Question 1

Table 28-2
Labor Data for Aridia
 
-Refer to Table 28-2. The labor-force participation rate of Aridia in 2010 was

Accepted Answer

A)   70%.
B)   77.8%.
C)   80%.
D)   87.5%.E) None of the above
F) C) and D)

Question 2

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Accepted Answer

According to the theory of efficiency wa...

Question 3

List the four ways to explain unemployment in the long run.

Accepted Answer

search costs, minimu...

Question 4

People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as

Accepted Answer

A)   cyclically unemployed.
B)   structurally unemployed.
C)   frictionally unemployed.
D)   discouraged workers.E) A) and B)
F) A) and C)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not correct?

Accepted Answer

A)   When a union is present in a labor market, wages may not be 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)   When unions raise wages above equilibrium, the quantity of labor supplied decreases, and the quantity of labor demanded increases.
D)   Most workers in the U.S. economy are not members of a union.E) A) and C)
F) B) and C)

Question 7

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has

Accepted Answer

A)   gradually increased.
B)   remained constant.
C)   gradually decreased.
D)   been eliminated.E) A) and D)
F) None of the above

Question 8

To maintain their standard of living, most people rely on

Accepted Answer

A)   government assistance.
B)   their labor earnings.
C)   their personal savings.
D)   All of the above are correct.E) None of the above
F) All of the above

Question 9

Who is not included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)   Anita, who is on temporary layoff
B)   Lauren, who has retired and is not looking for work
C)   Raymond, who does not have a job but has applied for several in the last week
D)   None of the above is correct.E) None of the above
F) B) and D)

Question 10

Most U.S. workers have wages well above the legal minimum, so minimum-wage laws do not prevent the wage from adjusting to balance supply and demand.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Table 28-9
The table below lists the number of people by labor force classification for the country of Shelbyville.
 
-Refer to Table 28-9. What is the labor force participation rate?

Accepted Answer

The answer of Table 28-9
The table below lists the number...

Question 13

Every month when the Bureau of Labor Statistics BLS)  announces the unemployment rate, it also announces the number of jobs the economy has gained or lost. Where does the BLS get the data about jobs?

Accepted Answer

A)   from the survey of 60,000 households, which is called the Current Population Survey
B)   from the Establishment Survey that measures both frictional and structural unemployment
C)   from the survey of 160,000 business that have over 40 million workers on their payrolls
D)   from the Congressional Budget Office, which also calculates the GDP of the United StatesE) B) and C)
F) All of the above

Question 14

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) C) and D)
F) B) and D)

Question 15

Labor unions

Accepted Answer

A)   prefer to operate in states with right-to-work laws.
B)   are similar to cartels.
C)   play a larger role in the current U.S. economy than in European countries such as Norway and Sweden.
D)   attract a membership of about 25 percent of current U.S. workers.E) A) and C)
F) A) and B)

Question 16

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, a labor force of 154 million and employment of 141.6 million. Based on these numbers the unemployment rate was

Accepted Answer

A)   93.3/234.9.
B)   12.4/234.9.
C)   93.3/154.
D)   12.4/154.E) A) and B)
F) A) and C)

Question 17

A minimum wage that is below the equilibrium wage rate does not raise unemployment.

Accepted Answer

A) True 
 B)False

Question 18

The introduction of a union into an industry

Accepted Answer

A)   raises wages and employment in that industry.
B)   lowers wages and employment in that industry.
C)   lowers wages and raises employment in that industry.
D)   raises wages and lowers employment in that industry.E) C) and D)
F) A) and B)

Question 19

The deviation of unemployment from its natural rate is called

Accepted Answer

A)   the normal rate of unemployment.
B)   deviant unemployment.
C)   cyclical unemployment.
D)   fluctuating unemployment.E) B) and D)
F) A) and B)

Question 20

Who would be included in the labor force?

Accepted Answer

A)   Louie, who is waiting for his new job to start
B)   Daisey, who has become discouraged looking for a job and has quit looking
C)   Donald, an unpaid stay-at-home father
D)   None of the above is correct.E) None of the above
F) A) and C)

Exam 15: Unemployment

Every month when the Bureau of Labor Statistics BLS) announces the unemployment rate, it also announces the number of jobs the economy has gained or lost. Where does the BLS get the data about jobs?

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The deviation of unemployment from its natural rate is called

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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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Which of the following is not correct?

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People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as

Correct AnswerverifiedShow Answer

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has

Correct AnswerverifiedShow Answer

List the four ways to explain unemployment in the long run.

Correct Answerverifiedsearch costs, minimu...View AnswerShow Answer

To maintain their standard of living, most people rely on

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The introduction of a union into an industry

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

Correct AnswerverifiedShow Answer

A minimum wage that is below the equilibrium wage rate does not raise unemployment.

Correct AnswerverifiedShow Answer

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Correct AnswerverifiedAccording to the theory of efficiency wa...View AnswerShow Answer

Who would be included in the labor force?

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Labor unions

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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.

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Who is not included in the labor force by the Bureau of Labor Statistics?

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In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, a labor force of 154 million and employment of 141.6 million. Based on these numbers the unemployment rate was

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Table 28-9 The table below lists the number of people by labor force classification for the country of Shelbyville. -Refer to Table 28-9. What is the labor force participation rate?

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Most U.S. workers have wages well above the legal minimum, so minimum-wage laws do not prevent the wage from adjusting to balance supply and demand.

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Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor-force participation rate of Aridia in 2010 was

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search costs, minimu...
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According to the theory of efficiency wa...
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