Question 1

If there were no factors keeping wages from reaching equilibrium then there would be no

Accepted Answer

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

Question 2

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous four weeks.

Accepted Answer

A) True 
 B)False

Question 3

More than three-fourths of the unemployed are recent entrants into the labor force.

Accepted Answer

A) True 
 B)False

Question 4

Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)  Tina, who worked most of the week in a steel factory 
B)  Kelly, who is temporarily laid off but expects to be recalled 
C)  DJ, who does not have a job but is looking for work 
D)  All of the above are correct. 
A)  Tina, who worked most of the week in a steel factory 
B)  Kelly, who is temporarily laid off but expects to be recalled 
C)  DJ, who does not have a job but is looking for work 
D)  All of the above are correct.

Question 5

If people who report being unemployed are not, in fact, trying hard to find a job, then the reported unemployment rate will be biased upward.

Accepted Answer

A) True 
 B)False

Question 6

The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following includes everyone in the adult population that the Bureau of Labor Statistics counts as "unemployed"?

Accepted Answer

A)  anyone who is not employed 
B)  anyone who is not employed, is available for work, and has looked for work in the past four weeks 
C)  anyone who is not employed, is available for work, has looked for work in the past four weeks, and anyone who is waiting to be recalled from a job from which they have been laid off 
D)  anyone who is not employed, is available for work, has looked for work in the past four weeks, anyone who is waiting to be recalled from a job from which they have been laid off, and anyone who is employed part time and has searched for full time employment in the past 4 weeks 
A)  anyone who is not employed 
B)  anyone who is not employed, is available for work, and has looked for work in the past four weeks 
C)  anyone who is not employed, is available for work, has looked for work in the past four weeks, and anyone who is waiting to be recalled from a job from which they have been laid off 
D)  anyone who is not employed, is available for work, has looked for work in the past four weeks, anyone who is waiting to be recalled from a job from which they have been laid off, and anyone who is employed part time and has searched for full time employment in the past 4 weeks

Question 8

Changes in the composition of demand among industries or regions are called sectoral shifts.

Accepted Answer

A) True 
 B)False

Question 9

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

Accepted Answer

A)  might increase profits if it attracts a better pool of workers to apply for jobs at his restaurant. 
B)  will reduce the excess supply of labor. 
C)  is an example of the benefits of a minimum-wage law. 
D)  All of the above are correct. 
A)  might increase profits if it attracts a better pool of workers to apply for jobs at his restaurant. 
B)  will reduce the excess supply of labor. 
C)  is an example of the benefits of a minimum-wage law. 
D)  All of the above are correct.

Question 10

The natural rate of unemployment i) is the economy's desirable level of unemployment.
Ii) cannot be affected by economic policy.
Iii) is typically constant over time.

Accepted Answer

A)  i) and ii) only 
B)  iii) only 
C)  i), ii), and iii) 
D)  None of the above is correct. 
A)  i) and ii) only 
B)  iii) only 
C)  i), ii), and iii) 
D)  None of the above is correct.

Question 11

Which of the following is an explanation for the existence of frictional unemployment?

Accepted Answer

A)  efficiency wages 
B)  minimum-wage laws 
C)  unions 
D)  job search 
A)  efficiency wages 
B)  minimum-wage laws 
C)  unions 
D)  job search

Question 12

Most spells of unemployment are short, and most unemployment observed at any given time is long term. How can this be?

Accepted Answer

Most unemployed people in the economy ar

Question 13

From time to time, the demand for workers has risen in one region of the United States and fallen in another. This illustrates

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 14

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

Accepted Answer

A)  4.8% 
B)  5.0% 
C)  7.1% 
D)  7.7% 
A)  4.8% 
B)  5.0% 
C)  7.1% 
D)  7.7%

Question 15

Unemployment insurance

Accepted Answer

A)  reduces the hardship of unemployment, but it also increases the amount of unemployment. 
B)  reduces the incentive for the unemployed to find and take new jobs. 
C)  causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment. 
D)  All of the above are correct. 
A)  reduces the hardship of unemployment, but it also increases the amount of unemployment. 
B)  reduces the incentive for the unemployed to find and take new jobs. 
C)  causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment. 
D)  All of the above are correct.

Question 16

List the main employment characteristics over which a labor union negotiates for its workers.

Accepted Answer

higher wages, better

Question 17

Table 28-5
Labor Force Statistics by Age
Suppose people in the adult population in a small country are classified based on their age.
  
-Refer to Table 28-5. In the proper order, which age group has the highest unemployment rate and which has the highest participation rate?

Accepted Answer

A)  under 55, under 55 
B)  under 55, 55 and older 
C)  55 and older, under 55 
D)  55 and older, 55 and older 
A)  under 55, under 55 
B)  under 55, 55 and older 
C)  55 and older, under 55 
D)  55 and older, 55 and older

Question 18

Efficiency-wage theory suggests that paying

Accepted Answer

A)  low wages might be profitable because they raise the efficiency of a firm's workers. 
B)  low wages might be profitable because they lower the efficiency of a firm's workers. 
C)  high wages might be profitable because they raise the efficiency of a firm's workers. 
D)  high wages might be profitable because they lower the efficiency of a firm's workers. 
A)  low wages might be profitable because they raise the efficiency of a firm's workers. 
B)  low wages might be profitable because they lower the efficiency of a firm's workers. 
C)  high wages might be profitable because they raise the efficiency of a firm's workers. 
D)  high wages might be profitable because they lower the efficiency of a firm's workers.

Question 19

When a minimum-wage law forces the wage to remain above the equilibrium level, the result is

Accepted Answer

A)  both a shortage of labor and a shortage of jobs. 
B)  a shortage of labor and a surplus of jobs. 
C)  a surplus of labor and a shortage of jobs. 
D)  both surplus of labor and a surplus of jobs. 
A)  both a shortage of labor and a shortage of jobs. 
B)  a shortage of labor and a surplus of jobs. 
C)  a surplus of labor and a shortage of jobs. 
D)  both surplus of labor and a surplus of jobs.

Question 20

Which of the following is not correct?

Accepted Answer

A)  Frictional unemployment results from the process of matching workers and jobs. 
B)  Structural unemployment results when the number of jobs is insufficient for the number of workers. 
C)  Minimum wages are the predominant reason for unemployment in the U.S. economy. 
D)  When a minimum-wage law forces the wage to remain above the level that balances supply and demand, it raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level. 
A)  Frictional unemployment results from the process of matching workers and jobs. 
B)  Structural unemployment results when the number of jobs is insufficient for the number of workers. 
C)  Minimum wages are the predominant reason for unemployment in the U.S. economy. 
D)  When a minimum-wage law forces the wage to remain above the level that balances supply and demand, it raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.

Exam 20: Unemployment

If there were no factors keeping wages from reaching equilibrium then there would be no

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous four weeks.

More than three-fourths of the unemployed are recent entrants into the labor force.

Who is included in the labor force by the Bureau of Labor Statistics?

If people who report being unemployed are not, in fact, trying hard to find a job, then the reported unemployment rate will be biased upward.

The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment.

Which of the following includes everyone in the adult population that the Bureau of Labor Statistics counts as "unemployed"?

Changes in the composition of demand among industries or regions are called sectoral shifts.

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

The natural rate of unemployment i) is the economy's desirable level of unemployment. Ii) cannot be affected by economic policy. Iii) is typically constant over time.

Which of the following is an explanation for the existence of frictional unemployment?

Most spells of unemployment are short, and most unemployment observed at any given time is long term. How can this be?

From time to time, the demand for workers has risen in one region of the United States and fallen in another. This illustrates

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

Unemployment insurance

List the main employment characteristics over which a labor union negotiates for its workers.

Table 28-5 Labor Force Statistics by Age Suppose people in the adult population in a small country are classified based on their age. -Refer to Table 28-5. In the proper order, which age group has the highest unemployment rate and which has the highest participation rate?

Efficiency-wage theory suggests that paying

When a minimum-wage law forces the wage to remain above the equilibrium level, the result is

Which of the following is not correct?

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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