Question 1

Policies that reduce the time it takes unemployed workers to find new jobs

Accepted Answer

A)  can reduce both frictional unemployment and the natural rate of unemployment. 
B)  can reduce frictional unemployment, but they cannot reduce the natural rate of unemployment. 
C)  cannot reduce frictional unemployment, but they can reduce the natural rate of unemployment. 
D)  cannot reduce either frictional unemployment or the natural rate of unemployment. 
A)  can reduce both frictional unemployment and the natural rate of unemployment. 
B)  can reduce frictional unemployment, but they cannot reduce the natural rate of unemployment. 
C)  cannot reduce frictional unemployment, but they can reduce the natural rate of unemployment. 
D)  cannot reduce either frictional unemployment or the natural rate of unemployment.

Question 2

Unemployment insurance increases frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 3

Amy is working part-time. Tavaris is on temporary layoff. Who is included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)  only Amy 
B)  only Tavaris 
C)  both Amy and Tavaris 
D)  neither Amy nor Tavaris 
A)  only Amy 
B)  only Tavaris 
C)  both Amy and Tavaris 
D)  neither Amy nor Tavaris

Question 4

The reported unemployment rate should be viewed as

Accepted Answer

A)  a useful but imperfect measure of joblessness. 
B)  clearly smaller than the true unemployment rate. 
C)  clearly larger than the true unemployment rate. 
D)  being very close to the true unemployment rate. 
A)  a useful but imperfect measure of joblessness. 
B)  clearly smaller than the true unemployment rate. 
C)  clearly larger than the true unemployment rate. 
D)  being very close to the true unemployment rate.

Question 5

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor.

Accepted Answer

A) True 
 B)False

Question 6

Unemployment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

Accepted Answer

A) True 
 B)False

Question 7

Unemployment data is collected

Accepted Answer

A)  through a monthly survey of about 20,000 firms. 
B)  through a monthly survey of about 60,000 households. 
C)  from unemployment insurance claims. 
D)  All of the above are correct. 
A)  through a monthly survey of about 20,000 firms. 
B)  through a monthly survey of about 60,000 households. 
C)  from unemployment insurance claims. 
D)  All of the above are correct.

Question 8

Compare the 2012 unemployment rates and labor-force participation rates of whites, blacks, adults of prime working age (ages 25-54), and teenagers (ages 16-19).

Accepted Answer

For adults:
Adult white men have the hig

Question 9

In terms of duration, how does cyclical unemployment differ from structural unemployment?

Accepted Answer

Cyclical unemploymen

Question 10

The Bureau of Labor Statistics' U­5 measure of joblessness includes marginally attached workers.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is an example of an efficiency wage?

Accepted Answer

A)  a high wage paid to compensate for dangerous work such as coal mining 
B)  an above-equilibrium wage offered by a firm to attract a more talented pool of job applicants 
C)  a wage below the minimum wage but supplemented by customer tips 
D)  a high wage paid to a college graduate for a high-skill job such as electrical engineering 
A)  a high wage paid to compensate for dangerous work such as coal mining 
B)  an above-equilibrium wage offered by a firm to attract a more talented pool of job applicants 
C)  a wage below the minimum wage but supplemented by customer tips 
D)  a high wage paid to a college graduate for a high-skill job such as electrical engineering

Question 12

A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job is

Accepted Answer

A)  counted as out of the labor force but should be counted as unemployed. 
B)  counted as unemployed but should be counted as out of the labor force. 
C)  correctly counted as out of the labor force. 
D)  correctly counted as unemployed. 
A)  counted as out of the labor force but should be counted as unemployed. 
B)  counted as unemployed but should be counted as out of the labor force. 
C)  correctly counted as out of the labor force. 
D)  correctly counted as unemployed.

Question 13

John is a stockbroker. He has had several job offers, but he has turned them down because he thinks he can find a firm that better matches his tastes and skills. Curtis has looked for work as an accountant for some time. While the demand for accountants does not appear to be falling, there seems to be more people applying than jobs available.

Accepted Answer

A)  John and Curtis are both frictionally unemployed. 
B)  John and Curtis are both structurally unemployed. 
C)  John is frictionally unemployed, and Curtis is structurally unemployed. 
D)  John is structurally unemployed, and Curtis is frictionally unemployed. 
A)  John and Curtis are both frictionally unemployed. 
B)  John and Curtis are both structurally unemployed. 
C)  John is frictionally unemployed, and Curtis is structurally unemployed. 
D)  John is structurally unemployed, and Curtis is frictionally unemployed.

Question 14

When the wage is above the equilibrium level,

Accepted Answer

A)  the labor market is functioning more efficiently than it otherwise would function. 
B)  there is a shortage of labor. 
C)  the quantity of labor supplied exceeds the quantity of labor demanded. 
D)  job search is the primary explanation for the unemployment that is observed. 
A)  the labor market is functioning more efficiently than it otherwise would function. 
B)  there is a shortage of labor. 
C)  the quantity of labor supplied exceeds the quantity of labor demanded. 
D)  job search is the primary explanation for the unemployment that is observed.

Question 15

If the wage is kept above the equilibrium wage for any reason, the result is

Accepted Answer

A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  seasonal unemployment. 
D)  structural unemployment. 
A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  seasonal unemployment. 
D)  structural unemployment.

Question 16

Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Sheila 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 17

The unemployment rate never falls to zero.

Accepted Answer

A) True 
 B)False

Question 18

The Bureau of Labor Statistics' U­2 measure of joblessness includes job losers and job leavers.

Accepted Answer

A) True 
 B)False

Question 19

The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 20

A century ago, the four industries with the largest employment in the United States were cotton goods, woolen goods, men's clothing, and lumber.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment

Policies that reduce the time it takes unemployed workers to find new jobs

Unemployment insurance increases frictional unemployment.

Amy is working part-time. Tavaris is on temporary layoff. Who is included in the Bureau of Labor Statistics' "employed" category?

The reported unemployment rate should be viewed as

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor.

Unemployment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

Unemployment data is collected

Compare the 2012 unemployment rates and labor-force participation rates of whites, blacks, adults of prime working age (ages 25-54), and teenagers (ages 16-19).

In terms of duration, how does cyclical unemployment differ from structural unemployment?

The Bureau of Labor Statistics' U­5 measure of joblessness includes marginally attached workers.

Which of the following is an example of an efficiency wage?

A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job is

When the wage is above the equilibrium level,

If the wage is kept above the equilibrium wage for any reason, the result is

Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Sheila as

The unemployment rate never falls to zero.

The Bureau of Labor Statistics' U­2 measure of joblessness includes job losers and job leavers.

The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting unemployment insurance.

A century ago, the four industries with the largest employment in the United States were cotton goods, woolen goods, men's clothing, and lumber.

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' U5 measure of joblessness includes marginally attached workers.

The Bureau of Labor Statistics' U2 measure of joblessness includes job losers and job leavers.