Question 1

Which of the following is the correct formula for calculating the unemployment rate?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 2

Figure 28-4  
-Refer to Figure 28-4. If 4,000 workers are unemployed, then the minimum wage must be

Accepted Answer

A)  $2. 
B)  $4. 
C)  $5. 
D)  $6. 
A)  $2. 
B)  $4. 
C)  $5. 
D)  $6.

Question 3

Which of the following is not correct?

Accepted Answer

A)  A union is a worker association that bargains with employers over wages, benefits, and working conditions. 
B)  Unions play a much larger role in the U.S. labor market now than they did in the past. 
C)  Unions play a large role in many European countries. 
D)  A union is a type of cartel. 
A)  A union is a worker association that bargains with employers over wages, benefits, and working conditions. 
B)  Unions play a much larger role in the U.S. labor market now than they did in the past. 
C)  Unions play a large role in many European countries. 
D)  A union is a type of cartel.

Question 4

Frictional unemployment results from

Accepted Answer

A)  job searching. It is often thought to explain relatively short spells of unemployment. 
B)  job searching. It is often thought to explain relatively long spells of unemployment 
C)  a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment. 
D)  a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment. 
A)  job searching. It is often thought to explain relatively short spells of unemployment. 
B)  job searching. It is often thought to explain relatively long spells of unemployment 
C)  a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment. 
D)  a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment.

Question 5

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 6

Which of the following is correct?

Accepted Answer

A)  In unionized industries, wages are above the level that would prevail in competitive markets. 
B)  The introduction of a union in some industry reduces the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and reduces wages in the rest of the economy. 
C)  Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable. 
D)  All of the above are correct. 
A)  In unionized industries, wages are above the level that would prevail in competitive markets. 
B)  The introduction of a union in some industry reduces the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and reduces wages in the rest of the economy. 
C)  Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable. 
D)  All of the above are correct.

Question 7

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 $8, 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 8

Critics of unions argue that unions cause the allocation of labor to be inefficient and inequitable.

Accepted Answer

A) True 
 B)False

Question 9

The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

Accepted Answer

A)  higher production costs and higher profits. 
B)  higher production costs and lower profits. 
C)  lower production costs and higher profits. 
D)  lower production costs and lower profits. 
A)  higher production costs and higher profits. 
B)  higher production costs and lower profits. 
C)  lower production costs and higher profits. 
D)  lower production costs and lower profits.

Question 10

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually increased.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is an example of an efficiency wage?

Accepted Answer

A)  a higher wage paid to a more experienced worker 
B)  a below-equilibrium wage paid by a small business exempt from minimum-wage laws 
C)  an above-equilibrium wage paid by a firm to reduce turnover costs 
D)  a wage tied to participation in a government-sponsored job training program 
A)  a higher wage paid to a more experienced worker 
B)  a below-equilibrium wage paid by a small business exempt from minimum-wage laws 
C)  an above-equilibrium wage paid by a firm to reduce turnover costs 
D)  a wage tied to participation in a government-sponsored job training program

Question 12

Which of the following do unions not cause?

Accepted Answer

A)  frictional unemployment 
B)  the wage to rise above the equilibrium level 
C)  conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs 
D)  reduced wages in industries without unions 
A)  frictional unemployment 
B)  the wage to rise above the equilibrium level 
C)  conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs 
D)  reduced wages in industries without unions

Question 13

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

Accepted Answer

A)  increased both from 2010 to 2011 and from 2011 to 2012. 
B)  increased from 2010 to 2011 but decreased from 2011 to 2012. 
C)  decreased from 2010 to 2011 but increased from 2011 to 2012. 
D)  decreased both from 2010 to 2011 and from 2011 to 2012. 
A)  increased both from 2010 to 2011 and from 2011 to 2012. 
B)  increased from 2010 to 2011 but decreased from 2011 to 2012. 
C)  decreased from 2010 to 2011 but increased from 2011 to 2012. 
D)  decreased both from 2010 to 2011 and from 2011 to 2012.

Question 14

Table 28-3
2009 Labor Data for Baltivia
  
-Refer to Table 28-3. What was Baltivia's unemployment rate in 2009?

Accepted Answer

A)  8.0% 
B)  12.7% 
C)  15.9% 
D)  22.1% 
A)  8.0% 
B)  12.7% 
C)  15.9% 
D)  22.1%

Question 15

Frictional unemployment is

Accepted Answer

A)  not inevitable; rather, it can be reduced to zero by well-designed public policies. 
B)  not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance. 
C)  inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms. 
D)  inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium. 
A)  not inevitable; rather, it can be reduced to zero by well-designed public policies. 
B)  not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance. 
C)  inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms. 
D)  inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium.

Question 16

The natural unemployment rate includes

Accepted Answer

A)  both frictional and structural unemployment. 
B)  neither frictional nor structural unemployment. 
C)  structural but not frictional unemployment. 
D)  frictional but not structural unemployment. 
A)  both frictional and structural unemployment. 
B)  neither frictional nor structural unemployment. 
C)  structural but not frictional unemployment. 
D)  frictional but not structural unemployment.

Question 17

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 18

The amount of unemployment varies little over time and across countries.

Accepted Answer

A) True 
 B)False

Question 19

Unemployment insurance increases frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 20

The labor-force participation rate equals the percentage of the total adult population that is in the labor force.

Accepted Answer

A) True 
 B)False

Exam 15: Unemployment

Which of the following is the correct formula for calculating the unemployment rate?

Figure 28-4 -Refer to Figure 28-4. If 4,000 workers are unemployed, then the minimum wage must be

Which of the following is not correct?

Frictional unemployment results from

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?

Which of the following is correct?

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 $8, how many people would be unemployed?

Critics of unions argue that unions cause the allocation of labor to be inefficient and inequitable.

The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually increased.

Which of the following is an example of an efficiency wage?

Which of the following do unions not cause?

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

Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. What was Baltivia's unemployment rate in 2009?

Frictional unemployment is

The natural unemployment rate includes

The amount of unemployment varies little over time and across countries.

Unemployment insurance increases frictional unemployment.

The labor-force participation rate equals the percentage of the total adult population that is in the labor force.

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

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

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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