Question 1

The labor-force participation rate equals the percentage of the labor force that is employed.

Accepted Answer

A) True 
 B)False

Question 2

A firm might offer efficiency wages so its workers will eat a more nutritious diet and therefore be healthier and more productive.

Accepted Answer

A) True 
 B)False

Question 3

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) B) and D)
F) None of the above

Question 4

A labor union is similar to a .

Accepted Answer

The answer of A labor union is similar to a...

Question 5

The natural unemployment rate includes

Accepted Answer

A)   both frictional and structural unemployment.
B)   neither frictional nor structural unemployment.
C)   structural but not frictional unemployment.
D)   frictional but not structural unemployment.E) A) and B)
F) None of the above

Question 6

Cyclical unemployment refers to

Accepted Answer

A)   the portion of unemployment created by job search.
B)   short-run fluctuations around the natural rate of unemployment.
C)   changes in unemployment due to changes in the natural rate of unemployment.
D)   the portion of unemployment created by wages set above the equilibrium level.E) B) and C)
F) All of the above

Question 7

The adult population in the town of Shelbyville is 150 thousand. If 100 thousand people are employed and 20 thousand are unemployed, then the labor force participation rate is approximately

Accepted Answer

A)   67%.
B)   80%.
C)   16%.
D)   13%.E) B) and C)
F) A) and D)

Question 8

Briefly describe how labor unions can affect wages in non-unionized industries.

Accepted Answer

If labor unions raise wages above the eq...

Question 9

The natural rate of unemployment

Accepted Answer

A)   (i)  and (ii)  only
B)   (iii)  only
C)   (i) , (ii) , and (iii) 
D)   None of the above is correct.E) A) and B)
F) A) and C)

Question 10

Most spells of unemployment are

Accepted Answer

A)   long, and most unemployment observed at any given time is long term.
B)   long, but most unemployment observed at any given time is short term.
C)   short, but most unemployment observed at any given time is long term.
D)   short, and most unemployment observed at any given time is short term.E) B) and C)
F) A) and C)

Question 11

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) A) and D)
F) All of the above

Question 12

What problems arise in interpreting unemployment data?

Accepted Answer

Because people move into and out of the ...

Question 13

Caroline is the owner of a hair-styling salon and spa. She decides to raise the wages of her workers even though she faces an excess supply of labor. Her decision

Accepted Answer

A)   might increase profits if it attracts a better pool of workers to apply for jobs at her salon.
B)   will increase the excess supply of labor.
C)   may increase the quality of her work force.
D)   All of the above are correct.E) B) and D)
F) None of the above

Question 14

The natural rate of unemployment is impervious to economic policy.

Accepted Answer

A) True 
 B)False

Question 15

Figure 28-3 
-Refer to Figure 28-3. At the equilibrium wage, how many workers are unemployed?
A)  0

Accepted Answer

A)   4,000
B)   5,000
C)   8,000D) None of the above
E) B) and C)

Question 16

Some long-run unemployment may be explained by the fact that the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one.

Accepted Answer

A) True 
 B)False

Question 17

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) A) and D)
F) A) and C)

Question 18

People who are unemployed because of job search are best classified as

Accepted Answer

A)   cyclically unemployed.
B)   structurally unemployed.
C)   frictionally unemployed.
D)   discouraged workers.E) B) and C)
F) None of the above

Question 19

In 2012, the U.S. natural rate of unemployment was estimated to be about 5.5 percent, which at the time was below the actual rate of unemployment of about 8.1 percent.

Accepted Answer

A) True 
 B)False

Question 20

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 C)
F) None of the above

Exam 28: Unemployment

A firm might offer efficiency wages so its workers will eat a more nutritious diet and therefore be healthier and more productive.

Correct AnswerverifiedShow Answer

What problems arise in interpreting unemployment data?

Correct AnswerverifiedBecause people move into and out of the ...View AnswerShow Answer

Most spells of unemployment are

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Caroline is the owner of a hair-styling salon and spa. She decides to raise the wages of her workers even though she faces an excess supply of labor. Her decision

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Figure 28-3 -Refer to Figure 28-3. At the equilibrium wage, how many workers are unemployed? A) 0

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The adult population in the town of Shelbyville is 150 thousand. If 100 thousand people are employed and 20 thousand are unemployed, then the labor force participation rate is approximately

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People who are unemployed because of job search are best classified as

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The natural rate of unemployment is impervious to economic policy.

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The Wagner Act of 1935

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The natural rate of unemployment

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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

In the early 1900s, Henry Ford introduced a

Correct AnswerverifiedShow Answer

The labor-force participation rate equals the percentage of the labor force that is employed.

Correct AnswerverifiedShow Answer

A labor union is similar to a .

Correct AnswerverifiedShow Answer

In 2012, the U.S. natural rate of unemployment was estimated to be about 5.5 percent, which at the time was below the actual rate of unemployment of about 8.1 percent.

Correct AnswerverifiedShow Answer

Briefly describe how labor unions can affect wages in non-unionized industries.

Correct AnswerverifiedIf labor unions raise wages above the eq...View AnswerShow Answer

The natural unemployment rate includes

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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

Cyclical unemployment refers to

Correct AnswerverifiedShow Answer

Some long-run unemployment may be explained by the fact that the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one.

Correct AnswerverifiedShow Answer

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Because people move into and out of the ...
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If labor unions raise wages above the eq...
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