Question 1

People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as

Accepted Answer

A)  cyclically unemployed.
B)  structurally unemployed.
C)  frictionally unemployed.
D)  discouraged workers.E) B) and C)
F) All of the above

Question 2

Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force participation rate is 70%. What is the unemployment rate?

Accepted Answer

A)  6.7%
B)  9.5%
C)  10.5%
D)  28%E) B) and C)
F) None of the above

Question 3

Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)  Chris, an unpaid homemaker not looking for other work
B)  Marcus, a full-time student not looking for work
C)  Gabe, who does not have a job, but is looking for work
D)  None of the above is correct.E) B) and C)
F) C) and D)

Question 4

Cyclical unemployment is caused by

Accepted Answer

A)  frictional and structural unemployment
B)  frictional but not structural unemployment
C)  structural but not frictional unemployment
D)  neither frictional nor structural unemploymentE) B) and D)
F) B) and C)

Question 5

The destruction of manufacturing jobs and workers leaving their jobs to find better ones both contribute to frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 6

Unemployment insurance causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment.

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

Labor Force Statistics by Age.Suppose people in the adult population in a small country are classified based on their age.   Lebar Farce Status  lets then 55 55 and alder  Number enplayed 400,000100,000 Number unamplayed 25,0007,000 Numbe in Papulation 600,000200,000\begin{array} { | l | c | c | } \hline  { 	ext { Lebar Farce Status } } & 	ext { lets then 55 } & 55 	ext { and alder } \\hline 	ext { Number enplayed } & 400,000 & 100,000 \\hline 	ext { Number unamplayed } & 25,000 & 7,000 \\hline 	ext { Numbe in Papulation } & 600,000 & 200,000 \\hline\end{array} Lebar Farce Status  Number enplayed  Number unamplayed  Numbe in Papulation ​ lets then 55 400,00025,000600,000​55 and alder 100,0007,000200,000​​ 
-Refer to Labor Force Statistics by Age. In the proper order, which age group has the highest unemployment rate and which has the highest participation rate?

Accepted Answer

A)  under 55, under 55
B)  under 55, 55 and older
C)  55 and older, under 55
D)  55 and older, 55 and older E) A) and B)
F) A) and C)

Question 9

Right-to-work laws give workers in a unionized firm the right to choose whether to join the union.

Accepted Answer

A) True 
 B)False

Question 10

Who of the following would necessarily be included in the Bureau of Labor Statistics' "unemployed" category?

Accepted Answer

A)  Lisa, who did not work during the previous 4 weeks
B)  Julie, who tried to find new employment during the previous 4 weeks
C)  Robert, who was an unpaid worker during the previous 4 weeks
D)  None of the above is correct.E) A) and B)
F) All of the above

Question 11

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 12

The Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to

Accepted Answer

A)  frictional unemployment created by efficiency wages.
B)  structural unemployment created by efficiency wages.
C)  frictional unemployment created by sectoral shifts.
D)  structural unemployment created by sectoral shifts.E) C) and D)
F) None of the above

Question 13

Minimum-wage laws, unions, and efficiency wages contribute to

Accepted Answer

A)  both structural unemployment and the natural rate of unemployment.
B)  neither structural unemployment nor the natural rate of unemployment.
C)  structural unemployment, but not the natural rate of unemployment.
D)  the natural rate of unemployment, but not structural unemployment.E) A) and D)
F) B) and C)

Question 14

Efficiency wages contribute to

Accepted Answer

A)  frictional unemployment and the natural rate of unemployment.
B)  frictional unemployment but not the natural rate of unemployment.
C)  structural unemployment and the natural rate of unemployment.
D)  structural unemployment but not the natural rate of unemployment.E) A) and B)
F) A) and C)

Question 15

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.

Accepted Answer

People who are experienced and educated ...

Question 16

John is a stockbroker. He has had several job offers, but he has turned them down because he thinks he can find a firm that better matches his tastes and skills. Curtis has looked for work as an accountant for some time. While the demand for accountants doesn't appear to be falling, there seems to be more people applying than jobs available.

Accepted Answer

A)  John and Curtis are both frictionally unemployed.
B)  John and Curtis are both structurally unemployed.
C)  John is frictionally unemployed, and Curtis is structurally unemployed.
D)  John is structurally unemployed, and Curtis is frictionally unemployed.E) B) and C)
F) B) and D)

Question 17

When a union raises the wage above the equilibrium level,

Accepted Answer

A)  the quantity of labor supplied and unemployment both rise.
B)  the quantity of labor supplied and unemployment both fall.
C)  the quantity of labor supplied rises and unemployment falls.
D)  the quantity of labor supplied falls and unemployment rises.E) B) and C)
F) A) and B)

Question 18

Which of the following was not among the four industries with the largest employment in the United States a century ago?

Accepted Answer

A)  cotton goods
B)  men's clothing
C)  meat packing
D)  lumberE) A) and D)
F) B) and C)

Question 19

Figure 15-1 
-Refer to Figure 15-1. At the equilibrium wage, how many workers are unemployed?

Accepted Answer

A)  0
B)  4000
C)  5000
D)  8000E) C) and D)
F) A) and D)

Question 20

Collective bargaining refers to

Accepted Answer

A)  the process by which the government sets exemptions from the minimum wage law.
B)  setting the same wage for all employees to prevent conflict among workers.
C)  firms colluding to set the wages of employees below equilibrium.
D)  the process by which unions and firms agree on the terms of employment.E) A) and D)
F) A) and B)

Exam 15: Unemployment

Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force participation rate is 70%. What is the unemployment rate?

Correct Answer
verified

People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as

Correct Answer
verified

Correct Answer
verified

Unemployment insurance causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment.

Correct Answer
verified

Right-to-work laws give workers in a unionized firm the right to choose whether to join the union.

Correct Answer
verified

Cyclical unemployment is caused by

Correct Answer
verified

Figure 15-1 -Refer to Figure 15-1. At the equilibrium wage, how many workers are unemployed?

Correct Answer
verified

Who is included in the labor force by the Bureau of Labor Statistics?

Correct Answer
verified

Correct Answer
verified

Minimum-wage laws can keep wages

Correct Answer
verified

Minimum-wage laws, unions, and efficiency wages contribute to

Correct Answer
verified

Efficiency wages contribute to

Correct Answer
verified

The Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to

Correct Answer
verified

The destruction of manufacturing jobs and workers leaving their jobs to find better ones both contribute to frictional unemployment.

Correct Answer
verified

Who of the following would necessarily be included in the Bureau of Labor Statistics' "unemployed" category?

Correct Answer
verified

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.

Correct Answer
verified
People who are experienced and educated ...
View Answer

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

Correct Answer
verified

Which of the following was not among the four industries with the largest employment in the United States a century ago?

Correct Answer
verified

When a union raises the wage above the equilibrium level,

Correct Answer
verified

Collective bargaining refers to

Correct Answer
verified

Exam 15: Unemployment

Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force participation rate is 70%. What is the unemployment rate?

Correct AnswerverifiedShow Answer

People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Unemployment insurance causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment.

Correct AnswerverifiedShow Answer

Right-to-work laws give workers in a unionized firm the right to choose whether to join the union.

Correct AnswerverifiedShow Answer

Cyclical unemployment is caused by

Correct AnswerverifiedShow Answer

Figure 15-1 -Refer to Figure 15-1. At the equilibrium wage, how many workers are unemployed?

Correct AnswerverifiedShow Answer

Who is included in the labor force by the Bureau of Labor Statistics?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Minimum-wage laws can keep wages

Correct AnswerverifiedShow Answer

Minimum-wage laws, unions, and efficiency wages contribute to

Correct AnswerverifiedShow Answer

Efficiency wages contribute to

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to

Correct AnswerverifiedShow Answer

The destruction of manufacturing jobs and workers leaving their jobs to find better ones both contribute to frictional unemployment.

Correct AnswerverifiedShow Answer

Who of the following would necessarily be included in the Bureau of Labor Statistics' "unemployed" category?

Correct AnswerverifiedShow Answer

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.

Correct AnswerverifiedPeople who are experienced and educated ...View AnswerShow Answer

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

Correct AnswerverifiedShow Answer

Which of the following was not among the four industries with the largest employment in the United States a century ago?

Correct AnswerverifiedShow Answer

When a union raises the wage above the equilibrium level,

Correct AnswerverifiedShow Answer

Collective bargaining refers to

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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verified
People who are experienced and educated ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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