Question 1

An increase in the minimum wage

Accepted Answer

A)  reduces structural unemployment. 
B)  reduces frictional unemployment, 
C)  increases structural unemployment. 
D)  increases frictional unemployment. 
A)  reduces structural unemployment. 
B)  reduces frictional unemployment, 
C)  increases structural unemployment. 
D)  increases frictional unemployment.

Question 2

Figure 28-3  
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then employment will decrease by

Accepted Answer

A)  0 workers. 
B)  2,000 workers. 
C)  3,000 workers. 
D)  4,000 workers. 
A)  0 workers. 
B)  2,000 workers. 
C)  3,000 workers. 
D)  4,000 workers.

Question 3

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

Accepted Answer

A)  increases, and the labor-force participation rate decreases. 
B)  and the labor-force participation rate both increase. 
C)  increases, and the labor-force participation rate is unaffected. 
D)  is unaffected, and the labor-force participation rate decreases. 
A)  increases, and the labor-force participation rate decreases. 
B)  and the labor-force participation rate both increase. 
C)  increases, and the labor-force participation rate is unaffected. 
D)  is unaffected, and the labor-force participation rate decreases.

Question 4

Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were unemployed?

Accepted Answer

A)  1.425 million 
B)  1.5 million 
C)  2.5 million 
D)  5 million 
A)  1.425 million 
B)  1.5 million 
C)  2.5 million 
D)  5 million

Question 5

If the minimum wage is currently above the equilibrium wage, then a decrease in the minimum wage

Accepted Answer

A)  increases both the quantity demanded and the quantity supplied of labor. 
B)  decreases both the quantity demanded and the quantity supplied of labor. 
C)  increases the quantity of labor demanded but decreases the quantity of labor supplied. 
D)  decreases the quantity of labor demanded but increases the quantity of labor supplied. 
A)  increases both the quantity demanded and the quantity supplied of labor. 
B)  decreases both the quantity demanded and the quantity supplied of labor. 
C)  increases the quantity of labor demanded but decreases the quantity of labor supplied. 
D)  decreases the quantity of labor demanded but increases the quantity of labor supplied.

Question 6

The deviation of unemployment from its natural rate is called

Accepted Answer

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

Question 7

Sam has no job but keeps applying to get a job with a business that is unionized. He is qualified and he finds the pay attractive, but the firm is not hiring. Sam is

Accepted Answer

A)  structurally unemployed. Structural unemployment exists even in the long run. 
B)  structurally unemployed. Structural unemployment does not exist in the long run. 
C)  frictionally unemployed. Frictional unemployment exists even in the long run. 
D)  frictionally unemployed. Frictional unemployment does not exist in the long run. 
A)  structurally unemployed. Structural unemployment exists even in the long run. 
B)  structurally unemployed. Structural unemployment does not exist in the long run. 
C)  frictionally unemployed. Frictional unemployment exists even in the long run. 
D)  frictionally unemployed. Frictional unemployment does not exist in the long run.

Question 8

Advocates of government-run employment agencies and public training programs believe they make job search more efficient.

Accepted Answer

A) True 
 B)False

Question 9

Give an historical example of an efficiency wage that was considered by the firm to be "one of the finest cost­ cutting moves we ever made."

Accepted Answer

Henry Ford paid $5 per day to

Question 10

Efficiency wages create a labor

Accepted Answer

A)  surplus and so increase unemployment. 
B)  surplus and so decrease unemployment. 
C)  shortage and so increase unemployment. 
D)  shortage and so decrease unemployment. 
A)  surplus and so increase unemployment. 
B)  surplus and so decrease unemployment. 
C)  shortage and so increase unemployment. 
D)  shortage and so decrease unemployment.

Question 11

Table 28-2
Labor Data for Aridia
  
-Refer to Table 28-2. The unemployment rate of Aridia in 2010 was

Accepted Answer

A)  10%. 
B)  12.5%. 
C)  14.3%. 
D)  80%. 
A)  10%. 
B)  12.5%. 
C)  14.3%. 
D)  80%.

Question 12

Which of the following is not among the four industries with the largest employment in the United States today?

Accepted Answer

A)  lumber 
B)  aircraft 
C)  communications 
D)  electrical components 
A)  lumber 
B)  aircraft 
C)  communications 
D)  electrical components

Question 13

Which of the following is correct?

Accepted Answer

A)  The labor-force participation rate of women has increased in part due to smaller families. 
B)  The labor-force participation rate of men has decreased in part due to men retiring younger and living longer. 
C)  Both a and b are correct. 
D)  Neither a nor b is correct. 
A)  The labor-force participation rate of women has increased in part due to smaller families. 
B)  The labor-force participation rate of men has decreased in part due to men retiring younger and living longer. 
C)  Both a and b are correct. 
D)  Neither a nor b is correct.

Question 14

Which of the following is correct?

Accepted Answer

A)  There is consensus among economists that unions are good for the economy. 
B)  There is consensus among economists that unions are bad for the economy. 
C)  There is consensus among economists that, on net, unions have almost no impact on macroeconomic variables. 
D)  There is no consensus among economists about whether unions are good or bad for the economy. 
A)  There is consensus among economists that unions are good for the economy. 
B)  There is consensus among economists that unions are bad for the economy. 
C)  There is consensus among economists that, on net, unions have almost no impact on macroeconomic variables. 
D)  There is no consensus among economists about whether unions are good or bad for the economy.

Question 15

Table 28-2
Labor Data for Aridia
  
-Refer to Table 28-2. The labor force of Aridia in 2010 was

Accepted Answer

A)  1,400. 
B)  1,600. 
C)  1,800. 
D)  2,000. 
A)  1,400. 
B)  1,600. 
C)  1,800. 
D)  2,000.

Question 16

Table 28-11
2010 Labor Data for Tajnia
  
-Refer to Table 28-11. The labor-force participation rate of Tajnia in 2010 is about 33.3 percent.

Accepted Answer

A) True 
 B)False

Question 17

Collective bargaining refers to

Accepted Answer

A)  the process by which the government sets exemptions from the minimum wage law. 
B)  setting the same wage for all employees to prevent conflict among workers. 
C)  firms colluding to set the wages of employees below equilibrium. 
D)  the process by which unions and firms agree on the terms of employment. 
A)  the process by which the government sets exemptions from the minimum wage law. 
B)  setting the same wage for all employees to prevent conflict among workers. 
C)  firms colluding to set the wages of employees below equilibrium. 
D)  the process by which unions and firms agree on the terms of employment.

Question 18

Anna recently graduated from college with a degree in electrical engineering, but she has not yet started working. To be counted as "unemployed" she

Accepted Answer

A)  does not have to have looked for work. 
B)  must have looked for work no more than a week ago. 
C)  must have looked for work no more than four weeks ago. 
D)  must have looked for work no more than twelve weeks ago. 
A)  does not have to have looked for work. 
B)  must have looked for work no more than a week ago. 
C)  must have looked for work no more than four weeks ago. 
D)  must have looked for work no more than twelve weeks ago.

Question 19

How does the government measure the economy's rate of unemployment?

Accepted Answer

The unemployment rat

Question 20

Policies that reduce the time it takes unemployed workers to find new jobs

Accepted Answer

A)  can reduce both frictional unemployment and the natural rate of unemployment. 
B)  can reduce frictional unemployment, but they cannot reduce the natural rate of unemployment. 
C)  cannot reduce frictional unemployment, but they can reduce the natural rate of unemployment. 
D)  cannot reduce either frictional unemployment or the natural rate of unemployment. 
A)  can reduce both frictional unemployment and the natural rate of unemployment. 
B)  can reduce frictional unemployment, but they cannot reduce the natural rate of unemployment. 
C)  cannot reduce frictional unemployment, but they can reduce the natural rate of unemployment. 
D)  cannot reduce either frictional unemployment or the natural rate of unemployment.

Exam 15: Unemployment

An increase in the minimum wage

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then employment will decrease by

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were unemployed?

If the minimum wage is currently above the equilibrium wage, then a decrease in the minimum wage

The deviation of unemployment from its natural rate is called

Sam has no job but keeps applying to get a job with a business that is unionized. He is qualified and he finds the pay attractive, but the firm is not hiring. Sam is

Advocates of government-run employment agencies and public training programs believe they make job search more efficient.

Give an historical example of an efficiency wage that was considered by the firm to be "one of the finest cost­ cutting moves we ever made."

Efficiency wages create a labor

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The unemployment rate of Aridia in 2010 was

Which of the following is not among the four industries with the largest employment in the United States today?

Which of the following is correct?

Which of the following is correct?

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor force of Aridia in 2010 was

Table 28-11 2010 Labor Data for Tajnia -Refer to Table 28-11. The labor-force participation rate of Tajnia in 2010 is about 33.3 percent.

Collective bargaining refers to

Anna recently graduated from college with a degree in electrical engineering, but she has not yet started working. To be counted as "unemployed" she

How does the government measure the economy's rate of unemployment?

Policies that reduce the time it takes unemployed workers to find new jobs

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

Filters

Give an historical example of an efficiency wage that was considered by the firm to be "one of the finest cost cutting moves we ever made."