Question 1

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 2

Rupert is collecting unemployment insurance benefits. To continue to receive his benefits, he must be looking for work. Because he'd like to continue collecting benefits rather than take a job, he applies at places that are unlikely to hire him. People like Rupert make the reported unemployment rate less than it would otherwise be.

Accepted Answer

A) True 
 B)False

Question 3

Job search is the process of matching workers with appropriate jobs.

Accepted Answer

A) True 
 B)False

Question 4

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually decreased.

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

Recent entrants into the labor force account for about

Accepted Answer

A)   1/5 of those who are unemployed.
B)   1/4 of those who are unemployed.
C)   1/3 of those who are unemployed.
D)   1/2 of those who are unemployed.E) All of the above
F) None of the above

Question 7

Unemployment insurance

Accepted Answer

A)   reduces search effort which raises unemployment.
B)   reduces search effort which lowers unemployment.
C)   increases search effort which raises unemployment.
D)   increases search effort which decreases unemployment.E) B) and C)
F) C) and D)

Question 8

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 9

Who would be included in the labor force?

Accepted Answer

A)   Homer, who is waiting for his new job to start
B)   Michelle, who has become discouraged looking for a job and has quit looking
C)   Derrick, an unpaid homemaker
D)   None of the above would be included in the labor force.E) C) and D)
F) B) and C)

Question 10

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) None of the above
F) All of the above

Question 11

Which of the following is not a contention of advocates of unions?

Accepted Answer

A)   Unions are a necessary antidote to the market power of the firms that hire workers.
B)   In the case of a "company town," a union may balance the firm's market power and protect the workers from being at the mercy of the firm's owners.
C)   The introduction of a union benefits all workers in a firm.
D)   Unions are important for helping firms respond efficiently to workers' concerns.E) A) and C)
F) A) and B)

Question 12

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) None of the above
F) B) and D)

Question 13

Suppose that some people report themselves as unemployed when, in fact, they are working in the underground economy. If these persons were counted as employed, then

Accepted Answer

A)   both the unemployment rate and labor-force participation rate would be higher.
B)   both the unemployment rate and labor-force participation rate would be lower.
C)   the unemployment rate would be higher and the labor-force participation rate would be higher.
D)   the unemployment rate would be lower and the labor-force participation rate would be unaffected.E) A) and D)
F) B) and C)

Question 14

Minimum-wage laws affect all workers.

Accepted Answer

A) True 
 B)False

Question 15

The efficiency-wage theory of worker health is more relevant for explaining unemployment in less developed countries than in rich countries.

Accepted Answer

A) True 
 B)False

Question 16

People who report being unemployed but who, in fact, are working for "under the table" pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.

Accepted Answer

A) True 
 B)False

Question 17

Efficiency wages create a labor

Accepted Answer

A)   surplus and so increase unemployment.
B)   surplus and so decrease unemployment.
C)   shortage and so increase unemployment.
D)   shortage and so decrease unemployment.E) A) and D)
F) None of the above

Question 18

Unions contribute to

Accepted Answer

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

Question 19

Full-time students and homemakers are included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A)   Julie, who is on temporary layoff
B)   Andrew, who worked only 15 hours last week
C)   Ellen, who neither has a job nor is looking for one
D)   None of the above is correct.E) All of the above
F) B) and C)

Exam 10: Unemployment

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually decreased.

Correct Answer
verified

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

Correct Answer
verified

People who report being unemployed but who, in fact, are working for "under the table" pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.

Correct Answer
verified

Recent entrants into the labor force account for about

Correct Answer
verified

Suppose that some people report themselves as unemployed when, in fact, they are working in the underground economy. If these persons were counted as employed, then

Correct Answer
verified

Efficiency wages create a labor

Correct Answer
verified

Job search is the process of matching workers with appropriate jobs.

Correct Answer
verified

Someone who is without work but is not looking for work is included in the Bureau of Labor Statistics' "unemployed" category.

Correct Answer
verified

The introduction of a union into an industry

Correct Answer
verified

Unions contribute to

Correct Answer
verified

The efficiency-wage theory of worker health is more relevant for explaining unemployment in less developed countries than in rich countries.

Correct Answer
verified

Who would be included in the labor force?

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Unemployment insurance

Correct Answer
verified

Full-time students and homemakers are included in the Bureau of Labor Statistics' "unemployed" category.

Correct Answer
verified

Minimum-wage laws affect all workers.

Correct Answer
verified

Which of the following is not a contention of advocates of unions?

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

Exam 10: Unemployment

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually decreased.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

People who report being unemployed but who, in fact, are working for "under the table" pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.

Correct AnswerverifiedShow Answer

Recent entrants into the labor force account for about

Correct AnswerverifiedShow Answer

Suppose that some people report themselves as unemployed when, in fact, they are working in the underground economy. If these persons were counted as employed, then

Correct AnswerverifiedShow Answer

Efficiency wages create a labor

Correct AnswerverifiedShow Answer

Job search is the process of matching workers with appropriate jobs.

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

The introduction of a union into an industry

Correct AnswerverifiedShow Answer

Unions contribute to

Correct AnswerverifiedShow Answer

The efficiency-wage theory of worker health is more relevant for explaining unemployment in less developed countries than in rich countries.

Correct AnswerverifiedShow Answer

Who would be included in the labor force?

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Unemployment insurance

Correct AnswerverifiedShow Answer

Full-time students and homemakers are included in the Bureau of Labor Statistics' "unemployed" category.

Correct AnswerverifiedShow Answer

Minimum-wage laws affect all workers.

Correct AnswerverifiedShow Answer

Which of the following is not a contention of advocates of unions?

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 Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified