Question 1

Frictional unemployment is often the result of changes in the demand for labor among different firms.

Accepted Answer

A) True 
 B)False

Question 2

Every adult who was not employed during the previous four weeks is included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 3

Table 28-6  
-Refer to Table 28-6. What is the U-1 measure of labor underutilization?

Accepted Answer

A)  1.6% 
B)  3.1% 
C)  6.2% 
D)  7.0% 
A)  1.6% 
B)  3.1% 
C)  6.2% 
D)  7.0%

Question 4

The deviation of unemployment from its natural rate is called

Accepted Answer

A)  the normal rate of unemployment. 
B)  deviant unemployment. 
C)  cyclical unemployment. 
D)  fluctuating unemployment. 
A)  the normal rate of unemployment. 
B)  deviant unemployment. 
C)  cyclical unemployment. 
D)  fluctuating unemployment.

Question 5

The Internet my reduce frictional unemployment because it .

Accepted Answer

reduces the search c

Question 6

Table 28-4
2010 Labor Data for Adults (ages 16 and older) in Meditor  
-Refer to Table 28-4. What is the adult unemployment rate in Meditor?

Accepted Answer

A)  4.2% 
A)  6.25% 
B)  6.7% 
C)  10% 
A)  4.2% 
A)  6.25% 
B)  6.7% 
C)  10%

Question 7

The demand for labor by a certain firm is independent of the demand for that firm's product.

Accepted Answer

A) True 
 B)False

Question 8

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.

Accepted Answer

A) True 
 B)False

Question 9

More generous unemployment insurance would

Accepted Answer

A)  raise structural unemployment. 
B)  raise frictional unemployment. 
C)  lower structural unemployment. 
D)  lower frictional unemployment. 
A)  raise structural unemployment. 
B)  raise frictional unemployment. 
C)  lower structural unemployment. 
D)  lower frictional unemployment.

Question 10

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 11

Efficiency wages, minimum-wage laws, and unions all keep wages

Accepted Answer

A)  below the equilibrium level, causing a shortage of labor. 
B)  below the equilibrium level, causing a surplus of labor. 
C)  above the equilibrium level, causing a shortage of labor. 
D)  above the equilibrium level, causing a surplus of labor. 
A)  below the equilibrium level, causing a shortage of labor. 
B)  below the equilibrium level, causing a surplus of labor. 
C)  above the equilibrium level, causing a shortage of labor. 
D)  above the equilibrium level, causing a surplus of labor.

Question 12

Within the U.S. population, teenagers (ages 16-19) have higher rates of unemployment than adults of prime working age (ages 25-54), regardless of race or gender.

Accepted Answer

A) True 
 B)False

Question 13

A firm might offer efficiency wages in order to attract a better pool of applicants.

Accepted Answer

A) True 
 B)False

Question 14

When a union bargains successfully with employers, in that industry,

Accepted Answer

A)  both the quantity of labor supplied and the quantity of labor demanded increase. 
B)  both the quantity of labor supplied and the quantity of labor demanded decrease. 
C)  the quantity of labor supplied increases and the quantity of labor demanded decreases. 
D)  the quantity of labor demanded increases and the quantity of labor supplied decreases. 
A)  both the quantity of labor supplied and the quantity of labor demanded increase. 
B)  both the quantity of labor supplied and the quantity of labor demanded decrease. 
C)  the quantity of labor supplied increases and the quantity of labor demanded decreases. 
D)  the quantity of labor demanded increases and the quantity of labor supplied decreases.

Question 15

Who in the adult population is counted as "employed" in U.S. labor statistics?

Accepted Answer

A)  people who are temporarily absent from their job and people who work without pay in a family member's business 
B)  people who are temporarily absent from their job but not people who work without pay in a family member's business 
C)  people who work without pay in a family member's business but not people who are temporarily absent from their job 
D)  neither people who are temporarily absent from their job nor people who work without pay in a family member's business 
A)  people who are temporarily absent from their job and people who work without pay in a family member's business 
B)  people who are temporarily absent from their job but not people who work without pay in a family member's business 
C)  people who work without pay in a family member's business but not people who are temporarily absent from their job 
D)  neither people who are temporarily absent from their job nor people who work without pay in a family member's business

Question 16

Olga owns her own business. Sven is an unpaid worker in his family's business. Who is included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)  only Olga 
B)  only Sven 
C)  both Olga and Sven 
D)  neither Olga nor Sven 
A)  only Olga 
B)  only Sven 
C)  both Olga and Sven 
D)  neither Olga nor Sven

Question 17

The Bureau of Labor Statistics defines the unemployment rate as the percentage of

Accepted Answer

A)  those unemployed relative to those employed. 
B)  the labor force that is unemployed. 
C)  the adult population that is unemployed. 
D)  the adult population that is unemployed or not in the labor force. 
A)  those unemployed relative to those employed. 
B)  the labor force that is unemployed. 
C)  the adult population that is unemployed. 
D)  the adult population that is unemployed or not in the labor force.

Question 18

Unions are exempt from U.S. antitrust laws.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is correct?

Accepted Answer

A)  Unemployment insurance raises structural unemployment because it reduces the job search efforts of the unemployed. 
B)  Most economists are skeptical of the value of unemployment insurance primarily because they believe that it results in a poorer match between workers and jobs. 
C)  Studies show that when the unemployed become ineligible for benefits, the probability of their finding a job rises markedly. 
D)  All of the above are correct. 
A)  Unemployment insurance raises structural unemployment because it reduces the job search efforts of the unemployed. 
B)  Most economists are skeptical of the value of unemployment insurance primarily because they believe that it results in a poorer match between workers and jobs. 
C)  Studies show that when the unemployed become ineligible for benefits, the probability of their finding a job rises markedly. 
D)  All of the above are correct.

Question 20

Which of the following was not among the four industries with the largest employment in the United States a century ago?

Accepted Answer

A)  cotton goods 
B)  men's clothing 
C)  meat packing 
D)  lumber 
A)  cotton goods 
B)  men's clothing 
C)  meat packing 
D)  lumber

Exam 28: Unemployment

Frictional unemployment is often the result of changes in the demand for labor among different firms.

Every adult who was not employed during the previous four weeks is included in the Bureau of Labor Statistics' "unemployed" category.

Table 28-6 -Refer to Table 28-6. What is the U-1 measure of labor underutilization?

The deviation of unemployment from its natural rate is called

The Internet my reduce frictional unemployment because it .

Table 28-4 2010 Labor Data for Adults (ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult unemployment rate in Meditor? A) 4.2%

The demand for labor by a certain firm is independent of the demand for that firm's product.

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.

More generous unemployment insurance would

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called frictional unemployment.

Efficiency wages, minimum-wage laws, and unions all keep wages

Within the U.S. population, teenagers (ages 16-19) have higher rates of unemployment than adults of prime working age (ages 25-54), regardless of race or gender.

A firm might offer efficiency wages in order to attract a better pool of applicants.

When a union bargains successfully with employers, in that industry,

Who in the adult population is counted as "employed" in U.S. labor statistics?

Olga owns her own business. Sven is an unpaid worker in his family's business. Who is included in the Bureau of Labor Statistics' "employed" category?

The Bureau of Labor Statistics defines the unemployment rate as the percentage of

Unions are exempt from U.S. antitrust laws.

Which of the following is correct?

Which of the following was not among the four industries with the largest employment in the United States a century ago?

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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