Question 1

When a union bargains successfully with employers, in that industry,

Accepted Answer

A)   both wages and unemployment increase.
B)   wages increase and unemployment decreases.
C)   wages decrease and unemployment increases.
D)   both wages and unemployment decrease.E) B) and D)
F) A) and B)

Question 2

An economy's natural rate of unemployment refers to the amount of unemployment that the economy normally experiences.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

Accepted Answer

A)   Efficiency wages increase worker health and therefore increase worker productivity.
B)   Efficiency wages decrease worker turnover and therefore decrease hiring and training costs.
C)   Efficiency wages decrease worker shirking and therefore increase worker productivity.
D)   Efficiency wages are below the equilibrium wage rate but still attract a sufficient number of workers.E) A) and C)
F) B) and C)

Question 4

The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

Accepted Answer

A) True 
 B)False

Question 5

Table 28-2
Labor Data for Aridia
 
-Refer to Table 28-2. The number of adults not in the labor force of Aridia

Accepted Answer

A)   increased both from 2010 to 2011 and from 2011 to 2012.
B)   increased from 2010 to 2011 but decreased from 2011 to 2012.
C)   decreased from 2010 to 2011 but increased from 2011 to 2012.
D)   decreased both from 2010 to 2011 and from 2011 to 2012.E) A) and C)
F) None of the above

Question 6

Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

Accepted Answer

A) True 
 B)False

Question 7

The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to

Accepted Answer

A)   decrease, raising wages in industries that are not unionized.
B)   decrease, reducing wages in industries that are not unionized.
C)   increase, raising wages in industries that are not unionized.
D)   increase, reducing wages in industries that are not unionized.E) A) and B)
F) None of the above

Question 8

Which of the following is not correct?

Accepted Answer

A)   Most people who become unemployed will soon find jobs.
B)   In an ideal labor market, wages would adjust to ensure that all workers are always fully employed.
C)   The unemployment rate occasionally falls to zero.
D)   There are always some workers without jobs, even when the overall economy is doing well.E) A) and D)
F) All of the above

Question 9

Which of the following is correct?

Accepted Answer

A)   In unionized industries, wages are below the level that would prevail in competitive markets.
B)   The introduction of a union in an industry reduces the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and reduces wages in the rest of the economy.
C)   There is a strong consensus among economists that unions are bad for the U.S. economy.
D)   All of the above are correct.E) B) and C)
F) None of the above

Question 10

According to 2012 data on the U.S. population, which of the following groups of adults of prime working age ages (25-54)  had the lowest unemployment rate?

Accepted Answer

A)   white males
B)   white females
C)   black males
D)   black femalesE) B) and D)
F) C) and D)

Question 11

Adults who are waiting to be recalled to a job from which they had been laid off are counted as "unemployed."

Accepted Answer

A) True 
 B)False

Question 12

Within the U.S. population, blacks of prime working age ages 25-54 have similar rates of unemployment than whites of prime working age ages 25-54, regardless of gender.

Accepted Answer

A) True 
 B)False

Question 13

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had decreased.

Accepted Answer

A) True 
 B)False

Question 14

Cyclical unemployment refers to

Accepted Answer

A)   the relationship between the probability of unemployment and a worker's changing level of experience.
B)   how often a worker is likely to be employed during her lifetime.
C)   year-to-year fluctuations of unemployment around its natural rate.
D)   long-term trends in unemployment.E) A) and B)
F) B) and D)

Question 15

Figure 28-1 
-Refer to Figure 28-1. Which of the following correctly identifies lines A and B?

Accepted Answer

A)   Line A is the unemployment rate, and line B is the natural rate of unemployment.
B)   Line A is the labor force participation rate, and line B is the adult population.
C)   Line A is the employment rate, and line B is the adult population.
D)   Line A is the labor force participation rate, and line B is the unemployment rate.E) A) and D)
F) All of the above

Question 16

The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

Accepted Answer

A)   higher production costs and higher profits.
B)   higher production costs and lower profits.
C)   lower production costs and higher profits.
D)   lower production costs and lower profits.E) A) and B)
F) A) and C)

Question 17

Table 28-3
2009 Labor Data for Baltivia
 
-Refer to Table 28-3. How many people were unemployed in Baltivia in 2009?

Accepted Answer

A)   1,400
B)   1,600
C)   2,000
D)   2,780E) C) and D)
F) A) and D)

Question 18

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 C)
F) C) and D)

Question 19

The Bureau of Labor Statistics defines the unemployment rate as the percentage of

Accepted Answer

A)   those unemployed relative to those employed.
B)   the labor force that is unemployed.
C)   the adult population that is unemployed.
D)   the adult population that is unemployed or not in the labor force.E) C) and D)
F) None of the above

Question 20

Explain the effect of right-to-work laws on the collective bargaining power of labor unions.

Accepted Answer

Right-to-work laws decrease th...

Exam 20: Unemployment

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had decreased.

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Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The number of adults not in the labor force of Aridia

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When a union bargains successfully with employers, in that industry,

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Within the U.S. population, blacks of prime working age ages 25-54 have similar rates of unemployment than whites of prime working age ages 25-54, regardless of gender.

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The Bureau of Labor Statistics defines the unemployment rate as the percentage of

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Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. How many people were unemployed in Baltivia in 2009?

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Cyclical unemployment refers to

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Explain the effect of right-to-work laws on the collective bargaining power of labor unions.

Correct AnswerverifiedRight-to-work laws decrease th...View AnswerShow Answer

Adults who are waiting to be recalled to a job from which they had been laid off are counted as "unemployed."

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Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

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Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

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The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

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According to 2012 data on the U.S. population, which of the following groups of adults of prime working age ages (25-54) had the lowest unemployment rate?

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Which of the following is not correct?

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Which of the following is correct?

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The Bureau of Labor Statistics counts discouraged workers as

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Figure 28-1 -Refer to Figure 28-1. Which of the following correctly identifies lines A and B?

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The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

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An economy's natural rate of unemployment refers to the amount of unemployment that the economy normally experiences.

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The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to

Correct AnswerverifiedShow Answer

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Right-to-work laws decrease th...
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