Question 1

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Accepted Answer

A) True 
 B)False

Question 2

For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must

Accepted Answer

A)  have worked no more than 10 hours during the past week.. 
B)  have tried to find employment during the previous year. 
C)  not have been laid off. 
D)  None of the above is correct. 
A)  have worked no more than 10 hours during the past week.. 
B)  have tried to find employment during the previous year. 
C)  not have been laid off. 
D)  None of the above is correct.

Question 3

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually increased.

Accepted Answer

A) True 
 B)False

Question 4

Structural unemployment is often thought to explain relatively short spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 5

People who report being unemployed but who, in fact, are working for "under the table" pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.

Accepted Answer

A) True 
 B)False

Question 6

Table 28-5
Labor Force Statistics by Age
Suppose people in the adult population in a small country are classified based on their age.  
-Refer to Table 28-5. In the proper order, which age group has the highest unemployment rate and which has the highest participation rate?

Accepted Answer

A)  under 55, under 55 
B)  under 55, 55 and older 
C)  55 and older, under 55 
D)  55 and older, 55 and older 
A)  under 55, under 55 
B)  under 55, 55 and older 
C)  55 and older, under 55 
D)  55 and older, 55 and older

Question 7

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

Accepted Answer

A) True 
 B)False

Question 8

More than 30 percent of U.S. workers leave their jobs in a typical month.

Accepted Answer

A) True 
 B)False

Question 9

The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to

Accepted Answer

A)  decrease, raising wages in industries that are not unionized. 
B)  decrease, reducing wages in industries that are not unionized. 
C)  increase, raising wages in industries that are not unionized. 
D)  increase, reducing wages in industries that are not unionized. 
A)  decrease, raising wages in industries that are not unionized. 
B)  decrease, reducing wages in industries that are not unionized. 
C)  increase, raising wages in industries that are not unionized. 
D)  increase, reducing wages in industries that are not unionized.

Question 10

Which of the following is not correct?

Accepted Answer

A)  An organized withdrawal of labor from a firm by a union is called a strike. 
B)  The power of a union comes from its ability to strike if the union and the firm do not agree on the terms of employment. 
C)  Economists who study the effects of unions typically find that union workers earn about 25 to 35 percent more than similar workers who do not belong to unions. 
D)  Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost. 
A)  An organized withdrawal of labor from a firm by a union is called a strike. 
B)  The power of a union comes from its ability to strike if the union and the firm do not agree on the terms of employment. 
C)  Economists who study the effects of unions typically find that union workers earn about 25 to 35 percent more than similar workers who do not belong to unions. 
D)  Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

Question 11

Figure 28-7  
-Refer to Figure 28-7. If the minimum wage increases from $100 to $125, how many additional workers will be unemployed?

Accepted Answer

The answer of Figure 28-7  
-Refer to Figure 28-7....

Question 12

Figure 28-3  
-Refer to Figure 28-3. If the government imposes a minimum wage of $4, how many workers will be employed?

Accepted Answer

A)  3,000 
B)  4,000 
C)  5,000 
D)  7,000 
A)  3,000 
B)  4,000 
C)  5,000 
D)  7,000

Question 13

The Bureau of Labor Statistics counts discouraged workers as

Accepted Answer

A)  employed. Including them as employed makes the unemployment rate lower than otherwise. 
B)  unemployed. Including them as unemployed makes the unemployment rate higher than otherwise. 
C)  out of the labor force. If the were counted as unemployed the unemployment rate would be higher. 
D)  None of the above is correct. 
A)  employed. Including them as employed makes the unemployment rate lower than otherwise. 
B)  unemployed. Including them as unemployed makes the unemployment rate higher than otherwise. 
C)  out of the labor force. If the were counted as unemployed the unemployment rate would be higher. 
D)  None of the above is correct.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Suppose that dental hygienists are unionized in the eastern region of the country but not in the western region. If the unionized workers in the eastern region abolished their unions, employment

Accepted Answer

A)  and wages of dental hygienists in the eastern region would rise. 
B)  of dental hygienists in the eastern region would rise, but wages of dental hygienists in the eastern region would fall. 
C)  and wages of dental hygienists in the eastern region would fall. 
D)  of dental hygienists in the eastern region would fall, but wages of dental hygienists in the eastern region would rise. 
A)  and wages of dental hygienists in the eastern region would rise. 
B)  of dental hygienists in the eastern region would rise, but wages of dental hygienists in the eastern region would fall. 
C)  and wages of dental hygienists in the eastern region would fall. 
D)  of dental hygienists in the eastern region would fall, but wages of dental hygienists in the eastern region would rise.

Question 16

Since 1960, the natural rate of unemployment in the U.S. has been between

Accepted Answer

A)  0% and 1%. 
B)  5% and 6%. 
C)  10% and 12%. 
D)  12% and 24%. 
A)  0% and 1%. 
B)  5% and 6%. 
C)  10% and 12%. 
D)  12% and 24%.

Question 17

Figure 28-3  
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be unemployed?

Accepted Answer

A)  0 
A)  3,000 
B)  4,000 
C)  7,000 
A)  0 
A)  3,000 
B)  4,000 
C)  7,000

Question 18

Suppose that a well-respected study published in Child Psychology Today finds that a very high proportion of children raised by stay-at-home fathers are accepted to Harvard University. If a large number of previously working fathers quit their jobs and become stay-at-home dads, which of the following will occur, all else equal?

Accepted Answer

A)  (i) and (ii) only 
B)  (ii) and (iv) only 
C)  (i), (ii), and (iii) only 
D)  (ii), (iii), and (iv) only 
A)  (i) and (ii) only 
B)  (ii) and (iv) only 
C)  (i), (ii), and (iii) only 
D)  (ii), (iii), and (iv) only

Question 19

Frictional unemployment is often thought to explain relatively long spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 20

Ignoring the differences across states, explain the benefit provided to the typical worker in the United States from unemployment insurance.

Accepted Answer

Worker receives 50%

Exam 28: Unemployment

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually increased.

Structural unemployment is often thought to explain relatively short spells of unemployment.

People who report being unemployed but who, in fact, are working for "under the table" pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.

Table 28-5 Labor Force Statistics by Age Suppose people in the adult population in a small country are classified based on their age. -Refer to Table 28-5. In the proper order, which age group has the highest unemployment rate and which has the highest participation rate?

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

More than 30 percent of U.S. workers leave their jobs in a typical month.

The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to

Which of the following is not correct?

Figure 28-7 -Refer to Figure 28-7. If the minimum wage increases from $100 to $125, how many additional workers will be unemployed?

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $4, how many workers will be employed?

The Bureau of Labor Statistics counts discouraged workers as

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

Suppose that dental hygienists are unionized in the eastern region of the country but not in the western region. If the unionized workers in the eastern region abolished their unions, employment

Since 1960, the natural rate of unemployment in the U.S. has been between

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be unemployed? A) 0

Frictional unemployment is often thought to explain relatively long spells of unemployment.

Ignoring the differences across states, explain the benefit provided to the typical worker in the United States from unemployment insurance.

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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