Question 1

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 2

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

Accepted Answer

A) True 
 B)False

Question 3

The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  0
B)  3,000
C)  4,000
D)  7,000E) A) and C)
F) All of the above

Question 5

Which of the following is not a contention of advocates of unions?

Accepted Answer

A)  Unions are a necessary antidote to the market power of the firms that hire workers.
B)  In the case of a "company town," a union may balance the firm's market power and protect the workers from being at the mercy of the firm's owners.
C)  The introduction of a union benefits all workers in a firm.
D)  Unions are important for helping firms respond efficiently to workers' concerns.E) B) and C)
F) C) and D)

Question 6

The deviation of unemployment from its natural rate is called

Accepted Answer

A)  the economic rate of unemployment.
B)  cyclical unemployment.
C)  frictional unemployment.
D)  structural unemployment.E) A) and D)
F) B) and C)

Question 7

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%.E) B) and C)
F) A) and B)

Question 8

Figure 28-4
​ 
-Refer to Figure 28-4. If the government imposes a minimum wage of $12, how many workers will be unemployed?

Accepted Answer

A)  0
B)  2,000
C)  4,000
D)  10,000E) C) and D)
F) None of the above

Question 9

The Bureau of Labor Statistics' "employed" category includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member's business.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is correct?

Accepted Answer

A)  In unionized industries, wages are below the level that would prevail in competitive markets.
B)  The introduction of a union in an industry increases the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and increases wages in the rest of the economy.
C)  Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable.
D)  All of the above are correct.E) B) and D)
F) None of the above

Question 11

Compare the 2014 unemployment rates and labor-force participation rates of whites, blacks, adults of prime working age (ages 25-54), and teenagers (ages 16-19).

Accepted Answer

For adults:
Adult white males have the h...

Question 12

What problems arise in interpreting unemployment data?

Accepted Answer

Because people move into and out of the ...

Question 13

Evidence indicates that the typical person who becomes unemployed will

Accepted Answer

A)  soon find a job.
B)  find a job but not before a year or more has gone by.
C)  leave the labor force and never return.
D)  retire soon afterE) B) and D)
F) All of the above

Question 14

Within the U.S. population, women of prime working age (ages 25-54) have lower rates of labor-force participation than men of prime working age (ages 25-54), regardless of race.

Accepted Answer

A) True 
 B)False

Question 15

Table 28-11
2015 Labor Data for Tajnia 
-Refer to Table 28-11. The labor force of Tajnia in 2015 is 12,250.

Accepted Answer

A) True 
 B)False

Question 16

Unemployment insurance increases frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  90 million
B)  150 million
C)  160 million
D)  230 millionE) A) and C)
F) All of the above

Question 18

Efficiency wages create a labor

Accepted Answer

A)  surplus and so increase unemployment.
B)  surplus and so decrease unemployment.
C)  shortage and so increase unemployment.
D)  shortage and so decrease unemployment.E) A) and B)
F) A) and D)

Question 19

In which of the following situations should a firm pay efficiency wages?

Accepted Answer

A)  A hiring manager can easily judge the quality of applicants, and after workers have worked for the firm a while, they tend not to look for other jobs.
B)  A hiring manager can easily judge the quality of applicants, and after workers have worked for the firm a while, they tend to look for other jobs.
C)  A hiring manager cannot easily judge the quality of applicants, and after workers have worked for the firm a while, they tend to look for other jobs.
D)  A hiring manager cannot easily judge the quality of applicants, and after workers have worked for the firm a while, they tend not to look for other jobs.E) None of the above
F) B) and D)

Question 20

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate is

Accepted Answer

A)  always zero.
B)  sometimes zero.
C)  rarely zero.
D)  never zero.E) None of the above
F) A) and C)

Exam 28: Unemployment and Its Natural Rate

The Bureau of Labor Statistics' "employed" category includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member's business.

Correct AnswerverifiedShow Answer

Which of the following is correct?

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

Correct AnswerverifiedShow Answer

Table 28-11 2015 Labor Data for Tajnia -Refer to Table 28-11. The labor force of Tajnia in 2015 is 12,250.

Correct AnswerverifiedShow Answer

Within the U.S. population, women of prime working age (ages 25-54) have lower rates of labor-force participation than men of prime working age (ages 25-54), regardless of race.

Correct AnswerverifiedShow Answer

Which of the following is not a contention of advocates of unions?

Correct AnswerverifiedShow Answer

Compare the 2014 unemployment rates and labor-force participation rates of whites, blacks, adults of prime working age (ages 25-54), and teenagers (ages 16-19).

Correct AnswerverifiedFor adults:Adult white males have the h...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

The deviation of unemployment from its natural rate is called

Correct AnswerverifiedShow Answer

Efficiency wages create a labor

Correct AnswerverifiedShow Answer

Unemployment insurance increases frictional unemployment.

Correct AnswerverifiedShow Answer

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

Correct AnswerverifiedShow Answer

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

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Figure 28-4 ​ -Refer to Figure 28-4. If the government imposes a minimum wage of $12, how many workers will be unemployed?

Correct AnswerverifiedShow Answer

What problems arise in interpreting unemployment data?

Correct AnswerverifiedBecause people move into and out of the ...View AnswerShow Answer

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.

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

Correct AnswerverifiedShow Answer

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate is

Correct AnswerverifiedShow Answer

Evidence indicates that the typical person who becomes unemployed will

Correct AnswerverifiedShow Answer

In which of the following situations should a firm pay efficiency wages?

Correct AnswerverifiedShow Answer

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For adults:
Adult white males have the h...
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Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $12, how many workers will be unemployed?

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Because people move into and out of the ...
View Answer

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