Question 1

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 2

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

Accepted Answer

A)   Efficiency wages increase worker health and therefore increase worker productivity.
B)   Efficiency wages decrease worker turnover and therefore decrease hiring and training costs.
C)   Efficiency wages decrease worker shirking and therefore increase worker productivity.
D)   Efficiency wages decrease a country's natural rate of unemployment and therefore increase its standard of living.E) B) and D)
F) A) and C)

Question 3

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

Question 4

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 5

Data on the unemployment rate in the U.S.since 1960 show that the unemployment rate sometimes is zero.

Accepted Answer

A) True 
 B)False

Question 6

Jai Li just lost her job,and she hasn't yet started looking for a new one.The Bureau of Labor Statistics counts Jai Li as

Accepted Answer

A)   unemployed and in the labor force.
B)   unemployed,but not in the labor force.
C)   in the labor force,but not unemployed.
D)   neither in the labor force nor unemployed.E) C) and D)
F) B) and D)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Discouraged workers are people who want to work but have given up trying to find a job after an unsuccessful search.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Other things the same,countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Accepted Answer

A) True 
 B)False

Question 11

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 60,000 households,called the Census.

Accepted Answer

A) True 
 B)False

Question 12

Three possible reasons for an above-equilibrium wage are minimum-wage laws,unions,and efficiency wages.

Accepted Answer

A) True 
 B)False

Question 13

The amount of unemployment varies little over time and across countries.

Accepted Answer

A) True 
 B)False

Question 14

A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job

Accepted Answer

A)   is counted as out of the labor force but should be counted as unemployed.
B)   is counted as unemployed but should be counted as out of the labor force.
C)   is correctly counted as out of the labor force.
D)   is correctly counted as unemployed.E) A) and C)
F) B) and C)

Question 15

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 D)
F) A) and C)

Question 16

In the absence of right-to-work laws,workers

Accepted Answer

A)   that went on strike could be permanently replaced.
B)   might be required to join the union if they worked for a unionized firm.
C)   would not be able to unionize.
D)   would not be able to strike.E) A) and C)
F) B) and C)

Question 17

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

Accepted Answer

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

Question 18

Public policy cannot reduce the economy's natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 19

The introduction of a union into a firm benefits all of that firm's workers.

Accepted Answer

A) True 
 B)False

Question 20

For the Bureau of Labor Statistics to place someone in the "unemployed" category,that person must

Accepted Answer

A)   have worked 10 or fewer hours during the previous week.
B)   have tried to find employment during the previous year.
C)   not have been laid off.
D)   None of the above is correct.E) A) and B)
F) A) and C)

Exam 28: 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

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

Correct AnswerverifiedShow Answer

Other things the same,countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Correct AnswerverifiedShow Answer

For the Bureau of Labor Statistics to place someone in the "unemployed" category,that person must

Correct AnswerverifiedShow Answer

The amount of unemployment varies little over time and across countries.

Correct AnswerverifiedShow Answer

Data on the unemployment rate in the U.S.since 1960 show that the unemployment rate sometimes is zero.

Correct AnswerverifiedShow Answer

In the absence of right-to-work laws,workers

Correct AnswerverifiedShow Answer

The introduction of a union into a firm benefits all of that firm's workers.

Correct AnswerverifiedShow Answer

Discouraged workers are people who want to work but have given up trying to find a job after an unsuccessful search.

Correct AnswerverifiedShow Answer

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

Correct AnswerverifiedShow Answer

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

Correct AnswerverifiedShow 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

The amount of unemployment varies

Correct AnswerverifiedShow Answer

Three possible reasons for an above-equilibrium wage are minimum-wage laws,unions,and efficiency wages.

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

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 60,000 households,called the Census.

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

Jai Li just lost her job,and she hasn't yet started looking for a new one.The Bureau of Labor Statistics counts Jai Li as

Correct AnswerverifiedShow Answer

Public policy cannot reduce the economy's natural rate of unemployment.

Correct AnswerverifiedShow Answer

A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job

Correct AnswerverifiedShow Answer

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