Question 1

Within the U.S. population, teenagers ages 16-19) have similar rates of unemployment than adults of prime working age ages 25-54), regardless of race or gender.

Accepted Answer

A) True 
 B)False

Question 2

Which famous company executive introduced an innovative pay system that is consistent with the theory of efficiency wages?

Accepted Answer

A)   Lee Iococca
B)   Steve Jobs
C)   Mark Zuckerberg
D)   Henry FordE) A) and D)
F) A) and B)

Question 3

Table 28-6
 
-Refer to Table 28-6. What is the U-5 measure of labor underutilization?

Accepted Answer

A)   7.5%
B)   7.9%
C)   8.1%
D)   26%E) A) and D)
F) B) and C)

Question 4

The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 5

Evidence indicates that the typical person who becomes unemployed will

Accepted Answer

A)   soon find a job.
B)   find a job but not before a year or more has gone by.
C)   leave the labor force and never return.
D)   retire soon afterE) A) and D)
F) B) and C)

Question 6

Sectoral shifts contribute to structural unemployment.

Accepted Answer

A) True 
 B)False

Question 7

Briefly summarize the advantages and disadvantages of unemployment insurance.

Accepted Answer

The main advantage is that unemployment ...

Question 8

The efficiency-wage theory of worker health is

Accepted Answer

A)   more relevant for explaining unemployment in less developed countries than in rich countries.
B)   more relevant for explaining unemployment in rich countries than in less developed countries.
C)   equally relevant for explaining unemployment in less developed countries and in rich countries.
D)   not relevant for explaining unemployment.E) None of the above
F) All of the above

Question 9

Frictional unemployment can be the consequence of

Accepted Answer

A)   workers leaving existing jobs to find ones they like better.
B)   one industry declining while another is growing.
C)   changes in the working conditions offered by competing firms.
D)   All of the above are correct.E) C) and D)
F) B) and C)

Question 10

Which of the following is correct?

Accepted Answer

A)   The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy.
B)   The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and a complex economy can achieve zero unemployment.
C)   The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and a complex economy can achieve zero unemployment.
D)   The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy.E) All of the above
F) A) and C)

Question 11

Scenario 28-1
Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment.
-Refer to Scenario 28-1. What is the labor-force participation rate?

Accepted Answer

A)   83.3%
B)   86.7%
C)   93.3%
D)   96.7%E) B) and C)
F) None of the above

Question 12

Figure 28-4 
-Refer to Figure 28-4. If the government imposes a minimum wage of $3, how many workers will be unemployed?

Accepted Answer

A)   0
B)   2,000
C)   4,000
D)   6,000E) B) and D)
F) None of the above

Question 13

The labor force equals the

Accepted Answer

A)   number of people employed.
B)   number of people employed plus the number of people unemployed.
C)   number of people employed plus the number of people unemployed plus teenagers between ages 14 and 16 who work at least 10 hours a week.
D)   adult population.E) All of the above
F) A) and B)

Question 14

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 C)
F) All of the above

Question 15

Unemployment data is collected

Accepted Answer

A)   through a monthly survey of about 20,000 firms.
B)   through a monthly survey of about 60,000 households.
C)   from unemployment insurance claims.
D)   All of the above are correct.E) A) and C)
F) B) and D)

Question 16

If an unemployed person quits looking for work, then, eventually the unemployment rate

Accepted Answer

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

Question 17

According to 2012 data on the U.S. population, which of the following groups of teenagers ages 16-19)  had the lowest labor-force participation rate?

Accepted Answer

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

Question 18

Which of the following is not correct?

Accepted Answer

A)   Frictional unemployment is inevitable in a dynamic economy.
B)   Although the unemployment created by sectoral shifts is unfortunate, in the long run such changes lead to higher productivity and higher living standards.
C)   At least 10 percent of U.S. manufacturing jobs are destroyed every year.
D)   More than 13 percent of U.S. workers leave their jobs in a typical month.E) None of the above
F) B) and C)

Question 19

Which of the following is among the four industries with the largest employment in the United States today?

Accepted Answer

A)   lumber
B)   men's clothing
C)   communications
D)   cotton goodsE) A) and C)
F) B) and C)

Question 20

Within the U.S. population, women of prime working age ages 25-54) have higher rates of unemployment than men of prime working age ages 25-54), regardless of race.

Accepted Answer

A) True 
 B)False

Exam 15: Unemployment

Correct Answer
verified

Unemployment data is collected

Correct Answer
verified

Sectoral shifts contribute to structural unemployment.

Correct Answer
verified

The labor force equals the

Correct Answer
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Which of the following is not correct?

Correct Answer
verified

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $3, how many workers will be unemployed?

Correct Answer
verified

The efficiency-wage theory of worker health is

Correct Answer
verified

Which famous company executive introduced an innovative pay system that is consistent with the theory of efficiency wages?

Correct Answer
verified

Within the U.S. population, women of prime working age ages 25-54) have higher rates of unemployment than men of prime working age ages 25-54), regardless of race.

Correct Answer
verified

Briefly summarize the advantages and disadvantages of unemployment insurance.

Correct Answer
verified
The main advantage is that unemployment ...
View Answer

Evidence indicates that the typical person who becomes unemployed will

Correct Answer
verified

The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment.

Correct Answer
verified

Table 28-6 -Refer to Table 28-6. What is the U-5 measure of labor underutilization?

Correct Answer
verified

Frictional unemployment can be the consequence of

Correct Answer
verified

If an unemployed person quits looking for work, then, eventually the unemployment rate

Correct Answer
verified

Which of the following is among the four industries with the largest employment in the United States today?

Correct Answer
verified

According to 2012 data on the U.S. population, which of the following groups of teenagers ages 16-19) had the lowest labor-force participation rate?

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

Within the U.S. population, teenagers ages 16-19) have similar rates of unemployment than adults of prime working age ages 25-54), regardless of race or gender.

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

Exam 15: Unemployment

Correct AnswerverifiedShow Answer

Unemployment data is collected

Correct AnswerverifiedShow Answer

Sectoral shifts contribute to structural unemployment.

Correct AnswerverifiedShow Answer

The labor force equals the

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $3, how many workers will be unemployed?

Correct AnswerverifiedShow Answer

The efficiency-wage theory of worker health is

Correct AnswerverifiedShow Answer

Which famous company executive introduced an innovative pay system that is consistent with the theory of efficiency wages?

Correct AnswerverifiedShow Answer

Within the U.S. population, women of prime working age ages 25-54) have higher rates of unemployment than men of prime working age ages 25-54), regardless of race.

Correct AnswerverifiedShow Answer

Briefly summarize the advantages and disadvantages of unemployment insurance.

Correct AnswerverifiedThe main advantage is that unemployment ...View AnswerShow Answer

Evidence indicates that the typical person who becomes unemployed will

Correct AnswerverifiedShow Answer

The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment.

Correct AnswerverifiedShow Answer

Table 28-6 -Refer to Table 28-6. What is the U-5 measure of labor underutilization?

Correct AnswerverifiedShow Answer

Frictional unemployment can be the consequence of

Correct AnswerverifiedShow Answer

If an unemployed person quits looking for work, then, eventually the unemployment rate

Correct AnswerverifiedShow Answer

Which of the following is among the four industries with the largest employment in the United States today?

Correct AnswerverifiedShow Answer

According to 2012 data on the U.S. population, which of the following groups of teenagers ages 16-19) had the lowest labor-force participation rate?

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Within the U.S. population, teenagers ages 16-19) have similar rates of unemployment than adults of prime working age ages 25-54), regardless of race or gender.

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

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
The main advantage is that unemployment ...
View Answer

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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Correct Answer
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Correct Answer
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Correct Answer
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