Question 1

Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household?

Accepted Answer

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

Question 2

According to 2012 data on the U.S. population, which of the following groups of teenagers ages 16-19) had the lowest unemployment rate?

Accepted Answer

A)  white males 
B)  white females 
C)  black males 
D)  black females 
A)  white males 
B)  white females 
C)  black males 
D)  black females

Question 3

Workers waiting for jobs to open up is most closely associated with

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 4

The unemployment that results from the process of matching workers and jobs is called frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 5

Figure 28-3  
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then unemployment will increase by

Accepted Answer

A)  0 workers. 
B)  2,000 workers. 
C)  4,000 workers. 
D)  7,000 workers. 
A)  0 workers. 
B)  2,000 workers. 
C)  4,000 workers. 
D)  7,000 workers.

Question 6

In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Swedish adult non- institutionalized population was 7.568 million, the labor force was 4.888 million, and the number of people employed was 4.486 million. According to these numbers, the Swedish labor-force participation rate and unemployment rate were about

Accepted Answer

A)  64.6% and 8.2%. 
B)  64.6% and 5.3%. 
C)  59.3% and 8.2%. 
D)  59.3% and 5.3%. 
A)  64.6% and 8.2%. 
B)  64.6% and 5.3%. 
C)  59.3% and 8.2%. 
D)  59.3% and 5.3%.

Question 7

Minimum-wage laws matter most for the least skilled and least experienced members of the labor force, such as teenagers.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is correct?

Accepted Answer

A)  In unionized industries, wages are below the level that would prevail in competitive markets. 
B)  The introduction of a union in an industry increases the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and increases wages in the rest of the economy. 
C)  Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable. 
D)  All of the above are correct. 
A)  In unionized industries, wages are below the level that would prevail in competitive markets. 
B)  The introduction of a union in an industry increases the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and increases wages in the rest of the economy. 
C)  Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable. 
D)  All of the above are correct.

Question 9

Every adult who was not employed during the previous four weeks is included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 10

Today, the four industries with the largest employment in the United States are autos, aircraft, communications, and electrical components.

Accepted Answer

A) True 
 B)False

Question 11

Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Accepted Answer

Standard economic theory suggests that i

Question 12

According to 2012 data on the U.S. population, which of the following was correct for the adult population of prime working age, ages 25-54?

Accepted Answer

A)  Black females had higher labor-force participation rates and lower unemployment rates compared to white females. 
B)  Black females had similar labor-force participation rates and higher unemployment rates compared to white females. 
C)  Black females had both lower labor-force participation rates and lower unemployment rates compared to white females. 
D)  Black females had lower labor-force participation rates and higher unemployment rates compared to white females. 
A)  Black females had higher labor-force participation rates and lower unemployment rates compared to white females. 
B)  Black females had similar labor-force participation rates and higher unemployment rates compared to white females. 
C)  Black females had both lower labor-force participation rates and lower unemployment rates compared to white females. 
D)  Black females had lower labor-force participation rates and higher unemployment rates compared to white females.

Question 13

Table 28-8
Below is data about the labor market in the state of Northwoods.
  
-Refer to Table 28-8. If the state government imposed a minimum wage of $10, how many people would be unemployed?

Accepted Answer

A)  0 
B)  10,000 
C)  20,000 
D)  40,000 
A)  0 
B)  10,000 
C)  20,000 
D)  40,000

Question 14

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 unemployment rate?

Accepted Answer

The answer of Table 28-9
The table below lists the number...

Question 15

Structural unemployment results when the number of jobs is insufficient for the number of workers.

Accepted Answer

A) True 
 B)False

Question 16

Efficiency-wage theory suggests that paying

Accepted Answer

A)  low wages might be profitable because they raise the efficiency of a firm's workers. 
B)  low wages might be profitable because they lower the efficiency of a firm's workers. 
C)  high wages might be profitable because they raise the efficiency of a firm's workers. 
D)  high wages might be profitable because they lower the efficiency of a firm's workers. 
A)  low wages might be profitable because they raise the efficiency of a firm's workers. 
B)  low wages might be profitable because they lower the efficiency of a firm's workers. 
C)  high wages might be profitable because they raise the efficiency of a firm's workers. 
D)  high wages might be profitable because they lower the efficiency of a firm's workers.

Question 17

Which of the following is not a commonly-cited explanation for the decreasing labor-force participation rates for men from 1950 to the present?

Accepted Answer

A)  availability of reliable birth control 
B)  men acquiring additional years of schooling before entering the labor force 
C)  a preference for men to retire when younger 
D)  changing social attitudes about stay-at-home fathers 
A)  availability of reliable birth control 
B)  men acquiring additional years of schooling before entering the labor force 
C)  a preference for men to retire when younger 
D)  changing social attitudes about stay-at-home fathers

Question 18

In 1914, Henry Ford began paying his workers $5 per day, about twice the going wage. As a result, turnover and absenteeism fell and productivity and profits rose.

Accepted Answer

A) True 
 B)False

Question 19

Adults who were not working but who had jobs from which they were temporarily absent are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 20

There is a clear consensus among economists that unions are

Accepted Answer

A)  good for the economy because they result in higher wages for most workers. 
B)  good for the economy because they are a necessary antidote to the market power of employers. 
C)  bad for the economy because they are cartels and therefore detrimental to an efficient allocation of resources. 
D)  None of the above is correct; there is no clear consensus among economists about whether unions are good or bad for the economy. 
A)  good for the economy because they result in higher wages for most workers. 
B)  good for the economy because they are a necessary antidote to the market power of employers. 
C)  bad for the economy because they are cartels and therefore detrimental to an efficient allocation of resources. 
D)  None of the above is correct; there is no clear consensus among economists about whether unions are good or bad for the economy.

Exam 15: Unemployment

Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household?

According to 2012 data on the U.S. population, which of the following groups of teenagers ages 16-19) had the lowest unemployment rate?

Workers waiting for jobs to open up is most closely associated with

The unemployment that results from the process of matching workers and jobs is called frictional unemployment.

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then unemployment will increase by

Minimum-wage laws matter most for the least skilled and least experienced members of the labor force, such as teenagers.

Which of the following is correct?

Every adult who was not employed during the previous four weeks is included in the Bureau of Labor Statistics' "unemployed" category.

Today, the four industries with the largest employment in the United States are autos, aircraft, communications, and electrical components.

Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

According to 2012 data on the U.S. population, which of the following was correct for the adult population of prime working age, ages 25-54?

Table 28-8 Below is data about the labor market in the state of Northwoods. -Refer to Table 28-8. If the state government imposed a minimum wage of $10, how many people would be unemployed?

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 unemployment rate?

Structural unemployment results when the number of jobs is insufficient for the number of workers.

Efficiency-wage theory suggests that paying

Which of the following is not a commonly-cited explanation for the decreasing labor-force participation rates for men from 1950 to the present?

In 1914, Henry Ford began paying his workers $5 per day, about twice the going wage. As a result, turnover and absenteeism fell and productivity and profits rose.

Adults who were not working but who had jobs from which they were temporarily absent are included in the Bureau of Labor Statistics' "employed" category.

There is a clear consensus among economists that unions are

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

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