Question 1

Table 28-11
2010 Labor Data for Tajnia
  
-Refer to Table 28-11. The labor force of Tajnia in 2010 is 12,250.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not correct?

Accepted Answer

A)  When a union is present in a labor market, wages are not determined by the equilibrium of supply and demand. 
B)  Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power. 
C)  The process by which unions and firms agree on the terms of employment is called a strike. 
D)  Most workers in the U.S. economy are not members of a union. 
A)  When a union is present in a labor market, wages are not determined by the equilibrium of supply and demand. 
B)  Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power. 
C)  The process by which unions and firms agree on the terms of employment is called a strike. 
D)  Most workers in the U.S. economy are not members of a union.

Question 3

Scenario 28-1
Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment.
-Refer to Scenario 28-1. What is the total labor force?

Accepted Answer

A)  25 million 
B)  28 million 
C)  29 million 
D)  30 million 
A)  25 million 
B)  28 million 
C)  29 million 
D)  30 million

Question 4

Sectoral changes in demand

Accepted Answer

A)  create frictional unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates structural unemployment. 
B)  create structural unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates frictional unemployment. 
C)  and firms paying wages above equilibrium to attract a better pool of candidates both create structural unemployment. 
D)  and firms paying wages above equilibrium to attract a better pool of candidates both create frictional unemployment. 
A)  create frictional unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates structural unemployment. 
B)  create structural unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates frictional unemployment. 
C)  and firms paying wages above equilibrium to attract a better pool of candidates both create structural unemployment. 
D)  and firms paying wages above equilibrium to attract a better pool of candidates both create frictional unemployment.

Question 5

Figure 28-3  
-Refer to Figure 28-3. If the government imposes a minimum wage of $4, then unemployment will increase by

Accepted Answer

A)  0 workers. 
B)  2,000 workers. 
C)  4,000 workers. 
D)  5,000 workers. 
A)  0 workers. 
B)  2,000 workers. 
C)  4,000 workers. 
D)  5,000 workers.

Question 6

Table 28-2
Labor Data for Aridia
  
-Refer to Table 28-2. The labor-force participation rate 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 7

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.

Question 8

The efficiency-wage theory of worker health is more relevant for explaining unemployment in less developed countries than in rich countries.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a cause of the changing role of women in American society over the past several decades?

Accepted Answer

A)  new technologies that have reduced the amount of time required to complete routine household tasks 
B)  improved birth control 
C)  changing political and social attitudes 
D)  All of the above are correct. 
A)  new technologies that have reduced the amount of time required to complete routine household tasks 
B)  improved birth control 
C)  changing political and social attitudes 
D)  All of the above are correct.

Question 10

The adult population must equal the sum of the employed, the unemployed, and those not in the labor force.

Accepted Answer

A) True 
 B)False

Question 11

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 12

A typical American worker covered by unemployment insurance receives

Accepted Answer

A)  50 percent of his former wages for 26 weeks. 
B)  50 percent of his former wages for 52 weeks. 
C)  100 percent of his former wages for 26 weeks. 
D)  100 percent of his former wages for 52 weeks. 
A)  50 percent of his former wages for 26 weeks. 
B)  50 percent of his former wages for 52 weeks. 
C)  100 percent of his former wages for 26 weeks. 
D)  100 percent of his former wages for 52 weeks.

Question 13

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

Accepted Answer

A)  1.5%. 
B)  3.0%. 
C)  5.5%. 
D)  8.5%. 
A)  1.5%. 
B)  3.0%. 
C)  5.5%. 
D)  8.5%.

Question 14

Which of the following is correct?

Accepted Answer

A)  Typically more than one-third of the unemployed are new entrants into the job market. 
B)  Most spells of unemployment are short. 
C)  Most unemployment observed at any time is long term. 
D)  All of the above are correct. 
A)  Typically more than one-third of the unemployed are new entrants into the job market. 
B)  Most spells of unemployment are short. 
C)  Most unemployment observed at any time is long term. 
D)  All of the above are correct.

Question 15

Table 28-9
The table below lists the number of people by labor force classification for the country of Shelbyville.
  
-Refer to Table 28-9. What is the size of the labor force, and the size of the adult population?

Accepted Answer

The labor force is 1

Question 16

Discuss the labor-force participation trends for men and women since 1950.

Accepted Answer

The labor-force participation rates for

Question 17

Unemployment insurance tends to

Accepted Answer

A)  decrease structural unemployment. 
B)  decrease cyclical unemployment. 
C)  increase frictional unemployment. 
D)  increase the number of discouraged workers. 
A)  decrease structural unemployment. 
B)  decrease cyclical unemployment. 
C)  increase frictional unemployment. 
D)  increase the number of discouraged workers.

Question 18

Which of the following is correct?

Accepted Answer

A)  Union membership in the United States peaked in the 1940s and 1950s. 
B)  Unions play a larger role in the United States than in European countries such as Belgium, France, and Germany. 
C)  Because of the popularity of unions, most workers in the United States discuss their wages, benefits, and working conditions with their employers as a group. 
D)  Collective bargaining is the process by which unions negotiate membership dues with the National Labor Relations Board. 
A)  Union membership in the United States peaked in the 1940s and 1950s. 
B)  Unions play a larger role in the United States than in European countries such as Belgium, France, and Germany. 
C)  Because of the popularity of unions, most workers in the United States discuss their wages, benefits, and working conditions with their employers as a group. 
D)  Collective bargaining is the process by which unions negotiate membership dues with the National Labor Relations Board.

Question 19

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 20

The Bureau of Labor Statistics' U­1 measure of joblessness is larger than its U­6 measure of joblessness.

Accepted Answer

A) True 
 B)False

Exam 15: Unemployment

Table 28-11 2010 Labor Data for Tajnia -Refer to Table 28-11. The labor force of Tajnia in 2010 is 12,250.

Which of the following is not correct?

Sectoral changes in demand

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $4, then unemployment will increase by

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

Which of the following is not correct?

The efficiency-wage theory of worker health is more relevant for explaining unemployment in less developed countries than in rich countries.

Which of the following is a cause of the changing role of women in American society over the past several decades?

The adult population must equal the sum of the employed, the unemployed, and those not in the labor force.

Cyclical unemployment

A typical American worker covered by unemployment insurance receives

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

Which of the following is correct?

Table 28-9 The table below lists the number of people by labor force classification for the country of Shelbyville. -Refer to Table 28-9. What is the size of the labor force, and the size of the adult population?

Discuss the labor-force participation trends for men and women since 1950.

Unemployment insurance tends to

Which of the following is correct?

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

The Bureau of Labor Statistics' U­1 measure of joblessness is larger than its U­6 measure of joblessness.

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

Filters

The Bureau of Labor Statistics' U1 measure of joblessness is larger than its U6 measure of joblessness.