Question 1

A firm may pay efficiency wages in an attempt to

Accepted Answer

A)  reduce incentives to shirk. 
B)  reduce turnover. 
C)  attract a well-qualified pool of applicants. 
D)  All of the above are correct. 
A)  reduce incentives to shirk. 
B)  reduce turnover. 
C)  attract a well-qualified pool of applicants. 
D)  All of the above are correct.

Question 2

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

Accepted Answer

A)  37% 
B)  63% 
C)  66.7% 
D)  96.3% 
A)  37% 
B)  63% 
C)  66.7% 
D)  96.3%

Question 3

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had decreased.

Accepted Answer

A) True 
 B)False

Question 4

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 5

Figure 28-3  
-Refer to Figure 28-3. If unemployment is 2,000 workers, then the minimum wage must be

Accepted Answer

A)  $4. 
B)  $5. 
C)  $7. 
D)  $8. 
A)  $4. 
B)  $5. 
C)  $7. 
D)  $8.

Question 6

The labor-force participation rate tells us the fraction of the population that

Accepted Answer

A)  is able to participate in the labor market. 
B)  has ever been employed. 
C)  has chosen to participate in the labor market. 
D)  has chosen not to participate in the labor market. 
A)  is able to participate in the labor market. 
B)  has ever been employed. 
C)  has chosen to participate in the labor market. 
D)  has chosen not to participate in the labor market.

Question 7

Which of the following is correct?

Accepted Answer

A)  In unionized industries, wages are below the level that would prevail in competitive markets. 
B)  The introduction of a union in an industry increases the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and increases wages in the rest of the economy. 
C)  Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable. 
D)  All of the above are correct. 
A)  In unionized industries, wages are below the level that would prevail in competitive markets. 
B)  The introduction of a union in an industry increases the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and increases wages in the rest of the economy. 
C)  Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable. 
D)  All of the above are correct.

Question 8

Define the natural rate of unemployment and cyclical unemployment.

Accepted Answer

The natural rate of unemployment refers

Question 9

Job search

Accepted Answer

A)  and firms paying wages above equilibrium to improve worker health both create frictional unemployment. 
B)  creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment. 
C)  creates structural unemployment, while firms paying wages above equilibrium to improve worker health creates frictional unemployment. 
D)  and firms paying wages above equilibrium to improve worker health both create structural unemployment. 
A)  and firms paying wages above equilibrium to improve worker health both create frictional unemployment. 
B)  creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment. 
C)  creates structural unemployment, while firms paying wages above equilibrium to improve worker health creates frictional unemployment. 
D)  and firms paying wages above equilibrium to improve worker health both create structural unemployment.

Question 10

Table 28-7
Below is data about the labor market in the city of Productionville.  
-Refer to Table 28-7. If the local government imposed a minimum wage of $5 in Productionville, how many people would be unemployed?

Accepted Answer

A)  0 
B)  2,000 
C)  3,000 
D)  5,000 
A)  0 
B)  2,000 
C)  3,000 
D)  5,000

Question 11

Figure 28-3  
-Refer to Figure 28-3. If the government imposes a minimum wage of $4, then unemployment will increase by

Accepted Answer

A)  0 workers. 
B)  2,000 workers. 
C)  4,000 workers. 
D)  5,000 workers. 
A)  0 workers. 
B)  2,000 workers. 
C)  4,000 workers. 
D)  5,000 workers.

Question 12

Jai Li just lost her job, and she has not yet started looking for a new one. The Bureau of Labor Statistics counts Jai Li as

Accepted Answer

A)  unemployed and in the labor force. 
B)  unemployed but not in the labor force. 
C)  in the labor force but not unemployed. 
D)  neither in the labor force nor unemployed. 
A)  unemployed and in the labor force. 
B)  unemployed but not in the labor force. 
C)  in the labor force but not unemployed. 
D)  neither in the labor force nor unemployed.

Question 13

Which of the following includes everyone in the adult population that the Bureau of Labor Statistics counts as "unemployed"?

Accepted Answer

A)  anyone who is not employed 
B)  anyone who is not employed, is available for work, and has looked for work in the past four weeks 
C)  anyone who is not employed, is available for work, has looked for work in the past four weeks, and anyone who is waiting to be recalled from a job from which they have been laid off 
D)  anyone who is not employed, is available for work, has looked for work in the past four weeks, anyone who is waiting to be recalled from a job from which they have been laid off, and anyone who is employed part time and has searched for full time employment in the past 4 weeks 
A)  anyone who is not employed 
B)  anyone who is not employed, is available for work, and has looked for work in the past four weeks 
C)  anyone who is not employed, is available for work, has looked for work in the past four weeks, and anyone who is waiting to be recalled from a job from which they have been laid off 
D)  anyone who is not employed, is available for work, has looked for work in the past four weeks, anyone who is waiting to be recalled from a job from which they have been laid off, and anyone who is employed part time and has searched for full time employment in the past 4 weeks

Question 14

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

Accepted Answer

A)  90 million 
B)  160 million 
C)  230 million 
D)  240 million 
A)  90 million 
B)  160 million 
C)  230 million 
D)  240 million

Question 15

The adult population must equal the sum of the employed and the unemployed.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

There is no easy way for policymakers to reduce the economy's natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 18

Who among the following would be counted as "unemployed"?

Accepted Answer

A)  Shasta, who is waiting to be recalled to a job from which she has been laid off. 
B)  Karen, who neither has a job nor is looking for one. 
C)  Mary, who worked only 35 hours last week. 
D)  None of the above is correct. 
A)  Shasta, who is waiting to be recalled to a job from which she has been laid off. 
B)  Karen, who neither has a job nor is looking for one. 
C)  Mary, who worked only 35 hours last week. 
D)  None of the above is correct.

Question 19

Gwen is an unpaid worker in her family's restaurant. The Bureau of Labor Statistics counts Gwen as

Accepted Answer

A)  unemployed and in the labor force. 
B)  unemployed and not in the labor force. 
C)  employed and in the labor force. 
D)  employed and not in the labor force. 
A)  unemployed and in the labor force. 
B)  unemployed and not in the labor force. 
C)  employed and in the labor force. 
D)  employed and not in the labor force.

Question 20

Lucy quit her job because she was unhappy at work. Genevieve was fired because she frequently surfed the Internet rather than working on her assigned tasks. Who is eligible for unemployment insurance benefits?

Accepted Answer

A)  both Lucy and Genevieve 
B)  Lucy but not Genevieve 
C)  Genevieve but not Lucy 
D)  neither Lucy nor Genevieve 
A)  both Lucy and Genevieve 
B)  Lucy but not Genevieve 
C)  Genevieve but not Lucy 
D)  neither Lucy nor Genevieve

Exam 28: Unemployment

A firm may pay efficiency wages in an attempt to

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

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had decreased.

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Figure 28-3 -Refer to Figure 28-3. If unemployment is 2,000 workers, then the minimum wage must be

The labor-force participation rate tells us the fraction of the population that

Which of the following is correct?

Define the natural rate of unemployment and cyclical unemployment.

Job search

Table 28-7 Below is data about the labor market in the city of Productionville. -Refer to Table 28-7. If the local government imposed a minimum wage of $5 in Productionville, how many people would be unemployed?

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $4, then unemployment will increase by

Jai Li just lost her job, and she has not yet started looking for a new one. The Bureau of Labor Statistics counts Jai Li as

Which of the following includes everyone in the adult population that the Bureau of Labor Statistics counts as "unemployed"?

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

The adult population must equal the sum of the employed and the unemployed.

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

There is no easy way for policymakers to reduce the economy's natural rate of unemployment.

Who among the following would be counted as "unemployed"?

Gwen is an unpaid worker in her family's restaurant. The Bureau of Labor Statistics counts Gwen as

Lucy quit her job because she was unhappy at work. Genevieve was fired because she frequently surfed the Internet rather than working on her assigned tasks. Who is eligible for unemployment insurance benefits?

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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