Question 1

When a minimum-wage law forces the wage to remain above the equilibrium level, it

Accepted Answer

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

Question 2

Discouraged workers are people who want to work but have given up trying to find a job after an unsuccessful search.

Accepted Answer

A) True 
 B)False

Question 3

Unemployment insurance

Accepted Answer

A)  reduces the hardship of unemployment, but it also increases the amount of unemployment. 
B)  reduces the incentive for the unemployed to find and take new jobs. 
C)  causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment. 
D)  All of the above are correct. 
A)  reduces the hardship of unemployment, but it also increases the amount of unemployment. 
B)  reduces the incentive for the unemployed to find and take new jobs. 
C)  causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment. 
D)  All of the above are correct.

Question 4

Who of the following is counted as "unemployed" by the Bureau of Labor Statistics?

Accepted Answer

A)  someone working without pay for a family member's business 
B)  someone who is absent from their job due to illness 
C)  someone on temporary layoff 
D)  All of the above are correct. 
A)  someone working without pay for a family member's business 
B)  someone who is absent from their job due to illness 
C)  someone on temporary layoff 
D)  All of the above are correct.

Question 5

Noah is an unpaid stay-at-home father who is not currently searching for paid work. Pete is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)  only Noah 
B)  only Pete 
C)  both Noah and Pete 
D)  neither Noah nor Pete 
A)  only Noah 
B)  only Pete 
C)  both Noah and Pete 
D)  neither Noah nor Pete

Question 6

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

Accepted Answer

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

Question 7

The adult population must equal the sum of the employed and the unemployed.

Accepted Answer

A) True 
 B)False

Question 8

Sirius has just finished high school and started looking for his first job, but has not yet found one. Other things the same, the unemployment rate

Accepted Answer

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

Question 9

The Bureau of Labor Statistics' U­3 measure of joblessness is the official unemployment rate.

Accepted Answer

A) True 
 B)False

Question 10

The amount of unemployment that an economy normally experiences is called the

Accepted Answer

A)  average rate of unemployment. 
B)  natural rate of unemployment. 
C)  cyclical rate of unemployment. 
D)  typical rate of unemployment. 
A)  average rate of unemployment. 
B)  natural rate of unemployment. 
C)  cyclical rate of unemployment. 
D)  typical rate of unemployment.

Question 11

Causes of the changing role of women in American society over the past several decades include new technologies that have reduced the amount of time required to complete routine household tasks, improved birth control, and changing political and social attitudes.

Accepted Answer

A) True 
 B)False

Question 12

Most job search in the U.S. economy takes place with the help of the government.

Accepted Answer

A) True 
 B)False

Question 13

The Bureau of Labor Statistics divides the adult population into three categories: employed, unemployed, and not in the labor force.

Accepted Answer

A) True 
 B)False

Question 14

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Accepted Answer

A) True 
 B)False

Question 15

Who of the following is not included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)  those who worked in their own business 
B)  those who worked as unpaid workers in a family member's business 
C)  those waiting to be recalled to a job from which they had been laid off 
D)  those who were temporarily absent from work because of vacation. 
A)  those who worked in their own business 
B)  those who worked as unpaid workers in a family member's business 
C)  those waiting to be recalled to a job from which they had been laid off 
D)  those who were temporarily absent from work because of vacation.

Question 16

According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see an)

Accepted Answer

A)  increase in the number of job applicants and an increase in how long workers stay on the job. 
B)  increase in the number of job applicants and a decrease in how long workers stay on the job. 
C)  decrease in the number of job applicants and an increase in how long workers stay on the job. 
D)  decrease in the number of job applicants and a decrease in how long workers stay on the job. 
A)  increase in the number of job applicants and an increase in how long workers stay on the job. 
B)  increase in the number of job applicants and a decrease in how long workers stay on the job. 
C)  decrease in the number of job applicants and an increase in how long workers stay on the job. 
D)  decrease in the number of job applicants and a decrease in how long workers stay on the job.

Question 17

Susan is a plant manager in charge of a factory in a relatively poor country. Even though market wages are low, she decides to raise the wages of her workers. Her decision

Accepted Answer

A)  might increase profits if it means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive. 
B)  will help eliminate the excess supply of labor. 
C)  may cause her workers to reduce the effort they expend at their jobs. 
D)  All of the above are correct. 
A)  might increase profits if it means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive. 
B)  will help eliminate the excess supply of labor. 
C)  may cause her workers to reduce the effort they expend at their jobs. 
D)  All of the above are correct.

Question 18

Which of the following is correct?

Accepted Answer

A)  The Bureau of Labor Statistics uses data collected from those applying for unemployment insurance to compute the unemployment rate. 
B)  The labor force includes all adults who are able to work. 
C)  Unpaid homemakers are counted as "employed" by the Bureau of Labor Statistics. 
D)  People working part time are counted as "employed" by the Bureau of Labor Statistics. 
A)  The Bureau of Labor Statistics uses data collected from those applying for unemployment insurance to compute the unemployment rate. 
B)  The labor force includes all adults who are able to work. 
C)  Unpaid homemakers are counted as "employed" by the Bureau of Labor Statistics. 
D)  People working part time are counted as "employed" by the Bureau of Labor Statistics.

Question 19

Minimum-wage laws can keep wages

Accepted Answer

A)  above equilibrium and cause a surplus of labor. 
B)  above equilibrium and cause a shortage of labor. 
C)  below equilibrium and cause a surplus of labor. 
D)  below equilibrium and cause a shortage of labor. 
A)  above equilibrium and cause a surplus of labor. 
B)  above equilibrium and cause a shortage of labor. 
C)  below equilibrium and cause a surplus of labor. 
D)  below equilibrium and cause a shortage of labor.

Question 20

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate sometimes is close to zero.

Accepted Answer

A) True 
 B)False

Exam 15: Unemployment

When a minimum-wage law forces the wage to remain above the equilibrium level, it

Discouraged workers are people who want to work but have given up trying to find a job after an unsuccessful search.

Unemployment insurance

Who of the following is counted as "unemployed" by the Bureau of Labor Statistics?

Noah is an unpaid stay-at-home father who is not currently searching for paid work. Pete is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?

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

The adult population must equal the sum of the employed and the unemployed.

Sirius has just finished high school and started looking for his first job, but has not yet found one. Other things the same, the unemployment rate

The Bureau of Labor Statistics' U­3 measure of joblessness is the official unemployment rate.

The amount of unemployment that an economy normally experiences is called the

Causes of the changing role of women in American society over the past several decades include new technologies that have reduced the amount of time required to complete routine household tasks, improved birth control, and changing political and social attitudes.

Most job search in the U.S. economy takes place with the help of the government.

The Bureau of Labor Statistics divides the adult population into three categories: employed, unemployed, and not in the labor force.

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Who of the following is not included in the Bureau of Labor Statistics' "employed" category?

According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see an)

Susan is a plant manager in charge of a factory in a relatively poor country. Even though market wages are low, she decides to raise the wages of her workers. Her decision

Which of the following is correct?

Minimum-wage laws can keep wages

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate sometimes is close to zero.

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' U3 measure of joblessness is the official unemployment rate.