Question 1

The unemployment rate equals the percentage of the labor force that is unemployed.

Accepted Answer

A) True 
 B)False

Question 2

Suppose that the adult population is 4 million, the number of unemployed is 0.25 million, and the labor-force participation rate is 75%. What is the unemployment rate?

Accepted Answer

A)   6.25%
B)   8.3%
C)   9.1%
D)   18.75%E) B) and C)
F) A) and D)

Question 3

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 4

Provide a definition of the natural rate of unemployment.

Accepted Answer

The amount of unempl...

Question 5

Figure 28-3 
-Refer to Figure 28-3. At the equilibrium wage, how many workers are employed?

Accepted Answer

A)   0
B)   1,000
C)   5,000
D)   9,000E) A) and C)
F) None of the above

Question 6

According to 2012 data on the U.S. population, which of the following was correct?

Accepted Answer

A)   Adults of prime working age ages 25-54)  had both higher labor-force participation rates and higher rates of unemployment compared to teenagers.
B)   Adults of prime working age ages 25-54)  had higher labor-force participation rates and lower rates of unemployment compared to teenagers.
C)   Adults of prime working age ages 25-54)  had both lower labor-force participation rates and lower rates of unemployment compared to teenagers.
D)   Adults of prime working age ages 25-54)  had lower labor-force participation rates and higher rates of unemployment compared to teenagers.E) All of the above
F) B) and D)

Question 7

The natural rate of unemployment

Accepted Answer

A)   arises from a single problem that has a single solution.
B)   is easy for policymakers to reduce.
C)   Both a and b are correct.
D)   None of the above is correct.E) B) and C)
F) A) and C)

Question 8

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 D)
F) None of the above

Question 9

Efficiency wages create a

Accepted Answer

A)   shortage of labor and so reduce unemployment.
B)   shortage of labor and so raise unemployment.
C)   surplus of labor and so reduce unemployment.
D)   surplus of labor and so raise unemployment.E) All of the above
F) A) and B)

Question 10

Full­time students and homemakers are included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 11

List a few of the characteristics of workers who typically earn at or below the minimum wage.

Accepted Answer

teenagers, the least skilled m...

Question 12

More than one-third of the unemployed are recent entrants into the labor force.

Accepted Answer

A) True 
 B)False

Question 13

The theory of efficiency wages provides a possible explanation as to why

Accepted Answer

A)   workers form unions.
B)   firms should try to reduce surpluses of labor.
C)   firms may be inclined to keep their workers' wages above the equilibrium level.
D)   firms may be inclined to keep their workers' wages below the equilibrium level.E) B) and C)
F) All of the above

Question 14

How are discouraged workers counted in the unemployment rate?

Accepted Answer

Because discouraged workers ar...

Question 15

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

Question 16

Unions contribute to

Accepted Answer

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

Question 17

Workers searching for jobs that best suit them is most closely associated with

Accepted Answer

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

Question 18

The process by which unions and firms agree on the terms of employment is called collective bargaining.

Accepted Answer

A) True 
 B)False

Question 19

Evidence from research studies by economists

Accepted Answer

A)   shows that increased unemployment benefits decrease the job search efforts of the unemployed.
B)   shows that increased unemployment benefits have virtually no effect on the job search efforts of the unemployed.
C)   shows that increased unemployment benefits increase the job search efforts of the unemployed.
D)   is conflicting on what increased unemployment benefits do to the job search efforts of the unemployed.E) B) and C)
F) A) and B)

Exam 20: Unemployment

Figure 28-3 -Refer to Figure 28-3. At the equilibrium wage, how many workers are employed?

Correct Answer
verified

How are discouraged workers counted in the unemployment rate?

Correct Answer
verified
Because discouraged workers ar...
View Answer

The theory of efficiency wages provides a possible explanation as to why

Correct Answer
verified

Fulltime students and homemakers are included in the Bureau of Labor Statistics' "unemployed" category.

Correct Answer
verified

The natural rate of unemployment

Correct Answer
verified

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

Correct Answer
verified

Efficiency wages create a

Correct Answer
verified

Evidence from research studies by economists

Correct Answer
verified

Suppose that the adult population is 4 million, the number of unemployed is 0.25 million, and the labor-force participation rate is 75%. What is the unemployment rate?

Correct Answer
verified

The unemployment rate equals the percentage of the labor force that is unemployed.

Correct Answer
verified

According to 2012 data on the U.S. population, which of the following was correct?

Correct Answer
verified

List a few of the characteristics of workers who typically earn at or below the minimum wage.

Correct Answer
verified
teenagers, the least skilled m...
View 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 Answer
verified

Unions contribute to

Correct Answer
verified

Cyclical unemployment

Correct Answer
verified

Provide a definition of the natural rate of unemployment.

Correct Answer
verified
The amount of unempl...
View Answer

More than one-third of the unemployed are recent entrants into the labor force.

Correct Answer
verified

The process by which unions and firms agree on the terms of employment is called collective bargaining.

Correct Answer
verified

Workers searching for jobs that best suit them is most closely associated with

Correct Answer
verified

Exam 20: Unemployment

Figure 28-3 -Refer to Figure 28-3. At the equilibrium wage, how many workers are employed?

Correct AnswerverifiedShow Answer

How are discouraged workers counted in the unemployment rate?

Correct AnswerverifiedBecause discouraged workers ar...View AnswerShow Answer

The theory of efficiency wages provides a possible explanation as to why

Correct AnswerverifiedShow Answer

Full­time students and homemakers are included in the Bureau of Labor Statistics' "unemployed" category.

Correct AnswerverifiedShow Answer

The natural rate of unemployment

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Efficiency wages create a

Correct AnswerverifiedShow Answer

Evidence from research studies by economists

Correct AnswerverifiedShow Answer

Suppose that the adult population is 4 million, the number of unemployed is 0.25 million, and the labor-force participation rate is 75%. What is the unemployment rate?

Correct AnswerverifiedShow Answer

The unemployment rate equals the percentage of the labor force that is unemployed.

Correct AnswerverifiedShow Answer

According to 2012 data on the U.S. population, which of the following was correct?

Correct AnswerverifiedShow Answer

List a few of the characteristics of workers who typically earn at or below the minimum wage.

Correct Answerverifiedteenagers, the least skilled m...View AnswerShow 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

Unions contribute to

Correct AnswerverifiedShow Answer

Cyclical unemployment

Correct AnswerverifiedShow Answer

Provide a definition of the natural rate of unemployment.

Correct AnswerverifiedThe amount of unempl...View AnswerShow Answer

More than one-third of the unemployed are recent entrants into the labor force.

Correct AnswerverifiedShow Answer

The process by which unions and firms agree on the terms of employment is called collective bargaining.

Correct AnswerverifiedShow Answer

Workers searching for jobs that best suit them is most closely associated with

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Because discouraged workers ar...
View Answer

Correct Answer
verified

Fulltime students and homemakers are included in the Bureau of Labor Statistics' "unemployed" category.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
teenagers, the least skilled m...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The amount of unempl...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified