Question 1

Table 10-5
2010 Labor Data for Tajnia
 
-Refer to Table 10-5. The labor force of Tajnia in 2010 is 12,250.

Accepted Answer

A) True 
 B)False

Question 2

The Bureau of Labor Statistics defines discouraged workers as marginally attached workers who have given a job-market related reason for not currently looking for a job.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Table 10-4
 
-Refer to Table 10-4. What is the U-2 measure of labor underutilization?

Accepted Answer

A)   1.5 percent
B)   3.1 percent
C)   4.7 percent
D)   6.2 percentE) B) and C)
F) A) and B)

Question 5

A typical American worker covered by unemployment insurance receives 50 percent of his former wages for 52 weeks.

Accepted Answer

A) True 
 B)False

Question 6

Minimum wage laws help explain the natural rate of unemployment if they create a surplus in any labor market.

Accepted Answer

A) True 
 B)False

Question 7

Four employers have justified their actions as follows. Whose logic is not consistent with the logic of efficiency wage theory?

Accepted Answer

A)   Jay develops a new assembly line technology that limits the amount of shirking workers can do, so he reduces what he pays his employees so as to make it closer to the equilibrium wage.
B)   Kay pays her workers less than the equilibrium wage so they won't have the time or money to look for work somewhere else.
C)   Ray pays his workers in a developing country more than the going wage hoping that they will get a better diet and so be more productive.
D)   None of the above is consistent with the logic of efficiency wage theory.E) C) and D)
F) A) and B)

Question 8

Within the U.S., blacks and whites have similar rates of unemployment.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Critics of government-run employment agencies and public training programs argue that the private market is better at matching workers and jobs than the government is.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not correct?

Accepted Answer

A)   The unemployment rate is an imperfect measure of a nation's overall level of economic well-being.
B)   Most job search in the U.S. economy takes place without intervention by the government.
C)   Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being.
D)   Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.E) All of the above
F) None of the above

Question 12

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, it

Accepted Answer

A)   raises the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level.
B)   raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.
C)   reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level.
D)   reduces the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.E) B) and C)
F) A) and B)

Question 13

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 D)
F) A) and D)

Question 14

Suppose that efficiency wages become more common in the economy. Imposing efficiency wages

Accepted Answer

A)   increases the quantity demanded and decreases the quantity supplied of labor
B)   decreases the quantity demanded and increases the quantity supplied of labor
C)   increases the quantity demanded and decreases the quantity supplied of labor.
D)   decreases the quantity demanded and increases the quantity supplied of labor.E) A) and B)
F) C) and D)

Question 15

When unions raise wages in one part of the economy, the supply of labor increases in other parts of the economy, which reduces wages in industries that are not unionized.

Accepted Answer

A) True 
 B)False

Question 16

Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Accepted Answer

Standard economic theory suggests that i...

Question 17

Which of the following is not an explanation for the existence of unemployment in the long run?

Accepted Answer

A)   it takes time for workers to search for the jobs that are best suited for them
B)   minimum-wage laws
C)   unions
D)   the business cycleE) B) and D)
F) C) and D)

Question 18

Figure 10-1
 
-Refer to Figure 10-1. If the government imposes a minimum wage of $8, then how many workers will be unemployed?

Accepted Answer

A)   0
B)   3000
C)   4000
D)   7000E) A) and B)
F) A) and C)

Question 19

Which of the following was not among the four industries with the largest employment in the United States a century ago?

Accepted Answer

A)   cotton goods
B)   men's clothing
C)   meat packing
D)   lumberE) None of the above
F) C) and D)

Question 20

Measuring unemployment is the job of the Bureau of Labor Statistics.

Accepted Answer

A) True 
 B)False

Exam 10: Unemployment

A typical American worker covered by unemployment insurance receives 50 percent of his former wages for 52 weeks.

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Which of the following is not correct?

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Table 10-5 2010 Labor Data for Tajnia -Refer to Table 10-5. The labor force of Tajnia in 2010 is 12,250.

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Table 10-4 -Refer to Table 10-4. What is the U-2 measure of labor underutilization?

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

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When a minimum-wage law forces the wage to remain above the level that balances supply and demand, it

Correct AnswerverifiedShow Answer

Which of the following was not among the four industries with the largest employment in the United States a century ago?

Correct AnswerverifiedShow Answer

Measuring unemployment is the job of the Bureau of Labor Statistics.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Minimum wage laws help explain the natural rate of unemployment if they create a surplus in any labor market.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is not an explanation for the existence of unemployment in the long run?

Correct AnswerverifiedShow Answer

Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Correct AnswerverifiedStandard economic theory suggests that i...View AnswerShow Answer

Within the U.S., blacks and whites have similar rates of unemployment.

Correct AnswerverifiedShow Answer

When unions raise wages in one part of the economy, the supply of labor increases in other parts of the economy, which reduces wages in industries that are not unionized.

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics defines discouraged workers as marginally attached workers who have given a job-market related reason for not currently looking for a job.

Correct AnswerverifiedShow Answer

Four employers have justified their actions as follows. Whose logic is not consistent with the logic of efficiency wage theory?

Correct AnswerverifiedShow Answer

Suppose that efficiency wages become more common in the economy. Imposing efficiency wages

Correct AnswerverifiedShow Answer

Figure 10-1 -Refer to Figure 10-1. If the government imposes a minimum wage of $8, then how many workers will be unemployed?

Correct AnswerverifiedShow Answer

Critics of government-run employment agencies and public training programs argue that the private market is better at matching workers and jobs than the government is.

Correct AnswerverifiedShow Answer

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Standard economic theory suggests that i...
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