Question 1

Figure 28-3 
-Refer to Figure 28-3. If the government imposes a minimum wage of $4, then unemployment will increase by

Accepted Answer

A)   0 workers.
B)   2,000 workers.
C)   4,000 workers.
D)   5,000 workers.E) All of the above
F) None of the above

Question 2

Cyclical unemployment refers to

Accepted Answer

A)   the portion of unemployment created by job search.
B)   short-run fluctuations around the natural rate of unemployment.
C)   changes in unemployment due to changes in the natural rate of unemployment.
D)   the portion of unemployment created by wages set above the equilibrium level.E) A) and B)
F) B) and C)

Question 3

According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see an)

Accepted Answer

A)   increase in the number of job applicants and an increase in how long workers stay on the job.
B)   increase in the number of job applicants and a decrease in how long workers stay on the job.
C)   decrease in the number of job applicants and an increase in how long workers stay on the job.
D)   decrease in the number of job applicants and a decrease in how long workers stay on the job.E) All of the above
F) C) and D)

Question 4

Compare the 2012 unemployment rates and labor-force participation rates of whites, blacks, adults of prime working age ages 25-54), and teenagers ages 16-19).

Accepted Answer

For adults:
Adult white men have the hig...

Question 5

Sectoral shifts in demand for output

Accepted Answer

A)   create structural unemployment.
B)   immediately reduce unemployment.
C)   increase unemployment due to job search.
D)   do not affect demand for labor.E) B) and D)
F) A) and C)

Question 6

Within the U.S. population, women of prime working age ages 25-54) have similar rates of labor-force participation than men of prime working age ages 25-54), regardless of race.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following does not help reduce frictional unemployment?

Accepted Answer

A)   government-run employment agencies
B)   public training programs
C)   unemployment insurance
D)   All of the above help reduce frictional unemployment.E) B) and D)
F) B) and C)

Question 8

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 D)
F) All of the above

Question 9

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

Question 10

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

Question 11

The Bureau of Labor Statistics counts discouraged workers as

Accepted Answer

A)   employed. Including them as employed makes the unemployment rate lower than otherwise.
B)   unemployed. Including them as unemployed makes the unemployment rate higher than otherwise.
C)   out of the labor force. If the were counted as unemployed the unemployment rate would be higher.
D)   None of the above is correct.E) A) and B)
F) None of the above

Question 12

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

Accepted Answer

A)   Huey, who did not work during the previous four weeks
B)   Dewey, who tried to find new employment during the previous four weeks
C)   Louie, who was an unpaid worker during the previous four weeks
D)   None of the above is correct.E) A) and B)
F) C) and D)

Question 13

Minimum wage laws, labor unions, and efficiency wages all generate unemployment by what common mechanism?

Accepted Answer

Wages bein...

Question 14

Which of the following is not correct?

Accepted Answer

A)   When a union is present in a labor market, wages are not 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 a strike.
D)   Most workers in the U.S. economy are not members of a union.E) B) and C)
F) A) and C)

Question 15

Wages set above the equilibrium wage by

Accepted Answer

A)   firms to increase morale are called collective bargaining wages.
B)   lawmakers to decrease cyclical unemployment are called minimum wages laws.
C)   firms to increase productivity are called efficiency wages.
D)   lawmakers to decrease the length of a job search are called efficiency wages.E) None of the above
F) All of the above

Question 16

Write the formula for calculating the labor force participation rate.

Accepted Answer

The answer of Write the formula for calculating the labor...

Question 17

In 1914, Henry Ford began paying his workers $5 per day, about twice the going wage. As a result, turnover and absenteeism fell and productivity and profits rose.

Accepted Answer

A) True 
 B)False

Question 18

Sirius has just finished high school and started looking for his first job, but has not yet found one. Other things the same, the unemployment rate

Accepted Answer

A)   and the labor-force participation rate both increase.
B)   increases, and the labor-force participation rate is unaffected.
C)   is unaffected, and the labor-force participation rate increases.
D)   and the labor-force participation rate are both unaffected.E) B) and D)
F) B) and C)

Question 19

Since unemployment rates are consistently higher in Canada and some Western European countries than in the United States, it appears that the natural rate of unemployment is lower in the United States. What might explain this difference?

Accepted Answer

The text offers two explanations for the...

Question 20

The adult population must equal the sum of the employed and the unemployed.

Accepted Answer

A) True 
 B)False

Exam 10: Unemployment and Its Natural Rate

Sectoral shifts in demand for output

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

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Cyclical unemployment refers to

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

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The adult population must equal the sum of the employed and the unemployed.

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

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Sirius has just finished high school and started looking for his first job, but has not yet found one. Other things the same, the unemployment rate

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Which of the following is not correct?

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Which of the following does not help reduce frictional unemployment?

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According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see an)

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Wages set above the equilibrium wage by

Correct AnswerverifiedShow Answer

In 1914, Henry Ford began paying his workers $5 per day, about twice the going wage. As a result, turnover and absenteeism fell and productivity and profits rose.

Correct AnswerverifiedShow Answer

Minimum wage laws, labor unions, and efficiency wages all generate unemployment by what common mechanism?

Correct AnswerverifiedWages bein...View AnswerShow Answer

Since unemployment rates are consistently higher in Canada and some Western European countries than in the United States, it appears that the natural rate of unemployment is lower in the United States. What might explain this difference?

Correct AnswerverifiedThe text offers two explanations for the...View AnswerShow Answer

Write the formula for calculating the labor force participation rate.

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Recent entrants into the labor force account for about

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Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $4, then unemployment will increase by

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The Bureau of Labor Statistics counts discouraged workers as

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Within the U.S. population, women of prime working age ages 25-54) have similar rates of labor-force participation than men of prime working age ages 25-54), regardless of race.

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Compare the 2012 unemployment rates and labor-force participation rates of whites, blacks, adults of prime working age ages 25-54), and teenagers ages 16-19).

Correct AnswerverifiedFor adults:Adult white men have the hig...View AnswerShow Answer

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Wages bein...
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The text offers two explanations for the...
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For adults:
Adult white men have the hig...
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