Question 1

Table 28-3
2009 Labor Data for Baltivia  
-Refer to Table 28-3. How many people were employed in Baltivia in 2009?

Accepted Answer

A)  9,600 
B)  10,600 
C)  11,000 
D)  11,200 
A)  9,600 
B)  10,600 
C)  11,000 
D)  11,200

Question 2

The deviation of unemployment from its natural rate is called cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 3

Figure 28-4  
-Refer to Figure 28-4. If the government imposes a minimum wage of $5, how many workers will be unemployed?

Accepted Answer

A)  0 
A)  2,000 
B)  4,000 
C)  6,000 
A)  0 
A)  2,000 
B)  4,000 
C)  6,000

Question 4

Figure 28-3  
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then unemployment will increase by

Accepted Answer

A)  0 workers. 
B)  2,000 workers. 
C)  4,000 workers. 
D)  7,000 workers. 
A)  0 workers. 
B)  2,000 workers. 
C)  4,000 workers. 
D)  7,000 workers.

Question 5

In which of the following situations should a firm pay efficiency wages?

Accepted Answer

A)  A hiring manager can easily judge the quality of applicants, and after workers have worked for the firm a while, they tend not to look for other jobs. 
B)  A hiring manager can easily judge the quality of applicants, and after workers have worked for the firm a while, they tend to look for other jobs. 
C)  A hiring manager cannot easily judge the quality of applicants, and after workers have worked for the firm a while, they tend to look for other jobs. 
D)  A hiring manager cannot easily judge the quality of applicants, and after workers have worked for the firm a while, they tend not to look for other jobs. 
A)  A hiring manager can easily judge the quality of applicants, and after workers have worked for the firm a while, they tend not to look for other jobs. 
B)  A hiring manager can easily judge the quality of applicants, and after workers have worked for the firm a while, they tend to look for other jobs. 
C)  A hiring manager cannot easily judge the quality of applicants, and after workers have worked for the firm a while, they tend to look for other jobs. 
D)  A hiring manager cannot easily judge the quality of applicants, and after workers have worked for the firm a while, they tend not to look for other jobs.

Question 6

The Bureau of Labor Statistics classifies people who would like to work but have given up looking for a job as

Accepted Answer

A)  unemployed. If they were classified as out of the labor force, the reported unemployment rate would be larger. 
B)  unemployed. If they were classified as out of the labor force, the reported unemployment rate would be smaller. 
C)  out of the labor force. If they were classified as unemployed, the reported unemployment rate would be larger. 
D)  out of the labor force. If they were classified as unemployed, the reported unemployment rate would be smaller. 
A)  unemployed. If they were classified as out of the labor force, the reported unemployment rate would be larger. 
B)  unemployed. If they were classified as out of the labor force, the reported unemployment rate would be smaller. 
C)  out of the labor force. If they were classified as unemployed, the reported unemployment rate would be larger. 
D)  out of the labor force. If they were classified as unemployed, the reported unemployment rate would be smaller.

Question 7

Which of the following is not a cause of frictional unemployment?

Accepted Answer

A)  the destruction of manufacturing jobs 
B)  a worker leaving a job to find one with better benefits 
C)  minimum-wage laws 
D)  unemployment insurance 
A)  the destruction of manufacturing jobs 
B)  a worker leaving a job to find one with better benefits 
C)  minimum-wage laws 
D)  unemployment insurance

Question 8

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 $8, 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 9

In June 2009 the Bureau of Labor Statistics reported a U.S. foreign-born population of 35.3 million. Of these, 22.7 million were employed and 1.4 million were unemployed. Based on these numbers what were the unemployment rate and the labor-force participation rate of the foreign-born U.S. population?

Accepted Answer

A)  1.4/35.3 and 22.7/35.3 
B)  1.4/35.3 and 24.1/35.3 
C)  1.4/24.1 and 22.7/24.1 
D)  None of the above is correct. 
A)  1.4/35.3 and 22.7/35.3 
B)  1.4/35.3 and 24.1/35.3 
C)  1.4/24.1 and 22.7/24.1 
D)  None of the above is correct.

Question 10

From time to time, the demand for workers has risen in one region of the United States and fallen in another. This illustrates

Accepted Answer

A)  frictional unemployment created by efficiency wages. 
B)  structural unemployment created by efficiency wages. 
C)  frictional unemployment created by sectoral shifts. 
D)  structural unemployment created by sectoral shifts. 
A)  frictional unemployment created by efficiency wages. 
B)  structural unemployment created by efficiency wages. 
C)  frictional unemployment created by sectoral shifts. 
D)  structural unemployment created by sectoral shifts.

Question 11

In one year, you meet 52 people who are each unemployed for one week and eight people who are each unemployed for the whole year. What percentage of the unemployment spells you encountered was short term, and what percentage of the unemployment you encountered in a given week was long term?

Accepted Answer

A)  52% was short term; 13.3% was long term 
B)  52% was short term; 88.9% was long term 
C)  86.7% was short term; 13.3 was long term 
D)  86.7% was short term; 88.9 was long term 
A)  52% was short term; 13.3% was long term 
B)  52% was short term; 88.9% was long term 
C)  86.7% was short term; 13.3 was long term 
D)  86.7% was short term; 88.9 was long term

Question 12

Discuss the labor-force participation trends for men and women since 1950.

Accepted Answer

The labor-force participation rates for

Question 13

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, a labor force of 154 million and employment of 141.6 million. Based on these numbers the unemployment rate was

Accepted Answer

A)  93.3/234.9. 
B)  12.4/234.9. 
C)  93.3/154. 
D)  12.4/154. 
A)  93.3/234.9. 
B)  12.4/234.9. 
C)  93.3/154. 
D)  12.4/154.

Question 14

Table 28-3
2009 Labor Data for Baltivia  
-Refer to Table 28-3. How many adults were not in Baltivia's labor force in 2009?

Accepted Answer

A)  4,400 
B)  6,620 
C)  7,400 
D)  8,690 
A)  4,400 
B)  6,620 
C)  7,400 
D)  8,690

Question 15

Meredith is looking for work as a computer programmer. Although her prospects are good, she has not yet taken a job. Julie is looking for work in a steel mill. Every time she shows up for an interview, there are more people looking for work than there are openings. Someone waiting in line with her tells her it has been that way for a long time.

Accepted Answer

A)  Meredith and Julie are both frictionally unemployed. 
B)  Meredith and Julie are both structurally unemployed. 
C)  Meredith is frictionally unemployed, and Julie is structurally unemployed. 
D)  Meredith is structurally unemployed, and Julie is frictionally unemployed. 
A)  Meredith and Julie are both frictionally unemployed. 
B)  Meredith and Julie are both structurally unemployed. 
C)  Meredith is frictionally unemployed, and Julie is structurally unemployed. 
D)  Meredith is structurally unemployed, and Julie is frictionally unemployed.

Question 16

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

Accepted Answer

A)  increases, and the labor-force participation rate decreases. 
B)  and the labor-force participation rate both increase. 
C)  increases, and the labor-force participation rate is unaffected. 
D)  is unaffected, and the labor-force participation rate decreases. 
A)  increases, and the labor-force participation rate decreases. 
B)  and the labor-force participation rate both increase. 
C)  increases, and the labor-force participation rate is unaffected. 
D)  is unaffected, and the labor-force participation rate decreases.

Question 17

Minimum-wage laws

Accepted Answer

A)  create frictional unemployment, while firms paying wages above equilibrium to reduce worker turnover creates structural unemployment. 
B)  create structural unemployment, while firms paying wages above equilibrium to reduce worker turnover creates frictional unemployment. 
C)  and firms paying wages above equilibrium to reduce worker turnover both create structural unemployment. 
D)  and firms paying wages above equilibrium to reduce worker turnover both create frictional unemployment. 
A)  create frictional unemployment, while firms paying wages above equilibrium to reduce worker turnover creates structural unemployment. 
B)  create structural unemployment, while firms paying wages above equilibrium to reduce worker turnover creates frictional unemployment. 
C)  and firms paying wages above equilibrium to reduce worker turnover both create structural unemployment. 
D)  and firms paying wages above equilibrium to reduce worker turnover both create frictional unemployment.

Question 18

Evidence indicates that the typical person who becomes unemployed will

Accepted Answer

A)  soon find a job. 
B)  find a job but not before a year or more has gone by. 
C)  leave the labor force and never return. 
D)  retire soon after 
A)  soon find a job. 
B)  find a job but not before a year or more has gone by. 
C)  leave the labor force and never return. 
D)  retire soon after

Question 19

Ariana is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, then

Accepted Answer

A)  the profits of her firm might increase. 
B)  she will face a shortage of labor. 
C)  the turnover of her workers may increase. 
D)  None of the above is correct. 
A)  the profits of her firm might increase. 
B)  she will face a shortage of labor. 
C)  the turnover of her workers may increase. 
D)  None of the above is correct.

Question 20

The main explanation for the lower growth rate for the American economy in the 21st century compared to the previous 250 years is

Accepted Answer

A)  higher minimum wages. 
B)  that although Americans are working more, they are more distracted by technology and therefore are less productive at work. 
C)  that Americans are working less. 
D)  the increasing labor-force participation rates of women with young children. 
A)  higher minimum wages. 
B)  that although Americans are working more, they are more distracted by technology and therefore are less productive at work. 
C)  that Americans are working less. 
D)  the increasing labor-force participation rates of women with young children.

Exam 28: Unemployment

Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. How many people were employed in Baltivia in 2009?

The deviation of unemployment from its natural rate is called cyclical unemployment.

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $5, how many workers will be unemployed? A) 0

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then unemployment will increase by

In which of the following situations should a firm pay efficiency wages?

The Bureau of Labor Statistics classifies people who would like to work but have given up looking for a job as

Which of the following is not a cause of frictional 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 $8, how many people would be unemployed? A) 0

From time to time, the demand for workers has risen in one region of the United States and fallen in another. This illustrates

In one year, you meet 52 people who are each unemployed for one week and eight people who are each unemployed for the whole year. What percentage of the unemployment spells you encountered was short term, and what percentage of the unemployment you encountered in a given week was long term?

Discuss the labor-force participation trends for men and women since 1950.

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, a labor force of 154 million and employment of 141.6 million. Based on these numbers the unemployment rate was

Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. How many adults were not in Baltivia's labor force in 2009?

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

Minimum-wage laws

Evidence indicates that the typical person who becomes unemployed will

Ariana is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, then

The main explanation for the lower growth rate for the American economy in the 21st century compared to the previous 250 years is

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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