Question 1

Explain the effect of right-to-work laws on the collective bargaining power of labor unions.

Accepted Answer

Right-to-work laws decrease th

Question 2

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has

Accepted Answer

A)  gradually increased. 
B)  remained constant. 
C)  gradually decreased. 
D)  been eliminated. 
A)  gradually increased. 
B)  remained constant. 
C)  gradually decreased. 
D)  been eliminated.

Question 3

Teenagers have more frequent unemployment spells so, on average, they spend more time searching for jobs. Other thing the same, this means that teenagers have a

Accepted Answer

A)  higher unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be higher. 
B)  higher unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment. 
C)  lower unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be lower. 
D)  lower unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment. 
A)  higher unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be higher. 
B)  higher unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment. 
C)  lower unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be lower. 
D)  lower unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment.

Question 4

The introduction of a union into an industry

Accepted Answer

A)  raises wages and employment in that industry. 
B)  lowers wages and employment in that industry. 
C)  lowers wages and raises employment in that industry. 
D)  raises wages and lowers employment in that industry. 
A)  raises wages and employment in that industry. 
B)  lowers wages and employment in that industry. 
C)  lowers wages and raises employment in that industry. 
D)  raises wages and lowers employment in that industry.

Question 5

The efficiency-wage theory of worker health is

Accepted Answer

A)  more relevant for explaining unemployment in less developed countries than in rich countries. 
B)  more relevant for explaining unemployment in rich countries than in less developed countries. 
C)  equally relevant for explaining unemployment in less developed countries and in rich countries. 
D)  not relevant for explaining unemployment. 
A)  more relevant for explaining unemployment in less developed countries than in rich countries. 
B)  more relevant for explaining unemployment in rich countries than in less developed countries. 
C)  equally relevant for explaining unemployment in less developed countries and in rich countries. 
D)  not relevant for explaining unemployment.

Question 6

Just after World War II, the labor-force participation rate of men was

Accepted Answer

A)  about 33 percent, and in 2012, it was about 50 percent. 
B)  about 50 percent, and in 2012, it was about 60 percent. 
C)  about 60 percent, and in 2012, it was about 60 percent. 
D)  about 90 percent, and in 2012, it was about 70 percent. 
A)  about 33 percent, and in 2012, it was about 50 percent. 
B)  about 50 percent, and in 2012, it was about 60 percent. 
C)  about 60 percent, and in 2012, it was about 60 percent. 
D)  about 90 percent, and in 2012, it was about 70 percent.

Question 7

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 total labor force?

Accepted Answer

A)  25 million 
B)  28 million 
C)  29 million 
D)  30 million 
A)  25 million 
B)  28 million 
C)  29 million 
D)  30 million

Question 8

A typical American worker covered by unemployment insurance receives

Accepted Answer

A)  50 percent of his former wages for 26 weeks. 
B)  50 percent of his former wages for 52 weeks. 
C)  100 percent of his former wages for 26 weeks. 
D)  100 percent of his former wages for 52 weeks. 
A)  50 percent of his former wages for 26 weeks. 
B)  50 percent of his former wages for 52 weeks. 
C)  100 percent of his former wages for 26 weeks. 
D)  100 percent of his former wages for 52 weeks.

Question 9

A firm may pay efficiency wages in an attempt to

Accepted Answer

A)  entice workers to work the night shift rather than the day shift. 
B)  improve productivity by reducing turnover. 
C)  reduce costs by attracting the least-skilled workers to apply for job vacancies. 
D)  All of the above are correct. 
A)  entice workers to work the night shift rather than the day shift. 
B)  improve productivity by reducing turnover. 
C)  reduce costs by attracting the least-skilled workers to apply for job vacancies. 
D)  All of the above are correct.

Question 10

Labor unions

Accepted Answer

A)  raise wages in unionized industries. 
B)  create labor shortages in non-unionized industries. 
C)  play a larger role in the current U.S. economy than in European countries such as Norway and Sweden. 
D)  prefer to operate in states with right-to-work laws. 
A)  raise wages in unionized industries. 
B)  create labor shortages in non-unionized industries. 
C)  play a larger role in the current U.S. economy than in European countries such as Norway and Sweden. 
D)  prefer to operate in states with right-to-work laws.

Question 11

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

Accepted Answer

A)  14 years old. 
B)  16 years old. 
C)  18 years old. 
D)  21 years old. 
A)  14 years old. 
B)  16 years old. 
C)  18 years old. 
D)  21 years old.

Question 12

Data show that at least 10 percent of U.S. manufacturing jobs are destroyed every year.

Accepted Answer

A) True 
 B)False

Question 13

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are not eligible for unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 14

The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

Accepted Answer

A)  higher production costs and higher profits. 
B)  higher production costs and lower profits. 
C)  lower production costs and higher profits. 
D)  lower production costs and lower profits. 
A)  higher production costs and higher profits. 
B)  higher production costs and lower profits. 
C)  lower production costs and higher profits. 
D)  lower production costs and lower profits.

Question 15

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

Accepted Answer

A) True 
 B)False

Question 16

Changes in the composition of demand among industries or regions are called sectoral shifts.

Accepted Answer

A) True 
 B)False

Question 17

The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.

Accepted Answer

A) True 
 B)False

Question 18

The amount of unemployment that a country typically experiences is a determinant of its standard of living.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not a reason economies experience structural unemployment?

Accepted Answer

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

Question 20

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.

Accepted Answer

People who are experienced and educated

Exam 28: Unemployment

Explain the effect of right-to-work laws on the collective bargaining power of labor unions.

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has

Teenagers have more frequent unemployment spells so, on average, they spend more time searching for jobs. Other thing the same, this means that teenagers have a

The introduction of a union into an industry

The efficiency-wage theory of worker health is

Just after World War II, the labor-force participation rate of men was

A typical American worker covered by unemployment insurance receives

A firm may pay efficiency wages in an attempt to

Labor unions

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

Data show that at least 10 percent of U.S. manufacturing jobs are destroyed every year.

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are not eligible for unemployment insurance.

The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

Changes in the composition of demand among industries or regions are called sectoral shifts.

The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.

The amount of unemployment that a country typically experiences is a determinant of its standard of living.

Which of the following is not a reason economies experience structural unemployment?

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.

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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