Question 1

The adult non-institutionalized population in the town of Bedrock is 75 thousand. Within Bedrock, 5 thousand are unemployed, and 40 thousand are employed. Calculate the number of people not in the labor force.

Accepted Answer

The answer of The adult non-institutionalized population in the town...

Question 2

Gwen is an unpaid worker in her family's restaurant. The Bureau of Labor Statistics counts Gwen as

Accepted Answer

A) unemployed and in the labor force. 
B) unemployed and not in the labor force. 
C) employed and in the labor force. 
D) employed and not in the labor force.

Question 3

An increase in the minimum wage

Accepted Answer

A) increases both the quantity demanded and the quantity supplied of labor. 
B) decreases both the quantity demanded and the quantity supplied of labor. 
C) increases the quantity of labor demanded but decreases the quantity of labor supplied. 
D) decreases the quantity of labor demanded but increases the quantity of labor supplied.

Question 4

A firm may pay efficiency wages in an attempt to

Accepted Answer

A) reduce incentives to shirk. 
B) reduce turnover. 
C) attract a well-qualified pool of applicants. 
D) All of the above are correct.

Question 5

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

Accepted Answer

A) 14 years old. 
B) 16 years old. 
C) 18 years old. 
D) 21 years old.

Question 6

Table 28-7
Below is data about the labor market in the city of Productionville. 
-Refer to Table 28-7. If the local government imposed a minimum wage of $5 in Productionville, how many people would be unemployed?

Accepted Answer

A) 0 
B) 2,000 
C) 3,000 
D) 5,000

Question 7

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?
(i)The unemployment rate will decrease.
(ii)The size of the labor force will decrease.
(iii)The number of unemployed people will increase.
(iv)The unemployment rate will increase.

Accepted Answer

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

Question 8

Table 28-2
Labor Data for Aridia 
-Refer to Table 28-2. The labor force of Aridia in 2011 was

Accepted Answer

A) 1,300. 
B) 1,900. 
C) 2,400. 
D) 3,000.

Question 9

From 2002 to 2014, employment​

Accepted Answer

A) ​declined in health care and food services. 
B) ​declined in health care and increased in food services. 
C) ​declined in food services and increased in health care. 
D) ​increased in health care and food services.

Question 10

Public policy, without intending to do so, can increase frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 11

There is no easy way for policymakers to reduce the economy's natural rate of unemployment while at the same time reducing the hardships of the unemployed.

Accepted Answer

A) True 
 B)False

Question 12

A firm might offer efficiency wages in order to reduce shirking.

Accepted Answer

A) True 
 B)False

Question 13

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an example of an efficiency wage?

Accepted Answer

A) an addition the government makes to some workers' wages in order to reduce poverty 
B) an equilibrium wage paid to workers who work part time and so are exempt from the minimum wage 
C) paying higher wages to workers doing dangerous tasks 
D) an above equilibrium wage paid to workers to reduce shirking

Question 15

The unemployment rate never falls to zero.

Accepted Answer

A) True 
 B)False

Question 16

Unions contribute to

Accepted Answer

A) frictional unemployment but not the natural rate of unemployment. 
B) the natural rate of unemployment but not frictional unemployment. 
C) both frictional unemployment and the natural rate of unemployment. 
D) neither frictional unemployment nor the natural rate of unemployment.

Question 17

Unemployment data are collected

Accepted Answer

A) from unemployment insurance claims. 
B) through a regular survey of about 60,000 households. 
C) through a regular survey of about 200,000 firms. 
D) All of the above are correct.

Question 18

Which of the following includes everyone in the adult population that the Bureau of Labor Statistics counts as "unemployed"?

Accepted Answer

A) anyone who is not employed 
B) anyone who is not employed, is available for work, and has looked for work in the past four weeks 
C) anyone who is not employed, is available for work, has looked for work in the past four weeks, and anyone who is waiting to be recalled from a job from which they have been laid off 
D) anyone who is not employed, is available for work, has looked for work in the past four weeks, anyone who is waiting to be recalled from a job from which they have been laid off, and anyone who is employed part time and has searched for full time employment in the past 4 weeks

Question 19

Some individuals would like to have a job, but they have given up looking for a job after an unsuccessful search. These individuals are called

Accepted Answer

A) detached workers, and they are classified by the Bureau of Labor Statistics as unemployed. 
B) detached workers, and they are not classified by the Bureau of Labor Statistics as unemployed. 
C) discouraged workers, and they are classified by the Bureau of Labor Statistics as unemployed. 
D) discouraged workers, and they are not classified by the Bureau of Labor Statistics as unemployed.

Question 20

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

Exam 28: Unemployment and Its Natural Rate

The adult non-institutionalized population in the town of Bedrock is 75 thousand. Within Bedrock, 5 thousand are unemployed, and 40 thousand are employed. Calculate the number of people not in the labor force.

Gwen is an unpaid worker in her family's restaurant. The Bureau of Labor Statistics counts Gwen as

An increase in the minimum wage

A firm may pay efficiency wages in an attempt to

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

Table 28-7 Below is data about the labor market in the city of Productionville. -Refer to Table 28-7. If the local government imposed a minimum wage of $5 in Productionville, how many people would be unemployed?

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor force of Aridia in 2011 was

From 2002 to 2014, employment​

Public policy, without intending to do so, can increase frictional unemployment.

There is no easy way for policymakers to reduce the economy's natural rate of unemployment while at the same time reducing the hardships of the unemployed.

A firm might offer efficiency wages in order to reduce shirking.

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

Which of the following is an example of an efficiency wage?

The unemployment rate never falls to zero.

Unions contribute to

Unemployment data are collected

Which of the following includes everyone in the adult population that the Bureau of Labor Statistics counts as "unemployed"?

Some individuals would like to have a job, but they have given up looking for a job after an unsuccessful search. These individuals are called

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

From 2002 to 2014, employment