Question 1

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) A) and D)
F) A) and B)

Question 2

Which of the following is a cause of the changing role of women in American society over the past several decades?

Accepted Answer

A)  new technologies that have reduced the amount of time required to complete routine household tasks
B)  improved birth control
C)  changing political and social attitudes
D)  All of the above are correct.E) None of the above
F) B) and C)

Question 3

Most job search in the U.S. economy takes place without intervention by the government.

Accepted Answer

A) True 
 B)False

Question 4

People who report being unemployed but who, in fact, are working for "under the table" pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not correct?

Accepted Answer

A)  When a union is present in a labor market, wages are determined by the equilibrium of supply and demand.
B)  Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power.
C)  The process by which unions and firms agree on the terms of employment is called collective bargaining.
D)  Most workers in the U.S. economy are not members of a union.E) B) and C)
F) A) and B)

Question 6

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

Accepted Answer

A)  about 33 percent, and in 2009, it was about 50 percent.
B)  about 50 percent, and in 2009, it was about 60 percent.
C)  about 65 percent, and in 2009, it was about 60 percent.
D)  about 87 percent, and in 2009, it was about 72 percent.E) B) and C)
F) All of the above

Question 7

Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings, but has not yet been offered one that best suits her tastes and skills. Sandy is

Accepted Answer

A)  structurally unemployed. Structural unemployment exists even in the long run.
B)  structurally unemployed. There is no structural unemployment in the long run.
C)  frictionally unemployed. Frictional unemployment exists even in the long run.
D)  frictionally unemployed. There is no frictional unemployment in the long run.E) None of the above
F) All of the above

Question 8

Minimum-wage laws

Accepted Answer

A)  create frictional unemployment, while firms paying wages above equilibrium to reduce worker turnover creates structural unemployment.
B)  create structural unemployment, while firms paying wages above equilibrium to reduce worker turnover creates frictional unemployment.
C)  and firms paying wages above equilibrium to reduce worker turnover both create structural unemployment.
D)  and firms paying wages above equilibrium to reduce worker turnover both create frictional unemployment.E) C) and D)
F) None of the above

Question 9

Unions contribute to

Accepted Answer

A)  frictional unemployment but not the natural rate of unemployment.
B)  the natural rate of unemployment but not frictional unemployment.
C)  both frictional unemployment and the natural rate of unemployment.
D)  neither frictional unemployment nor the natural rate of unemployment.E) B) and C)
F) All of the above

Question 10

Noah, the owner of an electronics factory, decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

Accepted Answer

A)  might increase profits if it attracts a better pool of workers to apply for his firm's jobs.
B)  will increase the excess supply of labor.
C)  may increase the quality of his work force.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 11

Within the U.S., teenagers have higher rates of unemployment than older workers.

Accepted Answer

A) True 
 B)False

Question 12

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 13

An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

Accepted Answer

A) True 
 B)False

Question 14

Jenna is searching for a job that suits her tastes about where to live. Mary is looking for a job that makes best use of her skills.

Accepted Answer

A)  Jenna and Mary are both frictionally unemployed.
B)  Jenna and Mary are both structurally unemployed.
C)  Jenna is frictionally unemployed, and Mary is structurally unemployed.
D)  Jenna is structurally unemployed, and Mary is frictionally unemployed.E) C) and D)
F) None of the above

Question 15

Long-run unemployment arises from a single problem that has a single solution.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)  0.4 and 0.6 percent.
B)  4 and 6 percent.
C)  6 and 12 percent.
D)  12 and 24 percent.E) A) and B)
F) C) and D)

Question 17

Within the U.S., teenagers have lower rates of labor-force participation than older workers.

Accepted Answer

A) True 
 B)False

Question 18

It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 19

Table 15-5
2010 Labor Data for Tajnia
 $$\begin{array} { | l | l | } 
\hline \text { Number of adiults employed } & 10,000 \
\hline \text { Number of adults unemployed } & 2,250 \
\hline \text { Number of atults not in the labar force } & 17,750 \
\hline
\end{array}$$
-Refer to Table 15-5. The labor-force participation rate of Tajnia in 2010 is about 40.8 percent.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Accepted Answer

A)  minimum-wage laws
B)  unions
C)  efficiency wages
D)  All of the above are correct.E) C) and D)
F) A) and D)

Exam 15: Unemployment

Minimum-wage laws

Correct Answer
verified

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Correct Answer
verified

Within the U.S., teenagers have lower rates of labor-force participation than older workers.

Correct Answer
verified

Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings, but has not yet been offered one that best suits her tastes and skills. Sandy is

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

People who report being unemployed but who, in fact, are working for "under the table" pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.

Correct Answer
verified

Unions contribute to

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Within the U.S., teenagers have higher rates of unemployment than older workers.

Correct Answer
verified

It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.

Correct Answer
verified

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

Correct Answer
verified

Jenna is searching for a job that suits her tastes about where to live. Mary is looking for a job that makes best use of her skills.

Correct Answer
verified

Long-run unemployment arises from a single problem that has a single solution.

Correct Answer
verified

Noah, the owner of an electronics factory, decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

Correct Answer
verified

Which of the following is a cause of the changing role of women in American society over the past several decades?

Correct Answer
verified

Minimum wages create unemployment in markets where they create a

Correct Answer
verified

Most job search in the U.S. economy takes place without intervention by the government.

Correct Answer
verified

An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

Correct Answer
verified

Correct Answer
verified

Exam 15: Unemployment

Minimum-wage laws

Correct AnswerverifiedShow Answer

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Correct AnswerverifiedShow Answer

Within the U.S., teenagers have lower rates of labor-force participation than older workers.

Correct AnswerverifiedShow Answer

Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings, but has not yet been offered one that best suits her tastes and skills. Sandy is

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

People who report being unemployed but who, in fact, are working for "under the table" pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.

Correct AnswerverifiedShow Answer

Unions contribute to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Within the U.S., teenagers have higher rates of unemployment than older workers.

Correct AnswerverifiedShow Answer

It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Jenna is searching for a job that suits her tastes about where to live. Mary is looking for a job that makes best use of her skills.

Correct AnswerverifiedShow Answer

Long-run unemployment arises from a single problem that has a single solution.

Correct AnswerverifiedShow Answer

Noah, the owner of an electronics factory, decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

Correct AnswerverifiedShow Answer

Which of the following is a cause of the changing role of women in American society over the past several decades?

Correct AnswerverifiedShow Answer

Minimum wages create unemployment in markets where they create a

Correct AnswerverifiedShow Answer

Most job search in the U.S. economy takes place without intervention by the government.

Correct AnswerverifiedShow Answer

An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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