Question 1

People who report being not in the labor force but who, in fact, want to work but have given up trying to find a job after an unsuccessful search cause the reported unemployment rate to be lower than it would otherwise be.

Accepted Answer

A) True 
 B)False

Question 2

Within the U.S. population, women of prime working age (ages 25-54) have higher rates of unemployment than men of prime working age (ages 25-54), regardless of race.

Accepted Answer

A) True 
 B)False

Question 3

Buddy is the owner of a firm that bottles beer in St. Louis, Missouri. There are many other such firms in the area. Buddy decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

Accepted Answer

A)  The higher the wage, the less often his workers will choose to leave his firm.
B)  The higher the wage, the lower will be the costs of obtaining needed supplies.
C)  The higher the wage, the more he can charge for his beer
D)  The higher the wage, the more he will have to monitor his workers for shirking.E) All of the above
F) None of the above

Question 4

Government-run employment agencies and public training programs both seek to reduce frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 5

Suppose that medical technicians and nurses' aides are not unionized. If the nurses' aides unionize, then the wages of

Accepted Answer

A)  both medical technicians and nurses' aides will rise.
B)  both medical technicians and nurses' aides will fall.
C)  medical technicians will rise, and the wages of nurses' aides will fall.
D)  nurses' aides will rise, and the wages of medical technicians will fall.E) B) and D)
F) None of the above

Question 6

Table 28-11
2015 Labor Data for Tajnia 
-Refer to Table 28-11. The unemployment rate in Tajnia in 2015 is about 7.5 percent.

Accepted Answer

A) True 
 B)False

Question 7

If an unemployed person quits looking for work, then, eventually the unemployment rate

Accepted Answer

A)  decreases, and the labor-force participation rate is unaffected.
B)  and the labor-force participation rate both decrease.
C)  is unaffected, and the labor-force participation rate decreases.
D)  and the labor-force participation rate are both unaffected.E) C) and D)
F) B) and C)

Question 8

Marginally attached workers are people who are

Accepted Answer

A)  looking for a better job than they currently have.
B)  not working and are not looking for work, but would work if asked.
C)  working part-time while they go to school or get training for a better job.
D)  only a few years from retirement.E) B) and D)
F) B) and C)

Question 9

Table 28-4
2010 Labor Data for Adults (ages 16 and older)  in Meditor 
-Refer to Table 28-4. What is the adult female labor force in Meditor?

Accepted Answer

A)  40 million
B)  65 million
C)  70 million
D)  100 millionE) None of the above
F) A) and C)

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Figure 28-3 
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then unemployment will increase by

Accepted Answer

A)  0 workers.
B)  2,000 workers.
C)  4,000 workers.
D)  7,000 workers.E) All of the above
F) A) and D)

Question 12

If people who report being unemployed are not, in fact, trying hard to find a job, then the reported unemployment rate will be biased upward.

Accepted Answer

A) True 
 B)False

Question 13

Minimum-wage laws can keep wages

Accepted Answer

A)  above equilibrium and cause a surplus of labor.
B)  above equilibrium and cause a shortage of labor.
C)  below equilibrium and cause a surplus of labor.
D)  below equilibrium and cause a shortage of labor.E) A) and C)
F) B) and C)

Question 14

The Bureau of Labor Statistics' U-1 measure of joblessness includes only very long-term unemployed.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Write the formula for calculating the labor force participation rate.

Accepted Answer

The answer of Write the formula for calculating the labor...

Question 17

The Bureau of Labor Statistics' U-5 measure of joblessness is the official unemployment rate.

Accepted Answer

A) True 
 B)False

Question 18

The Bureau of Labor Statistics produces data on unemployment by using data on claims filed for unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 19

Unions are exempt from U.S. antitrust laws.

Accepted Answer

A) True 
 B)False

Question 20

The amount of unemployment varies

Accepted Answer

A)  little over time and across countries.
B)  little over time but substantially across countries.
C)  substantially over time but little across countries.
D)  substantially over time and across countries.E) A) and D)
F) A) and B)

Exam 28: Unemployment and Its Natural Rate

Unions are exempt from U.S. antitrust laws.

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If people who report being unemployed are not, in fact, trying hard to find a job, then the reported unemployment rate will be biased upward.

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Buddy is the owner of a firm that bottles beer in St. Louis, Missouri. There are many other such firms in the area. Buddy decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

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The amount of unemployment varies

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

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If an unemployed person quits looking for work, then, eventually the unemployment rate

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Write the formula for calculating the labor force participation rate.

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The Bureau of Labor Statistics produces data on unemployment by using data on claims filed for unemployment insurance.

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Table 28-11 2015 Labor Data for Tajnia -Refer to Table 28-11. The unemployment rate in Tajnia in 2015 is about 7.5 percent.

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

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People who report being not in the labor force but who, in fact, want to work but have given up trying to find a job after an unsuccessful search cause the reported unemployment rate to be lower than it would otherwise be.

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Suppose that medical technicians and nurses' aides are not unionized. If the nurses' aides unionize, then the wages of

Correct AnswerverifiedShow Answer

Government-run employment agencies and public training programs both seek to reduce frictional unemployment.

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The Bureau of Labor Statistics' U-1 measure of joblessness includes only very long-term unemployed.

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Minimum-wage laws can keep wages

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Table 28-4 2010 Labor Data for Adults (ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult female labor force in Meditor?

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Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then unemployment will increase by

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Within the U.S. population, women of prime working age (ages 25-54) have higher rates of unemployment than men of prime working age (ages 25-54), regardless of race.

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The Bureau of Labor Statistics' U-5 measure of joblessness is the official unemployment rate.

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Marginally attached workers are people who are

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