Question 1

Unpaid stay­at­home fathers are included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 2

Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labor force instead of as unemployed, 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 lower, and the labor-force participation rate would be higher.
D)   the unemployment rate would be higher, and the labor-force participation rate would be lower.E) A) and D)
F) A) and C)

Question 3

Efficiency-wage theory suggests that paying

Accepted Answer

A)   low wages might be profitable because they raise the efficiency of a firm's workers.
B)   low wages might be profitable because they lower the efficiency of a firm's workers.
C)   high wages might be profitable because they raise the efficiency of a firm's workers.
D)   high wages might be profitable because they lower the efficiency of a firm's workers.E) A) and B)
F) None of the above

Question 4

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

Question 5

The Bureau of Labor Statistics' "employed" category includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member's business.

Accepted Answer

A) True 
 B)False

Question 6

The Bureau of Labor Statistics computes unemployment rates for the entire adult population and for more narrowly defined groups.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Briefly summarize the advantages and disadvantages of unemployment insurance.

Accepted Answer

The main advantage is that unemployment ...

Question 9

Which of the following is not a commonly-cited explanation for the dramatically increasing labor-force participation rates for women from 1950 to the present?

Accepted Answer

A)   availability of reliable birth control
B)   invention of household labor-saving devices such as dishwashers and microwave ovens
C)   an increasing number of women who work to support their parents
D)   changing social attitudes about working mothersE) A) and B)
F) None of the above

Question 10

Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not an explanation for the existence of unemployment in the long run?

Accepted Answer

A)   it takes time for workers to search for the jobs that are best suited for them
B)   minimum-wage laws
C)   unions
D)   the business cycleE) A) and B)
F) All of the above

Question 12

The Bureau of Labor Statistics' household survey and establishment survey both yield information about unemployment.

Accepted Answer

A) True 
 B)False

Question 13

Public policy

Accepted Answer

A)   can reduce both frictional unemployment and the natural rate of unemployment.
B)   can reduce frictional unemployment, but it cannot reduce the natural rate of unemployment.
C)   cannot reduce frictional unemployment, but it can reduce the natural rate of unemployment.
D)   cannot reduce either frictional unemployment or the natural rate of unemployment.E) None of the above
F) All of the above

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) A) and C)

Question 15

The Bureau of Labor Statistics produces data on unemployment, types of employment, length of the average workweek, and the duration of unemployment.

Accepted Answer

A) True 
 B)False

Question 16

There are always some workers without jobs, even when the overall economy is doing well.

Accepted Answer

A) True 
 B)False

Question 17

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 600 households, called the Current Population Survey.

Accepted Answer

A) True 
 B)False

Question 18

Give an historical example of an efficiency wage that was considered by the firm to be "one of the finest cost­ cutting moves we ever made."

Accepted Answer

Henry Ford paid $5 per day to ...

Question 19

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

Question 20

Figure 28-4 
-Refer to Figure 28-4. If the government imposes a minimum wage of $4, how many workers will be unemployed?
A)  0

Accepted Answer

A)   2,000
B)   4,000
C)   6,000D) A) and C)
E) A) and B)

Exam 28: Unemployment

The Bureau of Labor Statistics produces data on unemployment, types of employment, length of the average workweek, and the duration of unemployment.

Correct AnswerverifiedShow Answer

Briefly summarize the advantages and disadvantages of unemployment insurance.

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

Which of the following is not an explanation for the existence of unemployment in the long run?

Correct AnswerverifiedShow Answer

Efficiency-wage theory suggests that paying

Correct AnswerverifiedShow Answer

Public policy

Correct AnswerverifiedShow Answer

Which of the following is not a commonly-cited explanation for the dramatically increasing labor-force participation rates for women from 1950 to the present?

Correct AnswerverifiedShow Answer

To maintain their standard of living, most people rely on

Correct AnswerverifiedShow Answer

There are always some workers without jobs, even when the overall economy is doing well.

Correct AnswerverifiedShow Answer

Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category.

Correct AnswerverifiedShow Answer

Cyclical unemployment refers to

Correct AnswerverifiedShow Answer

Unpaid stay­at­home fathers are included in the Bureau of Labor Statistics' "unemployed" category.

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' household survey and establishment survey both yield information about unemployment.

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' "employed" category includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member's business.

Correct AnswerverifiedShow Answer

Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labor force instead of as unemployed, then

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $4, how many workers will be unemployed? A) 0

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 600 households, called the Current Population Survey.

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics computes unemployment rates for the entire adult population and for more narrowly defined groups.

Correct AnswerverifiedShow Answer

Give an historical example of an efficiency wage that was considered by the firm to be "one of the finest cost­ cutting moves we ever made."

Correct AnswerverifiedHenry Ford paid $5 per day to ...View AnswerShow Answer

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The main advantage is that unemployment ...
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Unpaid stayathome fathers are included in the Bureau of Labor Statistics' "unemployed" category.

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Give an historical example of an efficiency wage that was considered by the firm to be "one of the finest cost cutting moves we ever made."

Correct Answer
verified
Henry Ford paid $5 per day to ...
View Answer