Question 1

Table 28-8
Below is data about the labor market in the state of Northwoods.
 
-Refer to Table 28-8. If the state government imposed a minimum wage of $8, how many people would be unemployed?

Accepted Answer

A)   0
B)   10,000
C)   20,000
D)   40,000E) All of the above
F) A) and D)

Question 2

Within the U.S. population, women of prime working age ages 25-54 have lower rates of labor-force participation than men of prime working age ages 25-54, regardless of race.

Accepted Answer

A) True 
 B)False

Question 3

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Accepted Answer

A) True 
 B)False

Question 4

More than 30 percent of U.S. workers leave their jobs in a typical month.

Accepted Answer

A) True 
 B)False

Question 5

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Accepted Answer

A) True 
 B)False

Question 6

Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force participation rate is 70%. What is the unemployment rate?

Accepted Answer

A)   6.7%
B)   9.5%
C)   10.5%
D)   28%E) A) and D)
F) A) and B)

Question 7

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate is

Accepted Answer

A)   always zero.
B)   sometimes zero.
C)   rarely zero.
D)   never zero.E) None of the above
F) A) and B)

Question 8

Minimum-wage laws

Accepted Answer

A)   create frictional unemployment, while firms paying wages above equilibrium to reduce worker turnover creates structural unemployment.
B)   create structural unemployment, while firms paying wages above equilibrium to reduce worker turnover creates frictional unemployment.
C)   and firms paying wages above equilibrium to reduce worker turnover both create structural unemployment.
D)   and firms paying wages above equilibrium to reduce worker turnover both create frictional unemployment.E) A) and B)
F) None of the above

Question 9

If the minimum wage is currently above the equilibrium wage, then a decrease in the minimum wage

Accepted Answer

A)   increases both the quantity demanded and the quantity supplied of labor.
B)   decreases both the quantity demanded and the quantity supplied of labor.
C)   increases the quantity of labor demanded but decreases the quantity of labor supplied.
D)   decreases the quantity of labor demanded but increases the quantity of labor supplied.E) All of the above
F) A) and D)

Question 10

Efficiency wages, minimum-wage laws, and unions all keep wages

Accepted Answer

A)   below the equilibrium level, causing a shortage of labor.
B)   below the equilibrium level, causing a surplus of labor.
C)   above the equilibrium level, causing a shortage of labor.
D)   above the equilibrium level, causing a surplus of labor.E) C) and D)
F) B) and D)

Question 11

Figure 28-4 
-Refer to Figure 28-4. If the government imposes a minimum wage of $6, how many workers will be unemployed?

Accepted Answer

A)   0
B)   2,000
C)   4,000
D)   6,000E) B) and C)
F) A) and C)

Question 12

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

Question 13

Suppose that dental hygienists are unionized in the eastern region of the country but not in the western region. If the unionized workers in the eastern region abolished their unions, employment

Accepted Answer

A)   and wages of dental hygienists in the eastern region would rise.
B)   of dental hygienists in the eastern region would rise, but wages of dental hygienists in the eastern region would fall.
C)   and wages of dental hygienists in the eastern region would fall.
D)   of dental hygienists in the eastern region would fall, but wages of dental hygienists in the eastern region would rise.E) C) and D)
F) None of the above

Question 14

Table 28-7
Below is data about the labor market in the city of Productionville.
 
-Refer to Table 28-7. If the local government imposed a minimum wage of $8 in Productionville, how many people would be unemployed?

Accepted Answer

A)   0
B)   2,000
C)   5,000
D)   10,000E) A) and B)
F) All of the above

Question 15

The adult population in the town of Bedrock is 75 thousand. Within Bedrock, 5 thousand are unemployed, and 40 thousand are employed. Calculate the number of people not in the labor force.

Accepted Answer

The answer of The adult population in the town of...

Question 16

When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than if many of its workers were idle.

Accepted Answer

A) True 
 B)False

Question 17

The Bureau of Labor Statistics' U­1 measure of joblessness is larger than its U­6 measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 18

When a minimum-wage law forces the wage to remain above the equilibrium level, it

Accepted Answer

A)   raises both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level.
B)   raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.
C)   reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level.
D)   reduces both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level.E) All of the above
F) A) and B)

Question 19

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

Accepted Answer

A)   Juan Carlos, a full-time student who is not looking for work
B)   Kevin, who is on temporary layoff
C)   Andrea, who has retired and is not looking for work
D)   All of the above are correct.E) A) and B)
F) All of the above

Question 20

Octavia does not currently have a job, but she has applied for several jobs in the previous week. Eve is an unpaid stay-at-home mom who has not searched for work in recent years. Who does the Bureau of Labor Statistics count as "out of the labor force"?

Accepted Answer

A)   Octavia but not Eve
B)   Eve but not Octavia
C)   both Octavia and Eve
D)   neither Octavia nor EveE) A) and D)
F) B) and D)

Exam 20: Unemployment

Efficiency wages, minimum-wage laws, and unions all keep wages

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The adult population in the town of Bedrock is 75 thousand. Within Bedrock, 5 thousand are unemployed, and 40 thousand are employed. Calculate the number of people not in the labor force.

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The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

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Suppose that dental hygienists are unionized in the eastern region of the country but not in the western region. If the unionized workers in the eastern region abolished their unions, employment

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When a minimum-wage law forces the wage to remain above the equilibrium level, it

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More than 30 percent of U.S. workers leave their jobs in a typical month.

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When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

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Table 28-7 Below is data about the labor market in the city of Productionville. -Refer to Table 28-7. If the local government imposed a minimum wage of $8 in Productionville, how many people would be unemployed?

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Within the U.S. population, women of prime working age ages 25-54 have lower rates of labor-force participation than men of prime working age ages 25-54, regardless of race.

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Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $6, how many workers will be unemployed?

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

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Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

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If the minimum wage is currently above the equilibrium wage, then a decrease in the minimum wage

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When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than if many of its workers were idle.

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Octavia does not currently have a job, but she has applied for several jobs in the previous week. Eve is an unpaid stay-at-home mom who has not searched for work in recent years. Who does the Bureau of Labor Statistics count as "out of the labor force"?

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Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force participation rate is 70%. What is the unemployment rate?

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Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate is

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Table 28-8 Below is data about the labor market in the state of Northwoods. -Refer to Table 28-8. If the state government imposed a minimum wage of $8, how many people would be unemployed?

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The Bureau of Labor Statistics' U­1 measure of joblessness is larger than its U­6 measure of joblessness.

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Minimum-wage laws

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The Bureau of Labor Statistics' U1 measure of joblessness is larger than its U6 measure of joblessness.

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