Question 1

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

Accepted Answer

A)  a high wage paid to compensate for dangerous work such as coal mining 
B)  an above-equilibrium wage offered by a firm to attract a more talented pool of job applicants 
C)  a wage below the minimum wage but supplemented by customer tips 
D)  a high wage paid to a college graduate for a high-skill job such as electrical engineering 
A)  a high wage paid to compensate for dangerous work such as coal mining 
B)  an above-equilibrium wage offered by a firm to attract a more talented pool of job applicants 
C)  a wage below the minimum wage but supplemented by customer tips 
D)  a high wage paid to a college graduate for a high-skill job such as electrical engineering

Question 2

Who among the following would be counted as "unemployed"?

Accepted Answer

A)  Shasta, who is waiting to be recalled to a job from which she has been laid off. 
B)  Karen, who neither has a job nor is looking for one. 
C)  Mary, who worked only 35 hours last week. 
D)  None of the above is correct. 
A)  Shasta, who is waiting to be recalled to a job from which she has been laid off. 
B)  Karen, who neither has a job nor is looking for one. 
C)  Mary, who worked only 35 hours last week. 
D)  None of the above is correct.

Question 3

Figure 28-7  
-Refer to Figure 28-7. At a minimum wage of $125, how much is the surplus of labor?

Accepted Answer

The answer of Figure 28-7  
-Refer to Figure 28-7....

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The Bureau of Labor Statistics' household survey and establishment survey both yield information about unemployment.

Accepted Answer

A) True 
 B)False

Question 6

Because people move into and out of the labor force so often, statistics on unemployment are difficult to interpret.

Accepted Answer

A) True 
 B)False

Question 7

Critics of government-run employment agencies and public training programs argue that the private market is better at matching workers and jobs than the government is.

Accepted Answer

A) True 
 B)False

Question 8

Measuring unemployment is the job of the Bureau of Labor Statistics.

Accepted Answer

A) True 
 B)False

Question 9

What problems arise in interpreting unemployment data?

Accepted Answer

Because people move into and out of the

Question 10

Lucy quit her job because she was unhappy at work. Genevieve was fired because she frequently surfed the Internet rather than working on her assigned tasks. Who is eligible for unemployment insurance benefits?

Accepted Answer

A)  both Lucy and Genevieve 
B)  Lucy but not Genevieve 
C)  Genevieve but not Lucy 
D)  neither Lucy nor Genevieve 
A)  both Lucy and Genevieve 
B)  Lucy but not Genevieve 
C)  Genevieve but not Lucy 
D)  neither Lucy nor Genevieve

Question 11

Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. 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)  and the labor-force participation rate are both unaffected. 
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)  and the labor-force participation rate are both unaffected.

Question 12

In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Japanese adult non- institutionalized population was 110.272 million, the labor force was 65.362 million, and the number of people employed was 62.242 million. According to these numbers, the Japanese labor-force participation rate and unemployment rate were about

Accepted Answer

A)  56.4% and 2.8%. 
B)  56.4% and 4.8%. 
C)  59.3% and 2.8%. 
D)  59.3% and 4.8%. 
A)  56.4% and 2.8%. 
B)  56.4% and 4.8%. 
C)  59.3% and 2.8%. 
D)  59.3% and 4.8%.

Question 13

Rafael is the newly­appointed plant manager for a company that manufactures head phones. Rafael's senior supervisors told him that the output the firm produces, given the number of workers employed, indicates that some workers may be shirking. According to efficiency wage theory, what should he do?

Accepted Answer

A)  pay all workers more than the equilibrium wage rate 
B)  pay all workers below the equilibrium wage rate to make up for the loss from shirking 
C)  make sure that workers are getting paid exactly the equilibrium wage rate 
D)  fire the workers with the most seniority 
A)  pay all workers more than the equilibrium wage rate 
B)  pay all workers below the equilibrium wage rate to make up for the loss from shirking 
C)  make sure that workers are getting paid exactly the equilibrium wage rate 
D)  fire the workers with the most seniority

Question 14

The natural rate of unemployment is the

Accepted Answer

A)  unemployment rate that would prevail with zero inflation. 
B)  rate associated with the highest possible level of GDP. 
C)  difference between the long-run and short-run unemployment rates. 
D)  amount of unemployment that the economy normally experiences. 
A)  unemployment rate that would prevail with zero inflation. 
B)  rate associated with the highest possible level of GDP. 
C)  difference between the long-run and short-run unemployment rates. 
D)  amount of unemployment that the economy normally experiences.

Question 15

To maintain their standard of living, most people rely on

Accepted Answer

A)  government assistance. 
B)  their personal savings. 
C)  their labor earnings. 
D)  rental income. 
A)  government assistance. 
B)  their personal savings. 
C)  their labor earnings. 
D)  rental income.

Question 16

An increase in the minimum wage

Accepted Answer

A)  increases both the quantity demanded and the quantity supplied of labor. 
B)  decreases both the quantity demanded and the quantity supplied of labor. 
C)  increases the quantity of labor demanded but decreases the quantity of labor supplied. 
D)  decreases the quantity of labor demanded but increases the quantity of labor supplied. 
A)  increases both the quantity demanded and the quantity supplied of labor. 
B)  decreases both the quantity demanded and the quantity supplied of labor. 
C)  increases the quantity of labor demanded but decreases the quantity of labor supplied. 
D)  decreases the quantity of labor demanded but increases the quantity of labor supplied.

Question 17

Data show that at least 10 percent of U.S. manufacturing jobs are destroyed every year.

Accepted Answer

A) True 
 B)False

Question 18

The adult population in the town of Shelbyville is 150 thousand. If 100 thousand people are employed and 20 thousand are unemployed, then the labor force participation rate is approximately

Accepted Answer

A)  67%. 
B)  80%. 
C)  16%. 
D)  13%. 
A)  67%. 
B)  80%. 
C)  16%. 
D)  13%.

Question 19

Spells of unemployment end about

Accepted Answer

A)  1/5 of the time with the person leaving the labor force. 
B)  1/4 of the time with the person leaving the labor force. 
C)  1/3 of the time with the person leaving the labor force. 
D)  1/2 of the time with the person leaving the labor force. 
A)  1/5 of the time with the person leaving the labor force. 
B)  1/4 of the time with the person leaving the labor force. 
C)  1/3 of the time with the person leaving the labor force. 
D)  1/2 of the time with the person leaving the labor force.

Question 20

Providing training for unemployed individuals is primarily intended to reduce

Accepted Answer

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

Exam 15: Unemployment

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

Who among the following would be counted as "unemployed"?

Figure 28-7 -Refer to Figure 28-7. At a minimum wage of $125, how much is the surplus of labor?

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

The Bureau of Labor Statistics' household survey and establishment survey both yield information about unemployment.

Because people move into and out of the labor force so often, statistics on unemployment are difficult to interpret.

Critics of government-run employment agencies and public training programs argue that the private market is better at matching workers and jobs than the government is.

Measuring unemployment is the job of the Bureau of Labor Statistics.

What problems arise in interpreting unemployment data?

Lucy quit her job because she was unhappy at work. Genevieve was fired because she frequently surfed the Internet rather than working on her assigned tasks. Who is eligible for unemployment insurance benefits?

Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. Other things the same, the unemployment rate

The natural rate of unemployment is the

To maintain their standard of living, most people rely on

An increase in the minimum wage

Data show that at least 10 percent of U.S. manufacturing jobs are destroyed every year.

The adult population in the town of Shelbyville is 150 thousand. If 100 thousand people are employed and 20 thousand are unemployed, then the labor force participation rate is approximately

Spells of unemployment end about

Providing training for unemployed individuals is primarily intended to reduce

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