Question 1

The designation "natural" implies that the natural rate of unemployment

Accepted Answer

A)  is desirable. 
B)  is constant over time. 
C)  is impervious to economic policy. 
D)  does not go away on its own even in the long run. 
A)  is desirable. 
B)  is constant over time. 
C)  is impervious to economic policy. 
D)  does not go away on its own even in the long run.

Question 2

Which of the following is not correct?

Accepted Answer

A)  When a union is present in a labor market, wages are not 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)  The process by which unions and firms agree on the terms of employment is called a strike. 
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 are not 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)  The process by which unions and firms agree on the terms of employment is called a strike. 
D)  Most workers in the U.S. economy are not members of a union.

Question 3

The efficiency-wage theory of worker health is more relevant for explaining unemployment in less developed countries than in rich countries.

Accepted Answer

A) True 
 B)False

Question 4

Table 28-11
2010 Labor Data for Tajnia  
-Refer to Table 28-11. The unemployment rate of Tajnia in 2010 is about 18.4 percent.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was

Accepted Answer

A)  154/234.9. 
B)  141.6/234.9. 
C)  141.6/154. 
D)  None of the above is correct. 
A)  154/234.9. 
B)  141.6/234.9. 
C)  141.6/154. 
D)  None of the above is correct.

Question 7

Right-to-work laws

Accepted Answer

A)  guarantee workers the right to form unions. 
B)  give workers in a unionized firm the right to choose whether to join the union. 
C)  prevent employers from hiring permanent replacements for workers who are on strike. 
D)  prevent workers from being fired because of increases in wages brought about by collective bargaining. 
A)  guarantee workers the right to form unions. 
B)  give workers in a unionized firm the right to choose whether to join the union. 
C)  prevent employers from hiring permanent replacements for workers who are on strike. 
D)  prevent workers from being fired because of increases in wages brought about by collective bargaining.

Question 8

The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.

Accepted Answer

A) True 
 B)False

Question 9

The labor-force participation rate equals the percentage of the labor force that is either employed or unemployed.

Accepted Answer

A) True 
 B)False

Question 10

The production of which of the following goods was among the four industries with the largest employment in the United States a century ago?

Accepted Answer

A)  horse shoes 
B)  woolen goods 
C)  candles 
D)  minerals from mining 
A)  horse shoes 
B)  woolen goods 
C)  candles 
D)  minerals from mining

Question 11

Which of the following is not an explanation for the existence of structural unemployment?

Accepted Answer

A)  efficiency wages 
B)  job search 
C)  minimum-wage laws 
D)  unions 
A)  efficiency wages 
B)  job search 
C)  minimum-wage laws 
D)  unions

Question 12

Explain how the actions of labor unions generate greater unemployment.

Accepted Answer

Labor unions push wa

Question 13

The natural rate of unemployment is any type of unemployment that does not go away on its own even in the long run.

Accepted Answer

A) True 
 B)False

Question 14

If a union and a firm cannot reach an agreement on the terms of employment, then the union can organize a withdrawal of labor from the firm, called a strike.

Accepted Answer

A) True 
 B)False

Question 15

Provide a definition of the natural rate of unemployment.

Accepted Answer

The amount of unempl

Question 16

In an ideal labor market, wages would adjust to balance the quantity of labor supplied and the quantity of labor demanded, ensuring that all workers are always fully employed.

Accepted Answer

A) True 
 B)False

Question 17

The Bureau of Labor Statistics reported in 2005 that there were 50.40 million people over age 25 whose highest level of education was some college or an associate degree, 33.86 million of whom were employed and 1.27 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)  69.7% and 2.5% 
B)  69.7% and 3.6% 
C)  67.2% and 2.5% 
D)  67.2% and 3.6% 
A)  69.7% and 2.5% 
B)  69.7% and 3.6% 
C)  67.2% and 2.5% 
D)  67.2% and 3.6%

Question 18

Which of the following is correct?

Accepted Answer

A)  The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy. 
B)  The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and a complex economy can achieve zero unemployment. 
C)  The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and a complex economy can achieve zero unemployment. 
D)  The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy. 
A)  The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy. 
B)  The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and a complex economy can achieve zero unemployment. 
C)  The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and a complex economy can achieve zero unemployment. 
D)  The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy.

Question 19

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 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 20

If the minimum wage is currently above the equilibrium wage, then a decrease in the minimum wage

Accepted Answer

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

Exam 28: Unemployment

The designation "natural" implies that the natural rate of unemployment

Which of the following is not correct?

The efficiency-wage theory of worker health is more relevant for explaining unemployment in less developed countries than in rich countries.

Table 28-11 2010 Labor Data for Tajnia -Refer to Table 28-11. The unemployment rate of Tajnia in 2010 is about 18.4 percent.

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

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was

Right-to-work laws

The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.

The labor-force participation rate equals the percentage of the labor force that is either employed or unemployed.

The production of which of the following goods was among the four industries with the largest employment in the United States a century ago?

Which of the following is not an explanation for the existence of structural unemployment?

Explain how the actions of labor unions generate greater unemployment.

The natural rate of unemployment is any type of unemployment that does not go away on its own even in the long run.

If a union and a firm cannot reach an agreement on the terms of employment, then the union can organize a withdrawal of labor from the firm, called a strike.

Provide a definition of the natural rate of unemployment.

In an ideal labor market, wages would adjust to balance the quantity of labor supplied and the quantity of labor demanded, ensuring that all workers are always fully employed.

Which of the following is correct?

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 lowest unemployment rate?

If the minimum wage is currently above the equilibrium wage, then a decrease in the minimum wage

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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