Question 1

Table 28-2
Labor Data for Aridia
  
-Refer to Table 28-2. The labor force of Aridia in 2012 was

Accepted Answer

A)  1,600. 
B)  1,800. 
C)  3,000. 
D)  3,200. 
A)  1,600. 
B)  1,800. 
C)  3,000. 
D)  3,200.

Question 2

Labor unions

Accepted Answer

A)  prefer to operate in states with right-to-work laws. 
B)  are similar to cartels. 
C)  play a larger role in the current U.S. economy than in European countries such as Norway and Sweden. 
D)  attract a membership of about 25 percent of current U.S. workers. 
A)  prefer to operate in states with right-to-work laws. 
B)  are similar to cartels. 
C)  play a larger role in the current U.S. economy than in European countries such as Norway and Sweden. 
D)  attract a membership of about 25 percent of current U.S. workers.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Some degree of unemployment is inevitable in a complex economy.

Accepted Answer

A) True 
 B)False

Question 5

Since 1960, the natural rate of unemployment in the U.S. has been between

Accepted Answer

A)  0% and 1%. 
B)  5% and 6%. 
C)  10% and 12%. 
D)  12% and 24%. 
A)  0% and 1%. 
B)  5% and 6%. 
C)  10% and 12%. 
D)  12% and 24%.

Question 6

According to 2012 data on the U.S. population, which of the following groups of teenagers ages (16-19) had the highest labor-force participation rate?

Accepted Answer

A)  white males 
B)  white females 
C)  black males 
D)  black females 
A)  white males 
B)  white females 
C)  black males 
D)  black females

Question 7

The theory of efficiency wages explains why

Accepted Answer

A)  setting wages at the equilibrium level may increase unemployment. 
B)  it may be in the best interest of firms to offer wages that are above the equilibrium level. 
C)  the most efficient way to pay workers is to pay them according to their skills. 
D)  it is efficient for firms to set wages at the equilibrium level. 
A)  setting wages at the equilibrium level may increase unemployment. 
B)  it may be in the best interest of firms to offer wages that are above the equilibrium level. 
C)  the most efficient way to pay workers is to pay them according to their skills. 
D)  it is efficient for firms to set wages at the equilibrium level.

Question 8

If the number of people unemployed rose but the number of people employed and the adult population stayed the same, then the labor force participation rate would rise.

Accepted Answer

A) True 
 B)False

Question 9

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

Accepted Answer

A)  increases, and the labor-force participation rate decreases. 
B)  and the labor-force participation rate both increase. 
C)  increases, and the labor-force participation rate is unaffected. 
D)  is unaffected, and the labor-force participation rate decreases. 
A)  increases, and the labor-force participation rate decreases. 
B)  and the labor-force participation rate both increase. 
C)  increases, and the labor-force participation rate is unaffected. 
D)  is unaffected, and the labor-force participation rate decreases.

Question 10

Efficiency wages contribute to

Accepted Answer

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

Question 11

Some degree of unemployment is in a complex economy.

Accepted Answer

The answer of Some degree of unemployment is in a...

Question 12

When a union raises the wage above the equilibrium level, it

Accepted Answer

A)  reduces both the quantity of labor supplied and the quantity of labor demanded. 
B)  reduces the quantity of labor supplied and raises the quantity of labor demanded. 
C)  raises the quantity of labor supplied and reduces the quantity of labor demanded. 
D)  raises both the quantity of labor supplied and the quantity of labor demanded. 
A)  reduces both the quantity of labor supplied and the quantity of labor demanded. 
B)  reduces the quantity of labor supplied and raises the quantity of labor demanded. 
C)  raises the quantity of labor supplied and reduces the quantity of labor demanded. 
D)  raises both the quantity of labor supplied and the quantity of labor demanded.

Question 13

Figure 28-3  
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be employed?

Accepted Answer

A)  3,000 
B)  4,000 
C)  5,000 
D)  7,000 
A)  3,000 
B)  4,000 
C)  5,000 
D)  7,000

Question 14

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

Accepted Answer

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

Question 15

Economists at the Congressional Budget Office estimated that for 2012, the U.S. natural rate of unemployment was about 5.5 percent.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a requirement for the Bureau of Labor Statistics to place someone in the "unemployed" category?

Accepted Answer

A)  The person must have worked no more than 10 hours during the past week. 
B)  The person must have tried to find employment during the previous four weeks. 
C)  The person may not have been laid off. 
D)  All of the above are correct. 
A)  The person must have worked no more than 10 hours during the past week. 
B)  The person must have tried to find employment during the previous four weeks. 
C)  The person may not have been laid off. 
D)  All of the above are correct.

Question 17

Suppose that garbage collectors and landscaping workers have no unions. Now suppose that garbage collectors form unions. What does this do the labor supply and wages of landscaping workers?

Accepted Answer

A)  Both labor supply and wages increase. 
B)  Labor supply increases, and wages decrease. 
C)  Labor supply decreases, and wages increase. 
D)  Both labor supply and wages decrease. 
A)  Both labor supply and wages increase. 
B)  Labor supply increases, and wages decrease. 
C)  Labor supply decreases, and wages increase. 
D)  Both labor supply and wages decrease.

Question 18

If the wage is kept above the equilibrium level for any reason, the result is unemployment.

Accepted Answer

A) True 
 B)False

Question 19

Right-to-work laws

Accepted Answer

A)  guarantee workers the right to form unions. 
B)  give workers in a unionized firm the right to choose whether to join the union. 
C)  prevent employers from hiring permanent replacements for workers who are on strike. 
D)  prevent workers from being fired because of increases in wages brought about by collective bargaining. 
A)  guarantee workers the right to form unions. 
B)  give workers in a unionized firm the right to choose whether to join the union. 
C)  prevent employers from hiring permanent replacements for workers who are on strike. 
D)  prevent workers from being fired because of increases in wages brought about by collective bargaining.

Question 20

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.

Accepted Answer

A) True 
 B)False

Exam 20: Unemployment

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor force of Aridia in 2012 was

Labor unions

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

Some degree of unemployment is inevitable in a complex economy.

Since 1960, the natural rate of unemployment in the U.S. has been between

According to 2012 data on the U.S. population, which of the following groups of teenagers ages (16-19) had the highest labor-force participation rate?

The theory of efficiency wages explains why

If the number of people unemployed rose but the number of people employed and the adult population stayed the same, then the labor force participation rate would rise.

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

Efficiency wages contribute to

Some degree of unemployment is in a complex economy.

When a union raises the wage above the equilibrium level, it

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be employed?

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

Economists at the Congressional Budget Office estimated that for 2012, the U.S. natural rate of unemployment was about 5.5 percent.

Which of the following is a requirement for the Bureau of Labor Statistics to place someone in the "unemployed" category?

Suppose that garbage collectors and landscaping workers have no unions. Now suppose that garbage collectors form unions. What does this do the labor supply and wages of landscaping workers?

If the wage is kept above the equilibrium level for any reason, the result is unemployment.

Right-to-work laws

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.

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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