Question 1

According to the theory of efficiency wages,firms operate more efficiently if wages are above the equilibrium level.

Accepted Answer

A) True 
 B)False

Question 2

When a minimum-wage law forces the wage to remain above the level that balances supply and demand,the quantity of labor supplied is lower and the quantity of labor demand is higher than at the equilibrium wage.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is correct?

Accepted Answer

A)   The BLS uses data collected from those applying for unemployment insurance to compute the unemployment rate.
B)   The labor force includes all adults who are able to work.
C)   Unpaid homemakers are counted as employed by the BLS.
D)   People working part time are counted as employed by the BLS.E) A) and B)
F) None of the above

Question 4

Economists at the Congressional Budget Office estimated that for 2009,the U.S.natural rate of unemployment was 5.0 percent.

Accepted Answer

A) True 
 B)False

Question 5

Edgar is working part-time.Diane is on temporary layoff.Who is included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)   only Edgar
B)   only Diane
C)   both Edgar and Diane
D)   neither Edgar nor DianeE) B) and D)
F) A) and D)

Question 6

Unions

Accepted Answer

A)   do not affect the natural rate of unemployment.
B)   lower the wages of unionized workers.
C)   raise the profits of unionized firms.
D)   lower the wages of workers in industries without unions.E) B) and D)
F) B) and C)

Question 7

Suppose that consumers choose to smoke less and chew gum more.Tobacco companies cut back on the number of people they employ while chewing gum manufacturers employ more.This is an example of

Accepted Answer

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

Question 8

Within the U.S.population,women ages 20 and older have lower rates of labor-force participation than men.

Accepted Answer

A) True 
 B)False

Question 9

Sample Population
 
-Refer to Sample Population.How many in the sample are in the labor force?

Accepted Answer

A)   10
B)   9
C)   8
D)   None of the above is correct.E) B) and D)
F) C) and D)

Question 10

A person who is counted as unemployed by the Bureau of Labor Statistics

Accepted Answer

A)   is also in the labor force.
B)   must have recently looked for work or be on temporary layoff.
C)   must be at least 16 years old.
D)   All of the above are correct.E) A) and C)
F) A) and B)

Question 11

An increase in the minimum wage

Accepted Answer

A)   reduces structural unemployment.
B)   reduces frictional unemployment,
C)   increases structural unemployment.
D)   increases fricitional unemployment.E) All of the above
F) B) and C)

Question 12

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) All of the above
F) A) and D)

Question 13

When a minimum-wage law forces the wage to remain above the level that balances supply and demand,the result is a shortage of labor.

Accepted Answer

A) True 
 B)False

Question 14

The introduction of a union into an industry

Accepted Answer

A)   raises wages and employment in that industry.
B)   lowers wages and employment in that industry.
C)   lowers wages and raises employment in that industry.
D)   raises wages and lowers employment in that industry.E) A) and D)
F) B) and C)

Question 15

Unions are often thought to cause conflict between different groups of workers -- between the insiders who benefit from high union wages and the outsiders who do not get the union jobs.

Accepted Answer

A) True 
 B)False

Question 16

The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.

Accepted Answer

A) True 
 B)False

Question 17

Matt is waiting to be recalled to a job from which he was laid off.David was fired but hasn't looked for work during the last two months.Who does the BLS count as unemployed?

Accepted Answer

A)   Matt but not David
B)   David but not Matt
C)   both David and Matt
D)   neither David nor MattE) A) and B)
F) A) and C)

Question 18

The Bureau of Labor Statistics reported in 2005 that there were 53.23 million people over age 25 who had at least a bachelor's degree,40.59 million of whom were employed and 0.98 million of whom were unemployed.What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)   76.3% and 1.8%
B)   76.3% and 2.4%
C)   78.1% and 1.8%
D)   78.1% and 2.4%E) B) and D)
F) None of the above

Question 19

The introduction of a union into an industry

Accepted Answer

A)   creates a surplus of labor and so raises unemployment.
B)   creates a surplus of labor and so reduces unemployment.
C)   creates a shortage of labor and so raises unemployment.
D)   creates a shortage of labor and so reduces unemployment.E) C) and D)
F) None of the above

Question 20

Below is some hypothetical data on the labor market.
 
-Refer to Labor Market Data.If the government imposed a minimum wage of $5,what would unemployment be?

Accepted Answer

A)   0
B)   2,000
C)   3,000
D)   5,000E) A) and B)
F) B) and D)

Exam 20: Unemployment

Sample Population -Refer to Sample Population.How many in the sample are in the labor force?

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An increase in the minimum wage

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When a minimum-wage law forces the wage to remain above the level that balances supply and demand,the result is a shortage of labor.

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Within the U.S.population,women ages 20 and older have lower rates of labor-force participation than men.

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Economists at the Congressional Budget Office estimated that for 2009,the U.S.natural rate of unemployment was 5.0 percent.

Correct AnswerverifiedShow Answer

The introduction of a union into an industry

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The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.

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The introduction of a union into an industry

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Unions

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When a minimum-wage law forces the wage to remain above the level that balances supply and demand,the quantity of labor supplied is lower and the quantity of labor demand is higher than at the equilibrium wage.

Correct AnswerverifiedShow Answer

Edgar is working part-time.Diane is on temporary layoff.Who is included in the Bureau of Labor Statistics' "employed" category?

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Suppose that consumers choose to smoke less and chew gum more.Tobacco companies cut back on the number of people they employ while chewing gum manufacturers employ more.This is an example of

Correct AnswerverifiedShow Answer

According to the theory of efficiency wages,firms operate more efficiently if wages are above the equilibrium level.

Correct AnswerverifiedShow Answer

Matt is waiting to be recalled to a job from which he was laid off.David was fired but hasn't looked for work during the last two months.Who does the BLS count as unemployed?

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

Below is some hypothetical data on the labor market. -Refer to Labor Market Data.If the government imposed a minimum wage of $5,what would unemployment be?

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Which of the following is correct?

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A person who is counted as unemployed by the Bureau of Labor Statistics

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The Bureau of Labor Statistics reported in 2005 that there were 53.23 million people over age 25 who had at least a bachelor's degree,40.59 million of whom were employed and 0.98 million of whom were unemployed.What were the labor-force participation rate and the unemployment rate for this group?

Correct AnswerverifiedShow Answer

Unions are often thought to cause conflict between different groups of workers -- between the insiders who benefit from high union wages and the outsiders who do not get the union jobs.

Correct AnswerverifiedShow Answer

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