Question 1

Which of the following do unions not cause?

Accepted Answer

A)   frictional unemployment
B)   the wage to rise above the equilibrium level
C)   conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs
D)   reduced wages in industries without unionsE) All of the above
F) None of the above

Question 2

Table 20-2
2009 Labor Data for Baltivia
 
-Refer to Table 20-2.How many people were employed in Baltivia in 2009?

Accepted Answer

A)   9,600
B)   10,600
C)   11,000
D)   11,200E) A) and B)
F) A) and D)

Question 3

Suppose some country had an adult population of about 46 million,a labor-force participation rate of 75 percent,and an unemployment rate of 8 percent.How many people were employed?

Accepted Answer

A)   2.76 million
B)   31.74 million
C)   34.5 million
D)   42.32 millionE) B) and C)
F) None of the above

Question 4

A union is an employer association that bargains with workers over wages,benefits,and working conditions.

Accepted Answer

A) True 
 B)False

Question 5

Public policy

Accepted Answer

A)   can reduce both frictional unemployment and the natural rate of unemployment.
B)   can reduce frictional unemployment,but it cannot reduce the natural rate of unemployment.
C)   cannot reduce frictional unemployment,but it can reduce the natural rate of unemployment.
D)   cannot reduce either frictional unemployment or the natural rate of unemployment.E) B) and C)
F) None of the above

Question 6

Almost nine-tenths of all spells of unemployment end when the unemployed person finds a job.

Accepted Answer

A) True 
 B)False

Question 7

Frictional unemployment can be the consequence of

Accepted Answer

A)   workers leaving existing jobs to find ones they like better.
B)   one industry declining while another is growing.
C)   changes in the working conditions offered by competing firms.
D)   All of the above are correct.E) All of the above
F) C) and D)

Question 8

Teenage unemployment is higher than unemployment of people ages 20 and over.Explain why economists would attribute at least part of this difference to minimum-wage laws.

Accepted Answer

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Question 9

According to the theory of efficiency wages,if a firm stops paying efficiency wages it is likely to see

Accepted Answer

A)   an increase in the number of job applicants and an increase in how long workers stay on the job
B)   an increase in the number of job applicants and a decrease in how long workers stay on the job
C)   a decrease in the number of job applicants and an increase in how long workers stay on the job
D)   a decrease in the number of job applicants and a decrease in how long workers stay on the jobE) A) and B)
F) None of the above

Question 10

Suppose there are a large number of men who used to work or seek work who now no longer do either.Other things the same,this makes

Accepted Answer

A)   the number of people unemployed rise but does not change the labor force.
B)   the number of people unemployed rise but makes the labor force fall.
C)   both the number of people unemployed and the labor force fall.
D)   the number of people unemployed fall but does not change the labor force.E) C) and D)
F) B) and D)

Question 11

Most job search in the U.S.economy takes place with the help of the government.

Accepted Answer

A) True 
 B)False

Question 12

Advocates of government-run employment agencies and public training programs believe they make job search more efficient.

Accepted Answer

A) True 
 B)False

Question 13

Right-to-work laws

Accepted Answer

A)   guarantee workers the right to form unions.
B)   give workers in a unionized firm the right to choose whether to join the union.
C)   prevent employers from hiring permanent replacements for workers who are on strike.
D)   prevent workers from being fired because of increases in wages brought about by collective bargaining.E) C) and D)
F) B) and C)

Question 14

Sirius has just finished high school and started looking for his first job,but has not yet found one.Other things the same,the unemployment rate

Accepted Answer

A)   and the labor-force participation rate both increase.
B)   increases and the labor-force participation rate is unaffected.
C)   is unaffected and the labor-force participation rate increases.
D)   and the labor-force participation rate are both unaffected.E) All of the above
F) B) and C)

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Juanita decides to hire some additional workers for her vinyl siding factory.The equilibrium wage is $14 per hour.Efficiency wage theory suggests that it is reasonable for Juanita to offer

Accepted Answer

A)   $14 per hour.
B)   less than $14 per hour,since some people would be willing to work for less.
C)   less than $14 an hour to prevent shirking.
D)   more than $14 per hour,so as to attract a better pool of applicants.E) All of the above
F) A) and B)

Question 17

Structural unemployment results when the number of jobs is insufficient for the number of workers.

Accepted Answer

A) True 
 B)False

Question 18

Consumers decide to ride bikes more and drive cars less.Bicycle companies expand production while automobile companies fire 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 D)
F) A) and C)

Question 19

Paying efficiency wages means that wages are

Accepted Answer

A)   above equilibrium and profits are higher than otherwise.
B)   above equilibrium and profits are lower than otherwise.
C)   below equilibrium and profits are higher than otherwise.
D)   below equilibrium and profits are lower than otherwise.E) A) and B)
F) C) and D)

Question 20

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Accepted Answer

A) True 
 B)False

Exam 20: Unemployment

Teenage unemployment is higher than unemployment of people ages 20 and over.Explain why economists would attribute at least part of this difference to minimum-wage laws.

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Advocates of government-run employment agencies and public training programs believe they make job search more efficient.

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Right-to-work laws

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Most job search in the U.S.economy takes place with the help of the government.

Correct AnswerverifiedShow Answer

Table 20-2 2009 Labor Data for Baltivia -Refer to Table 20-2.How many people were employed in Baltivia in 2009?

Correct AnswerverifiedShow Answer

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

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A union is an employer association that bargains with workers over wages,benefits,and working conditions.

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Which of the following do unions not cause?

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The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Correct AnswerverifiedShow Answer

Consumers decide to ride bikes more and drive cars less.Bicycle companies expand production while automobile companies fire workers.This is an example of

Correct AnswerverifiedShow Answer

Juanita decides to hire some additional workers for her vinyl siding factory.The equilibrium wage is $14 per hour.Efficiency wage theory suggests that it is reasonable for Juanita to offer

Correct AnswerverifiedShow Answer

Paying efficiency wages means that wages are

Correct AnswerverifiedShow Answer

Suppose there are a large number of men who used to work or seek work who now no longer do either.Other things the same,this makes

Correct AnswerverifiedShow Answer

Structural unemployment results when the number of jobs is insufficient for the number of workers.

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According to the theory of efficiency wages,if a firm stops paying efficiency wages it is likely to see

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Sirius has just finished high school and started looking for his first job,but has not yet found one.Other things the same,the unemployment rate

Correct AnswerverifiedShow Answer

Public policy

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Almost nine-tenths of all spells of unemployment end when the unemployed person finds a job.

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Suppose some country had an adult population of about 46 million,a labor-force participation rate of 75 percent,and an unemployment rate of 8 percent.How many people were employed?

Correct AnswerverifiedShow Answer

Frictional unemployment can be the consequence of

Correct AnswerverifiedShow Answer

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