Question 1

A firm might offer efficiency wages so its workers will eat a more nutritious diet and therefore be healthier and more productive.

Accepted Answer

A) True 
 B)False

Question 2

Briefly describe how labor unions can affect wages in non-unionized industries.

Accepted Answer

If labor unions raise wages above the eq

Question 3

The labor-force participation rate equals the percentage of the labor force that is employed.

Accepted Answer

A) True 
 B)False

Question 4

What problems arise in interpreting unemployment data?

Accepted Answer

Because people move into and out of the

Question 5

Tatiana is waiting to be recalled to a job from which she was laid off. Ivan was fired but has not looked for work during the last two months. Who does the Bureau of Labor Statistics count as "unemployed"?

Accepted Answer

A)  Tatiana but not Ivan 
B)  Ivan but not Tatiana 
C)  both Ivan and Tatiana 
D)  neither Ivan nor Tatiana 
A)  Tatiana but not Ivan 
B)  Ivan but not Tatiana 
C)  both Ivan and Tatiana 
D)  neither Ivan nor Tatiana

Question 6

The natural rate of unemployment is impervious to economic policy.

Accepted Answer

A) True 
 B)False

Question 7

Caroline is the owner of a hair-styling salon and spa. She decides to raise the wages of her workers even though she faces an excess supply of labor. Her decision

Accepted Answer

A)  might increase profits if it attracts a better pool of workers to apply for jobs at her salon. 
B)  will increase the excess supply of labor. 
C)  may increase the quality of her work force. 
D)  All of the above are correct. 
A)  might increase profits if it attracts a better pool of workers to apply for jobs at her salon. 
B)  will increase the excess supply of labor. 
C)  may increase the quality of her work force. 
D)  All of the above are correct.

Question 8

Some long-run unemployment may be explained by the fact that the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one.

Accepted Answer

A) True 
 B)False

Question 9

A labor union is similar to a .

Accepted Answer

The answer of A labor union is similar to a...

Question 10

The natural rate of unemployment

Accepted Answer

A)  (i) and (ii) only 
B)  (iii) only 
C)  (i), (ii), and (iii) 
D)  None of the above is correct. 
A)  (i) and (ii) only 
B)  (iii) only 
C)  (i), (ii), and (iii) 
D)  None of the above is correct.

Question 11

Cyclical unemployment refers to

Accepted Answer

A)  the portion of unemployment created by job search. 
B)  short-run fluctuations around the natural rate of unemployment. 
C)  changes in unemployment due to changes in the natural rate of unemployment. 
D)  the portion of unemployment created by wages set above the equilibrium level. 
A)  the portion of unemployment created by job search. 
B)  short-run fluctuations around the natural rate of unemployment. 
C)  changes in unemployment due to changes in the natural rate of unemployment. 
D)  the portion of unemployment created by wages set above the equilibrium level.

Question 12

The Wagner Act of 1935

Accepted Answer

A)  prevents unions from acting as cartels. 
B)  allows workers joining a unionized firm to choose not to join the union. 
C)  prevents employers from interfering when workers try to organize a union. 
D)  prevents firms from hiring permanent replacements for workers who are on strike. 
A)  prevents unions from acting as cartels. 
B)  allows workers joining a unionized firm to choose not to join the union. 
C)  prevents employers from interfering when workers try to organize a union. 
D)  prevents firms from hiring permanent replacements for workers who are on strike.

Question 13

In 2012, the U.S. natural rate of unemployment was estimated to be about 5.5 percent, which at the time was below the actual rate of unemployment of about 8.1 percent.

Accepted Answer

A) True 
 B)False

Question 14

People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as

Accepted Answer

A)  cyclically unemployed. 
B)  structurally unemployed. 
C)  frictionally unemployed. 
D)  discouraged workers. 
A)  cyclically unemployed. 
B)  structurally unemployed. 
C)  frictionally unemployed. 
D)  discouraged workers.

Question 15

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

Accepted Answer

A)  0 
A)  4,000 
B)  5,000 
C)  8,000 
A)  0 
A)  4,000 
B)  5,000 
C)  8,000

Question 16

In the early 1900s, Henry Ford introduced a

Accepted Answer

A)  high-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. 
B)  high-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory. 
C)  low-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. 
D)  low-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory. 
A)  high-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. 
B)  high-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory. 
C)  low-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. 
D)  low-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory.

Question 17

The natural unemployment rate includes

Accepted Answer

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

Question 18

Most spells of unemployment are

Accepted Answer

A)  long, and most unemployment observed at any given time is long term. 
B)  long, but most unemployment observed at any given time is short term. 
C)  short, but most unemployment observed at any given time is long term. 
D)  short, and most unemployment observed at any given time is short term. 
A)  long, and most unemployment observed at any given time is long term. 
B)  long, but most unemployment observed at any given time is short term. 
C)  short, but most unemployment observed at any given time is long term. 
D)  short, and most unemployment observed at any given time is short term.

Question 19

People who are unemployed because of job search are best classified as

Accepted Answer

A)  cyclically unemployed. 
B)  structurally unemployed. 
C)  frictionally unemployed. 
D)  discouraged workers. 
A)  cyclically unemployed. 
B)  structurally unemployed. 
C)  frictionally unemployed. 
D)  discouraged workers.

Question 20

The adult population in the town of Shelbyville is 150 thousand. If 100 thousand people are employed and 20 thousand are unemployed, then the labor force participation rate is approximately

Accepted Answer

A)  67%. 
B)  80%. 
C)  16%. 
D)  13%. 
A)  67%. 
B)  80%. 
C)  16%. 
D)  13%.

Exam 28: Unemployment

A firm might offer efficiency wages so its workers will eat a more nutritious diet and therefore be healthier and more productive.

Briefly describe how labor unions can affect wages in non-unionized industries.

The labor-force participation rate equals the percentage of the labor force that is employed.

What problems arise in interpreting unemployment data?

Tatiana is waiting to be recalled to a job from which she was laid off. Ivan was fired but has not looked for work during the last two months. Who does the Bureau of Labor Statistics count as "unemployed"?

The natural rate of unemployment is impervious to economic policy.

Caroline is the owner of a hair-styling salon and spa. She decides to raise the wages of her workers even though she faces an excess supply of labor. Her decision

Some long-run unemployment may be explained by the fact that the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one.

A labor union is similar to a .

The natural rate of unemployment

Cyclical unemployment refers to

The Wagner Act of 1935

In 2012, the U.S. natural rate of unemployment was estimated to be about 5.5 percent, which at the time was below the actual rate of unemployment of about 8.1 percent.

People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as

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

In the early 1900s, Henry Ford introduced a

The natural unemployment rate includes

Most spells of unemployment are

People who are unemployed because of job search are best classified as

The adult population in the town of Shelbyville is 150 thousand. If 100 thousand people are employed and 20 thousand are unemployed, then the labor force participation rate is approximately

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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