Question 1

Frictional unemployment is inevitable because the economy is always changing.

Accepted Answer

A) True 
 B)False

Question 2

If the minimum wage is currently above the equilibrium wage, then a decrease in the minimum wage

Accepted Answer

A)   increases both the quantity demanded and the quantity supplied of labor.
B)   decreases both the quantity demanded and the quantity supplied of labor.
C)   increases the quantity of labor demanded but decreases the quantity of labor supplied.
D)   decreases the quantity of labor demanded but increases the quantity of labor supplied.E) A) and D)
F) All of the above

Question 3

People who are unemployed because of job search are best classified as

Accepted Answer

A)   cyclically unemployed.
B)   structurally unemployed.
C)   frictionally unemployed.
D)   discouraged workers.E) None of the above
F) A) and B)

Question 4

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

Question 5

When a union bargains successfully with employers, in that industry,

Accepted Answer

A)   both wages and unemployment increase.
B)   wages increase and unemployment decreases.
C)   wages decrease and unemployment increases.
D)   both wages and unemployment decrease.E) A) and D)
F) A) and C)

Question 6

Cyclical unemployment

Accepted Answer

A)   has a different explanation than does the natural rate of unemployment.
B)   refers to the year­to­year fluctuation in unemployment around an economy's natural rate of unemployment.
C)   is closely associated with short-run ups and downs of economic activity.
D)   All of the above are correct.E) B) and C)
F) A) and B)

Question 7

Table 28-6
 
-Refer to Table 28-6. What is the U-2 measure of labor underutilization?

Accepted Answer

A)   1.5%
B)   3.1%
C)   4.7%
D)   6.2%E) A) and D)
F) B) and C)

Question 8

In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Swedish adult non- institutionalized population was 7.568 million, the labor force was 4.888 million, and the number of people employed was 4.486 million. According to these numbers, the Swedish labor-force participation rate and unemployment rate were about

Accepted Answer

A)   64.6% and 8.2%.
B)   64.6% and 5.3%.
C)   59.3% and 8.2%.
D)   59.3% and 5.3%.E) A) and B)
F) A) and C)

Question 9

Within the U.S. population, teenagers ages 16-19) have similar rates of unemployment than adults of prime working age ages 25-54), regardless of race or gender.

Accepted Answer

A) True 
 B)False

Question 10

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 11

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) B) and D)
F) All of the above

Question 12

Efficiency wages

Accepted Answer

A)   may increase productivity.
B)   will increase unemployment.
C)   may improve worker health.
D)   All of the above are correct.E) None of the above
F) A) and B)

Question 13

Suppose that garbage collectors and landscaping workers have no unions. Now suppose that garbage collectors form unions. What does this do the labor supply and wages of landscaping workers?

Accepted Answer

A)   Both labor supply and wages increase.
B)   Labor supply increases, and wages decrease.
C)   Labor supply decreases, and wages increase.
D)   Both labor supply and wages increaseE) B) and D)
F) C) and D)

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Most spells of unemployment are

Accepted Answer

A)   long, and most unemployment observed at any given time is long term.
B)   long, but most unemployment observed at any given time is short term.
C)   short, but most unemployment observed at any given time is long term.
D)   short, and most unemployment observed at any given time is short term.E) B) and D)
F) None of the above

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Job search

Accepted Answer

A)   and firms paying wages above equilibrium to improve worker health both create frictional unemployment.
B)   creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment.
C)   creates structural unemployment, while firms paying wages above equilibrium to improve worker health creates frictional unemployment.
D)   and firms paying wages above equilibrium to improve worker health both create structural unemployment.E) A) and B)
F) None of the above

Question 18

Table 28-2
Labor Data for Aridia
 
-Refer to Table 28-2. The labor force of Aridia in 2011 was

Accepted Answer

A)   1,300.
B)   1,900.
C)   2,400.
D)   3,000.E) A) and B)
F) A) and C)

Question 19

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

Question 20

Figure 28-4 
-Refer to Figure 28-4. If the government imposes a minimum wage of $7, how many workers will be unemployed?

Accepted Answer

A)   0
B)   2,000
C)   4,000
D)   6,000E) None of the above
F) B) and C)

Exam 10: Unemployment and Its Natural Rate

Suppose that garbage collectors and landscaping workers have no unions. Now suppose that garbage collectors form unions. What does this do the labor supply and wages of landscaping workers?

Correct Answer
verified

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

Correct Answer
verified

People who are unemployed because of job search are best classified as

Correct Answer
verified

Which of the following do unions not cause?

Correct Answer
verified

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $7, how many workers will be unemployed?

Correct Answer
verified

Correct Answer
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Efficiency wages

Correct Answer
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Job search

Correct Answer
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Cyclical unemployment

Correct Answer
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When a union bargains successfully with employers, in that industry,

Correct Answer
verified

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

Correct Answer
verified

When the wage is above the equilibrium level,

Correct Answer
verified

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Correct Answer
verified

Within the U.S. population, teenagers ages 16-19) have similar rates of unemployment than adults of prime working age ages 25-54), regardless of race or gender.

Correct Answer
verified

If the minimum wage is currently above the equilibrium wage, then a decrease in the minimum wage

Correct Answer
verified

Table 28-6 -Refer to Table 28-6. What is the U-2 measure of labor underutilization?

Correct Answer
verified

Most spells of unemployment are

Correct Answer
verified

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

Correct Answer
verified

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor force of Aridia in 2011 was

Correct Answer
verified

Frictional unemployment is inevitable because the economy is always changing.

Correct Answer
verified

Exam 10: Unemployment and Its Natural Rate

Suppose that garbage collectors and landscaping workers have no unions. Now suppose that garbage collectors form unions. What does this do the labor supply and wages of landscaping workers?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

People who are unemployed because of job search are best classified as

Correct AnswerverifiedShow Answer

Which of the following do unions not cause?

Correct AnswerverifiedShow Answer

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $7, how many workers will be unemployed?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Efficiency wages

Correct AnswerverifiedShow Answer

Job search

Correct AnswerverifiedShow Answer

Cyclical unemployment

Correct AnswerverifiedShow Answer

When a union bargains successfully with employers, in that industry,

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When the wage is above the equilibrium level,

Correct AnswerverifiedShow Answer

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Correct AnswerverifiedShow Answer

Within the U.S. population, teenagers ages 16-19) have similar rates of unemployment than adults of prime working age ages 25-54), regardless of race or gender.

Correct AnswerverifiedShow Answer

If the minimum wage is currently above the equilibrium wage, then a decrease in the minimum wage

Correct AnswerverifiedShow Answer

Table 28-6 -Refer to Table 28-6. What is the U-2 measure of labor underutilization?

Correct AnswerverifiedShow Answer

Most spells of unemployment are

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor force of Aridia in 2011 was

Correct AnswerverifiedShow Answer

Frictional unemployment is inevitable because the economy is always changing.

Correct AnswerverifiedShow Answer

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