Question 1

Unemployment numbers reported by the Bureau of Labor Statistics are reported based on a

Accepted Answer

A)   monthly survey of about 60,000 households
B)   monthly survey of about 6,000 households
C)   weekly survey of about 60,000 households
D)   weekly survey of about 6,000 householdsE) All of the above
F) None of the above

Question 2

Jason works part-time as a babysitter.The Bureau of Labor Statistics counts Jason 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) B) and C)
F) A) and C)

Question 3

The process by which unions and firms agree on the terms of employment is called collective bargaining.

Accepted Answer

A) True 
 B)False

Question 4

Frictional unemployment is often thought to explain relatively long spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household?

Accepted Answer

A)   employed
B)   unemployed
C)   underemployed
D)   not in the labor forceE) All of the above
F) A) and B)

Question 6

A firm might offer efficiency wages in order to attract a better pool of applicants.

Accepted Answer

A) True 
 B)False

Question 7

The BLS reports the U-6 measure of labor underutilization.Which of the following is how it computes U-6?

Accepted Answer

A)   (total unemployed + marginally attached workers) /adult population
B)   (total unemployed + marginally attached workers + part-time employed for economic reasons) /adult population
C)   (total unemployed + marginally attached workers) /(labor force + marginally attached workers) 
D)   (total unemployed + marginally attached workers + part time employed for economic reasons) /(labor force + marginally attached workers) E) None of the above
F) A) and B)

Question 8

The unemployment that results from the process of matching workers and jobs is called frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 9

Suppose that because of the popularity of the low-carb diet,bakeries need fewer workers and steak houses need more workers.The unemployment created by this change is

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 10

The Bureau of Labor Statistics' U-1 measure of joblessness is larger than its U-6 measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 11

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

Question 12

Minimum-wage laws

Accepted Answer

A)   create frictional unemployment,while firms paying wages above equilibrium to reduce worker turnover creates structural unemployment.
B)   create structural unemployment,while firms paying wages above equilibrium to reduce worker turnover creates frictional unemployment.
C)   and firms paying wages above equilibrium to reduce worker turnover both create structural unemployment.
D)   and firms paying wages above equilibrium to reduce worker turnover both create frictional unemployment.E) B) and C)
F) A) and D)

Question 13

Which of the following is not correct?

Accepted Answer

A)   When a union is present in a labor market,wages are determined by the equilibrium of supply and demand.
B)   Like any cartel,a union is a group of sellers acting together in the hope of exerting their joint market power.
C)   The process by which unions and firms agree on the terms of employment is called collective bargaining.
D)   Most workers in the U.S.economy are not members of a union.E) A) and C)
F) None of the above

Question 14

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

Question 15

Table 20-3
2010 Labor Data for Adults (age 16 and older) in Meditor
 
-Refer to Table 20-3.What is the adult unemployment rate in Meditor?

Accepted Answer

A)   4.2 percent
B)   6.25 percent
C)   6.7 percent
D)   10 percentE) A) and C)
F) A) and D)

Question 16

The Bureau of Labor Statistics' U-5 measure of joblessness is the official unemployment rate.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not an explanation for the existence of structural unemployment?

Accepted Answer

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

Question 18

The labor-force participation rate measures the percentage of the

Accepted Answer

A)   total adult population that is in the labor force.
B)   total adult population that is employed.
C)   labor force that is employed.
D)   labor force that is either employed or unemployed.E) A) and D)
F) B) and C)

Question 19

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate.All workers are equally able to do either job.Initially,both labor markets are perfectly competitive.If a union organizes workers in one of the markets,then the wage rates will tend to

Accepted Answer

A)   rise in both markets.
B)   fall in both markets
C)   rise for the union jobs,but remain unchanged for the nonunion jobs.
D)   rise for the union jobs and fall for the nonunion jobs.E) A) and B)
F) A) and C)

Question 20

Some individuals would like to have a job,but they have given up looking for a job after an unsuccessful search.These individuals are called

Accepted Answer

A)   detached workers,and they are classified by the Bureau of Labor Statistics as unemployed.
B)   detached workers,and they are not classified by the Bureau of Labor Statistics as unemployed.
C)   discouraged workers,and they are classified by the Bureau of Labor Statistics as unemployed.
D)   discouraged workers,and they are not classified by the Bureau of Labor Statistics as unemployed.E) None of the above
F) B) and D)

Exam 20: Unemployment

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate.All workers are equally able to do either job.Initially,both labor markets are perfectly competitive.If a union organizes workers in one of the markets,then the wage rates will tend to

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Minimum-wage laws

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Which of the following is not correct?

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The unemployment that results from the process of matching workers and jobs is called frictional unemployment.

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Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household?

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The labor-force participation rate measures the percentage of the

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

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A firm might offer efficiency wages in order to attract a better pool of applicants.

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Some individuals would like to have a job,but they have given up looking for a job after an unsuccessful search.These individuals are called

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

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The BLS reports the U-6 measure of labor underutilization.Which of the following is how it computes U-6?

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Unemployment numbers reported by the Bureau of Labor Statistics are reported based on a

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The Bureau of Labor Statistics' U-1 measure of joblessness is larger than its U-6 measure of joblessness.

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Frictional unemployment is often thought to explain relatively long spells of unemployment.

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Which of the following is not an explanation for the existence of structural unemployment?

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Suppose that because of the popularity of the low-carb diet,bakeries need fewer workers and steak houses need more workers.The unemployment created by this change is

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Table 20-3 2010 Labor Data for Adults (age 16 and older) in Meditor -Refer to Table 20-3.What is the adult unemployment rate in Meditor?

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The process by which unions and firms agree on the terms of employment is called collective bargaining.

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The Bureau of Labor Statistics' U-5 measure of joblessness is the official unemployment rate.

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Jason works part-time as a babysitter.The Bureau of Labor Statistics counts Jason as

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