Question 1

Which of the following is correct?

Accepted Answer

A)  In the U.S. the natural rate of unemployment is frequently near 2%.
B)  The natural rate of unemployment fluctuates more than the cyclical rate of unemployment.
C)  The cyclical rate of unemployment is sometimes below the natural rate of unemployment.
D)  None of the above is correct.E) A) and B)
F) All of the above

Question 2

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

Question 3

Table 28-11
2015 Labor Data for Tajnia 
-Refer to Table 28-11. The total adult population of Tajnia in 2015 is 30,000.

Accepted Answer

A) True 
 B)False

Question 4

Data on the unemployment rate in the U.S. since 1960 show that the economy always has some unemployment and that the amount changes from year to year.

Accepted Answer

A) True 
 B)False

Question 5

An increase in the minimum wage

Accepted Answer

A)  reduces structural unemployment.
B)  reduces frictional unemployment,
C)  increases structural unemployment.
D)  increases frictional unemployment.E) All of the above
F) C) and D)

Question 6

Figure 28-3 
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be unemployed?

Accepted Answer

A)  0
B)  3,000
C)  4,000
D)  7,000E) B) and C)
F) A) and D)

Question 7

Minimum wage laws, labor unions, and efficiency wages all generate unemployment by what common mechanism?

Accepted Answer

Wages bein...

Question 8

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) All of the above
F) None of the above

Question 9

Between 2002 and 2014, employment​

Accepted Answer

A)  ​declined in construction and manufacturing.
B)  ​declined in construction and increased in manufacturing.
C)  ​delclined in manufacturing and increased in construction.
D)  ​increased in construction and manufacturing.E) B) and C)
F) All of the above

Question 10

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 unemployment rate?

Accepted Answer

A)  3.3%
B)  6.7%
C)  10.7%
D)  12%E) C) and D)
F) A) and B)

Question 11

Which of the following is a cause of the changing role of women in American society over the past several decades?

Accepted Answer

A)  new technologies that have reduced the amount of time required to complete routine household tasks
B)  improved birth control
C)  changing political and social attitudes
D)  All of the above are correct.E) B) and C)
F) None of the above

Question 12

Figure 28-4
​ 
-Refer to Figure 28-4. If 4,000 workers are unemployed, then the minimum wage must be

Accepted Answer

A)  $6
B)  $8.
C)  $12.
D)  $14.E) B) and D)
F) A) and B)

Question 13

Table 28-4
2010 Labor Data for Adults (ages 16 and older)  in Meditor 
-Refer to Table 28-4. What is the adult male labor force in Meditor?

Accepted Answer

A)  50 million
B)  85 million
C)  90 million
D)  130 millionE) B) and C)
F) None of the above

Question 14

In one year, you meet 52 people who are each unemployed for one week and eight people who are each unemployed for the whole year. What percentage of the unemployment spells you encountered was short term, and what percentage of the unemployment you encountered in a given week was long term?

Accepted Answer

A)  52% was short term; 13.3% was long term
B)  52% was short term; 88.9% was long term
C)  86.7% was short term; 13.3% was long term
D)  86.7% was short term; 88.9% was long termE) B) and C)
F) All of the above

Question 15

Frictional unemployment

Accepted Answer

A)  can be created both by workers quitting to find more suitable jobs and changes in a country's comparative advantages.
B)  can be created by workers quitting to find more suitable jobs but not by changes in a country's comparative advantages.
C)  can be created by changes in a country's comparative advantages, but not by workers quitting to find new jobs.
D)  is not created by workers quitting to find more suitable jobs nor by changes in a county's comparative advantages.E) All of the above
F) A) and B)

Question 16

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Accepted Answer

A)  minimum-wage laws
B)  unions
C)  efficiency wages
D)  All of the above are correct.E) A) and B)
F) A) and D)

Question 17

Figure 28-4
​ 
-Refer to Figure 28-4. If the government imposes a minimum wage of $16, how many workers will be unemployed?

Accepted Answer

A)  0
B)  4,000
C)  8,000
D)  12,000E) None of the above
F) B) and C)

Question 18

The Bureau of Labor Statistics computes labor-force participation rates for the entire adult population and for groups based on age, gender, and race.

Accepted Answer

A) True 
 B)False

Question 19

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) A) and B)
F) B) and D)

Question 20

Unemployment insurance

Accepted Answer

A)  reduces the hardship of unemployment, but it also increases the amount of unemployment.
B)  reduces the incentive for the unemployed to find and take new jobs.
C)  causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment.
D)  All of the above are correct.E) All of the above
F) B) and D)

Exam 28: Unemployment and Its Natural Rate

Unemployment insurance

Correct Answer
verified

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?

Correct Answer
verified

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

Correct Answer
verified

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be unemployed?

Correct Answer
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Figure 28-4 -Refer to Figure 28-4. If 4,000 workers are unemployed, then the minimum wage must be

Correct Answer
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Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $16, how many workers will be unemployed?

Correct Answer
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Table 28-4 2010 Labor Data for Adults (ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult male labor force in Meditor?

Correct Answer
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Which of the following is correct?

Correct Answer
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Which of the following is a cause of the changing role of women in American society over the past several decades?

Correct Answer
verified

In one year, you meet 52 people who are each unemployed for one week and eight people who are each unemployed for the whole year. What percentage of the unemployment spells you encountered was short term, and what percentage of the unemployment you encountered in a given week was long term?

Correct Answer
verified

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Correct Answer
verified

Data on the unemployment rate in the U.S. since 1960 show that the economy always has some unemployment and that the amount changes from year to year.

Correct Answer
verified

Correct Answer
verified

Minimum wage laws, labor unions, and efficiency wages all generate unemployment by what common mechanism?

Correct Answer
verified
Wages bein...
View Answer

Frictional unemployment

Correct Answer
verified

Between 2002 and 2014, employment

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

An increase in the minimum wage

Correct Answer
verified

The Bureau of Labor Statistics computes labor-force participation rates for the entire adult population and for groups based on age, gender, and race.

Correct Answer
verified

Table 28-11 2015 Labor Data for Tajnia -Refer to Table 28-11. The total adult population of Tajnia in 2015 is 30,000.

Correct Answer
verified

Exam 28: Unemployment and Its Natural Rate

Unemployment insurance

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be unemployed?

Correct AnswerverifiedShow Answer

Figure 28-4 ​ -Refer to Figure 28-4. If 4,000 workers are unemployed, then the minimum wage must be

Correct AnswerverifiedShow Answer

Figure 28-4 ​ -Refer to Figure 28-4. If the government imposes a minimum wage of $16, how many workers will be unemployed?

Correct AnswerverifiedShow Answer

Table 28-4 2010 Labor Data for Adults (ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult male labor force in Meditor?

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Which of the following is a cause of the changing role of women in American society over the past several decades?

Correct AnswerverifiedShow Answer

In one year, you meet 52 people who are each unemployed for one week and eight people who are each unemployed for the whole year. What percentage of the unemployment spells you encountered was short term, and what percentage of the unemployment you encountered in a given week was long term?

Correct AnswerverifiedShow Answer

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Correct AnswerverifiedShow Answer

Data on the unemployment rate in the U.S. since 1960 show that the economy always has some unemployment and that the amount changes from year to year.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Minimum wage laws, labor unions, and efficiency wages all generate unemployment by what common mechanism?

Correct AnswerverifiedWages bein...View AnswerShow Answer

Frictional unemployment

Correct AnswerverifiedShow Answer

Between 2002 and 2014, employment​

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

An increase in the minimum wage

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics computes labor-force participation rates for the entire adult population and for groups based on age, gender, and race.

Correct AnswerverifiedShow Answer

Table 28-11 2015 Labor Data for Tajnia -Refer to Table 28-11. The total adult population of Tajnia in 2015 is 30,000.

Correct AnswerverifiedShow Answer

Correct Answer
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Figure 28-4 -Refer to Figure 28-4. If 4,000 workers are unemployed, then the minimum wage must be

Correct Answer
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Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $16, how many workers will be unemployed?

Correct Answer
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Correct Answer
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Wages bein...
View Answer

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Between 2002 and 2014, employment

Correct Answer
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Correct Answer
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