government imposed a minimum wage of $10, how many people would be unemployed?

Table 28-4 2010 Labor Data for Adults ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult male unemployment rate in Meditor?

Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Sheila as

The adult population in the town of Shelbyville is 150 thousand. If 100 thousand people are employed and 20 thousand are unemployed, then the labor force participation rate is approximately

Unemployment insurance causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment.

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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