Question 1

The amount of unemployment that a country typically experiences is a determinant of its standard of living.

Accepted Answer

A) True 
 B)False

Question 2

In the U.S., it is illegal for employers to interfere when workers try to organize unions.

Accepted Answer

A) True 
 B)False

Question 3

Table 10-2
2009 Labor Data for Baltivia
 
-Refer to Table 10-2. How many people were unemployed in Baltivia in 2009?

Accepted Answer

A)   1,400
B)   1,600
C)   2,000
D)   2,780E) A) and B)
F) A) and C)

Question 4

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Accepted Answer

A) True 
 B)False

Question 5

The Bureau of Labor Statistics' U-1 measure of joblessness includes only very long-term unemployed.

Accepted Answer

A) True 
 B)False

Question 6

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 percent and 13.3 percent
B)   52 percent and 88.9 percent
C)   86.7 percent and 13.3 percent
D)   86.7 percent and 88.9 percentE) C) and D)
F) All of the above

Question 7

Structural unemployment results when the number of jobs is insufficient for the number of workers.

Accepted Answer

A) True 
 B)False

Question 8

The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to

Accepted Answer

A)   decrease, raising wages in industries that are not unionized.
B)   decrease, reducing wages in industries that are not unionized.
C)   increase, raising wages in industries that are not unionized.
D)   increase, reducing wages in industries that are not unionized.E) A) and D)
F) C) and D)

Question 9

Brian is the owner of a firm that produces bottled water in Washington state. There are many other such firms in the area. Brian decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

Accepted Answer

A)   The higher the wage, the less often his workers will choose to leave his firm.
B)   The higher the wage, the lower will be the cost of obtaining needed supplies.
C)   The higher the wage, the more he can charge for his water.
D)   The higher the wage, the more he will have to monitor his workers for shirking.E) A) and D)
F) None of the above

Question 10

Most job search in the U.S. economy takes place without intervention by the government.

Accepted Answer

A) True 
 B)False

Question 11

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

Accepted Answer

A) True 
 B)False

Question 12

Adults who were not working but who had jobs from which they were temporarily absent are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 13

Minimum wages create unemployment in markets where they create a

Accepted Answer

A)   shortage of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S.
B)   shortage of labor. Minimum wage laws are the predominant reason for unemployment in the U.S.
C)   surplus of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S.
D)   surplus of labor. Minimum wage laws are the predominant reason for unemployment in the U.S.E) A) and C)
F) A) and B)

Question 14

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of households, called the

Accepted Answer

A)   Census.
B)   Labor Survey.
C)   Survey of Economic Indicators.
D)   Current Population Survey.E) All of the above
F) C) and D)

Question 15

Suppose some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were unemployed?

Accepted Answer

A)   0.846 million
B)   0.9 million
C)   1.5 million
D)   6 millionE) C) and D)
F) None of the above

Question 16

Table 10-3
2010 Labor Data for Adults (age 16 and older)  in Meditor
 
-Refer to Table 10-3. 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 D)
F) A) and C)

Question 17

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is

Accepted Answer

A)   cyclical unemployment amounting to 0.5 percent of the labor force.
B)   frictional unemployment amounting to 0.5 percent of the labor force.
C)   structural unemployment amounting to 0.5 percent of the labor force.
D)   search unemployment amounting to 0.5 percent of the labor force.E) B) and D)
F) C) and D)

Question 18

Which of the following is not correct?

Accepted Answer

A)   Unions are exempt from U.S. antitrust laws.
B)   The Wagner Act of 1935 prevents U.S. employers from interfering when workers try to organize unions.
C)   The National Labor Relations Board is the U.S. government agency that enforces workers' right to unionize.
D)   Right-to-work laws prevent firms from hiring permanent replacements for workers who are on strike.E) C) and D)
F) A) and B)

Question 19

U.S. Department of Labor data show that minimum-wage workers tend to be young, less educated, more likely to be working part time, and concentrated in the leisure and hospitality industry.

Accepted Answer

A) True 
 B)False

Question 20

Refer to Labor
Labor Market Data
Below is some hypothetical data on the labor market.
 
-Refer to Labor Market Data. If the government imposed a minimum wage of $7, what would unemployment be?

Accepted Answer

A)   0
B)   2,000
C)   3,000
D)   5,000E) A) and B)
F) A) and C)

Exam 10: Unemployment

Structural unemployment results when the number of jobs is insufficient for the number of workers.

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

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Correct AnswerverifiedShow Answer

In the U.S., it is illegal for employers to interfere when workers try to organize unions.

Correct AnswerverifiedShow Answer

Minimum wages create unemployment in markets where they create a

Correct AnswerverifiedShow Answer

Table 10-2 2009 Labor Data for Baltivia -Refer to Table 10-2. How many people were unemployed in Baltivia in 2009?

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' U-1 measure of joblessness includes only very long-term unemployed.

Correct AnswerverifiedShow Answer

The amount of unemployment that a country typically experiences is a determinant of its standard of living.

Correct AnswerverifiedShow Answer

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is

Correct AnswerverifiedShow Answer

The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to

Correct AnswerverifiedShow Answer

Refer to Labor Labor Market Data Below is some hypothetical data on the labor market. -Refer to Labor Market Data. If the government imposed a minimum wage of $7, what would unemployment be?

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of households, called the

Correct AnswerverifiedShow Answer

Most job search in the U.S. economy takes place without intervention by the government.

Correct AnswerverifiedShow Answer

Brian is the owner of a firm that produces bottled water in Washington state. There are many other such firms in the area. Brian decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

Correct AnswerverifiedShow Answer

Suppose some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were unemployed?

Correct AnswerverifiedShow Answer

U.S. Department of Labor data show that minimum-wage workers tend to be young, less educated, more likely to be working part time, and concentrated in the leisure and hospitality industry.

Correct AnswerverifiedShow Answer

Table 10-3 2010 Labor Data for Adults (age 16 and older) in Meditor -Refer to Table 10-3. What is the adult male labor force in Meditor?

Correct AnswerverifiedShow Answer

Adults who were not working but who had jobs from which they were temporarily absent are included in the Bureau of Labor Statistics' "employed" category.

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