Question 1

Table 28-2
Labor Data for Aridia
  
-Refer to Table 28-2. The number of adults not in the labor force of Aridia in 2012 was

Accepted Answer

A)  200. 
B)  1,400. 
C)  1,600. 
D)  3,000. 
A)  200. 
B)  1,400. 
C)  1,600. 
D)  3,000.

Question 2

The natural rate of unemployment

Accepted Answer

A)  arises from a single problem that has a single solution. 
B)  is easy for policymakers to reduce. 
C)  Both a and b are correct. 
D)  None of the above is correct. 
A)  arises from a single problem that has a single solution. 
B)  is easy for policymakers to reduce. 
C)  Both a and b are correct. 
D)  None of the above is correct.

Question 3

Not all unemployment ends with the job seeker finding a job.

Accepted Answer

A) True 
 B)False

Question 4

When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than if many of its workers were idle.

Accepted Answer

A) True 
 B)False

Question 5

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

Accepted Answer

A) True 
 B)False

Question 6

Write the formula for calculating the labor force participation rate.

Accepted Answer

The answer of Write the formula for calculating the labor...

Question 7

Which of the following is not correct?

Accepted Answer

A)  When a union is present in a labor market, wages are 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 collective bargaining. 
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 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 collective bargaining. 
D)  Most workers in the U.S. economy are not members of a union.

Question 8

Table 28-2
Labor Data for Aridia
  
-Refer to Table 28-2. The unemployment 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 9

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

Accepted Answer

A) True 
 B)False

Question 10

Suppose that the adult population in the town of Springfield is 225 million. If 40 million are unemployed and 100 million are employed, then the unemployment rate is approximately

Accepted Answer

A)  29%. 
B)  18%. 
C)  24%. 
D)  6%. 
A)  29%. 
B)  18%. 
C)  24%. 
D)  6%.

Question 11

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about

Accepted Answer

A)  600 households. 
B)  6,000 households. 
C)  60,000 households. 
D)  6,000,000 households. 
A)  600 households. 
B)  6,000 households. 
C)  60,000 households. 
D)  6,000,000 households.

Question 12

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well­being.

Accepted Answer

A) True 
 B)False

Question 13

Most spells of unemployment are

Accepted Answer

A)  long, and most unemployment observed at any given time is long term. 
B)  long, but most unemployment observed at any given time is short term. 
C)  short, but most unemployment observed at any given time is long term. 
D)  short, and most unemployment observed at any given time is short term. 
A)  long, and most unemployment observed at any given time is long term. 
B)  long, but most unemployment observed at any given time is short term. 
C)  short, but most unemployment observed at any given time is long term. 
D)  short, and most unemployment observed at any given time is short term.

Question 14

Table 28-7
Below is data about the labor market in the city of Productionville.
  
-Refer to Table 28-7. If the local government imposed a minimum wage of $5 in Productionville, how many people would be unemployed?

Accepted Answer

A)  0 
B)  2,000 
C)  3,000 
D)  5,000 
A)  0 
B)  2,000 
C)  3,000 
D)  5,000

Question 15

Three employers have justified their actions as follows. Whose logic is not consistent with the logic of efficiency wage theory?

Accepted Answer

A)  Instead of spending money on an electronic timing system that monitors worker hours, Tom spends an equivalent amount of money on higher wages. 
B)  Dick pays his workers less than the equilibrium wage so that they will not have the time or money to look for work somewhere else. 
C)  Harry pays his workers in a developing country more than the going wage hoping that they will get a better diet and so be more productive. 
D)  None of the above is consistent with the logic of efficiency wage theory. 
A)  Instead of spending money on an electronic timing system that monitors worker hours, Tom spends an equivalent amount of money on higher wages. 
B)  Dick pays his workers less than the equilibrium wage so that they will not have the time or money to look for work somewhere else. 
C)  Harry pays his workers in a developing country more than the going wage hoping that they will get a better diet and so be more productive. 
D)  None of the above is consistent with the logic of efficiency wage theory.

Question 16

The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.

Accepted Answer

A) True 
 B)False

Question 17

Efficiency wages create structural unemployment.

Accepted Answer

A) True 
 B)False

Question 18

Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category.

Accepted Answer

A) True 
 B)False

Question 19

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. How many people are unemployed?

Accepted Answer

A)  1 million 
B)  3 million 
C)  4 million 
D)  5 million 
A)  1 million 
B)  3 million 
C)  4 million 
D)  5 million

Question 20

Table 28-1
Sample Population
  
-Refer to Table 28-1. How many in the sample are unemployed?

Accepted Answer

A)  5 
B)  4 
C)  3 
D)  2 
A)  5 
B)  4 
C)  3 
D)  2

Exam 15: Unemployment

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The number of adults not in the labor force of Aridia in 2012 was

The natural rate of unemployment

Not all unemployment ends with the job seeker finding a job.

When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than if many of its workers were idle.

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

Write the formula for calculating the labor force participation rate.

Which of the following is not correct?

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

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

Suppose that the adult population in the town of Springfield is 225 million. If 40 million are unemployed and 100 million are employed, then the unemployment rate is approximately

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well­being.

Most spells of unemployment are

Table 28-7 Below is data about the labor market in the city of Productionville. -Refer to Table 28-7. If the local government imposed a minimum wage of $5 in Productionville, how many people would be unemployed?

Three employers have justified their actions as follows. Whose logic is not consistent with the logic of efficiency wage theory?

The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.

Efficiency wages create structural unemployment.

Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category.

Table 28-1 Sample Population -Refer to Table 28-1. How many in the sample are unemployed?

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

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of wellbeing.