Question 1

A firm might offer efficiency wages so its workers will eat a more nutritious diet and therefore be healthier and more productive.

Accepted Answer

A) True 
 B)False

Question 2

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

Accepted Answer

A) True 
 B)False

Question 3

Rfer to Labor
Labor Force Statistics by Age.
Suppose people in the adult population in a small country are classified based on their age.
 
-Refer to Labor Force Statistics by Age. In the proper order, which age group has the highest unemployment rate and which has the highest participation rate?

Accepted Answer

A)   under 55, under 55
B)   under 55, 55 and older
C)   55 and older, under 55
D)   55 and older, 55 and olderE) C) and D)
F) A) and C)

Question 4

Unions contribute to

Accepted Answer

A)   cyclical unemployment.
B)   frictional unemployment.
C)   seasonal unemployment.
D)   structural unemployment.E) A) and B)
F) A) and C)

Question 5

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 unemployed?

Accepted Answer

A)   2.54 million
B)   2.76 million
C)   3.68 million
D)   8 millionE) A) and B)
F) A) and C)

Question 6

About what percentage of jobs are destroyed every year and about what percentage of workers leave their jobs in a typical month?

Accepted Answer

A)   1% and 5%
B)   5% and 1%
C)   3% and 10%
D)   10% and 3%E) A) and B)
F) A) and C)

Question 7

Edgar is working part-time. Diane is on temporary layoff. Who is included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)   only Edgar
B)   only Diane
C)   both Edgar and Diane
D)   neither Edgar nor DianeE) All of the above
F) None of the above

Question 8

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) C) and D)
F) A) and D)

Question 9

Which of the following is not an explanation for the existence of structural unemployment?

Accepted Answer

A)   efficiency wages
B)   job search
C)   minimum-wage laws
D)   unionsE) None of the above
F) A) and B)

Question 10

The Bureau of Labor Statistics reported in 2005 that there were 53.23 million people over age 25 who had at least a bachelor's degree, 40.59 million of whom were employed and 0.98 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)   76.3% and 1.8%
B)   76.3% and 2.4%
C)   78.1% and 1.8%
D)   78.1% and 2.4%E) A) and B)
F) None of the above

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The introduction of a union into an industry

Accepted Answer

A)   creates a surplus of labor and so raises unemployment.
B)   creates a surplus of labor and so reduces unemployment.
C)   creates a shortage of labor and so raises unemployment.
D)   creates a shortage of labor and so reduces unemployment.E) A) and B)
F) A) and C)

Question 13

The unemployment that results from the process of matching workers and jobs is called frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is correct?

Accepted Answer

A)   There is consensus among economists that unions are good for the economy.
B)   There is consensus among economists that unions are bad for the economy.
C)   There is consensus among economists that, on net, unions have almost no impact on macroeconomic variables.
D)   There is no consensus among economists about whether unions are good or bad for the economy.E) None of the above
F) C) and D)

Question 15

Some persons are counted as out of the labor force because they have made no serious or recent effort to look for work. However, some of these individuals may want to work even though they are too discouraged to make a serious effort to look for work. If these individuals were counted as unemployed instead of out of the labor force, then

Accepted Answer

A)   both the unemployment rate and labor-force participation rate would be higher.
B)   the unemployment rate would be higher and the labor-force participation rate would be lower.
C)   the unemployment rate would be lower and the labor-force participation rate would be higher.
D)   both the unemployment rate and labor-force participation rate would be lower.E) All of the above
F) C) and D)

Question 16

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) B) and C)
F) C) and D)

Question 17

Suppose the demand for construction workers increased and the demands for textile and steel workers diminished. This is an example of

Accepted Answer

A)   frictional unemployment created by efficiency wages.
B)   structural unemployment created by efficiency wages.
C)   frictional unemployment created by sectoral shifts.
D)   structural unemployment created by sectoral shifts.E) A) and B)
F) A) and D)

Question 18

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) A) and C)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The theory of efficiency wages explains why

Accepted Answer

A)   setting wages at the equilibrium level may increase unemployment.
B)   it may be in the best interest of firms to offer wages that are above the equilibrium level.
C)   the most efficient way to pay workers is to pay them according to their skills.
D)   it is efficient for firms to set wages at the equilibrium level.E) C) and D)
F) B) and C)

Exam 10: Unemployment

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

Correct Answer
verified

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

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

Correct Answer
verified

A firm might offer efficiency wages so its workers will eat a more nutritious diet and therefore be healthier and more productive.

Correct Answer
verified

About what percentage of jobs are destroyed every year and about what percentage of workers leave their jobs in a typical month?

Correct Answer
verified

The unemployment that results from the process of matching workers and jobs is called frictional unemployment.

Correct Answer
verified

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

Correct Answer
verified

The theory of efficiency wages explains why

Correct Answer
verified

Edgar is working part-time. Diane is on temporary layoff. Who is included in the Bureau of Labor Statistics' "employed" category?

Correct Answer
verified

The Bureau of Labor Statistics reported in 2005 that there were 53.23 million people over age 25 who had at least a bachelor's degree, 40.59 million of whom were employed and 0.98 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Correct Answer
verified

Which of the following is not an explanation for the existence of structural unemployment?

Correct Answer
verified

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 unemployed?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Rfer to Labor Labor Force Statistics by Age. Suppose people in the adult population in a small country are classified based on their age. -Refer to Labor Force Statistics by Age. In the proper order, which age group has the highest unemployment rate and which has the highest participation rate?

Correct Answer
verified

Unions contribute to

Correct Answer
verified

Suppose the demand for construction workers increased and the demands for textile and steel workers diminished. This is an example of

Correct Answer
verified

The introduction of a union into an industry

Correct Answer
verified

Exam 10: Unemployment

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

Correct AnswerverifiedShow Answer

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A firm might offer efficiency wages so its workers will eat a more nutritious diet and therefore be healthier and more productive.

Correct AnswerverifiedShow Answer

About what percentage of jobs are destroyed every year and about what percentage of workers leave their jobs in a typical month?

Correct AnswerverifiedShow Answer

The unemployment that results from the process of matching workers and jobs is called frictional unemployment.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The theory of efficiency wages explains why

Correct AnswerverifiedShow Answer

Edgar is working part-time. Diane is on temporary layoff. Who is included in the Bureau of Labor Statistics' "employed" category?

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics reported in 2005 that there were 53.23 million people over age 25 who had at least a bachelor's degree, 40.59 million of whom were employed and 0.98 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Correct AnswerverifiedShow Answer

Which of the following is not an explanation for the existence of structural unemployment?

Correct AnswerverifiedShow Answer

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 unemployed?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Rfer to Labor Labor Force Statistics by Age. Suppose people in the adult population in a small country are classified based on their age. -Refer to Labor Force Statistics by Age. In the proper order, which age group has the highest unemployment rate and which has the highest participation rate?

Correct AnswerverifiedShow Answer

Unions contribute to

Correct AnswerverifiedShow Answer

Suppose the demand for construction workers increased and the demands for textile and steel workers diminished. This is an example of

Correct AnswerverifiedShow Answer

The introduction of a union into an industry

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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