Question 1

Minimum-wage laws, unions, and efficiency wages contribute to

Accepted Answer

A)  both structural unemployment and the natural rate of unemployment. 
B)  neither structural unemployment nor the natural rate of unemployment. 
C)  structural unemployment, but not the natural rate of unemployment. 
D)  the natural rate of unemployment, but not structural unemployment. 
A)  both structural unemployment and the natural rate of unemployment. 
B)  neither structural unemployment nor the natural rate of unemployment. 
C)  structural unemployment, but not the natural rate of unemployment. 
D)  the natural rate of unemployment, but not structural unemployment.

Question 2

Economists at the Congressional Budget Office estimated that for 2012, the U.S. natural rate of unemployment was about 5.5 percent.

Accepted Answer

A) True 
 B)False

Question 3

An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

Accepted Answer

A) True 
 B)False

Question 4

According to the theory of efficiency wages, it may be profitable for firms to keep wages high even in the presence of a surplus of labor.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not a cause of frictional unemployment?

Accepted Answer

A)  the destruction of manufacturing jobs 
B)  a worker leaving a job to find one with better benefits 
C)  minimum-wage laws 
D)  unemployment insurance 
A)  the destruction of manufacturing jobs 
B)  a worker leaving a job to find one with better benefits 
C)  minimum-wage laws 
D)  unemployment insurance

Question 6

Rupert is collecting unemployment insurance benefits. To continue to receive his benefits, he must be looking for work. Because he'd like to continue collecting benefits rather than take a job, he applies at places that are unlikely to hire him. People like Rupert make the reported unemployment rate less than it would otherwise be.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  0 
B)  3,000 
C)  4,000 
D)  7,000 
A)  0 
B)  3,000 
C)  4,000 
D)  7,000

Question 8

The labor force minus the number of employed equals the number of unemployed.

Accepted Answer

A) True 
 B)False

Question 9

Table 28-2
Labor Data for Aridia
  
-Refer to Table 28-2. The labor-force participation rate of Aridia in 2011 was

Accepted Answer

A)  43.3%. 
B)  54.2%. 
C)  63.3%. 
D)  68.4%. 
A)  43.3%. 
B)  54.2%. 
C)  63.3%. 
D)  68.4%.

Question 10

Which of the following is a source of frictional unemployment?

Accepted Answer

A)  changes in the composition of demand among industries or regions 
B)  minimum wages 
C)  labor unions 
D)  None of the above is correct. 
A)  changes in the composition of demand among industries or regions 
B)  minimum wages 
C)  labor unions 
D)  None of the above is correct.

Question 11

Economists would predict that, other things the same, the more generous unemployment compensation a country has, the

Accepted Answer

A)  shorter the duration of each spell of unemployment and the higher the unemployment rate. 
B)  shorter the duration of each spell of unemployment and the lower the unemployment rate. 
C)  longer the duration of each spell of unemployment and the higher the unemployment rate. 
D)  longer the duration of each spell of unemployment and the lower the unemployment rate. 
A)  shorter the duration of each spell of unemployment and the higher the unemployment rate. 
B)  shorter the duration of each spell of unemployment and the lower the unemployment rate. 
C)  longer the duration of each spell of unemployment and the higher the unemployment rate. 
D)  longer the duration of each spell of unemployment and the lower the unemployment rate.

Question 12

The National Labor Relations Board

Accepted Answer

A)  enforces antitrust laws against unions. 
B)  enforces workers' rights to unionize. 
C)  acts as a union's representative in collective bargaining. 
D)  is required to approve all collective bargaining agreements before they can be enforced. 
A)  enforces antitrust laws against unions. 
B)  enforces workers' rights to unionize. 
C)  acts as a union's representative in collective bargaining. 
D)  is required to approve all collective bargaining agreements before they can be enforced.

Question 13

Why have labor-force participation rates for women in the United States increased since World War II while labor- force participation rates for men have decreased?

Accepted Answer

Causes of the increase in the U.S. women

Question 14

Which of the following is correct?

Accepted Answer

A)  In the U.S. the natural rate of unemployment is frequently near 2%. 
B)  The natural rate of unemployment fluctuates more than the cyclical rate of unemployment. 
C)  The cyclical rate of unemployment is sometimes below the natural rate of unemployment. 
D)  None of the above is correct. 
A)  In the U.S. the natural rate of unemployment is frequently near 2%. 
B)  The natural rate of unemployment fluctuates more than the cyclical rate of unemployment. 
C)  The cyclical rate of unemployment is sometimes below the natural rate of unemployment. 
D)  None of the above is correct.

Question 15

A person who is counted as "unemployed" by the Bureau of Labor Statistics

Accepted Answer

A)  is also in the labor force. 
B)  must have recently looked for work or be on temporary layoff. 
C)  must be at least 16 years old. 
D)  All of the above are correct. 
A)  is also in the labor force. 
B)  must have recently looked for work or be on temporary layoff. 
C)  must be at least 16 years old. 
D)  All of the above are correct.

Question 16

Within the U.S. population, women of prime working age ages 25-54) have lower rates of labor-force participation than men of prime working age ages 25-54), regardless of race.

Accepted Answer

A) True 
 B)False

Question 17

Evidence from research studies by economists

Accepted Answer

A)  shows that increased unemployment benefits decrease the job search efforts of the unemployed. 
B)  shows that increased unemployment benefits have virtually no effect on the job search efforts of the unemployed. 
C)  shows that increased unemployment benefits increase the job search efforts of the unemployed. 
D)  is conflicting on what increased unemployment benefits do to the job search efforts of the unemployed. 
A)  shows that increased unemployment benefits decrease the job search efforts of the unemployed. 
B)  shows that increased unemployment benefits have virtually no effect on the job search efforts of the unemployed. 
C)  shows that increased unemployment benefits increase the job search efforts of the unemployed. 
D)  is conflicting on what increased unemployment benefits do to the job search efforts of the unemployed.

Question 18

The Bureau of Labor Statistics reported in 2005 that there were 53.23 million people over age 25 who had at least a bachelor's degree, 40.59 million of whom were employed and 0.98 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)  76.3% and 1.8% 
B)  76.3% and 2.4% 
C)  78.1% and 1.8% 
D)  78.1% and 2.4% 
A)  76.3% and 1.8% 
B)  76.3% and 2.4% 
C)  78.1% and 1.8% 
D)  78.1% and 2.4%

Question 19

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

Accepted Answer

A)  8.4% 
B)  9.0% 
C)  9.2% 
D)  35.2% 
A)  8.4% 
B)  9.0% 
C)  9.2% 
D)  35.2%

Question 20

When a union is present in a labor market, wages are not determined by the equilibrium of supply and demand.

Accepted Answer

A) True 
 B)False

Exam 15: Unemployment

Minimum-wage laws, unions, and efficiency wages contribute to

Economists at the Congressional Budget Office estimated that for 2012, the U.S. natural rate of unemployment was about 5.5 percent.

An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

According to the theory of efficiency wages, it may be profitable for firms to keep wages high even in the presence of a surplus of labor.

Which of the following is not a cause of frictional unemployment?

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

The labor force minus the number of employed equals the number of unemployed.

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor-force participation rate of Aridia in 2011 was

Which of the following is a source of frictional unemployment?

Economists would predict that, other things the same, the more generous unemployment compensation a country has, the

The National Labor Relations Board

Why have labor-force participation rates for women in the United States increased since World War II while labor- force participation rates for men have decreased?

Which of the following is correct?

A person who is counted as "unemployed" by the Bureau of Labor Statistics

Within the U.S. population, women of prime working age ages 25-54) have lower rates of labor-force participation than men of prime working age ages 25-54), regardless of race.

Evidence from research studies by economists

The Bureau of Labor Statistics reported in 2005 that there were 53.23 million people over age 25 who had at least a bachelor's degree, 40.59 million of whom were employed and 0.98 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

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

When a union is present in a labor market, wages are not determined by the equilibrium of supply and demand.

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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