Question 1

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) None of the above

Question 2

How are discouraged workers counted in the unemployment rate?

Accepted Answer

Because discouraged workers ar...

Question 3

Table 28-6
 
-Refer to Table 28-6. What is the U-6 measure of labor underutilization?

Accepted Answer

A)   8.4%
B)   9.0%
C)   9.2%
D)   35.2%E) C) and D)
F) A) and B)

Question 4

Most U.S. workers have wages well above the legal minimum, so minimum-wage laws do not prevent the wage from adjusting to balance supply and demand.

Accepted Answer

A) True 
 B)False

Question 5

If outsiders had more say in union contracts then it is likely that union wages would be

Accepted Answer

A)   higher so unemployment would be higher.
B)   higher so unemployment would be lower.
C)   lower so unemployment would be higher.
D)   lower so unemployment would be lower.E) None of the above
F) B) and C)

Question 6

The Bureau of Labor Statistics' "employed" category includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member's business.

Accepted Answer

A) True 
 B)False

Question 7

A typical American worker covered by unemployment insurance receives 50 percent of his former wages for 52 weeks.

Accepted Answer

A) True 
 B)False

Question 8

Figure 28-3 
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be unemployed?

Accepted Answer

A)   0
B)   3,000
C)   4,000
D)   7,000E) All of the above
F) B) and C)

Question 9

The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to

Accepted Answer

A)   decrease, raising wages in industries that are not unionized.
B)   decrease, reducing wages in industries that are not unionized.
C)   increase, raising wages in industries that are not unionized.
D)   increase, reducing wages in industries that are not unionized.E) All of the above
F) A) and B)

Question 10

Give a few examples of how sectoral shifts temporarily cause unemployment.

Accepted Answer

Examples should focus on sectors of the ...

Question 11

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 12

Efficiency wages create structural unemployment.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Data show that at least 20 percent of U.S. manufacturing jobs are destroyed every year.

Accepted Answer

A) True 
 B)False

Question 15

Figure 28-7 
-Refer to Figure 28-7. If the minimum wage increases from $100 to $125, how many additional workers will be unemployed?

Accepted Answer

The answer of Figure 28-7 
-Refer to Figure 28-7. If...

Question 16

The amount of unemployment that a country typically experiences is a determinant of its standard of living.

Accepted Answer

A) True 
 B)False

Question 17

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

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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) B) and D)

Question 20

Data on unemployment indicate that most people who become unemployed will soon find jobs.

Accepted Answer

A) True 
 B)False

Exam 10: Unemployment and Its Natural Rate

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Data show that at least 20 percent of U.S. manufacturing jobs are destroyed every year.

Correct AnswerverifiedShow Answer

How are discouraged workers counted in the unemployment rate?

Correct AnswerverifiedBecause discouraged workers ar...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Most U.S. workers have wages well above the legal minimum, so minimum-wage laws do not prevent the wage from adjusting to balance supply and demand.

Correct AnswerverifiedShow Answer

Figure 28-7 -Refer to Figure 28-7. If the minimum wage increases from $100 to $125, how many additional workers will be unemployed?

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' "employed" category includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member's business.

Correct AnswerverifiedShow Answer

Minimum wages create unemployment in markets where they create a

Correct AnswerverifiedShow Answer

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

Correct AnswerverifiedShow Answer

Efficiency wages create structural unemployment.

Correct AnswerverifiedShow Answer

A typical American worker covered by unemployment insurance receives 50 percent of his former wages for 52 weeks.

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

The amount of unemployment that a country typically experiences is a determinant of its standard of living.

Correct AnswerverifiedShow Answer

If outsiders had more say in union contracts then it is likely that union wages would be

Correct AnswerverifiedShow Answer

The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to

Correct AnswerverifiedShow Answer

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be unemployed?

Correct AnswerverifiedShow Answer

Give a few examples of how sectoral shifts temporarily cause unemployment.

Correct AnswerverifiedExamples should focus on sectors of the ...View AnswerShow Answer

Table 28-6 -Refer to Table 28-6. What is the U-6 measure of labor underutilization?

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Data on unemployment indicate that most people who become unemployed will soon find jobs.

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Because discouraged workers ar...
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Examples should focus on sectors of the ...
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