Question 1

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) B) and C)

Question 2

Which of the following is not correct?

Accepted Answer

A)   Frictional unemployment results from the process of matching workers and jobs.
B)   Structural unemployment results when the number of jobs is insufficient for the number of workers.
C)   Minimum wages are the predominant reason for unemployment in the U.S. economy.
D)   When a minimum-wage law forces the wage to remain above the level that balances supply and demand, it raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.E) A) and D)
F) A) and B)

Question 3

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

Accepted Answer

A)   both a shortage of labor and a shortage of jobs.
B)   a shortage of labor and a surplus of jobs.
C)   a surplus of labor and a shortage of jobs.
D)   both surplus of labor and a surplus of jobs.E) C) and D)
F) A) and B)

Question 4

More than three-fourths of the unemployed are recent entrants into the labor force.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is an explanation for the existence of frictional unemployment?

Accepted Answer

A)   efficiency wages
B)   minimum-wage laws
C)   unions
D)   job searchE) None of the above
F) B) and C)

Question 6

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

Question 7

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous four weeks.

Accepted Answer

A) True 
 B)False

Question 8

From time to time, the demand for workers has risen in one region of the United States and fallen in another. This illustrates

Accepted Answer

A)   frictional unemployment created by efficiency wages.
B)   structural unemployment created by efficiency wages.
C)   frictional unemployment created by sectoral shifts.
D)   structural unemployment created by sectoral shifts.E) A) and D)
F) All of the above

Question 9

Table 28-5
Labor Force Statistics by Age
Suppose people in the adult population in a small country are classified based on their age.
 
-Refer to Table 28-5. In the proper order, which age group has the highest unemployment rate and which has the highest participation rate?

Accepted Answer

A)   under 55, under 55
B)   under 55, 55 and older
C)   55 and older, under 55
D)   55 and older, 55 and olderE) A) and B)
F) A) and C)

Question 10

Changes in the composition of demand among industries or regions are called sectoral shifts.

Accepted Answer

A) True 
 B)False

Question 11

Table 28-4
2010 Labor Data for Adults ages 16 and older)  in Meditor
 
-Refer to Table 28-4. What is the adult female unemployment rate in Meditor?

Accepted Answer

A)   4.8%
B)   5.0%
C)   7.1%
D)   7.7%E) None of the above
F) All of the above

Question 12

The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 13

List the main employment characteristics over which a labor union negotiates for its workers.

Accepted Answer

higher wages, better...

Question 14

If there were no factors keeping wages from reaching equilibrium then there would be no

Accepted Answer

A)   cyclical unemployment.
B)   frictional unemployment.
C)   structural unemployment.
D)   natural rate of unemployment.E) A) and D)
F) None of the above

Question 15

If people who report being unemployed are not, in fact, trying hard to find a job, then the reported unemployment rate will be biased upward.

Accepted Answer

A) True 
 B)False

Question 16

Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)   Tina, who worked most of the week in a steel factory
B)   Kelly, who is temporarily laid off but expects to be recalled
C)   DJ, who does not have a job but is looking for work
D)   All of the above are correct.E) All of the above
F) B) and C)

Question 17

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

Accepted Answer

A)   might increase profits if it attracts a better pool of workers to apply for jobs at his restaurant.
B)   will reduce the excess supply of labor.
C)   is an example of the benefits of a minimum-wage law.
D)   All of the above are correct.E) C) and D)
F) A) and B)

Question 18

Most spells of unemployment are short, and most unemployment observed at any given time is long term. How can this be?

Accepted Answer

Most unemployed people in the economy ar...

Question 19

The natural rate of unemployment i)  is the economy's desirable level of unemployment.
Ii)  cannot be affected by economic policy.
Iii)  is typically constant over time.

Accepted Answer

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

Question 20

Which of the following includes everyone in the adult population that the Bureau of Labor Statistics counts as "unemployed"?

Accepted Answer

A)   anyone who is not employed
B)   anyone who is not employed, is available for work, and has looked for work in the past four weeks
C)   anyone who is not employed, is available for work, has looked for work in the past four weeks, and anyone who is waiting to be recalled from a job from which they have been laid off
D)   anyone who is not employed, is available for work, has looked for work in the past four weeks, anyone who is waiting to be recalled from a job from which they have been laid off, and anyone who is employed part time and has searched for full time employment in the past 4 weeksE) A) and D)
F) A) and B)

Exam 20: Unemployment

List the main employment characteristics over which a labor union negotiates for its workers.

Correct Answerverifiedhigher wages, better...View AnswerShow Answer

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous four weeks.

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The natural rate of unemployment i) is the economy's desirable level of unemployment. Ii) cannot be affected by economic policy. Iii) is typically constant over time.

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Who is included in the labor force by the Bureau of Labor Statistics?

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Which of the following includes everyone in the adult population that the Bureau of Labor Statistics counts as "unemployed"?

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Most spells of unemployment are short, and most unemployment observed at any given time is long term. How can this be?

Correct AnswerverifiedMost unemployed people in the economy ar...View AnswerShow Answer

Which of the following is an explanation for the existence of frictional unemployment?

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

Correct AnswerverifiedShow Answer

Changes in the composition of demand among industries or regions are called sectoral shifts.

Correct AnswerverifiedShow Answer

If people who report being unemployed are not, in fact, trying hard to find a job, then the reported unemployment rate will be biased upward.

Correct AnswerverifiedShow Answer

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

Correct AnswerverifiedShow Answer

If there were no factors keeping wages from reaching equilibrium then there would be no

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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 female unemployment rate in Meditor?

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More than three-fourths of the unemployed are recent entrants into the labor force.

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Which of the following is not correct?

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The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment.

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From time to time, the demand for workers has risen in one region of the United States and fallen in another. This illustrates

Correct AnswerverifiedShow Answer

Efficiency-wage theory suggests that paying

Correct AnswerverifiedShow Answer

Table 28-5 Labor Force Statistics by Age Suppose people in the adult population in a small country are classified based on their age. -Refer to Table 28-5. In the proper order, which age group has the highest unemployment rate and which has the highest participation rate?

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Unemployment insurance

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higher wages, better...
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Most unemployed people in the economy ar...
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