Question 1

Octavia does not currently have a job, but she has applied for several jobs in the previous week. Eve is an unpaid stay-at-home mom who has not searched for work in recent years. Who does the Bureau of Labor Statistics count as "out of the labor force"?

Accepted Answer

A)  Octavia but not Eve
B)  Eve but not Octavia
C)  both Octavia and Eve
D)  neither Octavia nor EveE) B) and C)
F) B) and D)

Question 2

Suppose that consumers decide to walk to work more frequently and drive cars less. Companies that make walking shoes hire workers, while automobile companies lay off workers. This is an example of

Accepted Answer

A)  frictional unemployment created by sectoral shifts.
B)  frictional unemployment created by efficiency wages.
C)  structural unemployment created by efficiency wages.
D)  structural unemployment created by sectoral shifts.E) A) and B)
F) None of the above

Question 3

Just after World War II, the labor-force participation rate of men was

Accepted Answer

A)  about 33 percent, and in 2015, it was about 50 percent.
B)  about 50 percent, and in 2015, it was about 60 percent.
C)  about 60 percent, and in 2015, it was about 60 percent.
D)  about 90 percent, and in 2015, it was about 70 percent.E) B) and C)
F) All of the above

Question 4

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

Accepted Answer

A)  increased both from 2010 to 2011 and from 2011 to 2012.
B)  increased from 2010 to 2011 but decreased from 2011 to 2012.
C)  decreased from 2010 to 2011 but increased from 2011 to 2012.
D)  decreased both from 2010 to 2011 and from 2011 to 2012.E) A) and B)
F) B) and C)

Question 5

The Bureau of Labor Statistics defines the unemployment rate as the percentage of

Accepted Answer

A)  those unemployed relative to those employed.
B)  the labor force that is unemployed.
C)  the adult population that is unemployed.
D)  the adult population that is unemployed or not in the labor force.E) A) and B)
F) B) and C)

Question 6

Jamarcus works part-time as a pizza delivery person in a college town. The Bureau of Labor Statistics counts Jamarcus 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.E) A) and B)
F) B) and C)

Question 7

If the minimum wage is currently above the equilibrium wage, then a decrease 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.E) B) and D)
F) C) and D)

Question 8

The Bureau of Labor Statistics produces data on unemployment

Accepted Answer

A)  weekly.
B)  monthly.
C)  quarterly.
D)  yearly.E) A) and D)
F) A) and C)

Question 9

The destruction of manufacturing jobs and workers leaving their jobs to find better ones both contribute to frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 10

U.S. Department of Labor data show that minimum-wage workers tend to be young, less educated, more likely to be working part time, and concentrated in the leisure and hospitality industry.

Accepted Answer

A) True 
 B)False

Question 11

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the

Accepted Answer

A)  number of people unemployed.
B)  number of jobs the economy has gained or lost.
C)  size of the labor force.
D)  number of people who own their own businesses.E) C) and D)
F) A) and B)

Question 12

Minimum wages create unemployment in markets where they create a

Accepted Answer

A)  shortage of labor. Unemployment of this type is called frictional.
B)  shortage of labor. Unemployment of this type is called structural.
C)  surplus of labor. Unemployment of this type is called frictional.
D)  surplus of labor. Unemployment of this type is called structural.E) B) and C)
F) None of the above

Question 13

Three possible reasons for an above-equilibrium wage are minimum-wage laws, unions, and efficiency wages.

Accepted Answer

A) True 
 B)False

Question 14

Tatiana is waiting to be recalled to a job from which she was laid off. Ivan was fired but has not looked for work during the last two months. Who does the Bureau of Labor Statistics count as "unemployed"?

Accepted Answer

A)  Tatiana but not Ivan
B)  Ivan but not Tatiana
C)  both Ivan and Tatiana
D)  neither Ivan nor TatianaE) B) and C)
F) A) and B)

Question 15

Frictional unemployment is thought to explain relatively

Accepted Answer

A)  short spells of unemployment, as is structural unemployment.
B)  long spells of unemployment, as is structural unemployment.
C)  short spells of unemployment, while structural unemployment is thought to explain relatively long spells of unemployment.
D)  long spells of unemployment, while structural unemployment is thought to explain relatively short spells of unemployment.E) A) and B)
F) A) and C)

Question 16

Evidence from research studies by economists

Accepted Answer

A)  shows that increased unemployment benefits decrease the job search efforts of the unemployed.
B)  shows that increased unemployment benefits have virtually no effect on the job search efforts of the unemployed.
C)  shows that increased unemployment benefits increase the job search efforts of the unemployed.
D)  is conflicting on what increased unemployment benefits do to the job search efforts of the unemployed.E) A) and B)
F) None of the above

Question 17

The unemployment rate is computed as the number of unemployed

Accepted Answer

A)  divided by the labor force, all times 100.
B)  divided by the number of employed, all times 100.
C)  divided by the adult population, all times 100.
D)  times the labor-force participation rate, all times 100.E) B) and D)
F) B) and C)

Question 18

The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

Accepted Answer

A)  higher production costs and higher profits.
B)  higher production costs and lower profits.
C)  lower production costs and higher profits.
D)  lower production costs and lower profits.E) B) and D)
F) B) and C)

Question 19

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had decreased.

Accepted Answer

A) True 
 B)False

Question 20

Who in the adult population is counted as "employed" in U.S. labor statistics?

Accepted Answer

A)  people who are temporarily absent from their job and people who work without pay in a family member's business
B)  people who are temporarily absent from their job but not people who work without pay in a family member's business
C)  people who work without pay in a family member's business but not people who are temporarily absent from their job
D)  neither people who are temporarily absent from their job nor people who work without pay in a family member's businessE) All of the above
F) A) and B)

Exam 28: Unemployment and Its Natural Rate

U.S. Department of Labor data show that minimum-wage workers tend to be young, less educated, more likely to be working part time, and concentrated in the leisure and hospitality industry.

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The unemployment rate is computed as the number of unemployed

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Evidence from research studies by economists

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Minimum wages create unemployment in markets where they create a

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Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the

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

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Suppose that consumers decide to walk to work more frequently and drive cars less. Companies that make walking shoes hire workers, while automobile companies lay off workers. This is an example of

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Who in the adult population is counted as "employed" in U.S. labor statistics?

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The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

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Frictional unemployment is thought to explain relatively

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The destruction of manufacturing jobs and workers leaving their jobs to find better ones both contribute to frictional unemployment.

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The Bureau of Labor Statistics produces data on unemployment

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If the minimum wage is currently above the equilibrium wage, then a decrease in the minimum wage

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The Bureau of Labor Statistics defines the unemployment rate as the percentage of

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Tatiana is waiting to be recalled to a job from which she was laid off. Ivan was fired but has not looked for work during the last two months. Who does the Bureau of Labor Statistics count as "unemployed"?

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Jamarcus works part-time as a pizza delivery person in a college town. The Bureau of Labor Statistics counts Jamarcus as

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Octavia does not currently have a job, but she has applied for several jobs in the previous week. Eve is an unpaid stay-at-home mom who has not searched for work in recent years. Who does the Bureau of Labor Statistics count as "out of the labor force"?

Correct AnswerverifiedShow Answer

Just after World War II, the labor-force participation rate of men was

Correct AnswerverifiedShow Answer

Three possible reasons for an above-equilibrium wage are minimum-wage laws, unions, and efficiency wages.

Correct AnswerverifiedShow Answer

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had decreased.

Correct AnswerverifiedShow Answer

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