Question 1

Which of the following is correct?

Accepted Answer

A)  The Bureau of Labor Statistics uses data collected from those applying for unemployment insurance to compute the unemployment rate. 
B)  The labor force includes all adults who are able to work. 
C)  Unpaid homemakers are counted as "employed" by the Bureau of Labor Statistics. 
D)  People working part time are counted as "employed" by the Bureau of Labor Statistics. 
A)  The Bureau of Labor Statistics uses data collected from those applying for unemployment insurance to compute the unemployment rate. 
B)  The labor force includes all adults who are able to work. 
C)  Unpaid homemakers are counted as "employed" by the Bureau of Labor Statistics. 
D)  People working part time are counted as "employed" by the Bureau of Labor Statistics.

Question 2

In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Italian adult non- institutionalized population was 51.070 million, the labor force was 24.710 million, and the number of people employed was 22.765 million. According to these numbers, the Italian labor-force participation rate and unemployment rate were about

Accepted Answer

A)  48.4% and 7.9%. 
B)  48.4% and 3.8%. 
C)  44.6% and 7.9% 
D)  44.6% and 3.8% 
A)  48.4% and 7.9%. 
B)  48.4% and 3.8%. 
C)  44.6% and 7.9% 
D)  44.6% and 3.8%

Question 3

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

Accepted Answer

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

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 participation rate in Meditor?

Accepted Answer

A)  38.1% 
B)  61.9% 
C)  66.7% 
D)  95.2% 
A)  38.1% 
B)  61.9% 
C)  66.7% 
D)  95.2%

Question 5

Minimum-wage laws

Accepted Answer

A)  create unemployment. 
B)  do not apply in states with right-to-work laws. 
C)  affect highly-educated workers more than high school dropouts. 
D)  cause labor shortages, which further raise wages above equilibrium. 
A)  create unemployment. 
B)  do not apply in states with right-to-work laws. 
C)  affect highly-educated workers more than high school dropouts. 
D)  cause labor shortages, which further raise wages above equilibrium.

Question 6

The unemployment that results from the process of matching workers and jobs is called frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 7

Table 28-11
2010 Labor Data for Tajnia  
-Refer to Table 28-11. The labor-force participation rate of Tajnia in 2010 is about 40.8 percent.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  600 households. 
B)  6,000 households. 
C)  60,000 households. 
D)  6,000,000 households. 
A)  600 households. 
B)  6,000 households. 
C)  60,000 households. 
D)  6,000,000 households.

Question 9

The Bureau of Labor Statistics is part of the U.S. Department of

Accepted Answer

A)  the Treasury. 
B)  Commerce. 
C)  Labor. 
D)  the Interior. 
A)  the Treasury. 
B)  Commerce. 
C)  Labor. 
D)  the Interior.

Question 10

Michael decides to hire some additional workers for his roofing company. The equilibrium wage is $17 per hour. Efficiency wage theory suggests that it is reasonable for Michael to offer

Accepted Answer

A)  $17 per hour. 
B)  less than $17 per hour because some people would be willing to work for less. 
C)  less than $17 an hour to prevent shirking. 
D)  more than $17 per hour in order to attract a better pool of applicants. 
A)  $17 per hour. 
B)  less than $17 per hour because some people would be willing to work for less. 
C)  less than $17 an hour to prevent shirking. 
D)  more than $17 per hour in order to attract a better pool of applicants.

Question 11

Suppose that the adult population in the town of Springfield is 225 million. If 40 million are unemployed and 100 million are employed, then the unemployment rate is approximately

Accepted Answer

A)  29%. 
B)  18%. 
C)  24%. 
D)  6%. 
A)  29%. 
B)  18%. 
C)  24%. 
D)  6%.

Question 12

Almost nine-tenths of all spells of unemployment end when the unemployed person finds a job.

Accepted Answer

A) True 
 B)False

Question 13

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Accepted Answer

A) True 
 B)False

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 $9, 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

Minimum-wage laws

Accepted Answer

A)  reduce unemployment. 
B)  cause labor shortages, which further raise wages above equilibrium. 
C)  affect highly-educated workers more than high school dropouts. 
D)  None of the above is correct. 
A)  reduce unemployment. 
B)  cause labor shortages, which further raise wages above equilibrium. 
C)  affect highly-educated workers more than high school dropouts. 
D)  None of the above is correct.

Question 16

List the main employment characteristics over which a labor union negotiates for its workers.

Accepted Answer

higher wages, better

Question 17

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is lower and the quantity of labor demand is higher than at the equilibrium wage.

Accepted Answer

A) True 
 B)False

Question 18

Even though the difference in labor-force participation rates of U.S. males and females has narrowed, the labor- force participation rate of males remains higher than that of females.

Accepted Answer

A) True 
 B)False

Question 19

A union is a type of cartel.

Accepted Answer

A) True 
 B)False

Question 20

Minimum wages create unemployment in markets where they create a

Accepted Answer

A)  shortage of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S. 
B)  shortage of labor. Minimum wage laws are the predominant reason for unemployment in the U.S. 
C)  surplus of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S. 
D)  surplus of labor. Minimum wage laws are the predominant reason for unemployment in the U.S. 
A)  shortage of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S. 
B)  shortage of labor. Minimum wage laws are the predominant reason for unemployment in the U.S. 
C)  surplus of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S. 
D)  surplus of labor. Minimum wage laws are the predominant reason for unemployment in the U.S.

Exam 28: Unemployment

Which of the following is correct?

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

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 participation rate in Meditor?

Minimum-wage laws

The unemployment that results from the process of matching workers and jobs is called frictional unemployment.

Table 28-11 2010 Labor Data for Tajnia -Refer to Table 28-11. The labor-force participation rate of Tajnia in 2010 is about 40.8 percent.

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

The Bureau of Labor Statistics is part of the U.S. Department of

Michael decides to hire some additional workers for his roofing company. The equilibrium wage is $17 per hour. Efficiency wage theory suggests that it is reasonable for Michael to offer

Suppose that the adult population in the town of Springfield is 225 million. If 40 million are unemployed and 100 million are employed, then the unemployment rate is approximately

Almost nine-tenths of all spells of unemployment end when the unemployed person finds a job.

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

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 $9, how many people would be unemployed? A) 0

Minimum-wage laws

List the main employment characteristics over which a labor union negotiates for its workers.

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is lower and the quantity of labor demand is higher than at the equilibrium wage.

Even though the difference in labor-force participation rates of U.S. males and females has narrowed, the labor- force participation rate of males remains higher than that of females.

A union is a type of cartel.

Minimum wages create unemployment in markets where they create a

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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