Question 1

Between 2002 and 2014 the number of workers employed in construction fell while the number of workers employed in food services rose.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  10%.
B)  12.5%.
C)  14.3%.
D)  80%.E) C) and D)
F) B) and C)

Question 3

Which of the following is correct?

Accepted Answer

A)  In unionized industries, wages are above the level that would prevail in competitive markets.
B)  The introduction of a union in some industry reduces the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and reduces 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) A) and D)
F) C) and D)

Question 4

Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level?

Accepted Answer

A)  efficiency wages
B)  job search
C)  minimum-wage laws
D)  unionsE) A) and D)
F) A) and C)

Question 5

Do economists believe that labor unions are good or bad for the U.S. economy?

Accepted Answer

Economists disagree. Critics argue that ...

Question 6

The labor force equals the sum of the employed and the unemployed.

Accepted Answer

A) True 
 B)False

Question 7

Table 28-2
Labor Data for Aridia 
-Refer to Table 28-2. The labor-force participation rate 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) C) and D)
F) B) and D)

Question 8

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 9

Critics of government-run employment agencies and public training programs argue that the private market is better at matching workers and jobs than the government is.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  1,400.
B)  1,600.
C)  1,800.
D)  2,000.E) All of the above
F) B) and C)

Question 11

Who of the following are included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)  certain unpaid workers
B)  part-time workers
C)  workers on vacation
D)  All of the above are correct.E) B) and C)
F) A) and B)

Question 12

​Daniel goes on vacation for four weeks. When he returns the company puts him on layoff for four weeks during which he waits to be recalled. In which weeks is Daniel counted as unemployed, if any?

Accepted Answer

A)  ​neither the first four or second four weeks
B)  the first four weeks but not the second four weeks
C)  ​the second four weeks but not the first four weeks
D)  ​both the first four weeks and the second four weeksE) A) and C)
F) All of the above

Question 13

In the 1940s and 1950s, about one-third of U.S. workers belonged to unions, but today, only about one-fifth of U.S. workers belong to unions.

Accepted Answer

A) True 
 B)False

Question 14

The Bureau of Labor Statistics divides the adult population into two categories: those who are employed and those who are unemployed.

Accepted Answer

A) True 
 B)False

Question 15

Josh is a full-time college student who is not working or looking for a job. The Bureau of Labor Statistics counts Josh as

Accepted Answer

A)  unemployed and in the labor force.
B)  unemployed but not in the labor force.
C)  in the labor force but not unemployed.
D)  neither in the labor force nor unemployed.E) None of the above
F) A) and D)

Question 16

Frictional unemployment results from

Accepted Answer

A)  job searching. It is often thought to explain relatively short spells of unemployment.
B)  job searching. It is often thought to explain relatively long spells of unemployment
C)  a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment.
D)  a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment.E) C) and D)
F) A) and C)

Question 17

Sectoral shifts in demand for output

Accepted Answer

A)  create structural unemployment.
B)  immediately reduce unemployment.
C)  increase unemployment due to job search.
D)  do not affect demand for labor.E) B) and C)
F) All of the above

Question 18

Table 28-8
Below is data about the labor market in the state of Northwoods. 
-Refer to Table 28-8. If the state government imposed a minimum wage of $8, how many people would be unemployed?

Accepted Answer

A)  0
B)  10,000
C)  20,000
D)  40,000E) A) and B)
F) A) and C)

Question 19

If the wage is kept above the equilibrium level for any reason, the result is unemployment.

Accepted Answer

A) True 
 B)False

Question 20

Jai Li just lost her job, and she has not yet started looking for a new one. The Bureau of Labor Statistics counts Jai Li as

Accepted Answer

A)  unemployed and in the labor force.
B)  unemployed but not in the labor force.
C)  in the labor force but not unemployed.
D)  neither in the labor force nor unemployed.E) A) and D)
F) A) and B)

Exam 28: Unemployment and Its Natural Rate

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

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

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Josh is a full-time college student who is not working or looking for a job. The Bureau of Labor Statistics counts Josh as

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Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level?

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The Bureau of Labor Statistics divides the adult population into two categories: those who are employed and those who are unemployed.

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Do economists believe that labor unions are good or bad for the U.S. economy?

Correct AnswerverifiedEconomists disagree. Critics argue that ...View AnswerShow Answer

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called frictional unemployment.

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

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Critics of government-run employment agencies and public training programs argue that the private market is better at matching workers and jobs than the government is.

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If the wage is kept above the equilibrium level for any reason, the result is unemployment.

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Who of the following are included in the Bureau of Labor Statistics' "employed" category?

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Between 2002 and 2014 the number of workers employed in construction fell while the number of workers employed in food services rose.

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Jai Li just lost her job, and she has not yet started looking for a new one. The Bureau of Labor Statistics counts Jai Li as

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The labor force equals the sum of the employed and the unemployed.

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Table 28-8 Below is data about the labor market in the state of Northwoods. -Refer to Table 28-8. If the state government imposed a minimum wage of $8, how many people would be unemployed?

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Which of the following is correct?

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Frictional unemployment results from

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Sectoral shifts in demand for output

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​Daniel goes on vacation for four weeks. When he returns the company puts him on layoff for four weeks during which he waits to be recalled. In which weeks is Daniel counted as unemployed, if any?

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In the 1940s and 1950s, about one-third of U.S. workers belonged to unions, but today, only about one-fifth of U.S. workers belong to unions.

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Economists disagree. Critics argue that ...
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Daniel goes on vacation for four weeks. When he returns the company puts him on layoff for four weeks during which he waits to be recalled. In which weeks is Daniel counted as unemployed, if any?

Correct Answer
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Correct Answer
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