Question 1

Most job search in the U.S. economy takes place without intervention by the government.

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

Data show that at least 20 percent of U.S. manufacturing jobs are destroyed every year.

Accepted Answer

A) True 
 B)False

Question 4

Figure 28-3 
-Refer to Figure 28-3. At the equilibrium wage, how many workers are unemployed?

Accepted Answer

A)   0
B)   4,000
C)   5,000
D)   8,000E) A) and C)
F) A) and B)

Question 5

Rafael is the newly­appointed plant manager for a company that manufactures head phones. Rafael's senior supervisors told him that the output the firm produces, given the number of workers employed, indicates that some workers may be shirking. According to efficiency wage theory, what should he do?

Accepted Answer

A)   pay all workers more than the equilibrium wage rate
B)   pay all workers below the equilibrium wage rate to make up for the loss from shirking
C)   make sure that workers are getting paid exactly the equilibrium wage rate
D)   fire the workers with the most seniorityE) A) and C)
F) A) and B)

Question 6

Briefly compare the structural unemployment that arises from minimum-wage laws to the frictional unemployment that arises from the process of job search.

Accepted Answer

Minimum-wage laws create unemployment be...

Question 7

Tatiana is waiting to be recalled to a job from which she was laid off. Ivan was fired but has not looked for work during the last two months. Who does the Bureau of Labor Statistics count as "unemployed"?

Accepted Answer

A)   Tatiana but not Ivan
B)   Ivan but not Tatiana
C)   both Ivan and Tatiana
D)   neither Ivan nor TatianaE) B) and D)
F) All of the above

Question 8

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called

Accepted Answer

A)   the natural rate of unemployment.
B)   cyclical unemployment.
C)   structural unemployment.
D)   frictional unemployment.E) B) and C)
F) B) and D)

Question 9

Table 28-2
Labor Data for Aridia
 
-Refer to Table 28-2. The unemployment rate 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) C) and D)
F) A) and D)

Question 10

In terms of duration, how does cyclical unemployment differ from structural unemployment?

Accepted Answer

Cyclical unemploymen...

Question 11

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 12

In the early 1900s, Henry Ford introduced a

Accepted Answer

A)   high-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory.
B)   high-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory.
C)   low-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory.
D)   low-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory.E) C) and D)
F) A) and C)

Question 13

U.S. Department of Labor data show that minimum-wage workers tend to be young, less educated, more likely to be working part time, and concentrated in the leisure and hospitality industry.

Accepted Answer

A) True 
 B)False

Question 14

The Wagner Act of 1935

Accepted Answer

A)   prevents unions from acting as cartels.
B)   allows workers joining a unionized firm to choose not to join the union.
C)   prevents employers from interfering when workers try to organize a union.
D)   prevents firms from hiring permanent replacements for workers who are on strike.E) B) and D)
F) A) and C)

Question 15

The Bureau of Labor Statistics reported in 2005 that there were 50.40 million people over age 25 whose highest level of education was some college or an associate degree, 33.86 million of whom were employed and 1.27 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)   69.7% and 2.5%
B)   69.7% and 3.6%
C)   67.2% and 2.5%
D)   67.2% and 3.6%E) A) and D)
F) C) and D)

Question 16

In the long run the unemployment rate equals

Accepted Answer

A)   zero.
B)   the cyclical rate of unemployment.
C)   the natural rate of unemployment.
D)   the sum of the cyclical and natural rate of unemployment.E) B) and D)
F) None of the above

Question 17

In the 1940s and 1950s, about one-third of U.S. workers belonged to unions, but today, only about one-fifth of U.S. workers belong to unions.

Accepted Answer

A) True 
 B)False

Question 18

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

Question 19

Frictional unemployment is often the result of changes in the demand for labor among different firms.

Accepted Answer

A) True 
 B)False

Question 20

Spells of unemployment end about

Accepted Answer

A)   1/5 of the time with the person leaving the labor force.
B)   1/4 of the time with the person leaving the labor force.
C)   1/3 of the time with the person leaving the labor force.
D)   1/2 of the time with the person leaving the labor force.E) A) and C)
F) C) and D)

Exam 20: Unemployment

The Wagner Act of 1935

Correct Answer
verified

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called

Correct Answer
verified

Data show that at least 20 percent of U.S. manufacturing jobs are destroyed every year.

Correct Answer
verified

Figure 28-3 -Refer to Figure 28-3. At the equilibrium wage, how many workers are unemployed?

Correct Answer
verified

In terms of duration, how does cyclical unemployment differ from structural unemployment?

Correct Answer
verified
Cyclical unemploymen...
View Answer

Which of the following is not correct?

Correct Answer
verified

Briefly compare the structural unemployment that arises from minimum-wage laws to the frictional unemployment that arises from the process of job search.

Correct Answer
verified
Minimum-wage laws create unemployment be...
View Answer

U.S. Department of Labor data show that minimum-wage workers tend to be young, less educated, more likely to be working part time, and concentrated in the leisure and hospitality industry.

Correct Answer
verified

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 Answer
verified

In the long run the unemployment rate equals

Correct Answer
verified

In the 1940s and 1950s, about one-third of U.S. workers belonged to unions, but today, only about one-fifth of U.S. workers belong to unions.

Correct Answer
verified

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The unemployment rate of Aridia

Correct Answer
verified

Tatiana is waiting to be recalled to a job from which she was laid off. Ivan was fired but has not looked for work during the last two months. Who does the Bureau of Labor Statistics count as "unemployed"?

Correct Answer
verified

Correct Answer
verified

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Correct Answer
verified

Most job search in the U.S. economy takes place without intervention by the government.

Correct Answer
verified

Frictional unemployment is often the result of changes in the demand for labor among different firms.

Correct Answer
verified

In the early 1900s, Henry Ford introduced a

Correct Answer
verified

Spells of unemployment end about

Correct Answer
verified

Rafael is the newlyappointed plant manager for a company that manufactures head phones. Rafael's senior supervisors told him that the output the firm produces, given the number of workers employed, indicates that some workers may be shirking. According to efficiency wage theory, what should he do?

Correct Answer
verified

Exam 20: Unemployment

The Wagner Act of 1935

Correct AnswerverifiedShow Answer

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called

Correct AnswerverifiedShow Answer

Data show that at least 20 percent of U.S. manufacturing jobs are destroyed every year.

Correct AnswerverifiedShow Answer

Figure 28-3 -Refer to Figure 28-3. At the equilibrium wage, how many workers are unemployed?

Correct AnswerverifiedShow Answer

In terms of duration, how does cyclical unemployment differ from structural unemployment?

Correct AnswerverifiedCyclical unemploymen...View AnswerShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Briefly compare the structural unemployment that arises from minimum-wage laws to the frictional unemployment that arises from the process of job search.

Correct AnswerverifiedMinimum-wage laws create unemployment be...View AnswerShow Answer

U.S. Department of Labor data show that minimum-wage workers tend to be young, less educated, more likely to be working part time, and concentrated in the leisure and hospitality industry.

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

In the long run the unemployment rate equals

Correct AnswerverifiedShow Answer

In the 1940s and 1950s, about one-third of U.S. workers belonged to unions, but today, only about one-fifth of U.S. workers belong to unions.

Correct AnswerverifiedShow Answer

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The unemployment rate of Aridia

Correct AnswerverifiedShow Answer

Tatiana is waiting to be recalled to a job from which she was laid off. Ivan was fired but has not looked for work during the last two months. Who does the Bureau of Labor Statistics count as "unemployed"?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Correct AnswerverifiedShow Answer

Most job search in the U.S. economy takes place without intervention by the government.

Correct AnswerverifiedShow Answer

Frictional unemployment is often the result of changes in the demand for labor among different firms.

Correct AnswerverifiedShow Answer

In the early 1900s, Henry Ford introduced a

Correct AnswerverifiedShow Answer

Spells of unemployment end about

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Cyclical unemploymen...
View Answer

Correct Answer
verified

Correct Answer
verified
Minimum-wage laws create unemployment be...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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