Question 1

Minimum-wage laws

Accepted Answer

A)  create frictional unemployment, while firms paying wages above equilibrium to reduce worker turnover creates structural unemployment. 
B)  create structural unemployment, while firms paying wages above equilibrium to reduce worker turnover creates frictional unemployment. 
C)  and firms paying wages above equilibrium to reduce worker turnover both create structural unemployment. 
D)  and firms paying wages above equilibrium to reduce worker turnover both create frictional unemployment. 
A)  create frictional unemployment, while firms paying wages above equilibrium to reduce worker turnover creates structural unemployment. 
B)  create structural unemployment, while firms paying wages above equilibrium to reduce worker turnover creates frictional unemployment. 
C)  and firms paying wages above equilibrium to reduce worker turnover both create structural unemployment. 
D)  and firms paying wages above equilibrium to reduce worker turnover both create frictional unemployment.

Question 2

Efficiency wages, minimum-wage laws, and unions all keep wages

Accepted Answer

A)  below the equilibrium level, causing a shortage of labor. 
B)  below the equilibrium level, causing a surplus of labor. 
C)  above the equilibrium level, causing a shortage of labor. 
D)  above the equilibrium level, causing a surplus of labor. 
A)  below the equilibrium level, causing a shortage of labor. 
B)  below the equilibrium level, causing a surplus of labor. 
C)  above the equilibrium level, causing a shortage of labor. 
D)  above the equilibrium level, causing a surplus of labor.

Question 3

Marginally attached workers are people who are

Accepted Answer

A)  looking for a better job than they currently have. 
B)  not working and are not looking for work, but would work if asked. 
C)  working part-time while they go to school or get training for a better job. 
D)  only a few years from retirement. 
A)  looking for a better job than they currently have. 
B)  not working and are not looking for work, but would work if asked. 
C)  working part-time while they go to school or get training for a better job. 
D)  only a few years from retirement.

Question 4

Which of the following is the correct formula for calculating the labor force participation rate?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 5

Data show that at least 20 percent of U.S. manufacturing jobs are destroyed every year.

Accepted Answer

A) True 
 B)False

Question 6

Eric was laid off two months ago. He has not searched for other work because he is expecting to be recalled to work. The Bureau of Labor Statistics counts Eric as

Accepted Answer

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

Question 7

Even though the difference in labor-force participation rates of U.S. males and females has narrowed, the labor- force participation rate of males remains higher than that of females.

Accepted Answer

A) True 
 B)False

Question 8

For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must

Accepted Answer

A)  have worked no more than 10 hours during the past week.. 
B)  have tried to find employment during the previous year. 
C)  not have been laid off. 
D)  None of the above is correct. 
A)  have worked no more than 10 hours during the past week.. 
B)  have tried to find employment during the previous year. 
C)  not have been laid off. 
D)  None of the above is correct.

Question 9

Since the 1940's U.S. union membership has

Accepted Answer

A)  fallen. This decline should have reduced structural unemployment. 
B)  fallen. This decline should not have reduced structural unemployment. 
C)  risen. This increase should have raised structural unemployment. 
D)  risen. This increase should not have raised structural unemployment. 
A)  fallen. This decline should have reduced structural unemployment. 
B)  fallen. This decline should not have reduced structural unemployment. 
C)  risen. This increase should have raised structural unemployment. 
D)  risen. This increase should not have raised structural unemployment.

Question 10

Duane owns his own real estate company. The Bureau of Labor Statistics counts Duane as

Accepted Answer

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

Question 11

Efficiency wages create a

Accepted Answer

A)  shortage of labor and so reduce unemployment. 
B)  shortage of labor and so raise unemployment. 
C)  surplus of labor and so reduce unemployment. 
D)  surplus of labor and so raise unemployment. 
A)  shortage of labor and so reduce unemployment. 
B)  shortage of labor and so raise unemployment. 
C)  surplus of labor and so reduce unemployment. 
D)  surplus of labor and so raise unemployment.

Question 12

The natural rate of unemployment is impervious to economic policy.

Accepted Answer

A) True 
 B)False

Question 13

Figure 28-4  
-Refer to Figure 28-4. If the government imposes a minimum wage of $7, 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 14

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

Accepted Answer

A)  might increase profits if it attracts a better pool of workers to apply for jobs at his restaurant. 
B)  will reduce the excess supply of labor. 
C)  is an example of the benefits of a minimum-wage law. 
D)  All of the above are correct. 
A)  might increase profits if it attracts a better pool of workers to apply for jobs at his restaurant. 
B)  will reduce the excess supply of labor. 
C)  is an example of the benefits of a minimum-wage law. 
D)  All of the above are correct.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Table 28-4
2010 Labor Data for Adults ages 16 and older) in Meditor
  
-Refer to Table 28-4. What is the adult male labor-force participation rate in Meditor?

Accepted Answer

A)  37% 
B)  63% 
C)  66.7% 
D)  96.3% 
A)  37% 
B)  63% 
C)  66.7% 
D)  96.3%

Question 17

Measuring unemployment is the job of the

Accepted Answer

A)  Congressional Budget Office. 
B)  Department of Commerce. 
C)  Council of Economic Advisers. 
D)  Bureau of Labor Statistics. 
A)  Congressional Budget Office. 
B)  Department of Commerce. 
C)  Council of Economic Advisers. 
D)  Bureau of Labor Statistics.

Question 18

Table 28-2
Labor Data for Aridia
  
-Refer to Table 28-2. The labor force of Aridia in 2012 was

Accepted Answer

A)  1,600. 
B)  1,800. 
C)  3,000. 
D)  3,200. 
A)  1,600. 
B)  1,800. 
C)  3,000. 
D)  3,200.

Question 19

The Wagner Act of 1935

Accepted Answer

A)  prevents unions from acting as cartels. 
B)  allows workers joining a unionized firm to choose not to join the union. 
C)  prevents employers from interfering when workers try to organize a union. 
D)  prevents firms from hiring permanent replacements for workers who are on strike. 
A)  prevents unions from acting as cartels. 
B)  allows workers joining a unionized firm to choose not to join the union. 
C)  prevents employers from interfering when workers try to organize a union. 
D)  prevents firms from hiring permanent replacements for workers who are on strike.

Question 20

A firm might offer efficiency wages to reduce worker turnover and thereby reduce production costs.

Accepted Answer

A) True 
 B)False

Exam 15: Unemployment

Minimum-wage laws

Efficiency wages, minimum-wage laws, and unions all keep wages

Marginally attached workers are people who are

Which of the following is the correct formula for calculating the labor force participation rate?

Data show that at least 20 percent of U.S. manufacturing jobs are destroyed every year.

Eric was laid off two months ago. He has not searched for other work because he is expecting to be recalled to work. The Bureau of Labor Statistics counts Eric as

Even though the difference in labor-force participation rates of U.S. males and females has narrowed, the labor- force participation rate of males remains higher than that of females.

For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must

Since the 1940's U.S. union membership has

Duane owns his own real estate company. The Bureau of Labor Statistics counts Duane as

Efficiency wages create a

The natural rate of unemployment is impervious to economic policy.

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $7, how many workers will be unemployed?

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

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

Table 28-4 2010 Labor Data for Adults ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult male labor-force participation rate in Meditor?

Measuring unemployment is the job of the

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor force of Aridia in 2012 was

The Wagner Act of 1935

A firm might offer efficiency wages to reduce worker turnover and thereby reduce production costs.

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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