Question 1

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one 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 2

When a union is present in a labor market, wages are not determined by the equilibrium of supply and demand.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Which of the following is correct?

Accepted Answer

A)  Labor force = number of employed. 
B)  Labor force = population - number of unemployed. 
C)  Unemployment Rate = number of unemployed ÷ (number of employed + number of unemployed) × 100. 
D)  Unemployment Rate = number of unemployed ÷ adult population × 100. 
A)  Labor force = number of employed. 
B)  Labor force = population - number of unemployed. 
C)  Unemployment Rate = number of unemployed ÷ (number of employed + number of unemployed) × 100. 
D)  Unemployment Rate = number of unemployed ÷ adult population × 100.

Question 5

When job search is the explanation for unemployment, workers are searching for the jobs that best suit their tastes and skills, but when the wage is above the equilibrium level, the quantity of labor supplied exceeds the quantity of labor demanded, and workers are unemployed because they are waiting for jobs to open up.

Accepted Answer

A) True 
 B)False

Question 6

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Accepted Answer

According to the theory of efficiency wa

Question 7

Figure 28-7  
-Refer to Figure 28-7. If the minimum wage is set at $100, how many will be unemployed?

Accepted Answer

The answer of Figure 28-7  
-Refer to Figure 28-7....

Question 8

Which of the following is among the four industries with the largest employment in the United States today?

Accepted Answer

A)  lumber 
B)  men's clothing 
C)  communications 
D)  cotton goods 
A)  lumber 
B)  men's clothing 
C)  communications 
D)  cotton goods

Question 9

If people who report being unemployed are not, in fact, trying hard to find a job, then the reported unemployment rate will be biased upward.

Accepted Answer

A) True 
 B)False

Question 10

If the number of people unemployed rose but the number of people employed and the adult population stayed the same, then the labor force participation rate would rise.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not correct?

Accepted Answer

A)  Unions are exempt from U.S. antitrust laws. 
B)  The Wagner Act of 1935 prevents U.S. employers from interfering when workers try to organize unions. 
C)  The National Labor Relations Board is the U.S. government agency that enforces workers' right to unionize. 
D)  Right-to-work laws prevent firms from hiring permanent replacements for workers who are on strike. 
A)  Unions are exempt from U.S. antitrust laws. 
B)  The Wagner Act of 1935 prevents U.S. employers from interfering when workers try to organize unions. 
C)  The National Labor Relations Board is the U.S. government agency that enforces workers' right to unionize. 
D)  Right-to-work laws prevent firms from hiring permanent replacements for workers who are on strike.

Question 12

Every month when the Bureau of Labor Statistics (BLS) announces the unemployment rate, it also announces the number of jobs the economy has gained or lost. Where does the BLS get the data about jobs?

Accepted Answer

A)  from the survey of 60,000 households, which is called the Current Population Survey 
B)  from the Establishment Survey that measures both frictional and structural unemployment 
C)  from the survey of 160,000 business that have over 40 million workers on their payrolls 
D)  from the Congressional Budget Office, which also calculates the GDP of the United States 
A)  from the survey of 60,000 households, which is called the Current Population Survey 
B)  from the Establishment Survey that measures both frictional and structural unemployment 
C)  from the survey of 160,000 business that have over 40 million workers on their payrolls 
D)  from the Congressional Budget Office, which also calculates the GDP of the United States

Question 13

Within the U.S. population, teenagers (ages 16-19) have lower rates of labor-force participation than adults of prime working age (ages 25-54), regardless of race or gender.

Accepted Answer

A) True 
 B)False

Question 14

Unions are often thought to cause conflict between different groups of workers -- between the insiders who benefit from high union wages and the outsiders who do not get the union jobs.

Accepted Answer

A) True 
 B)False

Question 15

Scenario 28-1
Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment.
-Refer to Scenario 28-1. What is the labor-force participation rate?

Accepted Answer

A)  83.3% 
B)  86.7% 
C)  93.3% 
D)  96.7% 
A)  83.3% 
B)  86.7% 
C)  93.3% 
D)  96.7%

Question 16

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

Question 17

According to 2012 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the lowest 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 18

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

Accepted Answer

A)  availability of reliable birth control 
B)  men acquiring additional years of schooling before entering the labor force 
C)  a preference for men to retire when younger 
D)  changing social attitudes about stay-at-home fathers 
A)  availability of reliable birth control 
B)  men acquiring additional years of schooling before entering the labor force 
C)  a preference for men to retire when younger 
D)  changing social attitudes about stay-at-home fathers

Question 19

Briefly compare the structural unemployment that arises from minimum-wage laws to the frictional unemployment that arises from the process of job search.

Accepted Answer

Minimum-wage laws create unemployment be

Question 20

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.

Exam 28: Unemployment

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called

When a union is present in a labor market, wages are not determined by the equilibrium of supply and demand.

An economy's natural rate of unemployment is the

Which of the following is correct?

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Figure 28-7 -Refer to Figure 28-7. If the minimum wage is set at $100, how many will be unemployed?

Which of the following is among the four industries with the largest employment in the United States today?

If people who report being unemployed are not, in fact, trying hard to find a job, then the reported unemployment rate will be biased upward.

If the number of people unemployed rose but the number of people employed and the adult population stayed the same, then the labor force participation rate would rise.

Which of the following is not correct?

Every month when the Bureau of Labor Statistics (BLS) announces the unemployment rate, it also announces the number of jobs the economy has gained or lost. Where does the BLS get the data about jobs?

Within the U.S. population, teenagers (ages 16-19) have lower rates of labor-force participation than adults of prime working age (ages 25-54), regardless of race or gender.

Unions are often thought to cause conflict between different groups of workers -- between the insiders who benefit from high union wages and the outsiders who do not get the union jobs.

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

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

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

Briefly compare the structural unemployment that arises from minimum-wage laws to the frictional unemployment that arises from the process of job search.

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

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

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

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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