Question 1

Suppose that roofers are not unionized. If roofers unionize, then the supply of labor in other sectors of the economy will

Accepted Answer

A)  decrease, raising wages in industries that are not unionized. 
B)  decrease, reducing wages in industries that are not unionized. 
C)  increase, raising wages in industries that are not unionized. 
D)  increase, reducing wages in industries that are not unionized. 
A)  decrease, raising wages in industries that are not unionized. 
B)  decrease, reducing wages in industries that are not unionized. 
C)  increase, raising wages in industries that are not unionized. 
D)  increase, reducing wages in industries that are not unionized.

Question 2

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

Accepted Answer

A)  6.25%. 
B)  11.1%. 
C)  12.5%. 
D)  56.25%. 
A)  6.25%. 
B)  11.1%. 
C)  12.5%. 
D)  56.25%.

Question 3

Define efficiency wages.

Accepted Answer

Efficiency wages are

Question 4

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 60,000 households, called the Current Population Survey.

Accepted Answer

A) True 
 B)False

Question 5

The labor-force participation rate equals the percentage of the labor force that is employed.

Accepted Answer

A) True 
 B)False

Question 6

According to 2012 data on the U.S. population, which of the following groups of teenagers ages 16-19) had the highest 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 7

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following includes everyone in the adult population that the Bureau of Labor Statistics counts as "unemployed"?

Accepted Answer

A)  anyone who is not employed 
B)  anyone who is not employed, is available for work, and has looked for work in the past four weeks 
C)  anyone who is not employed, is available for work, has looked for work in the past four weeks, and anyone who is waiting to be recalled from a job from which they have been laid off 
D)  anyone who is not employed, is available for work, has looked for work in the past four weeks, anyone who is waiting to be recalled from a job from which they have been laid off, and anyone who is employed part time and has searched for full time employment in the past 4 weeks 
A)  anyone who is not employed 
B)  anyone who is not employed, is available for work, and has looked for work in the past four weeks 
C)  anyone who is not employed, is available for work, has looked for work in the past four weeks, and anyone who is waiting to be recalled from a job from which they have been laid off 
D)  anyone who is not employed, is available for work, has looked for work in the past four weeks, anyone who is waiting to be recalled from a job from which they have been laid off, and anyone who is employed part time and has searched for full time employment in the past 4 weeks

Question 9

Minimum-wage laws are least likely to affect the wages paid to

Accepted Answer

A)  teenagers. 
B)  low-skill workers. 
C)  inexperienced workers. 
D)  highly-educated workers. 
A)  teenagers. 
B)  low-skill workers. 
C)  inexperienced workers. 
D)  highly-educated workers.

Question 10

Unions contribute to

Accepted Answer

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

Question 11

Cyclical unemployment is caused by

Accepted Answer

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

Question 12

Explain how the following apparently contradictory statement can be true: Most spells of unemployment are short, and most unemployment observed at any given time is long-term.

Accepted Answer

Most people who become unemplo

Question 13

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

Accepted Answer

A)  50%. 
B)  53.3%. 
C)  56.25%. 
D)  88.9%. 
A)  50%. 
B)  53.3%. 
C)  56.25%. 
D)  88.9%.

Question 14

Who in the adult population is counted as "employed" in U.S. labor statistics?

Accepted Answer

A)  people who are temporarily absent from their job and people who work without pay in a family member's business 
B)  people who are temporarily absent from their job but not people who work without pay in a family member's business 
C)  people who work without pay in a family member's business but not people who are temporarily absent from their job 
D)  neither people who are temporarily absent from their job nor people who work without pay in a family member's business 
A)  people who are temporarily absent from their job and people who work without pay in a family member's business 
B)  people who are temporarily absent from their job but not people who work without pay in a family member's business 
C)  people who work without pay in a family member's business but not people who are temporarily absent from their job 
D)  neither people who are temporarily absent from their job nor people who work without pay in a family member's business

Question 15

The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.

Accepted Answer

A) True 
 B)False

Question 16

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 17

Table 28-3
2009 Labor Data for Baltivia
  
-Refer to Table 28-3. What was Baltivia's labor­force participation rate in 2009?

Accepted Answer

A)  55% 
B)  63% 
C)  66.9% 
D)  87.3% 
A)  55% 
B)  63% 
C)  66.9% 
D)  87.3%

Question 18

Wages set above the equilibrium wage by

Accepted Answer

A)  firms to increase morale are called collective bargaining wages. 
B)  lawmakers to decrease cyclical unemployment are called minimum wages laws. 
C)  firms to increase productivity are called efficiency wages. 
D)  lawmakers to decrease the length of a job search are called efficiency wages. 
A)  firms to increase morale are called collective bargaining wages. 
B)  lawmakers to decrease cyclical unemployment are called minimum wages laws. 
C)  firms to increase productivity are called efficiency wages. 
D)  lawmakers to decrease the length of a job search are called efficiency wages.

Question 19

The growth rate for the American economy is

Accepted Answer

A)  lower in the 21st century than for the previous 250 years. 
B)  higher in the 21st century than for the previous 250 years and increasing rapidly. 
C)  higher in the 21st century than for the previous 250 years but increasing slowly. 
D)  approximately equal in the 21st century and in the previous 250 years. 
A)  lower in the 21st century than for the previous 250 years. 
B)  higher in the 21st century than for the previous 250 years and increasing rapidly. 
C)  higher in the 21st century than for the previous 250 years but increasing slowly. 
D)  approximately equal in the 21st century and in the previous 250 years.

Question 20

Table 28-10
The table below lists the number of people by labor force classification for the country of Springfield.
  
-Refer to Table 28-10. Calculate the number in the adult population, and the labor force participation rate.

Accepted Answer

The adult population

Exam 15: Unemployment

Suppose that roofers are not unionized. If roofers unionize, then the supply of labor in other sectors of the economy will

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

Define efficiency wages.

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 60,000 households, called the Current Population Survey.

The labor-force participation rate equals the percentage of the labor force that is employed.

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

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Which of the following includes everyone in the adult population that the Bureau of Labor Statistics counts as "unemployed"?

Minimum-wage laws are least likely to affect the wages paid to

Unions contribute to

Cyclical unemployment is caused by

Explain how the following apparently contradictory statement can be true: Most spells of unemployment are short, and most unemployment observed at any given time is long-term.

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

Who in the adult population is counted as "employed" in U.S. labor statistics?

The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called frictional unemployment.

Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. What was Baltivia's labor­force participation rate in 2009?

Wages set above the equilibrium wage by

The growth rate for the American economy is

Table 28-10 The table below lists the number of people by labor force classification for the country of Springfield. -Refer to Table 28-10. Calculate the number in the adult population, and the labor force participation rate.

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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Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. What was Baltivia's laborforce participation rate in 2009?