Question 1

Sirius has just finished high school and started looking for his first job,but has not yet found one.Other things the same,the unemployment rate

Accepted Answer

A)   and the labor-force participation rate both increase.
B)   increases and the labor-force participation rate is unaffected.
C)   is unaffected and the labor-force participation rate increases.
D)   and the labor-force participation rate are both unaffected.E) None of the above
F) C) and D)

Question 2

The unemployment rate sometimes falls to zero.

Accepted Answer

A) True 
 B)False

Question 3

Ipo did not work last week because flooding forced an evacuation of her workplace.The Bureau of Labor Statistics counts Ipo as

Accepted Answer

A)   unemployed and in the labor force.
B)   unemployed and not in the labor force.
C)   employed and in the labor force.
D)   employed and not in the labor force.E) A) and B)
F) C) and D)

Question 4

Other things the same,an increase in wages above their equilibrium level

Accepted Answer

A)   increases frictional unemployment but leaves the natural rate of unemployment unchanged.
B)   increases frictional unemployment and increases the natural rate of unemployment.
C)   increases structural unemployment but leaves the natural rate of unemployment unchanged.
D)   increases structural unemployment and increases the natural rate of unemployment.E) B) and C)
F) A) and C)

Question 5

Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level?

Accepted Answer

A)   efficiency wages
B)   job search
C)   minimum-wage laws
D)   unionsE) A) and C)
F) A) and D)

Question 6

Efficiency wages

Accepted Answer

A)   increase frictional unemployment by keeping wages above equilibrium.
B)   decrease frictional unemployment by keeping wages at equilibrium.
C)   increase structural unemployment by keeping wages above equilibrium.
D)   decrease structural unemployment by keeping wages at equilibrium.E) B) and C)
F) A) and D)

Question 7

To maintain their standard of living,most people rely on

Accepted Answer

A)   government assistance.
B)   their personal savings.
C)   their labor earnings.
D)   rental income.E) A) and D)
F) B) and C)

Question 8

Which of the following is not correct?

Accepted Answer

A)   An organized withdrawal of labor from a firm by a union is called a strike.
B)   The power of a union comes from its ability to strike if the union and the firm do not agree on the terms of employment.
C)   Economists who study the effects of unions typically find that union workers earn about 25 to 35 percent more than similar workers who do not belong to unions.
D)   Workers in unions reap the benefit of collective bargaining,while workers not in unions bear some of the cost.E) A) and D)
F) C) and D)

Question 9

The deviation of unemployment from its natural rate is called

Accepted Answer

A)   the unnatural rate of unemployment.
B)   structural unemployment.
C)   frictional unemployment.
D)   cyclical unemployment.E) B) and D)
F) B) and C)

Question 10

More than three-fourths of the unemployed are recent entrants into the labor force.

Accepted Answer

A) True 
 B)False

Question 11

The Bureau of Labor Statistics' U-4 measure of joblessness includes discouraged workers.

Accepted Answer

A) True 
 B)False

Question 12

According to 2007 data on the U.S.population,which of the following groups of adults (ages 20 and older) has the highest unemployment rate?

Accepted Answer

A)   white males
B)   white females
C)   black males
D)   black femalesE) B) and C)
F) A) and B)

Question 13

Consumers decide to buy more computers and fewer typewriters.As a result,computer companies expand production while typewriter companies lay-off workers.This is an example of

Accepted Answer

A)   frictional unemployment created by efficiency wages.
B)   frictional unemployment created by sectoral shifts.
C)   structural unemployment created by efficiency wages.
D)   structural unemployment created by sectoral shifts.E) A) and B)
F) A) and C)

Question 14

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 15

Which of the following does not create unemployment by keeping wages above the equilibrium level?

Accepted Answer

A)   efficiency wages
B)   job search
C)   minimum-wage laws
D)   unionsE) B) and C)
F) A) and B)

Question 16

The natural rate of unemployment is a type of unemployment that does not go away on its own even in the long run.

Accepted Answer

A) True 
 B)False

Question 17

Minimum-wage laws affect all workers.

Accepted Answer

A) True 
 B)False

Question 18

The Bureau of Labor Statistics computes labor-force participation rates for the entire adult population and for more narrowly defined groups.

Accepted Answer

A) True 
 B)False

Question 19

Which list contains two periods when the U.S.unemployment rate was below the natural rate of unemployment?

Accepted Answer

A)   1965-1968,1981-1984
B)   1965-1968,1997-2000
C)   1981-1984,1991-1994
D)   1991-1994,1997-2000E) A) and C)
F) A) and B)

Question 20

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Accepted Answer

According to the theory of efficiency wa...

Exam 28: Unemployment

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Correct AnswerverifiedAccording to the theory of efficiency wa...View AnswerShow Answer

The unemployment rate sometimes falls to zero.

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To maintain their standard of living,most people rely on

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Sirius has just finished high school and started looking for his first job,but has not yet found one.Other things the same,the unemployment rate

Correct AnswerverifiedShow Answer

The deviation of unemployment from its natural rate is called

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Minimum-wage laws affect all workers.

Correct AnswerverifiedShow Answer

Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level?

Correct AnswerverifiedShow Answer

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

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Which list contains two periods when the U.S.unemployment rate was below the natural rate of unemployment?

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The natural rate of unemployment is a type of unemployment that does not go away on its own even in the long run.

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The Bureau of Labor Statistics' U-4 measure of joblessness includes discouraged workers.

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More than three-fourths of the unemployed are recent entrants into the labor force.

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Which of the following does not create unemployment by keeping wages above the equilibrium level?

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According to 2007 data on the U.S.population,which of the following groups of adults (ages 20 and older) has the highest unemployment rate?

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Which of the following is not correct?

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Consumers decide to buy more computers and fewer typewriters.As a result,computer companies expand production while typewriter companies lay-off workers.This is an example of

Correct AnswerverifiedShow Answer

Other things the same,an increase in wages above their equilibrium level

Correct AnswerverifiedShow Answer

Ipo did not work last week because flooding forced an evacuation of her workplace.The Bureau of Labor Statistics counts Ipo as

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics computes labor-force participation rates for the entire adult population and for more narrowly defined groups.

Correct AnswerverifiedShow Answer

Efficiency wages

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According to the theory of efficiency wa...
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