Question 1

Right-to-work laws give workers in a unionized firm the right to choose whether to join the union.

Accepted Answer

A) True 
 B)False

Question 2

Data show that at least 10 percent of U.S.manufacturing jobs are destroyed every year.

Accepted Answer

A) True 
 B)False

Question 3

Every month,the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

Accepted Answer

A) True 
 B)False

Question 4

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) None of the above
F) A) and B)

Question 5

The labor-force participation rate equals the percentage of the labor force that is either employed or unemployed.

Accepted Answer

A) True 
 B)False

Question 6

Renee is the CEO of a corporation that hires nonunion labor.According to the theory of efficiency wages,if she decides to pay her workers more than the competitive equilibrium wage,then

Accepted Answer

A)   the profits of her firm might increase.
B)   the higher wages will induce her workers to shirk.
C)   the turnover of her workers may increase.
D)   she will face a shortage of labor.E) A) and C)
F) B) and C)

Question 7

When the wage is above the equilibrium level,

Accepted Answer

A)   the labor market is functioning more efficiently than it otherwise would function.
B)   there is a shortage of labor.
C)   the quantity of labor supplied exceeds the quantity of labor demanded.
D)   job search is the primary explanation for the unemployment that is observed.E) None of the above
F) A) and D)

Question 8

Which of the following is correct?

Accepted Answer

A)   The labor-force participation rate of women has increased in part due to smaller families.
B)   The labor-force participation rate of men has decreased in part due to men retiring younger and living longer.
C)   Both a and b are correct.
D)   None of the above is correct.E) A) and C)
F) C) and D)

Question 9

Table 20-1
Labor Data for Aridia
 
-Refer to Table 20-1.The unemployment rate of Aridia in 2012 was

Accepted Answer

A)   6.25%.
B)   11.1%.
C)   12.5%.
D)   56.25%.E) A) and B)
F) B) and C)

Question 10

Frictional unemployment is thought to explain

Accepted Answer

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

Question 11

Critics of unions argue that unions cause the allocation of labor to be inefficient and inequitable.

Accepted Answer

A) True 
 B)False

Question 12

Studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed.

Accepted Answer

A) True 
 B)False

Question 13

Suppose that appliance factory workers and furniture factory workers are not unionized.If the furniture factory workers unionize,then

Accepted Answer

A)   the wages of appliance factory workers will rise and the wages of furniture factory workers will fall.
B)   the wages of furniture factory workers will rise and the wages of appliance factory workers will fall.
C)   the wages of both appliance factory workers and furniture factory workers will rise.
D)   the wages of both appliance factory workers and furniture factory workers will fall.E) A) and B)
F) None of the above

Question 14

Table 20-5
2010 Labor Data for Tajnia
 
-Refer to Table 20-5.The unemployment rate of Tajnia in 2010 is about 18.4 percent.

Accepted Answer

A) True 
 B)False

Question 15

Table 20-3
2010 Labor Data for Adults (age 16 and older) in Meditor
 
-Refer to Table 20-3.What is the adult male labor-force participation rate in Meditor?

Accepted Answer

A)   37 percent
B)   63 percent
C)   66.7 percent
D)   96.3 percentE) B) and D)
F) B) and C)

Question 16

A minimum wage that is below the equilibrium wage rate does not raise unemployment.

Accepted Answer

A) True 
 B)False

Question 17

Employment can rise in one region of the country while it falls in another.

Accepted Answer

A) True 
 B)False

Question 18

Sectoral shifts temporarily cause unemployment.

Accepted Answer

A) True 
 B)False

Question 19

Structural unemployment is often thought to explain relatively short spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 20

Recent entrants into the labor force account for about

Accepted Answer

A)   1/5 of those who are unemployed.
B)   1/4 of those who are unemployed.
C)   1/3 of those who are unemployed.
D)   1/2 of those who are unemployed.E) A) and B)
F) C) and D)

Exam 20: Unemployment

Data show that at least 10 percent of U.S.manufacturing jobs are destroyed every year.

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Efficiency-wage theory suggests that paying

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Renee is the CEO of a corporation that hires nonunion labor.According to the theory of efficiency wages,if she decides to pay her workers more than the competitive equilibrium wage,then

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The labor-force participation rate equals the percentage of the labor force that is either employed or unemployed.

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Table 20-5 2010 Labor Data for Tajnia -Refer to Table 20-5.The unemployment rate of Tajnia in 2010 is about 18.4 percent.

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Employment can rise in one region of the country while it falls in another.

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When the wage is above the equilibrium level,

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Right-to-work laws give workers in a unionized firm the right to choose whether to join the union.

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Studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed.

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Frictional unemployment is thought to explain

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Critics of unions argue that unions cause the allocation of labor to be inefficient and inequitable.

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Recent entrants into the labor force account for about

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Every month,the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

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Which of the following is correct?

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Sectoral shifts temporarily cause unemployment.

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Table 20-1 Labor Data for Aridia -Refer to Table 20-1.The unemployment rate of Aridia in 2012 was

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Suppose that appliance factory workers and furniture factory workers are not unionized.If the furniture factory workers unionize,then

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Table 20-3 2010 Labor Data for Adults (age 16 and older) in Meditor -Refer to Table 20-3.What is the adult male labor-force participation rate in Meditor?

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Structural unemployment is often thought to explain relatively short spells of unemployment.

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A minimum wage that is below the equilibrium wage rate does not raise unemployment.

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