Question 1

Sectoral shifts contribute to frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 2

Both full-time and part-time workers are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 3

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) None of the above
F) B) and D)

Question 4

To be counted as "employed" in the U.S. labor force statistics, a person

Accepted Answer

A)  must be working for pay and be working full time.
B)  must be working for pay but does not have to be working full time.
C)  does not have to be working for pay if they are working for a family business but must be employed full time.
D)  does not have to be working for pay if they are working for a family business and does not have to be working full timeE) C) and D)
F) All of the above

Question 5

Which of the following is not correct?

Accepted Answer

A)  When a union is present in a labor market, wages are determined by the equilibrium of supply and demand.
B)  Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power.
C)  The process by which unions and firms agree on the terms of employment is called collective bargaining.
D)  Most workers in the U.S. economy are not members of a union.E) C) and D)
F) B) and C)

Question 6

When unions raise wages in one part of the economy, the supply of labor increases in other parts of the economy, which reduces wages in industries that are not unionized.

Accepted Answer

A) True 
 B)False

Question 7

Table 28-6 
-Refer to Table 28-6. What is the U-1 measure of labor underutilization?

Accepted Answer

A)  1.6%
B)  3.1%
C)  6.2%
D)  7.0%E) A) and B)
F) A) and C)

Question 8

Which of the following is not correct?

Accepted Answer

A)  A union is a worker association that bargains with employers over wages, benefits, and working conditions.
B)  Unions play a much larger role in the U.S. labor market now than they did in the past.
C)  Unions play a large role in many European countries.
D)  A union is a type of cartel.E) B) and C)
F) A) and D)

Question 9

Which of the following is correct?

Accepted Answer

A)  Typically more than one-third of the unemployed are new entrants into the job market.
B)  Most spells of unemployment are short.
C)  Most unemployment observed at any time is long term.
D)  All of the above are correct.E) A) and D)
F) B) and D)

Question 10

If a union raises the wage in its industry above equilibrium, then there is an increase in

Accepted Answer

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

Question 11

According to 2014 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) A) and B)

Question 12

Figure 28-3 
-Refer to Figure 28-3. If the government imposes a minimum wage of $4, then unemployment will increase by

Accepted Answer

A)  0 workers.
B)  2,000 workers.
C)  4,000 workers.
D)  5,000 workers.E) A) and C)
F) B) and D)

Question 13

Most job search in the U.S. economy takes place without intervention by the government.

Accepted Answer

A) True 
 B)False

Question 14

A firm might offer efficiency wages in order to attract a better pool of applicants.

Accepted Answer

A) True 
 B)False

Question 15

Paying efficiency wages means that wages are

Accepted Answer

A)  above equilibrium, and profits are higher than otherwise.
B)  above equilibrium, and profits are lower than otherwise.
C)  below equilibrium, and profits are higher than otherwise.
D)  below equilibrium, and profits are lower than otherwise.E) B) and C)
F) A) and B)

Question 16

Ariana is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, then

Accepted Answer

A)  the profits of her firm might increase.
B)  she will face a shortage of labor.
C)  the turnover of her workers may increase.
D)  None of the above is correct.E) C) and D)
F) All of the above

Question 17

Figure 28-5 
-Refer to Figure 28-5. If the minimum wage is set at $125, then

Accepted Answer

A)  the quantity of labor demanded will equal 20.
B)  the quantity of labor supplied will equal 35.
C)  the surplus of labor will equal 25.
D)  unemployment will equal 10.E) A) and B)
F) All of the above

Question 18

Within the U.S. population, blacks of prime working age (ages 25-54) have similar rates of unemployment than whites of prime working age (ages 25-54), regardless of gender.

Accepted Answer

A) True 
 B)False

Question 19

Most spells of unemployment are long, and most unemployment observed at any given time is long-term.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is an explanation for the existence of frictional unemployment?

Accepted Answer

A)  efficiency wages
B)  minimum-wage laws
C)  unions
D)  job searchE) A) and B)
F) B) and C)

Exam 28: Unemployment and Its Natural Rate

Which of the following do unions not cause?

Correct AnswerverifiedShow Answer

If a union raises the wage in its industry above equilibrium, then there is an increase in

Correct AnswerverifiedShow Answer

Both full-time and part-time workers are included in the Bureau of Labor Statistics' "employed" category.

Correct AnswerverifiedShow Answer

Table 28-6 -Refer to Table 28-6. What is the U-1 measure of labor underutilization?

Correct AnswerverifiedShow Answer

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $4, then unemployment will increase by

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

According to 2014 data on the U.S. population, which of the following was correct?

Correct AnswerverifiedShow Answer

When unions raise wages in one part of the economy, the supply of labor increases in other parts of the economy, which reduces wages in industries that are not unionized.

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Sectoral shifts contribute to frictional unemployment.

Correct AnswerverifiedShow Answer

Most job search in the U.S. economy takes place without intervention by the government.

Correct AnswerverifiedShow Answer

Figure 28-5 -Refer to Figure 28-5. If the minimum wage is set at $125, then

Correct AnswerverifiedShow Answer

Most spells of unemployment are long, and most unemployment observed at any given time is long-term.

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

A firm might offer efficiency wages in order to attract a better pool of applicants.

Correct AnswerverifiedShow Answer

Which of the following is an explanation for the existence of frictional unemployment?

Correct AnswerverifiedShow Answer

Ariana is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, then

Correct AnswerverifiedShow Answer

To be counted as "employed" in the U.S. labor force statistics, a person

Correct AnswerverifiedShow Answer

Within the U.S. population, blacks of prime working age (ages 25-54) have similar rates of unemployment than whites of prime working age (ages 25-54), regardless of gender.

Correct AnswerverifiedShow Answer

Paying efficiency wages means that wages are

Correct AnswerverifiedShow Answer

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

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

Correct Answer
verified

Correct Answer
verified