Question 1

The Bureau of Labor Statistics' household survey and establishment survey both yield the same results about total employment.

Accepted Answer

A) True 
 B)False

Question 2

Government-run employment agencies and public training programs both seek to reduce frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following do unions not cause?

Accepted Answer

A)  frictional unemployment 
B)  the wage to rise above the equilibrium level 
C)  conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs 
D)  reduced wages in industries without unions 
A)  frictional unemployment 
B)  the wage to rise above the equilibrium level 
C)  conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs 
D)  reduced wages in industries without unions

Question 4

The Bureau of Labor Statistics defines discouraged workers as marginally attached workers who have given a job- market related reason for not currently looking for a job.

Accepted Answer

A) True 
 B)False

Question 5

Table 28-3
2009 Labor Data for Baltivia  
-Refer to Table 28-3. What was Baltivia's unemployment rate in 2009?

Accepted Answer

A)  12.7% 
A)  8.0% 
B)  15.9% 
C)  22.1% 
A)  12.7% 
A)  8.0% 
B)  15.9% 
C)  22.1%

Question 6

Someone who is without work but is not looking for work is included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 7

Unemployment numbers reported by the Bureau of Labor Statistics are reported based on a

Accepted Answer

A)  monthly survey of about 60,000 households. 
B)  monthly survey of about 6,000 households. 
C)  weekly survey of about 60,000 households. 
D)  weekly survey of about 6,000 households. 
A)  monthly survey of about 60,000 households. 
B)  monthly survey of about 6,000 households. 
C)  weekly survey of about 60,000 households. 
D)  weekly survey of about 6,000 households.

Question 8

Which of the following is correct?

Accepted Answer

A)  There is consensus among economists that unions are good for the economy. 
B)  There is consensus among economists that unions are bad for the economy. 
C)  There is consensus among economists that, on net, unions have almost no impact on macroeconomic variables. 
D)  There is no consensus among economists about whether unions are good or bad for the economy. 
A)  There is consensus among economists that unions are good for the economy. 
B)  There is consensus among economists that unions are bad for the economy. 
C)  There is consensus among economists that, on net, unions have almost no impact on macroeconomic variables. 
D)  There is no consensus among economists about whether unions are good or bad for the economy.

Question 9

Someone who has a job but is absent from work because she is on vacation is counted as "employed."

Accepted Answer

A) True 
 B)False

Question 10

Most spells of unemployment are short, and most unemployment observed at any given time is short-term.

Accepted Answer

A) True 
 B)False

Question 11

If changing consumer preferences increase the demand for satellite radios and decrease the demand for video cassette recorders, the economy will likely exhibit

Accepted Answer

A)  an increase in the natural rate of unemployment. 
B)  a decrease in the natural rate of unemployment. 
C)  frictional unemployment. 
D)  efficiency wages. 
A)  an increase in the natural rate of unemployment. 
B)  a decrease in the natural rate of unemployment. 
C)  frictional unemployment. 
D)  efficiency wages.

Question 12

Unemployment insurance tends to

Accepted Answer

A)  decrease structural unemployment. 
B)  decrease cyclical unemployment. 
C)  increase frictional unemployment. 
D)  increase the number of discouraged workers. 
A)  decrease structural unemployment. 
B)  decrease cyclical unemployment. 
C)  increase frictional unemployment. 
D)  increase the number of discouraged workers.

Question 13

Suppose that college professors at public universities are unionized. If public university college professors change their minds and vote not to be unionized, the quantity of public university college professors demanded will

Accepted Answer

A)  rise. The supply of workers in other similar professions will also rise. 
B)  rise. The supply of workers in other similar professions will fall. 
C)  fall. The supply of workers in other similar professions will rise. 
D)  fall. The supply of workers in other similar professions will also fall. 
A)  rise. The supply of workers in other similar professions will also rise. 
B)  rise. The supply of workers in other similar professions will fall. 
C)  fall. The supply of workers in other similar professions will rise. 
D)  fall. The supply of workers in other similar professions will also fall.

Question 14

Which of the following is an explanation for the existence of frictional unemployment?

Accepted Answer

A)  efficiency wages 
B)  minimum-wage laws 
C)  unions 
D)  job search 
A)  efficiency wages 
B)  minimum-wage laws 
C)  unions 
D)  job search

Question 15

Right-to-work laws allow striking union members to be permanently replaced.

Accepted Answer

A) True 
 B)False

Question 16

Table 28-11
2010 Labor Data for Tajnia  
-Refer to Table 28-11. The labor-force participation rate of Tajnia in 2010 is about 33.3 percent.

Accepted Answer

A) True 
 B)False

Question 17

Economists have found that union workers earn about 30 to 40 percent more than similar workers who do not belong to unions.

Accepted Answer

A) True 
 B)False

Question 18

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Accepted Answer

According to the theory of efficiency wa

Question 19

Measuring unemployment is the job of the

Accepted Answer

A)  Congressional Budget Office. 
B)  Department of Commerce. 
C)  Council of Economic Advisers. 
D)  Bureau of Labor Statistics. 
A)  Congressional Budget Office. 
B)  Department of Commerce. 
C)  Council of Economic Advisers. 
D)  Bureau of Labor Statistics.

Question 20

Rafael is the newly­appointed plant manager for a company that manufactures head phones. Rafael's senior supervisors told him that the output the firm produces, given the number of workers employed, indicates that some workers may be shirking. According to efficiency wage theory, what should he do?

Accepted Answer

A)  pay all workers more than the equilibrium wage rate 
B)  pay all workers below the equilibrium wage rate to make up for the loss from shirking 
C)  make sure that workers are getting paid exactly the equilibrium wage rate 
D)  fire the workers with the most seniority 
A)  pay all workers more than the equilibrium wage rate 
B)  pay all workers below the equilibrium wage rate to make up for the loss from shirking 
C)  make sure that workers are getting paid exactly the equilibrium wage rate 
D)  fire the workers with the most seniority

Exam 28: Unemployment

The Bureau of Labor Statistics' household survey and establishment survey both yield the same results about total employment.

Government-run employment agencies and public training programs both seek to reduce frictional unemployment.

Which of the following do unions not cause?

The Bureau of Labor Statistics defines discouraged workers as marginally attached workers who have given a job- market related reason for not currently looking for a job.

Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. What was Baltivia's unemployment rate in 2009? A) 12.7%

Someone who is without work but is not looking for work is included in the Bureau of Labor Statistics' "unemployed" category.

Unemployment numbers reported by the Bureau of Labor Statistics are reported based on a

Which of the following is correct?

Someone who has a job but is absent from work because she is on vacation is counted as "employed."

Most spells of unemployment are short, and most unemployment observed at any given time is short-term.

If changing consumer preferences increase the demand for satellite radios and decrease the demand for video cassette recorders, the economy will likely exhibit

Unemployment insurance tends to

Suppose that college professors at public universities are unionized. If public university college professors change their minds and vote not to be unionized, the quantity of public university college professors demanded will

Which of the following is an explanation for the existence of frictional unemployment?

Right-to-work laws allow striking union members to be permanently replaced.

Table 28-11 2010 Labor Data for Tajnia -Refer to Table 28-11. The labor-force participation rate of Tajnia in 2010 is about 33.3 percent.

Economists have found that union workers earn about 30 to 40 percent more than similar workers who do not belong to unions.

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Measuring unemployment is the job of the

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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