Question 1

Job search

Accepted Answer

A)  is one reason economies always experience some unemployment. 
B)  is the process of matching workers with appropriate jobs. 
C)  would not be a problem if all workers and all jobs were the same. 
D)  All of the above are correct. 
A)  is one reason economies always experience some unemployment. 
B)  is the process of matching workers with appropriate jobs. 
C)  would not be a problem if all workers and all jobs were the same. 
D)  All of the above are correct.

Question 2

There is no easy way for policymakers to reduce the economy's natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 3

Unemployment insurance

Accepted Answer

A)  may improve the ability of the economy to match workers with appropriate jobs. 
B)  reduces the job search efforts of the unemployed. 
C)  increases the amount of frictional unemployment in the economy. 
D)  All of the above are correct. 
A)  may improve the ability of the economy to match workers with appropriate jobs. 
B)  reduces the job search efforts of the unemployed. 
C)  increases the amount of frictional unemployment in the economy. 
D)  All of the above are correct.

Question 4

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

Question 5

Sectoral shifts in demand for output

Accepted Answer

A)  create structural unemployment. 
B)  immediately reduce unemployment. 
C)  increase unemployment due to job search. 
D)  do not affect demand for labor. 
A)  create structural unemployment. 
B)  immediately reduce unemployment. 
C)  increase unemployment due to job search. 
D)  do not affect demand for labor.

Question 6

The labor force equals the sum of the employed and the unemployed.

Accepted Answer

A) True 
 B)False

Question 7

Minimum-wage laws and unions are similar to each other but different from efficiency wages in that minimum-wage law and unions

Accepted Answer

A)  cause unemployment, but efficiency wages do not. 
B)  cause the quantity of labor supplied to exceed the quantity of labor demanded, but efficiency wages do not. 
C)  cause wages to be above the equilibrium level. 
D)  prevent firms from lowering wages in the presence of a surplus of workers. 
A)  cause unemployment, but efficiency wages do not. 
B)  cause the quantity of labor supplied to exceed the quantity of labor demanded, but efficiency wages do not. 
C)  cause wages to be above the equilibrium level. 
D)  prevent firms from lowering wages in the presence of a surplus of workers.

Question 8

Workers searching for jobs that best suit them 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 9

Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power.

Accepted Answer

A) True 
 B)False

Question 10

Explain the effect of right-to-work laws on the collective bargaining power of labor unions.

Accepted Answer

Right-to-work laws decrease th

Question 11

How are discouraged workers counted in the unemployment rate?

Accepted Answer

Because discouraged workers ar

Question 12

Minimum wages are the predominant reason for unemployment in the U.S. economy.

Accepted Answer

A) True 
 B)False

Question 13

President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You conclude that

Accepted Answer

A)  one of them must be lying. 
B)  both of them could be telling the truth if the labor force, and employment grew at the exact same rate. 
C)  both of them could be telling the truth if the labor force grew slower than employment. 
D)  both of them could be telling the truth if the labor force grew faster than employment. 
A)  one of them must be lying. 
B)  both of them could be telling the truth if the labor force, and employment grew at the exact same rate. 
C)  both of them could be telling the truth if the labor force grew slower than employment. 
D)  both of them could be telling the truth if the labor force grew faster than employment.

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 $6 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

Some of a firm's workers are made worse off by the introduction of a union.

Accepted Answer

A) True 
 B)False

Question 16

Government policy can do nothing about the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 17

Define the natural rate of unemployment and cyclical unemployment.

Accepted Answer

The natural rate of unemployment refers

Question 18

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous four weeks.

Accepted Answer

A) True 
 B)False

Question 19

Josh is a full-time college student who is not working or looking for a job. The Bureau of Labor Statistics counts Josh 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 20

The Bureau of Labor Statistics reported in 2005 that there were 28.19 million people over age 25 who had no high school degree or its equivalent, 11.73 million of whom were employed and 1.04 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)  45.3% and 3.7% 
B)  45.3% and 8.1% 
C)  41.6% and 3.7% 
D)  41.6% and 8.1% 
A)  45.3% and 3.7% 
B)  45.3% and 8.1% 
C)  41.6% and 3.7% 
D)  41.6% and 8.1%

Exam 15: Unemployment

Job search

There is no easy way for policymakers to reduce the economy's natural rate of unemployment.

Unemployment insurance

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?

Sectoral shifts in demand for output

The labor force equals the sum of the employed and the unemployed.

Minimum-wage laws and unions are similar to each other but different from efficiency wages in that minimum-wage law and unions

Workers searching for jobs that best suit them is most closely associated with

Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power.

Explain the effect of right-to-work laws on the collective bargaining power of labor unions.

How are discouraged workers counted in the unemployment rate?

Minimum wages are the predominant reason for unemployment in the U.S. economy.

President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You conclude that

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 $6 in Productionville, how many people would be unemployed?

Some of a firm's workers are made worse off by the introduction of a union.

Government policy can do nothing about the natural rate of unemployment.

Define the natural rate of unemployment and cyclical unemployment.

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous four weeks.

Josh is a full-time college student who is not working or looking for a job. The Bureau of Labor Statistics counts Josh as

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