Question 1

A union is an employer association that bargains with workers over wages, benefits, and working conditions.

Accepted Answer

A) True 
 B)False

Question 2

The Bureau of Labor Statistics produces data on unemployment

Accepted Answer

A)  weekly. 
B)  monthly. 
C)  quarterly. 
D)  yearly. 
A)  weekly. 
B)  monthly. 
C)  quarterly. 
D)  yearly.

Question 3

Public policy can reduce the economy's natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household?

Accepted Answer

A)  employed 
B)  unemployed 
C)  underemployed 
D)  not in the labor force 
A)  employed 
B)  unemployed 
C)  underemployed 
D)  not in the labor force

Question 5

If the wage is kept above the equilibrium level for any reason, the result is unemployment.

Accepted Answer

A) True 
 B)False

Question 6

Data on the unemployment rate in the U.S. since 1960 show that the economy always has some unemployment and that the amount changes from year to year.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is correct?

Accepted Answer

A)  Nearly all economists believe that unions are bad for the economy as a whole. 
B)  Unionized firms pay wages above the competitive equilibrium level. 
C)  Unions increase the level of employment in unionized firms. 
D)  Unions decrease the level of employment in firms without unions. 
A)  Nearly all economists believe that unions are bad for the economy as a whole. 
B)  Unionized firms pay wages above the competitive equilibrium level. 
C)  Unions increase the level of employment in unionized firms. 
D)  Unions decrease the level of employment in firms without unions.

Question 8

In the town of Gotham the adult population is 560 thousand, the number unemployed is 25 thousand, and 185 thousand are not in the labor force. Calculate the unemployment rate.

Accepted Answer

The answer of In the town of Gotham the adult...

Question 9

The Bureau of Labor Statistics' U­1 measure of joblessness is larger than its U­6 measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Efficiency wages

Accepted Answer

A)  increase productivity and reduce unemployment. 
B)  increase productivity but increase unemployment. 
C)  decrease productivity but reduce unemployment. 
D)  decrease productivity and increase unemployment. 
A)  increase productivity and reduce unemployment. 
B)  increase productivity but increase unemployment. 
C)  decrease productivity but reduce unemployment. 
D)  decrease productivity and increase unemployment.

Question 12

Bob is looking for work after school, but everywhere he fills out an application, the managers say they always have a lot more applications than open positions. Tom has a law degree. Several firms have made him offers, but he thinks he might be able to find a firm where his talents could be put to better use.

Accepted Answer

A)  Bob and Tom are both frictionally unemployed. 
B)  Bob and Tom are both structurally unemployed. 
C)  Bob is frictionally unemployed, and Tom is structurally unemployed. 
D)  Bob is structurally unemployed, and Tom is frictionally unemployed. 
A)  Bob and Tom are both frictionally unemployed. 
B)  Bob and Tom are both structurally unemployed. 
C)  Bob is frictionally unemployed, and Tom is structurally unemployed. 
D)  Bob is structurally unemployed, and Tom is frictionally unemployed.

Question 13

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Accepted Answer

A) True 
 B)False

Question 14

Figure 28-7  
-Refer to Figure 28-7. At a minimum wage of $125, how much is the surplus of labor?

Accepted Answer

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

Question 15

Cyclical unemployment

Accepted Answer

A)  has a different explanation than does the natural rate of unemployment. 
B)  refers to the year­to­year fluctuation in unemployment around an economy's natural rate of unemployment. 
C)  is closely associated with short-run ups and downs of economic activity. 
D)  All of the above are correct. 
A)  has a different explanation than does the natural rate of unemployment. 
B)  refers to the year­to­year fluctuation in unemployment around an economy's natural rate of unemployment. 
C)  is closely associated with short-run ups and downs of economic activity. 
D)  All of the above are correct.

Question 16

The theory of efficiency wages provides a possible explanation as to why

Accepted Answer

A)  workers form unions. 
B)  firms should try to reduce surpluses of labor. 
C)  firms may be inclined to keep their workers' wages above the equilibrium level. 
D)  firms may be inclined to keep their workers' wages below the equilibrium level. 
A)  workers form unions. 
B)  firms should try to reduce surpluses of labor. 
C)  firms may be inclined to keep their workers' wages above the equilibrium level. 
D)  firms may be inclined to keep their workers' wages below the equilibrium level.

Question 17

Some degree of unemployment is in a complex economy.

Accepted Answer

The answer of Some degree of unemployment is in a...

Question 18

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

More than three-fourths of the unemployed are recent entrants into the labor force.

Accepted Answer

A) True 
 B)False

Question 20

About what percentage of jobs are destroyed every year, and about what percentage of workers leave their jobs in a typical month?

Accepted Answer

A)  1% and 5% 
B)  5% and 1% 
C)  3% and 10% 
D)  10% and 3% 
A)  1% and 5% 
B)  5% and 1% 
C)  3% and 10% 
D)  10% and 3%

Exam 28: Unemployment

A union is an employer association that bargains with workers over wages, benefits, and working conditions.

The Bureau of Labor Statistics produces data on unemployment

Public policy can reduce the economy's natural rate of unemployment.

Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household?

If the wage is kept above the equilibrium level for any reason, the result is unemployment.

Data on the unemployment rate in the U.S. since 1960 show that the economy always has some unemployment and that the amount changes from year to year.

Which of the following is correct?

In the town of Gotham the adult population is 560 thousand, the number unemployed is 25 thousand, and 185 thousand are not in the labor force. Calculate the unemployment rate.

The Bureau of Labor Statistics' U­1 measure of joblessness is larger than its U­6 measure of joblessness.

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

Efficiency wages

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Figure 28-7 -Refer to Figure 28-7. At a minimum wage of $125, how much is the surplus of labor?

Cyclical unemployment

The theory of efficiency wages provides a possible explanation as to why

Some degree of unemployment is in a complex economy.

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

More than three-fourths of the unemployed are recent entrants into the labor force.

About what percentage of jobs are destroyed every year, and about what percentage of workers leave their jobs in a typical month?

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

Filters

The Bureau of Labor Statistics' U1 measure of joblessness is larger than its U6 measure of joblessness.