Question 1

According to 2012 data on the U.S. population, which of the following groups of teenagers ages 16-19) had the highest unemployment rate?

Accepted Answer

A)  white males 
B)  white females 
C)  black males 
D)  black females

Question 2

The amount of unemployment that an economy normally experiences is called the

Accepted Answer

A)  average rate of unemployment. 
B)  natural rate of unemployment. 
C)  cyclical rate of unemployment. 
D)  typical rate of unemployment.

Question 3

To be counted as "employed" in the U.S. labor force statistics, a person

Accepted Answer

A)  must be working for pay and be working full time. 
B)  must be working for pay but does not have to be working full time. 
C)  does not have to be working for pay if they are working for a family business but must be employed full time. 
D)  does not have to be working for pay if they are working for a family business and does not have to be working full time

Question 4

Table 28-4
2010 Labor Data for Adults ages 16 and older) in Meditor
 
-Refer to Table 28-4. What is the adult male population in Meditor?

Accepted Answer

A)  50 million 
B)  90 million 
C)  130 million 
D)  135 million

Question 5

Efficiency wages

Accepted Answer

A)  increase productivity and reduce unemployment. 
B)  increase productivity but increase unemployment. 
C)  decrease productivity but reduce unemployment. 
D)  decrease productivity and increase unemployment.

Question 6

Maury did not work last week because fire forced an evacuation of his workplace. The Bureau of Labor Statistics counts Maury 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 7

Table 28-2
Labor Data for Aridia
 
-Refer to Table 28-2. The unemployment rate of Aridia in 2010 was

Accepted Answer

A)  10%. 
B)  12.5%. 
C)  14.3%. 
D)  80%.

Question 8

Table 28-10
The table below lists the number of people by labor force classification for the country of Springfield.
 
-Refer to Table 28-10. Calculate the U-5 unemployment rate.

Accepted Answer

The answer of Table 28-10
The table below lists the number...

Question 9

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are not eligible for unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 10

Public policy

Accepted Answer

A)  can reduce both frictional unemployment and the natural rate of unemployment. 
B)  can reduce frictional unemployment, but it cannot reduce the natural rate of unemployment. 
C)  cannot reduce frictional unemployment, but it can reduce the natural rate of unemployment. 
D)  cannot reduce either frictional unemployment or the natural rate of unemployment.

Question 11

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was

Accepted Answer

A)  154/234.9. 
B)  141.6/234.9. 
C)  141.6/154. 
D)  None of the above is correct.

Question 12

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 13

Economists at the Congressional Budget Office estimated that for 2012, the U.S. natural rate of unemployment was

Accepted Answer

A)  1.5%. 
B)  3.0%. 
C)  5.5%. 
D)  8.5%.

Question 14

The efficiency-wage theory of worker health is more relevant for explaining unemployment in less developed countries than in rich countries.

Accepted Answer

A) True 
 B)False

Question 15

To maintain their standard of living, most people rely on

Accepted Answer

A)  government assistance. 
B)  their labor earnings. 
C)  their personal savings. 
D)  All of the above are correct.

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.

Question 17

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 18

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

Accepted Answer

A) True 
 B)False

Question 19

Explain how the following apparently contradictory statement can be true: Most spells of unemployment are short, and most unemployment observed at any given time is long-term.

Accepted Answer

The answer of Explain how the following apparently contradictory statement...

Question 20

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.

Accepted Answer

A) True 
 B)False

Exam 10: Unemployment and Its Natural Rate

According to 2012 data on the U.S. population, which of the following groups of teenagers ages 16-19) had the highest unemployment rate?

The amount of unemployment that an economy normally experiences is called the

To be counted as "employed" in the U.S. labor force statistics, a person

Table 28-4 2010 Labor Data for Adults ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult male population in Meditor?

Efficiency wages

Maury did not work last week because fire forced an evacuation of his workplace. The Bureau of Labor Statistics counts Maury as

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The unemployment rate of Aridia in 2010 was

Table 28-10 The table below lists the number of people by labor force classification for the country of Springfield. -Refer to Table 28-10. Calculate the U-5 unemployment rate.

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are not eligible for unemployment insurance.

Public policy

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was

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?

Economists at the Congressional Budget Office estimated that for 2012, the U.S. natural rate of unemployment was

The efficiency-wage theory of worker health is more relevant for explaining unemployment in less developed countries than in rich countries.

To maintain their standard of living, most people rely on

In the early 1900s, Henry Ford introduced a

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

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

Explain how the following apparently contradictory statement can be true: Most spells of unemployment are short, and most unemployment observed at any given time is long-term.

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.