Question 1

Which of the following is not among the four industries with the largest employment in the United States today?

Accepted Answer

A)  lumber 
B)  aircraft 
C)  communications 
D)  electrical components 
A)  lumber 
B)  aircraft 
C)  communications 
D)  electrical components

Question 2

Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. Other things the same, the unemployment rate

Accepted Answer

A)  increases, and the labor-force participation rate decreases. 
B)  and the labor-force participation rate both increase. 
C)  increases, and the labor-force participation rate is unaffected. 
D)  and the labor-force participation rate are both unaffected. 
A)  increases, and the labor-force participation rate decreases. 
B)  and the labor-force participation rate both increase. 
C)  increases, and the labor-force participation rate is unaffected. 
D)  and the labor-force participation rate are both unaffected.

Question 3

Data on unemployment indicate that most people who become unemployed will soon find jobs.

Accepted Answer

A) True 
 B)False

Question 4

Minimum-wage laws are most likely to affect the wages paid to

Accepted Answer

A)  teenagers. 
B)  people with advanced technical training. 
C)  people who are self-employed. 
D)  union members. 
A)  teenagers. 
B)  people with advanced technical training. 
C)  people who are self-employed. 
D)  union members.

Question 5

Following the recession of 2001, there was a month in which employment and the unemployment rate both rose. Assuming the computations were correct, how is it possible for both to have increased?

Accepted Answer

The rate of unemployment is measured as

Question 6

Anna recently graduated from college with a degree in electrical engineering, but she has not yet started working. To be counted as "unemployed" she

Accepted Answer

A)  does not have to have looked for work. 
B)  must have looked for work no more than a week ago. 
C)  must have looked for work no more than four weeks ago. 
D)  must have looked for work no more than twelve weeks ago. 
A)  does not have to have looked for work. 
B)  must have looked for work no more than a week ago. 
C)  must have looked for work no more than four weeks ago. 
D)  must have looked for work no more than twelve weeks ago.

Question 7

Suppose that an anti-smoking campaign in Moscow, Russia, is successful so that Muscovites smoke less and chew gum more. Tobacco companies lay off workers, while chewing gum manufacturers employ more workers. 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 8

Jenna is searching for a job that suits her tastes about where to live. Mary is looking for a job that makes best use of her skills.

Accepted Answer

A)  Jenna and Mary are both frictionally unemployed. 
B)  Jenna and Mary are both structurally unemployed. 
C)  Jenna is frictionally unemployed, and Mary is structurally unemployed. 
D)  Jenna is structurally unemployed, and Mary is frictionally unemployed. 
A)  Jenna and Mary are both frictionally unemployed. 
B)  Jenna and Mary are both structurally unemployed. 
C)  Jenna is frictionally unemployed, and Mary is structurally unemployed. 
D)  Jenna is structurally unemployed, and Mary is frictionally unemployed.

Question 9

Today, the four industries with the largest employment in the United States are autos, aircraft, communications, and electrical components.

Accepted Answer

A) True 
 B)False

Question 10

According to 2012 data on the U.S. population, which of the following groups of adults of prime working age (ages 25-54) had the highest 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 11

Data show that at least 20 percent of U.S. manufacturing jobs are destroyed every year.

Accepted Answer

A) True 
 B)False

Question 12

It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is correct?

Accepted Answer

A)  Typically more than one-third of the unemployed are new entrants into the job market. 
B)  Most spells of unemployment are short. 
C)  Most unemployment observed at any time is long term. 
D)  All of the above are correct. 
A)  Typically more than one-third of the unemployed are new entrants into the job market. 
B)  Most spells of unemployment are short. 
C)  Most unemployment observed at any time is long term. 
D)  All of the above are correct.

Question 14

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 15

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the

Accepted Answer

A)  number of people unemployed. 
B)  number of jobs the economy has gained or lost. 
C)  size of the labor force. 
D)  number of people who own their own businesses. 
A)  number of people unemployed. 
B)  number of jobs the economy has gained or lost. 
C)  size of the labor force. 
D)  number of people who own their own businesses.

Question 16

Karena was laid off, but she is expecting to be recalled. She has not looked for work since being laid off. Nathan is not employed, nor was he laid off. Who is counted as "unemployed" in the U.S. labor force statistics?

Accepted Answer

A)  1) Karena and 2) Nathan, even if Nathan has not looked for work during the previous four weeks 
B)  1) Karena and 2) Nathan, if Nathan has looked for work during the previous four weeks 
C)  1) not Karena but 2) Nathan, even if Nathan has not looked for work during the previous four weeks 
D)  1) not Karena but 2) Nathan, if Nathan has looked for work during the previous four weeks 
A)  1) Karena and 2) Nathan, even if Nathan has not looked for work during the previous four weeks 
B)  1) Karena and 2) Nathan, if Nathan has looked for work during the previous four weeks 
C)  1) not Karena but 2) Nathan, even if Nathan has not looked for work during the previous four weeks 
D)  1) not Karena but 2) Nathan, if Nathan has looked for work during the previous four weeks

Question 17

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 18

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 U-4 unemployment rate.

Accepted Answer

The answer of Table 28-10
The table below lists the number...

Question 19

When a minimum-wage law forces the wage to remain above the equilibrium level, the result is

Accepted Answer

A)  both a shortage of labor and a shortage of jobs. 
B)  a shortage of labor and a surplus of jobs. 
C)  a surplus of labor and a shortage of jobs. 
D)  both surplus of labor and a surplus of jobs. 
A)  both a shortage of labor and a shortage of jobs. 
B)  a shortage of labor and a surplus of jobs. 
C)  a surplus of labor and a shortage of jobs. 
D)  both surplus of labor and a surplus of jobs.

Question 20

There is a clear consensus among economists that unions are

Accepted Answer

A)  good for the economy because they result in higher wages for most workers. 
B)  good for the economy because they are a necessary antidote to the market power of employers. 
C)  bad for the economy because they are cartels and therefore detrimental to an efficient allocation of resources. 
D)  None of the above is correct; there is no clear consensus among economists about whether unions are good or bad for the economy. 
A)  good for the economy because they result in higher wages for most workers. 
B)  good for the economy because they are a necessary antidote to the market power of employers. 
C)  bad for the economy because they are cartels and therefore detrimental to an efficient allocation of resources. 
D)  None of the above is correct; there is no clear consensus among economists about whether unions are good or bad for the economy.

Exam 28: Unemployment

Which of the following is not among the four industries with the largest employment in the United States today?

Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. Other things the same, the unemployment rate

Data on unemployment indicate that most people who become unemployed will soon find jobs.

Minimum-wage laws are most likely to affect the wages paid to

Following the recession of 2001, there was a month in which employment and the unemployment rate both rose. Assuming the computations were correct, how is it possible for both to have increased?

Anna recently graduated from college with a degree in electrical engineering, but she has not yet started working. To be counted as "unemployed" she

Suppose that an anti-smoking campaign in Moscow, Russia, is successful so that Muscovites smoke less and chew gum more. Tobacco companies lay off workers, while chewing gum manufacturers employ more workers. This is an example of

Jenna is searching for a job that suits her tastes about where to live. Mary is looking for a job that makes best use of her skills.

Today, the four industries with the largest employment in the United States are autos, aircraft, communications, and electrical components.

According to 2012 data on the U.S. population, which of the following groups of adults of prime working age (ages 25-54) had the highest labor-force participation rate?

Data show that at least 20 percent of U.S. manufacturing jobs are destroyed every year.

It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.

Which of the following is correct?

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no frictional unemployment.

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the

Karena was laid off, but she is expecting to be recalled. She has not looked for work since being laid off. Nathan is not employed, nor was he laid off. Who is counted as "unemployed" in the U.S. labor force statistics?

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

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 U-4 unemployment rate.

When a minimum-wage law forces the wage to remain above the equilibrium level, the result is

There is a clear consensus among economists that unions are

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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