Question 1

To maintain their standard of living, most people rely on

Accepted Answer

A)  government assistance. 
B)  their labor earnings. 
C)  their personal savings. 
D)  All of the above are correct. 
A)  government assistance. 
B)  their labor earnings. 
C)  their personal savings. 
D)  All of the above are correct.

Question 2

Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labor force instead of as unemployed, then

Accepted Answer

A)  both the unemployment rate and labor-force participation rate would be higher. 
B)  both the unemployment rate and labor-force participation rate would be lower. 
C)  the unemployment rate would be lower, and the labor-force participation rate would be higher. 
D)  the unemployment rate would be higher, and the labor-force participation rate would be lower. 
A)  both the unemployment rate and labor-force participation rate would be higher. 
B)  both the unemployment rate and labor-force participation rate would be lower. 
C)  the unemployment rate would be lower, and the labor-force participation rate would be higher. 
D)  the unemployment rate would be higher, and the labor-force participation rate would be lower.

Question 3

Which of the following is not correct?

Accepted Answer

A)  When a union is present in a labor market, wages may not be determined by the equilibrium of supply and demand. 
B)  Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power. 
C)  When unions raise wages above equilibrium, the quantity of labor supplied decreases, and the quantity of labor demanded increases. 
D)  Most workers in the U.S. economy are not members of a union. 
A)  When a union is present in a labor market, wages may not be determined by the equilibrium of supply and demand. 
B)  Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power. 
C)  When unions raise wages above equilibrium, the quantity of labor supplied decreases, and the quantity of labor demanded increases. 
D)  Most workers in the U.S. economy are not members of a union.

Question 4

Figure 28-4  
-Refer to Figure 28-4. If the government imposes a minimum wage of $4, 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 5

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 600 households, called the Current Population Survey.

Accepted Answer

A) True 
 B)False

Question 6

The Bureau of Labor Statistics' "employed" category includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member's business.

Accepted Answer

A) True 
 B)False

Question 7

Public policy

Accepted Answer

A)  can reduce both frictional unemployment and the natural rate of unemployment. 
B)  can reduce frictional unemployment, but it cannot reduce the natural rate of unemployment. 
C)  cannot reduce frictional unemployment, but it can reduce the natural rate of unemployment. 
D)  cannot reduce either frictional unemployment or the natural rate of unemployment. 
A)  can reduce both frictional unemployment and the natural rate of unemployment. 
B)  can reduce frictional unemployment, but it cannot reduce the natural rate of unemployment. 
C)  cannot reduce frictional unemployment, but it can reduce the natural rate of unemployment. 
D)  cannot reduce either frictional unemployment or the natural rate of unemployment.

Question 8

Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category.

Accepted Answer

A) True 
 B)False

Question 9

Cyclical unemployment refers to

Accepted Answer

A)  the relationship between the probability of unemployment and a worker's changing level of experience. 
B)  how often a worker is likely to be employed during her lifetime. 
C)  year-to-year fluctuations of unemployment around its natural rate. 
D)  long-term trends in unemployment. 
A)  the relationship between the probability of unemployment and a worker's changing level of experience. 
B)  how often a worker is likely to be employed during her lifetime. 
C)  year-to-year fluctuations of unemployment around its natural rate. 
D)  long-term trends in unemployment.

Question 10

Briefly summarize the advantages and disadvantages of unemployment insurance.

Accepted Answer

The main advantage is that unemployment

Question 11

The Bureau of Labor Statistics produces data on unemployment, types of employment, length of the average workweek, and the duration of unemployment.

Accepted Answer

A) True 
 B)False

Question 12

Table 28-9
The table below lists the number of people by labor force classification for the country of Shelbyville.  
-Refer to Table 28-9. What is the labor force participation rate?

Accepted Answer

The answer of Table 28-9
The table below lists the number...

Question 13

Give an historical example of an efficiency wage that was considered by the firm to be "one of the finest cost­ cutting moves we ever made."

Accepted Answer

Henry Ford paid $5 per day to

Question 14

Unpaid stay­at­home fathers are included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a commonly-cited explanation for the dramatically increasing labor-force participation rates for women from 1950 to the present?

Accepted Answer

A)  availability of reliable birth control 
B)  invention of household labor-saving devices such as dishwashers and microwave ovens 
C)  an increasing number of women who work to support their parents 
D)  changing social attitudes about working mothers 
A)  availability of reliable birth control 
B)  invention of household labor-saving devices such as dishwashers and microwave ovens 
C)  an increasing number of women who work to support their parents 
D)  changing social attitudes about working mothers

Question 16

The Bureau of Labor Statistics computes unemployment rates for the entire adult population and for more narrowly defined groups.

Accepted Answer

A) True 
 B)False

Question 17

Efficiency-wage theory suggests that paying

Accepted Answer

A)  low wages might be profitable because they raise the efficiency of a firm's workers. 
B)  low wages might be profitable because they lower the efficiency of a firm's workers. 
C)  high wages might be profitable because they raise the efficiency of a firm's workers. 
D)  high wages might be profitable because they lower the efficiency of a firm's workers. 
A)  low wages might be profitable because they raise the efficiency of a firm's workers. 
B)  low wages might be profitable because they lower the efficiency of a firm's workers. 
C)  high wages might be profitable because they raise the efficiency of a firm's workers. 
D)  high wages might be profitable because they lower the efficiency of a firm's workers.

Question 18

The Bureau of Labor Statistics' household survey and establishment survey both yield information about unemployment.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not an explanation for the existence of unemployment in the long run?

Accepted Answer

A)  it takes time for workers to search for the jobs that are best suited for them 
B)  minimum-wage laws 
C)  unions 
D)  the business cycle 
A)  it takes time for workers to search for the jobs that are best suited for them 
B)  minimum-wage laws 
C)  unions 
D)  the business cycle

Question 20

There are always some workers without jobs, even when the overall economy is doing well.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment

To maintain their standard of living, most people rely on

Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labor force instead of as unemployed, then

Which of the following is not correct?

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

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 600 households, called the Current Population Survey.

The Bureau of Labor Statistics' "employed" category includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member's business.

Public policy

Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category.

Cyclical unemployment refers to

Briefly summarize the advantages and disadvantages of unemployment insurance.

The Bureau of Labor Statistics produces data on unemployment, types of employment, length of the average workweek, and the duration of unemployment.

Table 28-9 The table below lists the number of people by labor force classification for the country of Shelbyville. -Refer to Table 28-9. What is the labor force participation rate?

Give an historical example of an efficiency wage that was considered by the firm to be "one of the finest cost­ cutting moves we ever made."

Unpaid stay­at­home fathers are included in the Bureau of Labor Statistics' "unemployed" category.

Which of the following is not a commonly-cited explanation for the dramatically increasing labor-force participation rates for women from 1950 to the present?

The Bureau of Labor Statistics computes unemployment rates for the entire adult population and for more narrowly defined groups.

Efficiency-wage theory suggests that paying

The Bureau of Labor Statistics' household survey and establishment survey both yield information about unemployment.

Which of the following is not an explanation for the existence of unemployment in the long run?

There are always some workers without jobs, even when the overall economy is doing well.

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

Give an historical example of an efficiency wage that was considered by the firm to be "one of the finest cost cutting moves we ever made."

Unpaid stayathome fathers are included in the Bureau of Labor Statistics' "unemployed" category.