Question 1

The labor force equals the

Accepted Answer

A)  number of people employed. 
B)  number of people employed plus the number of people unemployed. 
C)  number of people employed plus the number of people unemployed plus teenagers between ages 14 and 16 who work at least 10 hours a week. 
D)  adult population. 
A)  number of people employed. 
B)  number of people employed plus the number of people unemployed. 
C)  number of people employed plus the number of people unemployed plus teenagers between ages 14 and 16 who work at least 10 hours a week. 
D)  adult population.

Question 2

Sectoral shifts contribute to structural unemployment.

Accepted Answer

A) True 
 B)False

Question 3

Unemployment data is collected

Accepted Answer

A)  through a monthly survey of about 20,000 firms. 
B)  through a monthly survey of about 60,000 households. 
C)  from unemployment insurance claims. 
D)  All of the above are correct. 
A)  through a monthly survey of about 20,000 firms. 
B)  through a monthly survey of about 60,000 households. 
C)  from unemployment insurance claims. 
D)  All of the above are correct.

Question 4

Which of the following is correct?

Accepted Answer

A)  The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy. 
B)  The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and a complex economy can achieve zero unemployment. 
C)  The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and a complex economy can achieve zero unemployment. 
D)  The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy. 
A)  The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy. 
B)  The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and a complex economy can achieve zero unemployment. 
C)  The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and a complex economy can achieve zero unemployment. 
D)  The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy.

Question 5

Suppose that some people report themselves as unemployed when, in fact, they are working in the underground economy. If these persons were counted as employed, then

Accepted Answer

A)  both the unemployment rate and labor-force participation rate would be higher. 
B)  both the unemployment rate and labor-force participation rate would be lower. 
C)  the unemployment rate would be higher, and the labor-force participation rate would be higher. 
D)  the unemployment rate would be lower, and the labor-force participation rate would be unaffected. 
A)  both the unemployment rate and labor-force participation rate would be higher. 
B)  both the unemployment rate and labor-force participation rate would be lower. 
C)  the unemployment rate would be higher, and the labor-force participation rate would be higher. 
D)  the unemployment rate would be lower, and the labor-force participation rate would be unaffected.

Question 6

Within the U.S. population, women of prime working age ages 25-54) have higher rates of unemployment than men of prime working age ages 25-54), regardless of race.

Accepted Answer

A) True 
 B)False

Question 7

According to 2012 data on the U.S. population, which of the following groups of teenagers ages 16-19) had the lowest labor-force participation 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 8

Frictional unemployment can be the consequence of

Accepted Answer

A)  workers leaving existing jobs to find ones they like better. 
B)  one industry declining while another is growing. 
C)  changes in the working conditions offered by competing firms. 
D)  All of the above are correct. 
A)  workers leaving existing jobs to find ones they like better. 
B)  one industry declining while another is growing. 
C)  changes in the working conditions offered by competing firms. 
D)  All of the above are correct.

Question 9

Which of the following is among the four industries with the largest employment in the United States today?

Accepted Answer

A)  lumber 
B)  men's clothing 
C)  communications 
D)  cotton goods 
A)  lumber 
B)  men's clothing 
C)  communications 
D)  cotton goods

Question 10

Briefly summarize the advantages and disadvantages of unemployment insurance.

Accepted Answer

The main advantage is that unemployment

Question 11

The efficiency-wage theory of worker health is

Accepted Answer

A)  more relevant for explaining unemployment in less developed countries than in rich countries. 
B)  more relevant for explaining unemployment in rich countries than in less developed countries. 
C)  equally relevant for explaining unemployment in less developed countries and in rich countries. 
D)  not relevant for explaining unemployment. 
A)  more relevant for explaining unemployment in less developed countries than in rich countries. 
B)  more relevant for explaining unemployment in rich countries than in less developed countries. 
C)  equally relevant for explaining unemployment in less developed countries and in rich countries. 
D)  not relevant for explaining unemployment.

Question 12

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. What is the labor-force participation rate?

Accepted Answer

A)  83.3% 
B)  86.7% 
C)  93.3% 
D)  96.7% 
A)  83.3% 
B)  86.7% 
C)  93.3% 
D)  96.7%

Question 13

The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not correct?

Accepted Answer

A)  Frictional unemployment is inevitable in a dynamic economy. 
B)  Although the unemployment created by sectoral shifts is unfortunate, in the long run such changes lead to higher productivity and higher living standards. 
C)  At least 10 percent of U.S. manufacturing jobs are destroyed every year. 
D)  More than 13 percent of U.S. workers leave their jobs in a typical month. 
A)  Frictional unemployment is inevitable in a dynamic economy. 
B)  Although the unemployment created by sectoral shifts is unfortunate, in the long run such changes lead to higher productivity and higher living standards. 
C)  At least 10 percent of U.S. manufacturing jobs are destroyed every year. 
D)  More than 13 percent of U.S. workers leave their jobs in a typical month.

Question 15

If an unemployed person quits looking for work, then, eventually the unemployment rate

Accepted Answer

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

Question 16

Table 28-6
  
-Refer to Table 28-6. What is the U-5 measure of labor underutilization?

Accepted Answer

A)  7.5% 
B)  7.9% 
C)  8.1% 
D)  26% 
A)  7.5% 
B)  7.9% 
C)  8.1% 
D)  26%

Question 17

Which famous company executive introduced an innovative pay system that is consistent with the theory of efficiency wages?

Accepted Answer

A)  Lee Iococca 
B)  Steve Jobs 
C)  Mark Zuckerberg 
D)  Henry Ford 
A)  Lee Iococca 
B)  Steve Jobs 
C)  Mark Zuckerberg 
D)  Henry Ford

Question 18

Figure 28-4  
-Refer to Figure 28-4. If the government imposes a minimum wage of $3, 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 19

Within the U.S. population, teenagers ages 16-19) have similar rates of unemployment than adults of prime working age ages 25-54), regardless of race or gender.

Accepted Answer

A) True 
 B)False

Question 20

Evidence indicates that the typical person who becomes unemployed will

Accepted Answer

A)  soon find a job. 
B)  find a job but not before a year or more has gone by. 
C)  leave the labor force and never return. 
D)  retire soon after 
A)  soon find a job. 
B)  find a job but not before a year or more has gone by. 
C)  leave the labor force and never return. 
D)  retire soon after

Exam 15: Unemployment

The labor force equals the

Sectoral shifts contribute to structural unemployment.

Unemployment data is collected

Which of the following is correct?

Suppose that some people report themselves as unemployed when, in fact, they are working in the underground economy. If these persons were counted as employed, then

Within the U.S. population, women of prime working age ages 25-54) have higher rates of unemployment than men of prime working age ages 25-54), regardless of race.

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

Frictional unemployment can be the consequence of

Which of the following is among the four industries with the largest employment in the United States today?

Briefly summarize the advantages and disadvantages of unemployment insurance.

The efficiency-wage theory of worker health is

The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment.

Which of the following is not correct?

If an unemployed person quits looking for work, then, eventually the unemployment rate

Table 28-6 -Refer to Table 28-6. What is the U-5 measure of labor underutilization?

Which famous company executive introduced an innovative pay system that is consistent with the theory of efficiency wages?

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $3, how many workers will be unemployed?

Within the U.S. population, teenagers ages 16-19) have similar rates of unemployment than adults of prime working age ages 25-54), regardless of race or gender.

Evidence indicates that the typical person who becomes unemployed will

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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