Question 1

All else equal, which of the following would increase the unemployment rate?

Accepted Answer

A)  (i) and (ii) only 
B)  (iii) only 
C)  (ii) and (iii) only 
D)  (ii), (iii), and (iv) only 
A)  (i) and (ii) only 
B)  (iii) only 
C)  (ii) and (iii) only 
D)  (ii), (iii), and (iv) only

Question 2

Over the past several decades in the United States, the labor-force participation rate of women has

Accepted Answer

A)  increased, and the labor-force participation rate of men has increased. 
B)  increased, and the labor-force participation rate of men has decreased. 
C)  decreased, and the labor-force participation rate of men has increased. 
D)  decreased, and the labor-force participation rate of men has decreased. 
A)  increased, and the labor-force participation rate of men has increased. 
B)  increased, and the labor-force participation rate of men has decreased. 
C)  decreased, and the labor-force participation rate of men has increased. 
D)  decreased, and the labor-force participation rate of men has decreased.

Question 3

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

Accepted Answer

A)  might increase profits if it attracts a better pool of workers to apply for jobs at his restaurant. 
B)  will reduce the excess supply of labor. 
C)  is an example of the benefits of a minimum-wage law. 
D)  All of the above are correct. 
A)  might increase profits if it attracts a better pool of workers to apply for jobs at his restaurant. 
B)  will reduce the excess supply of labor. 
C)  is an example of the benefits of a minimum-wage law. 
D)  All of the above are correct.

Question 4

Suppose that neither food-service workers nor retail salespeople are unionized. If food-service workers unionize, then the supply of retail salespeople will

Accepted Answer

A)  rise, as will the wages of retail salespeople. 
B)  rise, and the wages of retail salespeople will fall. 
C)  fall, as will the wages of retail salespeople. 
D)  fall, and the wages of retail salespeople will rise. 
A)  rise, as will the wages of retail salespeople. 
B)  rise, and the wages of retail salespeople will fall. 
C)  fall, as will the wages of retail salespeople. 
D)  fall, and the wages of retail salespeople will rise.

Question 5

Government policy can do nothing about the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not a cause of the decline in the U.S. men's labor­force participation rate over the past several decades?

Accepted Answer

A)  young men now stay in school longer than their fathers and grandfathers did 
B)  older men now retire earlier and live longer 
C)  with more women employed, there are fewer jobs now available to men 
D)  more fathers now stay at home to raise their children 
A)  young men now stay in school longer than their fathers and grandfathers did 
B)  older men now retire earlier and live longer 
C)  with more women employed, there are fewer jobs now available to men 
D)  more fathers now stay at home to raise their children

Question 7

Efficiency wages

Accepted Answer

A)  increase frictional unemployment by keeping wages above equilibrium. 
B)  decrease frictional unemployment by keeping wages at equilibrium. 
C)  increase structural unemployment by keeping wages above equilibrium. 
D)  decrease structural unemployment by keeping wages at equilibrium. 
A)  increase frictional unemployment by keeping wages above equilibrium. 
B)  decrease frictional unemployment by keeping wages at equilibrium. 
C)  increase structural unemployment by keeping wages above equilibrium. 
D)  decrease structural unemployment by keeping wages at equilibrium.

Question 8

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

Accepted Answer

A) True 
 B)False

Question 9

The natural rate of unemployment is the

Accepted Answer

A)  unemployment rate that would prevail with zero inflation. 
B)  rate associated with the highest possible level of GDP. 
C)  difference between the long-run and short-run unemployment rates. 
D)  amount of unemployment that the economy normally experiences. 
A)  unemployment rate that would prevail with zero inflation. 
B)  rate associated with the highest possible level of GDP. 
C)  difference between the long-run and short-run unemployment rates. 
D)  amount of unemployment that the economy normally experiences.

Question 10

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 unemployment rate?

Accepted Answer

A)  3.3% 
B)  6.7% 
C)  10.7% 
D)  12% 
A)  3.3% 
B)  6.7% 
C)  10.7% 
D)  12%

Question 11

Today, unions play a larger role in Europe than they do in the U.S.

Accepted Answer

A) True 
 B)False

Question 12

The unemployment rate equals the percentage of the labor force that is unemployed.

Accepted Answer

A) True 
 B)False

Question 13

The Bureau of Labor Statistics computes labor-force participation rates for the entire adult population and for more narrowly defined groups.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following helps to reduce frictional unemployment?

Accepted Answer

A)  government-run employment agencies 
B)  public training programs 
C)  the Internet 
D)  All of the above are correct. 
A)  government-run employment agencies 
B)  public training programs 
C)  the Internet 
D)  All of the above are correct.

Question 15

In the 1940s and 1950s, about one-third of U.S. workers belonged to unions, but today, only about one-fifth of U.S. workers belong to unions.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following does not help reduce frictional unemployment?

Accepted Answer

A)  government-run employment agencies 
B)  public training programs 
C)  unemployment insurance 
D)  All of the above help reduce frictional unemployment. 
A)  government-run employment agencies 
B)  public training programs 
C)  unemployment insurance 
D)  All of the above help reduce frictional unemployment.

Question 17

Suppose that some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were unemployed?

Accepted Answer

A)  0.846 million 
B)  0.9 million 
C)  1.5 million 
D)  6 million 
A)  0.846 million 
B)  0.9 million 
C)  1.5 million 
D)  6 million

Question 18

Which of the following is a cause of the changing role of women in American society over the past several decades?

Accepted Answer

A)  new technologies that have reduced the amount of time required to complete routine household tasks 
B)  improved birth control 
C)  changing political and social attitudes 
D)  All of the above are correct. 
A)  new technologies that have reduced the amount of time required to complete routine household tasks 
B)  improved birth control 
C)  changing political and social attitudes 
D)  All of the above are correct.

Question 19

To maintain their standard of living, most people rely on

Accepted Answer

A)  government assistance. 
B)  their personal savings. 
C)  their labor earnings. 
D)  rental income. 
A)  government assistance. 
B)  their personal savings. 
C)  their labor earnings. 
D)  rental income.

Question 20

Within the U.S. population, women of prime working age (ages 25-54) have lower rates of labor-force participation than men of prime working age (ages 25-54), regardless of race.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment

All else equal, which of the following would increase the unemployment rate?

Over the past several decades in the United States, the labor-force participation rate of women has

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

Suppose that neither food-service workers nor retail salespeople are unionized. If food-service workers unionize, then the supply of retail salespeople will

Government policy can do nothing about the natural rate of unemployment.

Which of the following is not a cause of the decline in the U.S. men's labor­force participation rate over the past several decades?

Efficiency wages

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

The natural rate of unemployment is the

Today, unions play a larger role in Europe than they do in the U.S.

The unemployment rate equals the percentage of the labor force that is unemployed.

The Bureau of Labor Statistics computes labor-force participation rates for the entire adult population and for more narrowly defined groups.

Which of the following helps to reduce frictional unemployment?

In the 1940s and 1950s, about one-third of U.S. workers belonged to unions, but today, only about one-fifth of U.S. workers belong to unions.

Which of the following does not help reduce frictional unemployment?

Suppose that some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were unemployed?

Which of the following is a cause of the changing role of women in American society over the past several decades?

To maintain their standard of living, most people rely on

Within the U.S. population, women of prime working age (ages 25-54) have lower rates of labor-force participation than men of prime working age (ages 25-54), regardless of race.

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

Which of the following is not a cause of the decline in the U.S. men's laborforce participation rate over the past several decades?