Question 1

Which famous company executive introduced an innovative pay system that is consistent with the theory of efficiency wages?

Accepted Answer

A)  Lee Iococca 
B)  Steve Jobs 
C)  Mark Zuckerberg 
D)  Henry Ford 
A)  Lee Iococca 
B)  Steve Jobs 
C)  Mark Zuckerberg 
D)  Henry Ford

Question 2

Right-to-work laws give workers in a unionized firm the right to choose whether to join the union.

Accepted Answer

A) True 
 B)False

Question 3

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 4

The amount of unemployment that an economy normally experiences is called the

Accepted Answer

A)  average rate of unemployment. 
B)  natural rate of unemployment. 
C)  cyclical rate of unemployment. 
D)  typical rate of unemployment. 
A)  average rate of unemployment. 
B)  natural rate of unemployment. 
C)  cyclical rate of unemployment. 
D)  typical rate of unemployment.

Question 5

Which of the following is a requirement for the Bureau of Labor Statistics to place someone in the "unemployed" category?

Accepted Answer

A)  The person must have worked no more than 10 hours during the past week. 
B)  The person must have tried to find employment during the previous four weeks. 
C)  The person may not have been laid off. 
D)  All of the above are correct. 
A)  The person must have worked no more than 10 hours during the past week. 
B)  The person must have tried to find employment during the previous four weeks. 
C)  The person may not have been laid off. 
D)  All of the above are correct.

Question 6

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

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 8

Figure 28-4  
-Refer to Figure 28-4. If the government imposes a minimum wage of $6, how many workers will be unemployed?

Accepted Answer

A)  0 
A)  2,000 
B)  4,000 
C)  6,000 
A)  0 
A)  2,000 
B)  4,000 
C)  6,000

Question 9

Table 28-6  
-Refer to Table 28-6. What is the U-3 measure of labor underutilization?

Accepted Answer

A)  4.7% 
B)  6.2% 
C)  7.0% 
D)  10.9% 
A)  4.7% 
B)  6.2% 
C)  7.0% 
D)  10.9%

Question 10

The labor force minus the number of employed equals the number of unemployed.

Accepted Answer

A) True 
 B)False

Question 11

If outsiders had more say in union contracts then it is likely that union wages would be

Accepted Answer

A)  higher so unemployment would be higher. 
B)  higher so unemployment would be lower. 
C)  lower so unemployment would be higher. 
D)  lower so unemployment would be lower. 
A)  higher so unemployment would be higher. 
B)  higher so unemployment would be lower. 
C)  lower so unemployment would be higher. 
D)  lower so unemployment would be lower.

Question 12

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 employed?

Accepted Answer

A)  1.5 million 
B)  28.5 million 
C)  30 million 
D)  47.5 million 
A)  1.5 million 
B)  28.5 million 
C)  30 million 
D)  47.5 million

Question 13

Which of the following is correct?

Accepted Answer

A)  Union membership in the United States peaked in the 1940s and 1950s. 
B)  Unions play a larger role in the United States than in European countries such as Belgium, France, and Germany. 
C)  Because of the popularity of unions, most workers in the United States discuss their wages, benefits, and working conditions with their employers as a group. 
D)  Collective bargaining is the process by which unions negotiate membership dues with the National Labor Relations Board. 
A)  Union membership in the United States peaked in the 1940s and 1950s. 
B)  Unions play a larger role in the United States than in European countries such as Belgium, France, and Germany. 
C)  Because of the popularity of unions, most workers in the United States discuss their wages, benefits, and working conditions with their employers as a group. 
D)  Collective bargaining is the process by which unions negotiate membership dues with the National Labor Relations Board.

Question 14

The Bureau of Labor Statistics reported in 2005 that there were 28.19 million people over age 25 who had no high school degree or its equivalent, 11.73 million of whom were employed and 1.04 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)  45.3% and 3.7% 
B)  45.3% and 8.1% 
C)  41.6% and 3.7% 
D)  41.6% and 8.1% 
A)  45.3% and 3.7% 
B)  45.3% and 8.1% 
C)  41.6% and 3.7% 
D)  41.6% and 8.1%

Question 15

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 labor force, and the unemployment rate.

Accepted Answer

The labor force is 9

Question 16

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 17

Which of the following is not correct?

Accepted Answer

A)  Frictional unemployment results from the process of matching workers and jobs. 
B)  Structural unemployment results when the number of jobs is insufficient for the number of workers. 
C)  Minimum wages are the predominant reason for unemployment in the U.S. economy. 
D)  When a minimum-wage law forces the wage to remain above the level that balances supply and demand, it raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level. 
A)  Frictional unemployment results from the process of matching workers and jobs. 
B)  Structural unemployment results when the number of jobs is insufficient for the number of workers. 
C)  Minimum wages are the predominant reason for unemployment in the U.S. economy. 
D)  When a minimum-wage law forces the wage to remain above the level that balances supply and demand, it raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.

Question 18

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, there are more workers willing to work than there are jobs, so some workers are unemployed.

Accepted Answer

A) True 
 B)False

Question 19

The invention of the telegraph led to the loss of jobs for those who had delivered mail by horse but created jobs for telegraph operators and delivery persons. This is an example of

Accepted Answer

A)  structural unemployment created by efficiency wages. 
B)  structural unemployment created by sectoral shifts. 
C)  frictional unemployment created by efficiency wages. 
D)  frictional unemployment created by sectoral shifts. 
A)  structural unemployment created by efficiency wages. 
B)  structural unemployment created by sectoral shifts. 
C)  frictional unemployment created by efficiency wages. 
D)  frictional unemployment created by sectoral shifts.

Question 20

List the four types of efficiency-wage theory.

Accepted Answer

Worker health, worke

Exam 28: Unemployment

Which famous company executive introduced an innovative pay system that is consistent with the theory of efficiency wages?

Right-to-work laws give workers in a unionized firm the right to choose whether to join the union.

Which of the following is correct?

The amount of unemployment that an economy normally experiences is called the

Which of the following is a requirement for the Bureau of Labor Statistics to place someone in the "unemployed" category?

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

The growth rate for the American economy is

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $6, how many workers will be unemployed? A) 0

Table 28-6 -Refer to Table 28-6. What is the U-3 measure of labor underutilization?

The labor force minus the number of employed equals the number of unemployed.

If outsiders had more say in union contracts then it is likely that union wages would be

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 employed?

Which of the following is correct?

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 labor force, and the unemployment rate.

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

Which of the following is not correct?

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, there are more workers willing to work than there are jobs, so some workers are unemployed.

The invention of the telegraph led to the loss of jobs for those who had delivered mail by horse but created jobs for telegraph operators and delivery persons. This is an example of

List the four types of efficiency-wage theory.

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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