Question 1

Who of the following is counted as "unemployed" by the Bureau of Labor Statistics?

Accepted Answer

A)  someone working without pay for a family member's business 
B)  someone who is absent from their job due to illness 
C)  someone on temporary layoff 
D)  All of the above are correct. 
A)  someone working without pay for a family member's business 
B)  someone who is absent from their job due to illness 
C)  someone on temporary layoff 
D)  All of the above are correct.

Question 2

Figure 28-7  
-Refer to Figure 28-7. If the minimum wage is equal to $125, what is the quantity of labor supplied, the quantity of labor demanded, and number unemployed?

Accepted Answer

Labor supplied is 35

Question 3

According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see a(n)

Accepted Answer

A)  increase in the number of job applicants and an increase in how long workers stay on the job. 
B)  increase in the number of job applicants and a decrease in how long workers stay on the job. 
C)  decrease in the number of job applicants and an increase in how long workers stay on the job. 
D)  decrease in the number of job applicants and a decrease in how long workers stay on the job. 
A)  increase in the number of job applicants and an increase in how long workers stay on the job. 
B)  increase in the number of job applicants and a decrease in how long workers stay on the job. 
C)  decrease in the number of job applicants and an increase in how long workers stay on the job. 
D)  decrease in the number of job applicants and a decrease in how long workers stay on the job.

Question 4

An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?

Accepted Answer

A)  both the changes in information technology and unemployment insurance 
B)  only the changes in information technology 
C)  only the changes in unemployment insurance 
D)  neither the changes in information technology nor the changes in unemployment insurance 
A)  both the changes in information technology and unemployment insurance 
B)  only the changes in information technology 
C)  only the changes in unemployment insurance 
D)  neither the changes in information technology nor the changes in unemployment insurance

Question 5

The Bureau of Labor Statistics' U­1 measure of joblessness is smaller than its U­6 measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 6

Table 28-1
Sample Population  
-Refer to Table 28-1. How many in the sample are in the labor force?

Accepted Answer

A)  11 
B)  10 
C)  9 
D)  8 
A)  11 
B)  10 
C)  9 
D)  8

Question 7

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 in Meditor?

Accepted Answer

A)  50 million 
B)  85 million 
C)  90 million 
D)  130 million 
A)  50 million 
B)  85 million 
C)  90 million 
D)  130 million

Question 8

Minimum wage laws help explain the natural rate of unemployment if they create a surplus in any labor market.

Accepted Answer

A) True 
 B)False

Question 9

Adam is looking for a job in marketing. He has had some offers and his prospects are promising, but he has not yet accepted a job. Amanda lost her job working for Mercury Bicycles because many customers decided they prefer bicycles manufactured by Ultimate Bicycles instead. Who is frictionally unemployed?

Accepted Answer

A)  Adam but not Amanda 
B)  Amanda but not Adam 
C)  both Adam and Amanda 
D)  neither Amanda nor Adam 
A)  Adam but not Amanda 
B)  Amanda but not Adam 
C)  both Adam and Amanda 
D)  neither Amanda nor Adam

Question 10

Figure 28-3  
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be employed?

Accepted Answer

A)  3,000 
B)  4,000 
C)  5,000 
D)  7,000 
A)  3,000 
B)  4,000 
C)  5,000 
D)  7,000

Question 11

Minimum-wage laws are least likely to affect the wages paid to

Accepted Answer

A)  teenagers. 
B)  low-skill workers. 
C)  inexperienced workers. 
D)  highly-educated workers. 
A)  teenagers. 
B)  low-skill workers. 
C)  inexperienced workers. 
D)  highly-educated workers.

Question 12

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of households called the

Accepted Answer

A)  Census. 
B)  Labor Survey. 
C)  Survey of Economic Indicators. 
D)  Current Population Survey. 
A)  Census. 
B)  Labor Survey. 
C)  Survey of Economic Indicators. 
D)  Current Population Survey.

Question 13

Buddy is the owner of a firm that bottles beer in St. Louis, Missouri. There are many other such firms in the area. Buddy decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

Accepted Answer

A)  The higher the wage, the less often his workers will choose to leave his firm. 
B)  The higher the wage, the lower will be the costs of obtaining needed supplies. 
C)  The higher the wage, the more he can charge for his beer 
D)  The higher the wage, the more he will have to monitor his workers for shirking. 
A)  The higher the wage, the less often his workers will choose to leave his firm. 
B)  The higher the wage, the lower will be the costs of obtaining needed supplies. 
C)  The higher the wage, the more he can charge for his beer 
D)  The higher the wage, the more he will have to monitor his workers for shirking.

Question 14

Why might a favorable change in the economy, such as technological improvement or a decrease in the price of imported oil, be associated with an increase in frictional unemployment?

Accepted Answer

Even generally favorable changes will us

Question 15

Collective bargaining refers to

Accepted Answer

A)  the process by which the government sets exemptions from the minimum wage law. 
B)  setting the same wage for all employees to prevent conflict among workers. 
C)  firms colluding to set the wages of employees below equilibrium. 
D)  the process by which unions and firms agree on the terms of employment. 
A)  the process by which the government sets exemptions from the minimum wage law. 
B)  setting the same wage for all employees to prevent conflict among workers. 
C)  firms colluding to set the wages of employees below equilibrium. 
D)  the process by which unions and firms agree on the terms of employment.

Question 16

Explain how the following apparently contradictory statement can be true: Most spells of unemployment are short, and most unemployment observed at any given time is long-term.

Accepted Answer

Most people who become unemplo

Question 17

The labor force equals the sum of the employed and the unemployed.

Accepted Answer

A) True 
 B)False

Question 18

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. How many people are unemployed?

Accepted Answer

A)  1 million 
B)  3 million 
C)  4 million 
D)  5 million 
A)  1 million 
B)  3 million 
C)  4 million 
D)  5 million

Question 19

In the U.S., the National Labor Relations Board is the government agency that enforces workers' right to unionize.

Accepted Answer

A) True 
 B)False

Question 20

Frictional unemployment is often thought to explain relatively short spells of unemployment.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment

Who of the following is counted as "unemployed" by the Bureau of Labor Statistics?

Figure 28-7 -Refer to Figure 28-7. If the minimum wage is equal to $125, what is the quantity of labor supplied, the quantity of labor demanded, and number unemployed?

According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see a(n)

An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?

The Bureau of Labor Statistics' U­1 measure of joblessness is smaller than its U­6 measure of joblessness.

Table 28-1 Sample Population -Refer to Table 28-1. How many in the sample are in the labor force?

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 in Meditor?

Minimum wage laws help explain the natural rate of unemployment if they create a surplus in any labor market.

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be employed?

Minimum-wage laws are least likely to affect the wages paid to

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of households called the

Buddy is the owner of a firm that bottles beer in St. Louis, Missouri. There are many other such firms in the area. Buddy decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

Why might a favorable change in the economy, such as technological improvement or a decrease in the price of imported oil, be associated with an increase in frictional unemployment?

Collective bargaining refers to

Explain how the following apparently contradictory statement can be true: Most spells of unemployment are short, and most unemployment observed at any given time is long-term.

The labor force equals the sum of the employed and the unemployed.

In the U.S., the National Labor Relations Board is the government agency that enforces workers' right to unionize.

Frictional unemployment is often thought to explain relatively short spells of unemployment.

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 is smaller than its U6 measure of joblessness.