Question 1

Minimum-wage laws matter most for the least skilled and least experienced members of the labor force, such as teenagers.

Accepted Answer

A) True 
 B)False

Question 2

According to 2012 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the highest labor-force participation 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 3

Suppose that the Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to

Accepted Answer

A)  frictional unemployment created by efficiency wages. 
B)  structural unemployment created by efficiency wages. 
C)  frictional unemployment created by sectoral shifts. 
D)  structural unemployment created by sectoral shifts. 
A)  frictional unemployment created by efficiency wages. 
B)  structural unemployment created by efficiency wages. 
C)  frictional unemployment created by sectoral shifts. 
D)  structural unemployment created by sectoral shifts.

Question 4

An important determinant of a country's standard of living is the amount of it typically experiences.

Accepted Answer

The answer of An important determinant of a country's standard...

Question 5

Frictional unemployment results from

Accepted Answer

A)  job searching. It is often thought to explain relatively short spells of unemployment. 
B)  job searching. It is often thought to explain relatively long spells of unemployment 
C)  a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment. 
D)  a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment. 
A)  job searching. It is often thought to explain relatively short spells of unemployment. 
B)  job searching. It is often thought to explain relatively long spells of unemployment 
C)  a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment. 
D)  a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment.

Question 6

Suppose that florists and landscape workers are not unionized. If florists unionize, then the wages of

Accepted Answer

A)  florists will rise, and the wages of landscape workers will fall. 
B)  florists will fall, and the wages of landscape workers will rise. 
C)  both florists and landscape workers will rise. 
D)  both florists and landscape workers will fall. 
A)  florists will rise, and the wages of landscape workers will fall. 
B)  florists will fall, and the wages of landscape workers will rise. 
C)  both florists and landscape workers will rise. 
D)  both florists and landscape workers will fall.

Question 7

Employment can rise in one region of the country while it falls in another.

Accepted Answer

A) True 
 B)False

Question 8

Economists would predict that, other things the same, the more generous unemployment compensation a country has, the

Accepted Answer

A)  shorter the duration of each spell of unemployment and the higher the unemployment rate. 
B)  shorter the duration of each spell of unemployment and the lower the unemployment rate. 
C)  longer the duration of each spell of unemployment and the higher the unemployment rate. 
D)  longer the duration of each spell of unemployment and the lower the unemployment rate. 
A)  shorter the duration of each spell of unemployment and the higher the unemployment rate. 
B)  shorter the duration of each spell of unemployment and the lower the unemployment rate. 
C)  longer the duration of each spell of unemployment and the higher the unemployment rate. 
D)  longer the duration of each spell of unemployment and the lower the unemployment rate.

Question 9

Suppose that bartenders and waiters have no unions. Now suppose that bartenders form a union. What does this do the labor supply and wages of waiters?

Accepted Answer

A)  Both labor supply and wages increase. 
B)  Labor supply increases, and wages decrease. 
C)  Labor supply decreases, and wages increase. 
D)  Both labor supply and wages decrease. 
A)  Both labor supply and wages increase. 
B)  Labor supply increases, and wages decrease. 
C)  Labor supply decreases, and wages increase. 
D)  Both labor supply and wages decrease.

Question 10

The unemployment rate is computed as the number of unemployed

Accepted Answer

A)  divided by the labor force, all times 100. 
B)  divided by the number of employed, all times 100. 
C)  divided by the adult population, all times 100. 
D)  times the labor-force participation rate, all times 100. 
A)  divided by the labor force, all times 100. 
B)  divided by the number of employed, all times 100. 
C)  divided by the adult population, all times 100. 
D)  times the labor-force participation rate, all times 100.

Question 11

Spells of unemployment end about

Accepted Answer

A)  1/5 of the time with the person leaving the labor force. 
B)  1/4 of the time with the person leaving the labor force. 
C)  1/3 of the time with the person leaving the labor force. 
D)  1/2 of the time with the person leaving the labor force. 
A)  1/5 of the time with the person leaving the labor force. 
B)  1/4 of the time with the person leaving the labor force. 
C)  1/3 of the time with the person leaving the labor force. 
D)  1/2 of the time with the person leaving the labor force.

Question 12

For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must

Accepted Answer

A)  be available for work. 
B)  have tried to find employment during the previous week. 
C)  have previously been employed. 
D)  All of the above are correct. 
A)  be available for work. 
B)  have tried to find employment during the previous week. 
C)  have previously been employed. 
D)  All of the above are correct.

Question 13

Three employers have justified their actions as follows. Whose logic is not consistent with the logic of efficiency wage theory?

Accepted Answer

A)  Instead of spending money on an electronic timing system that monitors worker hours, Tom spends an equivalent amount of money on higher wages. 
B)  Dick pays his workers less than the equilibrium wage so that they will not have the time or money to look for work somewhere else. 
C)  Harry pays his workers in a developing country more than the going wage hoping that they will get a better diet and so be more productive. 
D)  None of the above is consistent with the logic of efficiency wage theory. 
A)  Instead of spending money on an electronic timing system that monitors worker hours, Tom spends an equivalent amount of money on higher wages. 
B)  Dick pays his workers less than the equilibrium wage so that they will not have the time or money to look for work somewhere else. 
C)  Harry pays his workers in a developing country more than the going wage hoping that they will get a better diet and so be more productive. 
D)  None of the above is consistent with the logic of efficiency wage theory.

Question 14

According to 2012 data on the U.S. population, which of the following was correct for the adult population of prime working age, ages 25-54?

Accepted Answer

A)  Black females had higher labor-force participation rates and lower unemployment rates compared to white females. 
B)  Black females had similar labor-force participation rates and higher unemployment rates compared to white females. 
C)  Black females had both lower labor-force participation rates and lower unemployment rates compared to white females. 
D)  Black females had lower labor-force participation rates and higher unemployment rates compared to white females. 
A)  Black females had higher labor-force participation rates and lower unemployment rates compared to white females. 
B)  Black females had similar labor-force participation rates and higher unemployment rates compared to white females. 
C)  Black females had both lower labor-force participation rates and lower unemployment rates compared to white females. 
D)  Black females had lower labor-force participation rates and higher unemployment rates compared to white females.

Question 15

According to the theory of efficiency wages, firms operate more efficiently if wages are above the equilibrium level.

Accepted Answer

A) True 
 B)False

Question 16

List a few of the characteristics of workers who typically earn at or below the minimum wage.

Accepted Answer

teenagers, the least skilled m

Question 17

Suppose there are a large number of men who used to work or seek work who now no longer do either. Other things the same, this makes

Accepted Answer

A)  the number of people unemployed rise but does not change the labor force. 
B)  the number of people unemployed rise but makes the labor force fall. 
C)  both the number of people unemployed and the labor force fall. 
D)  the number of people unemployed fall but does not change the labor force. 
A)  the number of people unemployed rise but does not change the labor force. 
B)  the number of people unemployed rise but makes the labor force fall. 
C)  both the number of people unemployed and the labor force fall. 
D)  the number of people unemployed fall but does not change the labor force.

Question 18

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 reduces the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and reduces wages in the rest of the economy. 
C)  There is a strong consensus among economists that unions are bad for the U.S. economy. 
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 reduces the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and reduces wages in the rest of the economy. 
C)  There is a strong consensus among economists that unions are bad for the U.S. economy. 
D)  All of the above are correct.

Question 19

Both full­time and part­time workers are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 20

Figure 28-4  
-Refer to Figure 28-4. If 6,000 workers are unemployed, then the minimum wage must be

Accepted Answer

A)  $1. 
B)  $4. 
C)  $6. 
D)  $7. 
A)  $1. 
B)  $4. 
C)  $6. 
D)  $7.

Exam 28: Unemployment

Minimum-wage laws matter most for the least skilled and least experienced members of the labor force, such as teenagers.

According to 2012 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the highest labor-force participation rate?

Suppose that the Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to

An important determinant of a country's standard of living is the amount of it typically experiences.

Frictional unemployment results from

Suppose that florists and landscape workers are not unionized. If florists unionize, then the wages of

Employment can rise in one region of the country while it falls in another.

Economists would predict that, other things the same, the more generous unemployment compensation a country has, the

Suppose that bartenders and waiters have no unions. Now suppose that bartenders form a union. What does this do the labor supply and wages of waiters?

The unemployment rate is computed as the number of unemployed

Spells of unemployment end about

For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must

Three employers have justified their actions as follows. Whose logic is not consistent with the logic of efficiency wage theory?

According to 2012 data on the U.S. population, which of the following was correct for the adult population of prime working age, ages 25-54?

According to the theory of efficiency wages, firms operate more efficiently if wages are above the equilibrium level.

List a few of the characteristics of workers who typically earn at or below the minimum wage.

Suppose there are a large number of men who used to work or seek work who now no longer do either. Other things the same, this makes

Which of the following is correct?

Both full­time and part­time workers are included in the Bureau of Labor Statistics' "employed" category.

Figure 28-4 -Refer to Figure 28-4. If 6,000 workers are unemployed, then the minimum wage must be

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

Both fulltime and parttime workers are included in the Bureau of Labor Statistics' "employed" category.