Question 1

Which of the following is not a reason economies experience structural unemployment?

Accepted Answer

A)  job search
B)  unions
C)  minimum-wage laws
D)  efficiency wagesE) A) and B)
F) None of the above

Question 2

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

Accepted Answer

A)  0
B)  4,000
C)  6,000
D)  12,000E) None of the above
F) A) and D)

Question 3

Structural unemployment is often thought to explain relatively short spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 4

Suppose that florists and landscape workers are not unionized. If florists unionize, then the wages of

Accepted Answer

A)  florists will rise, and the wages of landscape workers will fall.
B)  florists will fall, and the wages of landscape workers will rise.
C)  both florists and landscape workers will rise.
D)  both florists and landscape workers will fall.E) A) and C)
F) None of the above

Question 5

Labor unions

Accepted Answer

A)  raise wages in unionized industries.
B)  create labor shortages in non-unionized industries.
C)  play a larger role in the current U.S. economy than in European countries such as Norway and Sweden.
D)  prefer to operate in states with right-to-work laws.E) A) and C)
F) A) and B)

Question 6

The natural rate of unemployment

Accepted Answer

A)  varies less than the measured unemployment rate.
B)  cannot be changed by government policy.
C)  is closely associated with the ups and downs in economic activity.
D)  is set by the Federal Reserve.E) C) and D)
F) B) and C)

Question 7

Government policy can do nothing about the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 8

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had remained steady.

Accepted Answer

A) True 
 B)False

Question 9

Workers waiting for jobs to open up is most closely associated with

Accepted Answer

A)  cyclical unemployment.
B)  frictional unemployment.
C)  seasonal unemployment.
D)  structural unemployment.E) All of the above
F) C) and D)

Question 10

Briefly compare the structural unemployment that arises from minimum-wage laws to the frictional unemployment that arises from the process of job search.

Accepted Answer

Minimum-wage laws create unemployment be...

Question 11

Unpaid stay-at-home fathers are included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 12

Figure 28-4
​ 
-Refer to Figure 28-4. If 8,000 workers are unemployed, then the minimum wage must be

Accepted Answer

A)  $6
B)  $8
C)  $12.
D)  $14.E) All of the above
F) A) and D)

Question 13

Advocates of government-run employment agencies and public training programs believe they make job search more efficient.

Accepted Answer

A) True 
 B)False

Question 14

The efficiency-wage theory of worker health is

Accepted Answer

A)  more relevant for explaining unemployment in less developed countries than in rich countries.
B)  more relevant for explaining unemployment in rich countries than in less developed countries.
C)  equally relevant for explaining unemployment in less developed countries and in rich countries.
D)  not relevant for explaining unemployment.E) A) and C)
F) None of the above

Question 15

A minimum wage that is below the equilibrium wage rate does not raise unemployment.

Accepted Answer

A) True 
 B)False

Question 16

Following the recession of 2001, there was a month in which employment and the unemployment rate both rose. Assuming the computations were correct, how is it possible for both to have increased?

Accepted Answer

The rate of unemployment is measured as ...

Question 17

Someone who is without work but is not looking for work is included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 18

Table 28-7
Below is data about the labor market in the city of Productionville. 
-Refer to Table 28-7. If the local government imposed a minimum wage of $8 in Productionville, how many people would be unemployed?

Accepted Answer

A)  0
B)  2,000
C)  5,000
D)  10,000E) B) and D)
F) None of the above

Question 19

Scenario 28-1
Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment.
-Refer to Scenario 28-1. What is the labor-force participation rate?

Accepted Answer

A)  83.3%
B)  86.7%
C)  93.3%
D)  96.7%E) All of the above
F) A) and C)

Question 20

Table 28-2
Labor Data for Aridia 
-Refer to Table 28-2. The labor force of Aridia in 2012 was

Accepted Answer

A)  1,600.
B)  1,800.
C)  3,000.
D)  3,200.E) None of the above
F) B) and C)

Exam 28: Unemployment and Its Natural Rate

A minimum wage that is below the equilibrium wage rate does not raise unemployment.

Correct Answer
verified

Correct Answer
verified

Labor unions

Correct Answer
verified

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had remained steady.

Correct Answer
verified

The efficiency-wage theory of worker health is

Correct Answer
verified

Unpaid stay-at-home fathers are included in the Bureau of Labor Statistics' "unemployed" category.

Correct Answer
verified

Table 28-7 Below is data about the labor market in the city of Productionville. -Refer to Table 28-7. If the local government imposed a minimum wage of $8 in Productionville, how many people would be unemployed?

Correct Answer
verified

Which of the following is not a reason economies experience structural unemployment?

Correct Answer
verified

Government policy can do nothing about the natural rate of unemployment.

Correct Answer
verified

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor force of Aridia in 2012 was

Correct Answer
verified

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

Correct Answer
verified

Someone who is without work but is not looking for work is included in the Bureau of Labor Statistics' "unemployed" category.

Correct Answer
verified

Following the recession of 2001, there was a month in which employment and the unemployment rate both rose. Assuming the computations were correct, how is it possible for both to have increased?

Correct Answer
verified
The rate of unemployment is measured as ...
View Answer

Figure 28-4 -Refer to Figure 28-4. If 8,000 workers are unemployed, then the minimum wage must be

Correct Answer
verified

Workers waiting for jobs to open up is most closely associated with

Correct Answer
verified

Structural unemployment is often thought to explain relatively short spells of unemployment.

Correct Answer
verified

The natural rate of unemployment

Correct Answer
verified

Suppose that florists and landscape workers are not unionized. If florists unionize, then the wages of

Correct Answer
verified

Briefly compare the structural unemployment that arises from minimum-wage laws to the frictional unemployment that arises from the process of job search.

Correct Answer
verified
Minimum-wage laws create unemployment be...
View Answer

Advocates of government-run employment agencies and public training programs believe they make job search more efficient.

Correct Answer
verified

Exam 28: Unemployment and Its Natural Rate

A minimum wage that is below the equilibrium wage rate does not raise unemployment.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Labor unions

Correct AnswerverifiedShow Answer

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had remained steady.

Correct AnswerverifiedShow Answer

The efficiency-wage theory of worker health is

Correct AnswerverifiedShow Answer

Unpaid stay-at-home fathers are included in the Bureau of Labor Statistics' "unemployed" category.

Correct AnswerverifiedShow Answer

Table 28-7 Below is data about the labor market in the city of Productionville. -Refer to Table 28-7. If the local government imposed a minimum wage of $8 in Productionville, how many people would be unemployed?

Correct AnswerverifiedShow Answer

Which of the following is not a reason economies experience structural unemployment?

Correct AnswerverifiedShow Answer

Government policy can do nothing about the natural rate of unemployment.

Correct AnswerverifiedShow Answer

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor force of Aridia in 2012 was

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Someone who is without work but is not looking for work is included in the Bureau of Labor Statistics' "unemployed" category.

Correct AnswerverifiedShow Answer

Following the recession of 2001, there was a month in which employment and the unemployment rate both rose. Assuming the computations were correct, how is it possible for both to have increased?

Correct AnswerverifiedThe rate of unemployment is measured as ...View AnswerShow Answer

Figure 28-4 ​ -Refer to Figure 28-4. If 8,000 workers are unemployed, then the minimum wage must be

Correct AnswerverifiedShow Answer

Workers waiting for jobs to open up is most closely associated with

Correct AnswerverifiedShow Answer

Structural unemployment is often thought to explain relatively short spells of unemployment.

Correct AnswerverifiedShow Answer

The natural rate of unemployment

Correct AnswerverifiedShow Answer

Suppose that florists and landscape workers are not unionized. If florists unionize, then the wages of

Correct AnswerverifiedShow Answer

Briefly compare the structural unemployment that arises from minimum-wage laws to the frictional unemployment that arises from the process of job search.

Correct AnswerverifiedMinimum-wage laws create unemployment be...View AnswerShow Answer

Advocates of government-run employment agencies and public training programs believe they make job search more efficient.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The rate of unemployment is measured as ...
View Answer

Figure 28-4 -Refer to Figure 28-4. If 8,000 workers are unemployed, then the minimum wage must be

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
Minimum-wage laws create unemployment be...
View Answer

Correct Answer
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