Question 1

The introduction of a union into an industry creates a

Accepted Answer

A)  surplus of labor and so raises unemployment. 
B)  surplus of labor and so reduces unemployment. 
C)  shortage of labor and so raises unemployment. 
D)  shortage of labor and so reduces unemployment. 
A)  surplus of labor and so raises unemployment. 
B)  surplus of labor and so reduces unemployment. 
C)  shortage of labor and so raises unemployment. 
D)  shortage of labor and so reduces unemployment.

Question 2

Unions

Accepted Answer

A)  raise the wages of unionized workers and raise unemployment. 
B)  raise the wages of unionized workers and reduce unemployment. 
C)  reduce the wages of unionized workers and raise unemployment. 
D)  reduce the wages of unionized workers and reduce unemployment. 
A)  raise the wages of unionized workers and raise unemployment. 
B)  raise the wages of unionized workers and reduce unemployment. 
C)  reduce the wages of unionized workers and raise unemployment. 
D)  reduce the wages of unionized workers and reduce unemployment.

Question 3

Most spells of unemployment are long, and most unemployment observed at any given time is long-term.

Accepted Answer

A) True 
 B)False

Question 4

Figure 28-3  
-Refer to Figure 28-3. If the government imposes a minimum wage of $4, how many workers will be unemployed?

Accepted Answer

A)  0 
A)  3,000 
B)  4,000 
C)  7,000 
A)  0 
A)  3,000 
B)  4,000 
C)  7,000

Question 5

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 highest 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 6

The Bureau of Labor Statistics' U­1 measure of joblessness includes only very long­term unemployed.

Accepted Answer

A) True 
 B)False

Question 7

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 8

Almost half of all spells of unemployment end when the unemployed person .

Accepted Answer

leaves the

Question 9

If there were no factors keeping wages from reaching equilibrium then there would be no

Accepted Answer

A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  structural unemployment. 
D)  natural rate of unemployment. 
A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  structural unemployment. 
D)  natural rate of unemployment.

Question 10

Table 28-9
The table below lists the number of people by labor force classification for the country of Shelbyville.  
-Refer to Table 28-9. What is the size of the labor force, and the size of the adult population?

Accepted Answer

The labor force is 1

Question 11

Which of the following is not a contention of advocates of unions?

Accepted Answer

A)  Unions are a necessary antidote to the market power of the firms that hire workers. 
B)  In the case of a "company town," a union may balance the firm's market power and protect the workers from being at the mercy of the firm's owners. 
C)  The introduction of a union benefits all workers in a firm. 
D)  Unions are important for helping firms respond efficiently to workers' concerns. 
A)  Unions are a necessary antidote to the market power of the firms that hire workers. 
B)  In the case of a "company town," a union may balance the firm's market power and protect the workers from being at the mercy of the firm's owners. 
C)  The introduction of a union benefits all workers in a firm. 
D)  Unions are important for helping firms respond efficiently to workers' concerns.

Question 12

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

Accepted Answer

A)  Miguel, who is on temporary layoff 
B)  Reta, who worked only 15 hours last week 
C)  Marisa, who neither has a job nor is looking for one 
D)  None of the above is correct. 
A)  Miguel, who is on temporary layoff 
B)  Reta, who worked only 15 hours last week 
C)  Marisa, who neither has a job nor is looking for one 
D)  None of the above is correct.

Question 13

Which of the following is correct?

Accepted Answer

A)  In unionized industries, wages are above the level that would prevail in competitive markets. 
B)  The introduction of a union in some 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)  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 above the level that would prevail in competitive markets. 
B)  The introduction of a union in some 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)  Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable. 
D)  All of the above are correct.

Question 14

Table 28-8
Below is data about the labor market in the state of Northwoods.  
-Refer to Table 28-8. If the state government imposed a minimum wage of $10, how many people would be unemployed?

Accepted Answer

A)  0 
A)  10,000 
B)  20,000 
C)  40,000 
A)  0 
A)  10,000 
B)  20,000 
C)  40,000

Question 15

Table 28-11
2010 Labor Data for Tajnia  
-Refer to Table 28-11. The labor force of Tajnia in 2010 is 10,000.

Accepted Answer

A) True 
 B)False

Question 16

One reason economies always experience some unemployment is job search.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  both wages and unemployment increase. 
B)  wages increase and unemployment decreases. 
C)  wages decrease and unemployment increases. 
D)  both wages and unemployment decrease. 
A)  both wages and unemployment increase. 
B)  wages increase and unemployment decreases. 
C)  wages decrease and unemployment increases. 
D)  both wages and unemployment decrease.

Question 18

Maury did not work last week because fire forced an evacuation of his workplace. The Bureau of Labor Statistics counts Maury 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 19

Within the U.S. population, blacks of prime working age (ages 25-54) have higher rates of unemployment than whites of prime working age (ages 25-54), regardless of gender.

Accepted Answer

A) True 
 B)False

Question 20

Suppose that medical technicians and nurses' aides are not unionized. If the nurses' aides unionize, then the wages of

Accepted Answer

A)  both medical technicians and nurses' aides will rise. 
B)  both medical technicians and nurses' aides will fall. 
C)  medical technicians will rise, and the wages of nurses' aides will fall. 
D)  nurses' aides will rise, and the wages of medical technicians will fall. 
A)  both medical technicians and nurses' aides will rise. 
B)  both medical technicians and nurses' aides will fall. 
C)  medical technicians will rise, and the wages of nurses' aides will fall. 
D)  nurses' aides will rise, and the wages of medical technicians will fall.

Exam 28: Unemployment

The introduction of a union into an industry creates a

Unions

Most spells of unemployment are long, and most unemployment observed at any given time is long-term.

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $4, how many workers will be unemployed? A) 0

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 highest unemployment rate?

The Bureau of Labor Statistics' U­1 measure of joblessness includes only very long­term unemployed.

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

Almost half of all spells of unemployment end when the unemployed person .

If there were no factors keeping wages from reaching equilibrium then there would be no

Table 28-9 The table below lists the number of people by labor force classification for the country of Shelbyville. -Refer to Table 28-9. What is the size of the labor force, and the size of the adult population?

Which of the following is not a contention of advocates of unions?

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

Which of the following is correct?

Table 28-8 Below is data about the labor market in the state of Northwoods. -Refer to Table 28-8. If the state government imposed a minimum wage of $10, how many people would be unemployed? A) 0

Table 28-11 2010 Labor Data for Tajnia -Refer to Table 28-11. The labor force of Tajnia in 2010 is 10,000.

One reason economies always experience some unemployment is job search.

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

Maury did not work last week because fire forced an evacuation of his workplace. The Bureau of Labor Statistics counts Maury as

Within the U.S. population, blacks of prime working age (ages 25-54) have higher rates of unemployment than whites of prime working age (ages 25-54), regardless of gender.

Suppose that medical technicians and nurses' aides are not unionized. If the nurses' aides unionize, then the wages of

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

The Bureau of Labor Statistics' U1 measure of joblessness includes only very longterm unemployed.