Question 1

When a union raises the wage above the equilibrium level,

Accepted Answer

A)  both the quantity of labor supplied and unemployment rise. 
B)  both the quantity of labor supplied and unemployment fall. 
C)  the quantity of labor supplied rises and unemployment falls. 
D)  the quantity of labor supplied falls and unemployment rises. 
A)  both the quantity of labor supplied and unemployment rise. 
B)  both the quantity of labor supplied and unemployment fall. 
C)  the quantity of labor supplied rises and unemployment falls. 
D)  the quantity of labor supplied falls and unemployment rises.

Question 2

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

Accepted Answer

A) True 
 B)False

Question 3

The Bureau of Labor Statistics' U­3 measure of joblessness is the official unemployment rate.

Accepted Answer

A) True 
 B)False

Question 4

Who is not included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)  Anita, who is on temporary layoff 
B)  Lauren, who has retired and is not looking for work 
C)  Raymond, who does not have a job but has applied for several in the last week 
D)  None of the above is correct. 
A)  Anita, who is on temporary layoff 
B)  Lauren, who has retired and is not looking for work 
C)  Raymond, who does not have a job but has applied for several in the last week 
D)  None of the above is correct.

Question 5

Efficiency wages create a labor

Accepted Answer

A)  surplus and so increase unemployment. 
B)  surplus and so decrease unemployment. 
C)  shortage and so increase unemployment. 
D)  shortage and so decrease unemployment. 
A)  surplus and so increase unemployment. 
B)  surplus and so decrease unemployment. 
C)  shortage and so increase unemployment. 
D)  shortage and so decrease unemployment.

Question 6

Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power.

Accepted Answer

A) True 
 B)False

Question 7

The introduction of a union into a firm benefits all of that firm's workers.

Accepted Answer

A) True 
 B)False

Question 8

Unions contribute to

Accepted Answer

A)  frictional but not structural unemployment. 
B)  structural but not frictional unemployment. 
C)  both frictional and structural unemployment. 
D)  neither frictional nor structural unemployment. 
A)  frictional but not structural unemployment. 
B)  structural but not frictional unemployment. 
C)  both frictional and structural unemployment. 
D)  neither frictional nor structural unemployment.

Question 9

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well­being.

Accepted Answer

A) True 
 B)False

Question 10

When a minimum-wage law forces the wage to remain above the equilibrium level, it

Accepted Answer

A)  raises both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level. 
B)  raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level. 
C)  reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level. 
D)  reduces both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level. 
A)  raises both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level. 
B)  raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level. 
C)  reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level. 
D)  reduces both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level.

Question 11

Sectoral shifts contribute to frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 12

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

Question 13

The natural rate of unemployment is constant over time.

Accepted Answer

A) True 
 B)False

Question 14

Adults who were not working but who had jobs from which they were temporarily absent are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 15

Josh is a full-time college student who is not working or looking for a job. The Bureau of Labor Statistics counts Josh as

Accepted Answer

A)  unemployed and in the labor force. 
B)  unemployed but not in the labor force. 
C)  in the labor force but not unemployed. 
D)  neither in the labor force nor unemployed. 
A)  unemployed and in the labor force. 
B)  unemployed but not in the labor force. 
C)  in the labor force but not unemployed. 
D)  neither in the labor force nor unemployed.

Question 16

The labor-force participation rate measures the percentage of the

Accepted Answer

A)  total adult population that is in the labor force. 
B)  total adult population that is employed. 
C)  labor force that is employed. 
D)  labor force that is either employed or unemployed. 
A)  total adult population that is in the labor force. 
B)  total adult population that is employed. 
C)  labor force that is employed. 
D)  labor force that is either employed or unemployed.

Question 17

Frictional unemployment is

Accepted Answer

A)  not inevitable; rather, it can be reduced to zero by well-designed public policies. 
B)  not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance. 
C)  inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms. 
D)  inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium. 
A)  not inevitable; rather, it can be reduced to zero by well-designed public policies. 
B)  not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance. 
C)  inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms. 
D)  inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium.

Question 18

In the U.S., it is illegal for employers to interfere when workers try to organize unions.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment

When a union raises the wage above the equilibrium level,

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

The Bureau of Labor Statistics' U­3 measure of joblessness is the official unemployment rate.

Who is not included in the labor force by the Bureau of Labor Statistics?

Efficiency wages create a labor

Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power.

The introduction of a union into a firm benefits all of that firm's workers.

Unions contribute to

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well­being.

When a minimum-wage law forces the wage to remain above the equilibrium level, it

Sectoral shifts contribute to frictional unemployment.

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?

The natural rate of unemployment is constant over time.

Adults who were not working but who had jobs from which they were temporarily absent are included in the Bureau of Labor Statistics' "employed" category.

Josh is a full-time college student who is not working or looking for a job. The Bureau of Labor Statistics counts Josh as

The labor-force participation rate measures the percentage of the

Frictional unemployment is

In the U.S., it is illegal for employers to interfere when workers try to organize unions.

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' U3 measure of joblessness is the official unemployment rate.

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of wellbeing.