Question 1

Government-run employment agencies and public training programs are operated by the government to try to facilitate job search and reduce unemployment.

Accepted Answer

A)  Almost all economists agree that such programs are of no use.
B)  Almost all economists agree that such programs work very well.
C)  Some economists claim that the government can do these things no better than firms and individuals could do them for themselves.
D)  Some economists claim that these programs increase frictional unemployment.E) All of the above
F) A) and D)

Question 2

Labor unions

Accepted Answer

A)  prefer to operate in states with right-to-work laws.
B)  are similar to cartels.
C)  play a larger role in the current U.S. economy than in European countries such as Norway and Sweden.
D)  attract a membership of about 25 percent of current U.S. workers.E) A) and C)
F) A) and B)

Question 3

A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job is

Accepted Answer

A)  counted as out of the labor force but should be counted as unemployed.
B)  counted as unemployed but should be counted as out of the labor force.
C)  correctly counted as out of the labor force.
D)  correctly counted as unemployed.E) C) and D)
F) B) and D)

Question 4

Economists at the Congressional Budget Office estimated that for 2015, the U.S. natural rate of unemployment was about 4.9 percent.​

Accepted Answer

A) True 
 B)False

Question 5

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 6

Suppose that the adult population in some country is 225 million. If 40 million are unemployed and 100 million are employed, then the unemployment rate is approximately

Accepted Answer

A)  29%.
B)  18%.
C)  24%.
D)  6%.E) B) and D)
F) All of the above

Question 7

Because people move into and out of the labor force so often, statistics on unemployment are difficult to interpret.

Accepted Answer

A) True 
 B)False

Question 8

Over the past several decades in the United States, the labor-force participation rate of women has

Accepted Answer

A)  increased, and the labor-force participation rate of men has increased.
B)  increased, and the labor-force participation rate of men has decreased.
C)  decreased, and the labor-force participation rate of men has increased.
D)  decreased, and the labor-force participation rate of men has decreased.E) B) and D)
F) A) and D)

Question 9

Minimum-wage laws

Accepted Answer

A)  reduce unemployment.
B)  cause labor shortages, which further raise wages above equilibrium.
C)  affect highly-educated workers more than high school dropouts.
D)  None of the above is correct.E) All of the above
F) None of the above

Question 10

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

Accepted Answer

A)  8.0%
B)  12.7%
C)  15.9%
D)  22.1%E) A) and B)
F) None of the above

Question 11

According to 2014 data on the U.S. population, which of the following was correct for the adult population of prime working age, ages 25-54?

Accepted Answer

A)  Black males had higher labor-force participation rates and lower unemployment rates compared to white males.
B)  Black males had both higher labor-force participation rates and higher unemployment rates compared to white males.
C)  Black males had both lower labor-force participation rates and lower unemployment rates compared to white males.
D)  Black males had lower labor-force participation rates and higher unemployment rates compared to white males.E) A) and B)
F) A) and C)

Question 12

Suppose that the Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to

Accepted Answer

A)  frictional unemployment created by efficiency wages.
B)  structural unemployment created by efficiency wages.
C)  frictional unemployment created by sectoral shifts.
D)  structural unemployment created by sectoral shifts.E) B) and D)
F) A) and D)

Question 13

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 14

A firm might offer efficiency wages to reduce worker turnover and thereby reduce production costs.

Accepted Answer

A) True 
 B)False

Question 15

Efficiency-wage theory suggests that paying

Accepted Answer

A)  low wages might be profitable because they raise the efficiency of a firm's workers.
B)  low wages might be profitable because they lower the efficiency of a firm's workers.
C)  high wages might be profitable because they raise the efficiency of a firm's workers.
D)  high wages might be profitable because they lower the efficiency of a firm's workers.E) B) and C)
F) None of the above

Question 16

Measuring the amount of unemployment in the economy is a straightforward task.

Accepted Answer

A) True 
 B)False

Question 17

In Belgium, Norway, and Sweden, the percentage of workers who belong to unions is

Accepted Answer

A)  almost zero.
B)  less than it is in the United States.
C)  about the same as it is in the United States.
D)  greater than it is in the United States.E) None of the above
F) A) and B)

Question 18

There are always some workers without jobs, even when the overall economy is doing well.

Accepted Answer

A) True 
 B)False

Question 19

The normal rate of unemployment around which the unemployment rate fluctuates is called cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 20

The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment and Its Natural Rate

In Belgium, Norway, and Sweden, the percentage of workers who belong to unions is

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Minimum-wage laws

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A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job is

Correct AnswerverifiedShow Answer

Over the past several decades in the United States, the labor-force participation rate of women has

Correct AnswerverifiedShow Answer

Because people move into and out of the labor force so often, statistics on unemployment are difficult to interpret.

Correct AnswerverifiedShow Answer

A firm might offer efficiency wages to reduce worker turnover and thereby reduce production costs.

Correct AnswerverifiedShow Answer

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Correct AnswerverifiedShow Answer

Government-run employment agencies and public training programs are operated by the government to try to facilitate job search and reduce unemployment.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedAccording to the theory of efficiency wa...View AnswerShow Answer

Suppose that the adult population in some country is 225 million. If 40 million are unemployed and 100 million are employed, then the unemployment rate is approximately

Correct AnswerverifiedShow Answer

Economists at the Congressional Budget Office estimated that for 2015, the U.S. natural rate of unemployment was about 4.9 percent.​

Correct AnswerverifiedShow Answer

Efficiency-wage theory suggests that paying

Correct AnswerverifiedShow Answer

Labor unions

Correct AnswerverifiedShow Answer

Suppose that the Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to

Correct AnswerverifiedShow Answer

There are always some workers without jobs, even when the overall economy is doing well.

Correct AnswerverifiedShow Answer

The normal rate of unemployment around which the unemployment rate fluctuates is called cyclical unemployment.

Correct AnswerverifiedShow Answer

Measuring the amount of unemployment in the economy is a straightforward task.

Correct AnswerverifiedShow Answer

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

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According to 2014 data on the U.S. population, which of the following was correct for the adult population of prime working age, ages 25-54?

Correct AnswerverifiedShow Answer

The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment.

Correct AnswerverifiedShow Answer

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According to the theory of efficiency wa...
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Economists at the Congressional Budget Office estimated that for 2015, the U.S. natural rate of unemployment was about 4.9 percent.

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Correct Answer
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Correct Answer
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Correct Answer
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