Question 1

Other things the same, an increase in wages above their equilibrium level

Accepted Answer

A)  increases frictional unemployment but leaves the natural rate of unemployment unchanged. 
B)  increases frictional unemployment and increases the natural rate of unemployment. 
C)  increases structural unemployment but leaves the natural rate of unemployment unchanged. 
D)  increases structural unemployment and increases the natural rate of unemployment. 
A)  increases frictional unemployment but leaves the natural rate of unemployment unchanged. 
B)  increases frictional unemployment and increases the natural rate of unemployment. 
C)  increases structural unemployment but leaves the natural rate of unemployment unchanged. 
D)  increases structural unemployment and increases the natural rate of unemployment.

Question 2

Unemployment insurance

Accepted Answer

A)  reduces the hardship of unemployment, but it also increases the amount of unemployment. 
B)  reduces the incentive for the unemployed to find and take new jobs. 
C)  causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment. 
D)  All of the above are correct. 
A)  reduces the hardship of unemployment, but it also increases the amount of unemployment. 
B)  reduces the incentive for the unemployed to find and take new jobs. 
C)  causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment. 
D)  All of the above are correct.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  40 million 
B)  65 million 
C)  70 million 
D)  100 million 
A)  40 million 
B)  65 million 
C)  70 million 
D)  100 million

Question 5

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

Accepted Answer

A)  Efficiency wages increase worker health and therefore increase worker productivity. 
B)  Efficiency wages decrease worker turnover and therefore decrease hiring and training costs. 
C)  Efficiency wages decrease worker shirking and therefore increase worker productivity. 
D)  Efficiency wages are below the equilibrium wage rate but still attract a sufficient number of workers. 
A)  Efficiency wages increase worker health and therefore increase worker productivity. 
B)  Efficiency wages decrease worker turnover and therefore decrease hiring and training costs. 
C)  Efficiency wages decrease worker shirking and therefore increase worker productivity. 
D)  Efficiency wages are below the equilibrium wage rate but still attract a sufficient number of workers.

Question 6

List the four ways to explain unemployment in the long run.

Accepted Answer

search costs, minimu

Question 7

Who of the following is not included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)  those who worked in their own business 
B)  those who worked as unpaid workers in a family member's business 
C)  those waiting to be recalled to a job from which they had been laid off 
D)  those who were temporarily absent from work because of vacation. 
A)  those who worked in their own business 
B)  those who worked as unpaid workers in a family member's business 
C)  those waiting to be recalled to a job from which they had been laid off 
D)  those who were temporarily absent from work because of vacation.

Question 8

The Bureau of Labor Statistics produces data on

Accepted Answer

A)  unemployment. 
B)  types of employment. 
C)  length of the average workweek. 
D)  All of the above are correct. 
A)  unemployment. 
B)  types of employment. 
C)  length of the average workweek. 
D)  All of the above are correct.

Question 9

Figure 28-7  
-Refer to Figure 28-7. Without a minimum wage, what is the equilibrium level of employment? Explain what happens to the level of employment if the minimum wage is equal to $125.

Accepted Answer

Without a minimum wage, employ

Question 10

Suppose that garbage collectors and landscaping workers have no unions. Now suppose that garbage collectors form unions. What does this do the labor supply and wages of landscaping workers?

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 increase. 
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 increase.

Question 11

People who report being not in the labor force but who, in fact, want to work but have given up trying to find a job after an unsuccessful search cause the reported unemployment rate to be lower than it would otherwise be.

Accepted Answer

A) True 
 B)False

Question 12

Table 28-3
2009 Labor Data for Baltivia  
-Refer to Table 28-3. What was Baltivia's labor­force participation rate in 2009?

Accepted Answer

A)  55% 
B)  63% 
C)  66.9% 
D)  87.3% 
A)  55% 
B)  63% 
C)  66.9% 
D)  87.3%

Question 13

Recent entrants into the labor force account for about

Accepted Answer

A)  1/5 of those who are unemployed. 
B)  1/4 of those who are unemployed. 
C)  1/3 of those who are unemployed. 
D)  1/2 of those who are unemployed. 
A)  1/5 of those who are unemployed. 
B)  1/4 of those who are unemployed. 
C)  1/3 of those who are unemployed. 
D)  1/2 of those who are unemployed.

Question 14

The Bureau of Labor Statistics divides the adult population into two categories: those who are employed and those who are unemployed.

Accepted Answer

A) True 
 B)False

Question 15

The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?

Accepted Answer

A)  (total unemployed + marginally attached workers)/adult population 
B)  (total unemployed + marginally attached workers + part-time employed for economic reasons)/adult population 
C)  (total unemployed + marginally attached workers)/(labor force + marginally attached workers) 
D)  (total unemployed + marginally attached workers + part time employed for economic reasons)/(labor force + marginally attached workers) 
A)  (total unemployed + marginally attached workers)/adult population 
B)  (total unemployed + marginally attached workers + part-time employed for economic reasons)/adult population 
C)  (total unemployed + marginally attached workers)/(labor force + marginally attached workers) 
D)  (total unemployed + marginally attached workers + part time employed for economic reasons)/(labor force + marginally attached workers)

Question 16

The Bureau of Labor Statistics places people in the "employed" category if they

Accepted Answer

A)  are without a job, but are available for work and have tried to find a job during the previous four weeks. 
B)  work without pay in a family member's business. 
C)  are waiting to be recalled to a job from which they had been laid off. 
D)  All of the above are correct. 
A)  are without a job, but are available for work and have tried to find a job during the previous four weeks. 
B)  work without pay in a family member's business. 
C)  are waiting to be recalled to a job from which they had been laid off. 
D)  All of the above are correct.

Question 17

Suppose that some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were employed?

Accepted Answer

A)  2.76 million 
B)  31.74 million 
C)  34.5 million 
D)  42.32 million 
A)  2.76 million 
B)  31.74 million 
C)  34.5 million 
D)  42.32 million

Question 18

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Accepted Answer

A)  minimum-wage laws 
B)  unions 
C)  efficiency wages 
D)  All of the above are correct. 
A)  minimum-wage laws 
B)  unions 
C)  efficiency wages 
D)  All of the above are correct.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Figure 28-3  
-Refer to Figure 28-3. At the equilibrium wage, how many workers are employed?

Accepted Answer

A)  0 
A)  1,000 
B)  5,000 
C)  9,000 
A)  0 
A)  1,000 
B)  5,000 
C)  9,000

Exam 28: Unemployment

Other things the same, an increase in wages above their equilibrium level

Unemployment insurance

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

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

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

List the four ways to explain unemployment in the long run.

Who of the following is not included in the Bureau of Labor Statistics' "employed" category?

The Bureau of Labor Statistics produces data on

Figure 28-7 -Refer to Figure 28-7. Without a minimum wage, what is the equilibrium level of employment? Explain what happens to the level of employment if the minimum wage is equal to $125.

Suppose that garbage collectors and landscaping workers have no unions. Now suppose that garbage collectors form unions. What does this do the labor supply and wages of landscaping workers?

People who report being not in the labor force but who, in fact, want to work but have given up trying to find a job after an unsuccessful search cause the reported unemployment rate to be lower than it would otherwise be.

Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. What was Baltivia's labor­force participation rate in 2009?

Recent entrants into the labor force account for about

The Bureau of Labor Statistics divides the adult population into two categories: those who are employed and those who are unemployed.

The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?

The Bureau of Labor Statistics places people in the "employed" category if they

Suppose that some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were employed?

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

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

Figure 28-3 -Refer to Figure 28-3. At the equilibrium wage, how many workers are employed? A) 0

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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Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. What was Baltivia's laborforce participation rate in 2009?