Question 1

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

Accepted Answer

A) True 
 B)False

Question 2

Data on unemployment indicate that most people who become unemployed will soon find jobs.

Accepted Answer

A) True 
 B)False

Question 3

Figure 28-3  
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then 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 4

Which of the following is not correct?

Accepted Answer

A)  The unemployment rate is an imperfect measure of a nation's overall level of economic well­being. 
B)  Most job search in the U.S. economy takes place without intervention by the government. 
C)  Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being. 
D)  Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates. 
A)  The unemployment rate is an imperfect measure of a nation's overall level of economic well­being. 
B)  Most job search in the U.S. economy takes place without intervention by the government. 
C)  Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being. 
D)  Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Question 5

Minimum-wage laws

Accepted Answer

A)  create unemployment. 
B)  do not apply in states with right-to-work laws. 
C)  affect highly-educated workers more than high school dropouts. 
D)  cause labor shortages, which further raise wages above equilibrium. 
A)  create unemployment. 
B)  do not apply in states with right-to-work laws. 
C)  affect highly-educated workers more than high school dropouts. 
D)  cause labor shortages, which further raise wages above equilibrium.

Question 6

Minimum wage laws, labor unions, and efficiency wages all generate unemployment by what common mechanism?

Accepted Answer

Wages bein

Question 7

An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?

Accepted Answer

A)  both the changes in information technology and unemployment insurance 
B)  only the changes in information technology 
C)  only the changes in unemployment insurance 
D)  neither the changes in information technology nor the changes in unemployment insurance 
A)  both the changes in information technology and unemployment insurance 
B)  only the changes in information technology 
C)  only the changes in unemployment insurance 
D)  neither the changes in information technology nor the changes in unemployment insurance

Question 8

Public policy can reduce frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 9

Just after World War II, the labor-force participation rate of women was

Accepted Answer

A)  about 25 percent, and in 2012, it was about 50 percent. 
B)  about 33 percent, and in 2012, it was about 60 percent. 
C)  about 50 percent, and in 2012, it was about 70 percent. 
D)  about 60 percent, and in 2012, it was about 80 percent. 
A)  about 25 percent, and in 2012, it was about 50 percent. 
B)  about 33 percent, and in 2012, it was about 60 percent. 
C)  about 50 percent, and in 2012, it was about 70 percent. 
D)  about 60 percent, and in 2012, it was about 80 percent.

Question 10

Unions

Accepted Answer

A)  do not affect the natural rate of unemployment. 
B)  lower the wages of unionized workers. 
C)  raise the profits of unionized firms. 
D)  lower the wages of workers in industries without unions. 
A)  do not affect the natural rate of unemployment. 
B)  lower the wages of unionized workers. 
C)  raise the profits of unionized firms. 
D)  lower the wages of workers in industries without unions.

Question 11

Maury did not work last week because fire forced an evacuation of his workplace. The Bureau of Labor Statistics counts Maury 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 12

The unemployment rate never falls to zero.

Accepted Answer

A) True 
 B)False

Question 13

Other things the same, an increase in wages above their equilibrium level

Accepted Answer

A)  increases frictional unemployment but leaves the natural rate of unemployment unchanged. 
B)  increases frictional unemployment and increases the natural rate of unemployment. 
C)  increases structural unemployment but leaves the natural rate of unemployment unchanged. 
D)  increases structural unemployment and increases the natural rate of unemployment. 
A)  increases frictional unemployment but leaves the natural rate of unemployment unchanged. 
B)  increases frictional unemployment and increases the natural rate of unemployment. 
C)  increases structural unemployment but leaves the natural rate of unemployment unchanged. 
D)  increases structural unemployment and increases the natural rate of unemployment.

Question 14

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a surplus of labor.

Accepted Answer

A) True 
 B)False

Question 15

In an ideal labor market, wages would adjust to balance the quantity of labor supplied and the quantity of labor demanded, ensuring that all workers are always fully employed.

Accepted Answer

A) True 
 B)False

Question 16

List the four types of efficiency-wage theory.

Accepted Answer

Worker health, worke

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Unemployment data are collected

Accepted Answer

A)  from unemployment insurance claims. 
B)  through a regular survey of about 60,000 households. 
C)  through a regular survey of about 200,000 firms. 
D)  All of the above are correct. 
A)  from unemployment insurance claims. 
B)  through a regular survey of about 60,000 households. 
C)  through a regular survey of about 200,000 firms. 
D)  All of the above are correct.

Question 19

Unions are exempt from U.S. antitrust laws.

Accepted Answer

A) True 
 B)False

Question 20

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

Accepted Answer

A) True 
 B)False

Exam 15: Unemployment

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

Data on unemployment indicate that most people who become unemployed will soon find jobs.

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be unemployed?

Which of the following is not correct?

Minimum-wage laws

Minimum wage laws, labor unions, and efficiency wages all generate unemployment by what common mechanism?

An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?

Public policy can reduce frictional unemployment.

Just after World War II, the labor-force participation rate of women was

Unions

Maury did not work last week because fire forced an evacuation of his workplace. The Bureau of Labor Statistics counts Maury as

The unemployment rate never falls to zero.

Other things the same, an increase in wages above their equilibrium level

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a surplus of labor.

In an ideal labor market, wages would adjust to balance the quantity of labor supplied and the quantity of labor demanded, ensuring that all workers are always fully employed.

List the four types of efficiency-wage theory.

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

Unemployment data are collected

Unions are exempt from U.S. antitrust laws.

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

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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