Question 1

Some individuals would like to have a job, but they have given up looking for a job after an unsuccessful search. These individuals are called

Accepted Answer

A)  detached workers, and they are classified by the Bureau of Labor Statistics as unemployed. 
B)  detached workers, and they are not classified by the Bureau of Labor Statistics as unemployed. 
C)  discouraged workers, and they are classified by the Bureau of Labor Statistics as unemployed. 
D)  discouraged workers, and they are not classified by the Bureau of Labor Statistics as unemployed. 
A)  detached workers, and they are classified by the Bureau of Labor Statistics as unemployed. 
B)  detached workers, and they are not classified by the Bureau of Labor Statistics as unemployed. 
C)  discouraged workers, and they are classified by the Bureau of Labor Statistics as unemployed. 
D)  discouraged workers, and they are not classified by the Bureau of Labor Statistics as unemployed.

Question 2

Most spells of unemployment are short, and most unemployment observed at any given time is short-term.

Accepted Answer

A) True 
 B)False

Question 3

A firm might offer efficiency wages in order to reduce shirking.

Accepted Answer

A) True 
 B)False

Question 4

A union is a type of cartel.

Accepted Answer

A) True 
 B)False

Question 5

Measuring the amount of unemployment in the economy is a straightforward task.

Accepted Answer

A) True 
 B)False

Question 6

The main explanation for the lower growth rate for the American economy in the 21st century compared to the previous 250 years is

Accepted Answer

A)  higher minimum wages. 
B)  that although Americans are working more, they are more distracted by technology and therefore are less productive at work. 
C)  that Americans are working less. 
D)  the increasing labor-force participation rates of women with young children. 
A)  higher minimum wages. 
B)  that although Americans are working more, they are more distracted by technology and therefore are less productive at work. 
C)  that Americans are working less. 
D)  the increasing labor-force participation rates of women with young children.

Question 7

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

Accepted Answer

A)  14 years old. 
B)  16 years old. 
C)  18 years old. 
D)  21 years old. 
A)  14 years old. 
B)  16 years old. 
C)  18 years old. 
D)  21 years old.

Question 8

The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate.

Accepted Answer

A) True 
 B)False

Question 9

An economy's natural rate of unemployment refers to the amount of unemployment that the economy normally experiences.

Accepted Answer

A) True 
 B)False

Question 10

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

Accepted Answer

A) True 
 B)False

Question 11

Table 28-5
Labor Force Statistics by Age
Suppose people in the adult population in a small country are classified based on their age.
  
-Refer to Table 28-5. Suppose that the natural rate of unemployment is 5% for those under 55 and 3% for those 55 and older. The cyclical unemployment rate for those under 55 is

Accepted Answer

A)  0.88% which is greater than the cyclical unemployment rate for those 55 and older. 
B)  0.88% which is less than the cyclical unemployment rate for those 55 and older. 
C)  -0.83% which is greater than the cyclical unemployment rate for those 55 and older. 
D)  -0.83% which is less than the cyclical unemployment rate for those 55 and older. 
A)  0.88% which is greater than the cyclical unemployment rate for those 55 and older. 
B)  0.88% which is less than the cyclical unemployment rate for those 55 and older. 
C)  -0.83% which is greater than the cyclical unemployment rate for those 55 and older. 
D)  -0.83% which is less than the cyclical unemployment rate for those 55 and older.

Question 12

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Accepted Answer

A) True 
 B)False

Question 13

Frictional unemployment is often thought to explain relatively short spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 14

Caroline is the owner of a hair-styling salon and spa. She decides to raise the wages of her workers even though she faces an excess supply of labor. Her decision

Accepted Answer

A)  might increase profits if it attracts a better pool of workers to apply for jobs at her salon. 
B)  will increase the excess supply of labor. 
C)  may increase the quality of her work force. 
D)  All of the above are correct. 
A)  might increase profits if it attracts a better pool of workers to apply for jobs at her salon. 
B)  will increase the excess supply of labor. 
C)  may increase the quality of her work force. 
D)  All of the above are correct.

Question 15

Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Accepted Answer

A) True 
 B)False

Question 16

Changes in the composition of demand among industries or regions are called sectoral shifts.

Accepted Answer

A) True 
 B)False

Question 17

The labor-force participation rate tells us the fraction of the population that

Accepted Answer

A)  is able to participate in the labor market. 
B)  has ever been employed. 
C)  has chosen to participate in the labor market. 
D)  has chosen not to participate in the labor market. 
A)  is able to participate in the labor market. 
B)  has ever been employed. 
C)  has chosen to participate in the labor market. 
D)  has chosen not to participate in the labor market.

Question 18

Suppose that some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were unemployed?

Accepted Answer

A)  2.54 million 
B)  2.76 million 
C)  3.68 million 
D)  8 million 
A)  2.54 million 
B)  2.76 million 
C)  3.68 million 
D)  8 million

Question 19

If unions were formed in more industries, the supply of labor in other industries would

Accepted Answer

A)  increase, causing employment in other industries to rise. 
B)  increase, causing employment in other industries to fall. 
C)  decrease, causing employment in other industries to rise. 
D)  decrease, causing employment in other industries to fall. 
A)  increase, causing employment in other industries to rise. 
B)  increase, causing employment in other industries to fall. 
C)  decrease, causing employment in other industries to rise. 
D)  decrease, causing employment in other industries to fall.

Question 20

Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

Accepted Answer

A) True 
 B)False

Exam 15: Unemployment

Some individuals would like to have a job, but they have given up looking for a job after an unsuccessful search. These individuals are called

Most spells of unemployment are short, and most unemployment observed at any given time is short-term.

A firm might offer efficiency wages in order to reduce shirking.

A union is a type of cartel.

Measuring the amount of unemployment in the economy is a straightforward task.

The main explanation for the lower growth rate for the American economy in the 21st century compared to the previous 250 years is

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate.

An economy's natural rate of unemployment refers to the amount of unemployment that the economy normally experiences.

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Frictional unemployment is often thought to explain relatively short spells of unemployment.

Caroline is the owner of a hair-styling salon and spa. She decides to raise the wages of her workers even though she faces an excess supply of labor. Her decision

Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Changes in the composition of demand among industries or regions are called sectoral shifts.

The labor-force participation rate tells us the fraction of the population that

Suppose that some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were unemployed?

If unions were formed in more industries, the supply of labor in other industries would

Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

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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