Question 1

Olga owns her own business. Sven is an unpaid worker in his family's business. Who is included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)   only Olga
B)   only Sven
C)   both Olga and Sven
D)   neither Olga nor SvenE) All of the above
F) B) and D)

Question 2

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 $10, how many people would be unemployed?

Accepted Answer

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

Question 3

Figure 28-4 
-Refer to Figure 28-4. If the government imposes a minimum wage of $6, how many workers will be unemployed?

Accepted Answer

A)   0
B)   2,000
C)   4,000
D)   6,000E) All of the above
F) C) and D)

Question 4

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) A) and B)
F) A) and C)

Question 5

The National Labor Relations Board

Accepted Answer

A)   enforces antitrust laws against unions.
B)   enforces workers' rights to unionize.
C)   acts as a union's representative in collective bargaining.
D)   is required to approve all collective bargaining agreements before they can be enforced.E) B) and C)
F) B) and D)

Question 6

According to the theory of efficiency wages, firms operate more efficiently if wages are above the equilibrium level.

Accepted Answer

A) True 
 B)False

Question 7

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 D)
F) A) and B)

Question 8

Cyclical unemployment refers to

Accepted Answer

A)   the relationship between the probability of unemployment and a worker's changing level of experience.
B)   how often a worker is likely to be employed during her lifetime.
C)   year-to-year fluctuations of unemployment around its natural rate.
D)   long-term trends in unemployment.E) C) and D)
F) None of the above

Question 9

Cyclical unemployment is caused by

Accepted Answer

A)   frictional and structural unemployment
B)   frictional but not structural unemployment
C)   structural but not frictional unemployment
D)   neither frictional nor structural unemploymentE) A) and B)
F) A) and D)

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is correct?

Accepted Answer

A)   The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy.
B)   The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and a complex economy can achieve zero unemployment.
C)   The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and a complex economy can achieve zero unemployment.
D)   The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy.E) C) and D)
F) B) and D)

Question 12

More than 30 percent of U.S. workers leave their jobs in a typical month.

Accepted Answer

A) True 
 B)False

Question 13

An economy's natural rate of unemployment is the

Accepted Answer

A)   economy's long­run target level of unemployment.
B)   amount of unemployment that the economy normally experiences.
C)   lowest rate of unemployment the economy can achieve.
D)   All of the above are correct.E) A) and B)
F) A) and D)

Question 14

Suppose that consumers decide to walk to work more frequently and drive cars less. Companies that make walking shoes hire workers, while automobile companies lay off 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 C)
F) C) and D)

Question 15

Define the natural rate of unemployment and cyclical unemployment.

Accepted Answer

The natural rate of unemployment refers ...

Question 16

Sectoral shifts contribute to structural unemployment.

Accepted Answer

A) True 
 B)False

Question 17

Some individuals would like to have a job, but they have given up looking for a job after an unsuccessful search. These individuals are called

Accepted Answer

A)   detached workers, and they are classified by the Bureau of Labor Statistics as unemployed.
B)   detached workers, and they are not classified by the Bureau of Labor Statistics as unemployed.
C)   discouraged workers, and they are classified by the Bureau of Labor Statistics as unemployed.
D)   discouraged workers, and they are not classified by the Bureau of Labor Statistics as unemployed.E) A) and B)
F) A) and C)

Question 18

Economists have found that union workers earn about 30 to 40 percent more than similar workers who do not belong to unions.

Accepted Answer

A) True 
 B)False

Question 19

The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

Accepted Answer

A) True 
 B)False

Question 20

If there were no factors keeping wages from reaching equilibrium then there would be no

Accepted Answer

A)   cyclical unemployment.
B)   frictional unemployment.
C)   structural unemployment.
D)   natural rate of unemployment.E) None of the above
F) A) and C)

Exam 10: Unemployment and Its Natural Rate

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

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If there were no factors keeping wages from reaching equilibrium then there would be no

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Define the natural rate of unemployment and cyclical unemployment.

Correct AnswerverifiedThe natural rate of unemployment refers ...View AnswerShow Answer

Sectoral shifts contribute to structural unemployment.

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Economists have found that union workers earn about 30 to 40 percent more than similar workers who do not belong to unions.

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Which of the following is correct?

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More than 30 percent of U.S. workers leave their jobs in a typical month.

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Minimum-wage laws

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According to the theory of efficiency wages, firms operate more efficiently if wages are above the equilibrium level.

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Cyclical unemployment refers to

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The National Labor Relations Board

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Olga owns her own business. Sven is an unpaid worker in his family's business. Who is included in the Bureau of Labor Statistics' "employed" category?

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Suppose that consumers decide to walk to work more frequently and drive cars less. Companies that make walking shoes hire workers, while automobile companies lay off workers. This is an example of

Correct AnswerverifiedShow Answer

Some individuals would like to have a job, but they have given up looking for a job after an unsuccessful search. These individuals are called

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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 $10, how many people would be unemployed?

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Cyclical unemployment is caused by

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

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The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

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Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $6, how many workers will be unemployed?

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An economy's natural rate of unemployment is the

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The natural rate of unemployment refers ...
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