Exam 28: Unemployment

A survey showed that in each of the past 12 months there was one person who was unemployed who worked in all other months. There were also two people who were unemployed for all 12 months. What percentage of the unemployment spells during the year was short term, and what percentage of the unemployment in a given month was long term?

Most spells of unemployment are short. About half of unemployment spells end with an exit from the labor force.

Suppose that some people report themselves as unemployed when, in fact, they are working in the underground economy. If these persons were counted as employed, then

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

The Bureau of Labor Statistics divides the adult population into three categories: employed, unemployed, and not in the labor force.

Adults who were waiting to be recalled to a job from which they had been laid off are included in the Bureau of Labor Statistics' "employed" category.

Job search is the process of matching workers with appropriate jobs.

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

Workers searching for jobs that best suit them is most closely associated with

Duane owns his own real estate company. The Bureau of Labor Statistics counts Duane as

Adults who are waiting to be recalled to a job from which they had been laid off are counted as "unemployed."

Minimum-wage laws affect all workers.

The natural rate of unemployment is the desirable rate of unemployment for an economy.

Which of the following is not correct?

Briefly explain the four rationales for efficiency wages.

Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

Only paid workers are included in the Bureau of Labor Statistics' "employed" category.

Economists have found that union workers earn what percent more than similar nonunion workers?

Figure 28-1 -Refer to Figure 28-1. Which of the following correctly identifies lines A and B?

Some of a firm's workers are made worse off by the introduction of a union.