Question 1

Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)  Dia, an unpaid homemaker not looking for other work 
B)  Kevin, a full-time student not looking for work 
C)  Sarah, who does not have a job but is looking for work 
D)  None of the above is correct. 
A)  Dia, an unpaid homemaker not looking for other work 
B)  Kevin, a full-time student not looking for work 
C)  Sarah, who does not have a job but is looking for work 
D)  None of the above is correct.

Question 2

Minimum-wage laws

Accepted Answer

A)  reduce unemployment. 
B)  cause labor shortages, which further raise wages above equilibrium. 
C)  affect highly-educated workers more than high school dropouts. 
D)  None of the above is correct. 
A)  reduce unemployment. 
B)  cause labor shortages, which further raise wages above equilibrium. 
C)  affect highly-educated workers more than high school dropouts. 
D)  None of the above is correct.

Question 3

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 4

Efficiency wages

Accepted Answer

A)  increase frictional unemployment by keeping wages above equilibrium. 
B)  decrease frictional unemployment by keeping wages at equilibrium. 
C)  increase structural unemployment by keeping wages above equilibrium. 
D)  decrease structural unemployment by keeping wages at equilibrium. 
A)  increase frictional unemployment by keeping wages above equilibrium. 
B)  decrease frictional unemployment by keeping wages at equilibrium. 
C)  increase structural unemployment by keeping wages above equilibrium. 
D)  decrease structural unemployment by keeping wages at equilibrium.

Question 5

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Accepted Answer

A)  minimum-wage laws 
B)  unions 
C)  efficiency wages 
D)  All of the above are correct. 
A)  minimum-wage laws 
B)  unions 
C)  efficiency wages 
D)  All of the above are correct.

Question 6

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

Accepted Answer

A)  the natural rate of unemployment. 
B)  cyclical unemployment. 
C)  structural unemployment. 
D)  frictional unemployment. 
A)  the natural rate of unemployment. 
B)  cyclical unemployment. 
C)  structural unemployment. 
D)  frictional unemployment.

Question 7

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was

Accepted Answer

A)  154/234.9. 
B)  141.6/234.9. 
C)  141.6/154. 
D)  None of the above is correct. 
A)  154/234.9. 
B)  141.6/234.9. 
C)  141.6/154. 
D)  None of the above is correct.

Question 8

Data on the unemployment rate in the U.S. since 1960 show that the economy always has some unemployment and that the amount changes from year to year.

Accepted Answer

A) True 
 B)False

Question 9

An economy's natural rate of unemployment is the

Accepted Answer

A)  economy's long­run target level of unemployment. 
B)  amount of unemployment that the economy normally experiences. 
C)  lowest rate of unemployment the economy can achieve. 
D)  All of the above are correct. 
A)  economy's long­run target level of unemployment. 
B)  amount of unemployment that the economy normally experiences. 
C)  lowest rate of unemployment the economy can achieve. 
D)  All of the above are correct.

Question 10

Teenagers have more frequent unemployment spells so, on average, they spend more time searching for jobs. Other thing the same, this means that teenagers have a

Accepted Answer

A)  higher unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be higher. 
B)  higher unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment. 
C)  lower unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be lower. 
D)  lower unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment. 
A)  higher unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be higher. 
B)  higher unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment. 
C)  lower unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be lower. 
D)  lower unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment.

Question 11

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually decreased.

Accepted Answer

A) True 
 B)False

Question 12

Efficiency wages

Accepted Answer

A)  increase productivity and reduce unemployment. 
B)  increase productivity but increase unemployment. 
C)  decrease productivity but reduce unemployment. 
D)  decrease productivity and increase unemployment. 
A)  increase productivity and reduce unemployment. 
B)  increase productivity but increase unemployment. 
C)  decrease productivity but reduce unemployment. 
D)  decrease productivity and increase unemployment.

Question 13

Unions contribute to

Accepted Answer

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

Question 14

Who of the following would necessarily be included in the Bureau of Labor Statistics' "unemployed" category?

Accepted Answer

A)  Huey, who did not work during the previous four weeks 
B)  Dewey, who tried to find new employment during the previous four weeks 
C)  Louie, who was an unpaid worker during the previous four weeks 
D)  None of the above is correct. 
A)  Huey, who did not work during the previous four weeks 
B)  Dewey, who tried to find new employment during the previous four weeks 
C)  Louie, who was an unpaid worker during the previous four weeks 
D)  None of the above is correct.

Question 15

Wages in excess of their equilibrium level help explain

Accepted Answer

A)  frictional but not structural unemployment. 
B)  structural but not frictional unemployment. 
C)  both frictional and structural unemployment. 
D)  neither frictional nor structural unemployment. 
A)  frictional but not structural unemployment. 
B)  structural but not frictional unemployment. 
C)  both frictional and structural unemployment. 
D)  neither frictional nor structural unemployment.

Question 16

It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 17

The Bureau of Labor Statistics counts discouraged workers as

Accepted Answer

A)  employed. Including them as employed makes the unemployment rate lower than otherwise. 
B)  unemployed. Including them as unemployed makes the unemployment rate higher than otherwise. 
C)  out of the labor force. If the were counted as unemployed the unemployment rate would be higher. 
D)  None of the above is correct. 
A)  employed. Including them as employed makes the unemployment rate lower than otherwise. 
B)  unemployed. Including them as unemployed makes the unemployment rate higher than otherwise. 
C)  out of the labor force. If the were counted as unemployed the unemployment rate would be higher. 
D)  None of the above is correct.

Question 18

Do economists believe that labor unions are good or bad for the U.S. economy?

Accepted Answer

Economists disagree. Critics argue that

Question 19

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

Accepted Answer

A)  availability of reliable birth control 
B)  invention of household labor-saving devices such as dishwashers and microwave ovens 
C)  an increasing number of women who work to support their parents 
D)  changing social attitudes about working mothers 
A)  availability of reliable birth control 
B)  invention of household labor-saving devices such as dishwashers and microwave ovens 
C)  an increasing number of women who work to support their parents 
D)  changing social attitudes about working mothers

Exam 15: Unemployment

Who is included in the labor force by the Bureau of Labor Statistics?

Minimum-wage laws

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

Efficiency wages

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was

Data on the unemployment rate in the U.S. since 1960 show that the economy always has some unemployment and that the amount changes from year to year.

An economy's natural rate of unemployment is the

Teenagers have more frequent unemployment spells so, on average, they spend more time searching for jobs. Other thing the same, this means that teenagers have a

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually decreased.

Efficiency wages

Unions contribute to

Who of the following would necessarily be included in the Bureau of Labor Statistics' "unemployed" category?

Wages in excess of their equilibrium level help explain

It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.

The Bureau of Labor Statistics counts discouraged workers as

Do economists believe that labor unions are good or bad for the U.S. economy?

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

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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