Question 1

In the long run the unemployment rate equals

Accepted Answer

A)  zero. 
B)  the cyclical rate of unemployment. 
C)  the natural rate of unemployment. 
D)  the sum of the cyclical and natural rate of unemployment. 
A)  zero. 
B)  the cyclical rate of unemployment. 
C)  the natural rate of unemployment. 
D)  the sum of the cyclical and natural rate of unemployment.

Question 2

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Accepted Answer

A) True 
 B)False

Question 3

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had remained steady.

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

Job search

Accepted Answer

A)  and firms paying wages above equilibrium to improve worker health both create frictional unemployment. 
B)  creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment. 
C)  creates structural unemployment, while firms paying wages above equilibrium to improve worker health creates frictional unemployment. 
D)  and firms paying wages above equilibrium to improve worker health both create structural unemployment. 
A)  and firms paying wages above equilibrium to improve worker health both create frictional unemployment. 
B)  creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment. 
C)  creates structural unemployment, while firms paying wages above equilibrium to improve worker health creates frictional unemployment. 
D)  and firms paying wages above equilibrium to improve worker health both create structural unemployment.

Question 6

Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Sheila as

Accepted Answer

A)  unemployed and in the labor force. 
B)  unemployed and not in the labor force. 
C)  employed and in the labor force. 
D)  employed and not in the labor force. 
A)  unemployed and in the labor force. 
B)  unemployed and not in the labor force. 
C)  employed and in the labor force. 
D)  employed and not in the labor force.

Question 7

Ariana is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, then

Accepted Answer

A)  the profits of her firm might increase. 
B)  she will face a shortage of labor. 
C)  the turnover of her workers may increase. 
D)  None of the above is correct. 
A)  the profits of her firm might increase. 
B)  she will face a shortage of labor. 
C)  the turnover of her workers may increase. 
D)  None of the above is correct.

Question 8

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 9

Figure 28-4  
-Refer to Figure 28-4. If the government imposes a minimum wage of $6, how many workers will be unemployed?

Accepted Answer

A)  0 
B)  2,000 
C)  4,000 
D)  6,000 
A)  0 
B)  2,000 
C)  4,000 
D)  6,000

Question 10

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

Accepted Answer

A) True 
 B)False

Question 11

Of the following groups, who is eligible for unemployment insurance benefits?

Accepted Answer

A)  the unemployed who quit their jobs 
B)  the unemployed who were laid off because their previous employers no longer needed their skills 
C)  the unemployed who were fired for cause 
D)  the unemployed who just entered the labor force 
A)  the unemployed who quit their jobs 
B)  the unemployed who were laid off because their previous employers no longer needed their skills 
C)  the unemployed who were fired for cause 
D)  the unemployed who just entered the labor force

Question 12

Table 28-11
2010 Labor Data for Tajnia
  
-Refer to Table 28-11. The unemployment rate of Tajnia in 2010 is about 18.4 percent.

Accepted Answer

A) True 
 B)False

Question 13

In June 2009 the Bureau of Labor Statistics reported a U.S. foreign-born population of 35.3 million. Of these, 22.7 million were employed and 1.4 million were unemployed. Based on these numbers what were the unemployment rate and the labor-force participation rate of the foreign-born U.S. population?

Accepted Answer

A)  1.4/35.3 and 22.7/35.3 
B)  1.4/35.3 and 24.1/35.3 
C)  1.4/24.1 and 22.7/24.1 
D)  None of the above is correct. 
A)  1.4/35.3 and 22.7/35.3 
B)  1.4/35.3 and 24.1/35.3 
C)  1.4/24.1 and 22.7/24.1 
D)  None of the above is correct.

Question 14

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

Accepted Answer

A) True 
 B)False

Question 15

Jai Li just lost her job, and she has not yet started looking for a new one. The Bureau of Labor Statistics counts Jai Li as

Accepted Answer

A)  unemployed and in the labor force. 
B)  unemployed but not in the labor force. 
C)  in the labor force but not unemployed. 
D)  neither in the labor force nor unemployed. 
A)  unemployed and in the labor force. 
B)  unemployed but not in the labor force. 
C)  in the labor force but not unemployed. 
D)  neither in the labor force nor unemployed.

Question 16

Most spells of unemployment are long, and most unemployment observed at any given time is long-term.

Accepted Answer

A) True 
 B)False

Question 17

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.

Accepted Answer

People who are experienced and educated

Question 18

The unemployment rate is computed as the number of unemployed

Accepted Answer

A)  divided by the labor force, all times 100. 
B)  divided by the number of employed, all times 100. 
C)  divided by the adult population, all times 100. 
D)  times the labor-force participation rate, all times 100. 
A)  divided by the labor force, all times 100. 
B)  divided by the number of employed, all times 100. 
C)  divided by the adult population, all times 100. 
D)  times the labor-force participation rate, all times 100.

Question 19

Someone who has a job but is absent from work because she is on vacation is counted as "employed."

Accepted Answer

A) True 
 B)False

Question 20

Table 28-2
Labor Data for Aridia
  
-Refer to Table 28-2. The unemployment rate of Aridia in 2011 was

Accepted Answer

A)  20%. 
B)  31.6%. 
C)  46.2%. 
D)  63.3%. 
A)  20%. 
B)  31.6%. 
C)  46.2%. 
D)  63.3%.

Exam 15: Unemployment

In the long run the unemployment rate equals

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had remained steady.

Some degree of unemployment is inevitable in a complex economy.

Job search

Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Sheila as

Ariana is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, then

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $6, how many workers will be unemployed?

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

Of the following groups, who is eligible for unemployment insurance benefits?

Table 28-11 2010 Labor Data for Tajnia -Refer to Table 28-11. The unemployment rate of Tajnia in 2010 is about 18.4 percent.

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

Jai Li just lost her job, and she has not yet started looking for a new one. The Bureau of Labor Statistics counts Jai Li as

Most spells of unemployment are long, and most unemployment observed at any given time is long-term.

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.

The unemployment rate is computed as the number of unemployed

Someone who has a job but is absent from work because she is on vacation is counted as "employed."

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The unemployment rate of Aridia in 2011 was

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