Question 1

Provide a definition of the natural rate of unemployment.

Accepted Answer

The amount of unempl

Question 2

The theory of efficiency wages provides a possible explanation as to why

Accepted Answer

A)  workers form unions. 
B)  firms should try to reduce surpluses of labor. 
C)  firms may be inclined to keep their workers' wages above the equilibrium level. 
D)  firms may be inclined to keep their workers' wages below the equilibrium level. 
A)  workers form unions. 
B)  firms should try to reduce surpluses of labor. 
C)  firms may be inclined to keep their workers' wages above the equilibrium level. 
D)  firms may be inclined to keep their workers' wages below the equilibrium level.

Question 3

According to 2012 data on the U.S. population, which of the following was correct?

Accepted Answer

A)  Adults of prime working age ages 25-54) had both higher labor-force participation rates and higher rates of unemployment compared to teenagers. 
B)  Adults of prime working age ages 25-54) had higher labor-force participation rates and lower rates of unemployment compared to teenagers. 
C)  Adults of prime working age ages 25-54) had both lower labor-force participation rates and lower rates of unemployment compared to teenagers. 
D)  Adults of prime working age ages 25-54) had lower labor-force participation rates and higher rates of unemployment compared to teenagers. 
A)  Adults of prime working age ages 25-54) had both higher labor-force participation rates and higher rates of unemployment compared to teenagers. 
B)  Adults of prime working age ages 25-54) had higher labor-force participation rates and lower rates of unemployment compared to teenagers. 
C)  Adults of prime working age ages 25-54) had both lower labor-force participation rates and lower rates of unemployment compared to teenagers. 
D)  Adults of prime working age ages 25-54) had lower labor-force participation rates and higher rates of unemployment compared to teenagers.

Question 4

The natural rate of unemployment

Accepted Answer

A)  arises from a single problem that has a single solution. 
B)  is easy for policymakers to reduce. 
C)  Both a and b are correct. 
D)  None of the above is correct. 
A)  arises from a single problem that has a single solution. 
B)  is easy for policymakers to reduce. 
C)  Both a and b are correct. 
D)  None of the above is correct.

Question 5

Unions contribute to

Accepted Answer

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

Question 6

More than one-third of the unemployed are recent entrants into the labor force.

Accepted Answer

A) True 
 B)False

Question 7

Evidence from research studies by economists

Accepted Answer

A)  shows that increased unemployment benefits decrease the job search efforts of the unemployed. 
B)  shows that increased unemployment benefits have virtually no effect on the job search efforts of the unemployed. 
C)  shows that increased unemployment benefits increase the job search efforts of the unemployed. 
D)  is conflicting on what increased unemployment benefits do to the job search efforts of the unemployed. 
A)  shows that increased unemployment benefits decrease the job search efforts of the unemployed. 
B)  shows that increased unemployment benefits have virtually no effect on the job search efforts of the unemployed. 
C)  shows that increased unemployment benefits increase the job search efforts of the unemployed. 
D)  is conflicting on what increased unemployment benefits do to the job search efforts of the unemployed.

Question 8

Suppose that the adult population is 4 million, the number of unemployed is 0.25 million, and the labor-force participation rate is 75%. What is the unemployment rate?

Accepted Answer

A)  6.25% 
B)  8.3% 
C)  9.1% 
D)  18.75% 
A)  6.25% 
B)  8.3% 
C)  9.1% 
D)  18.75%

Question 9

Cyclical unemployment

Accepted Answer

A)  has a different explanation than does the natural rate of unemployment. 
B)  refers to the year­to­year fluctuation in unemployment around an economy's natural rate of unemployment. 
C)  is closely associated with short-run ups and downs of economic activity. 
D)  All of the above are correct. 
A)  has a different explanation than does the natural rate of unemployment. 
B)  refers to the year­to­year fluctuation in unemployment around an economy's natural rate of unemployment. 
C)  is closely associated with short-run ups and downs of economic activity. 
D)  All of the above are correct.

Question 10

Figure 28-3  
-Refer to Figure 28-3. At the equilibrium wage, how many workers are employed?

Accepted Answer

A)  0 
B)  1,000 
C)  5,000 
D)  9,000 
A)  0 
B)  1,000 
C)  5,000 
D)  9,000

Question 11

The process by which unions and firms agree on the terms of employment is called collective bargaining.

Accepted Answer

A) True 
 B)False

Question 12

List a few of the characteristics of workers who typically earn at or below the minimum wage.

Accepted Answer

teenagers, the least skilled m

Question 13

Most U.S. workers have wages well above the legal minimum, so minimum-wage laws do not prevent the wage from adjusting to balance supply and demand.

Accepted Answer

A) True 
 B)False

Question 14

How are discouraged workers counted in the unemployment rate?

Accepted Answer

Because discouraged workers ar

Question 15

Workers searching for jobs that best suit them is most closely associated with

Accepted Answer

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

Question 16

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Accepted Answer

A)  minimum-wage laws 
B)  unions 
C)  efficiency wages 
D)  All of the above are correct. 
A)  minimum-wage laws 
B)  unions 
C)  efficiency wages 
D)  All of the above are correct.

Question 17

The unemployment rate equals the percentage of the labor force that is unemployed.

Accepted Answer

A) True 
 B)False

Question 18

Full­time students and homemakers are included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 19

Efficiency wages create a

Accepted Answer

A)  shortage of labor and so reduce unemployment. 
B)  shortage of labor and so raise unemployment. 
C)  surplus of labor and so reduce unemployment. 
D)  surplus of labor and so raise unemployment. 
A)  shortage of labor and so reduce unemployment. 
B)  shortage of labor and so raise unemployment. 
C)  surplus of labor and so reduce unemployment. 
D)  surplus of labor and so raise unemployment.

Exam 20: Unemployment

Provide a definition of the natural rate of unemployment.

The theory of efficiency wages provides a possible explanation as to why

According to 2012 data on the U.S. population, which of the following was correct?

The natural rate of unemployment

Unions contribute to

More than one-third of the unemployed are recent entrants into the labor force.

Evidence from research studies by economists

Suppose that the adult population is 4 million, the number of unemployed is 0.25 million, and the labor-force participation rate is 75%. What is the unemployment rate?

Cyclical unemployment

Figure 28-3 -Refer to Figure 28-3. At the equilibrium wage, how many workers are employed?

The process by which unions and firms agree on the terms of employment is called collective bargaining.

List a few of the characteristics of workers who typically earn at or below the minimum wage.

Most U.S. workers have wages well above the legal minimum, so minimum-wage laws do not prevent the wage from adjusting to balance supply and demand.

How are discouraged workers counted in the unemployment rate?

Workers searching for jobs that best suit them is most closely associated with

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

The unemployment rate equals the percentage of the labor force that is unemployed.

Full­time students and homemakers are included in the Bureau of Labor Statistics' "unemployed" category.

Efficiency wages create a

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

Fulltime students and homemakers are included in the Bureau of Labor Statistics' "unemployed" category.