Question 1

Don worked as a machinist all his life,and was recently laid off because his plant closed and the jobs were outsourced to India.There don't seem to be any machinist jobs in the area anymore.Don would be considered:

Accepted Answer

A)  frictionally unemployed.
B)  structurally unemployed.
C)  real-wage unemployed.
D)  Don is a discouraged worker.E) A) and D)
F) All of the above

Question 2

Unemployment insurance:

Accepted Answer

A)  is not an explanation for why wages do not reach equilibrium.
B)  can affect how quickly people find jobs.
C)  will affect the natural rate of unemployment.
D)  All of these are true.E) None of the above
F) A) and B)

Question 3

John earned a PhD in biomedical engineering,and works full-time as a faculty member at the local university.He also does some private consulting work on the side.He would like to give up teaching and do consulting full-time,but he fears there isn't enough demand for it.The best way to describe John is to say he is:

Accepted Answer

A)  a discouraged worker.
B)  underemployed.
C)  overemployed.
D)  employed.E) All of the above
F) None of the above

Question 4

If minimum wage legislation does not cause unemployment,then:

Accepted Answer

A)  those who work for minimum wage will benefit.
B)  firms will lose by earning lower profits.
C)  minimum wages may be nonbinding.
D)  All of these are true.E) B) and C)
F) None of the above

Question 5

Policies that make it more difficult to fire an employee are likely to:

Accepted Answer

A)  lead to greater unemployment,because employers will be more hesitant to hire someone.
B)  lead to greater unemployment,because employees will quit more often.
C)  lead to less unemployment,because everyone will value their job more.
D)  lead to less unemployment,because employers will not be able to fire as many people.E) None of the above
F) All of the above

Question 6

Sonia has a PhD in art history,and is currently working full-time as a waitress.The Bureau of Labor Statistics would count Sonia as:

Accepted Answer

A)  employed.
B)  underemployed.
C)  unemployed.
D)  a discouraged worker.E) A) and C)
F) None of the above

Question 7

Which type of unemployment leads to a natural rate of unemployment above zero?

Accepted Answer

A)  The natural rate of unemployment is always zero.
B)  Frictional unemployment
C)  Unemployment of government workers
D)  Cyclical unemploymentE) A) and B)
F) A) and C)

Question 8

Some economists argue that the minimum wage:

Accepted Answer

A)  drives some labor to occur "under the table."
B)  causes some employers to hire undocumented migrants at below-minimum wages.
C)  leads some employers to pay workers cash without telling the government.
D)  All of these are true.E) A) and B)
F) None of the above

Question 9

Unemployment insurance is:

Accepted Answer

A)  money that is paid by the government to people who are unemployed.
B)  money that is paid to the government by employers who lay off employees.
C)  offered by the government as a way to affect the level of cyclical unemployment.
D)  offered by the government as a way to affect the level of seasonal unemployment.E) C) and D)
F) B) and D)

Question 10

An economic boom predicts the new equilibrium wage would be:

Accepted Answer

A)  lower because the labor demand curve shifts left.
B)  higher because the labor demand curve shifts left.
C)  lower because the labor demand curve shifts right.
D)  higher because the labor demand curve shifts right.E) C) and D)
F) A) and B)

Question 11

The labor force consists of people in the working-age population who are:

Accepted Answer

A)  either employed or unemployed.
B)  currently working or who would like to work and are actively trying to find a job.
C)  not retired,a full-time student,or stay-at-home parent.
D)  All of these are true.E) All of the above
F) A) and B)

Question 12

The equilibrium price of labor is called:

Accepted Answer

A)  the wage.
B)  income,plus benefits.
C)  opportunity cost.
D)  the leisure trade-off.E) All of the above
F) C) and D)

Question 13

If you hear that unemployment increased by 2 percentage points to 4 percent in the past year,while the labor force participation rate and the population remained constant,it means:

Accepted Answer

A)  unemployment doubled in the past year.
B)  there was a 100 percent increase in unemployment.
C)  twice as many people are without work than was the case a year ago.
D)  All of these are true.E) A) and B)
F) A) and C)

Question 14

One way for governments to try and minimize the effects of structural unemployment is to:

Accepted Answer

A)  subsidize retraining programs.
B)  increase unemployment benefits.
C)  mandate employers cannot fire anyone.
D)  All of these are ways that would minimize the effects of structural unemployment.E) A) and C)
F) B) and C)

Question 15

Which type of unemployment contributes to the natural rate of unemployment?

Accepted Answer

A)  Real-wage unemployment
B)  Cyclical unemployment
C)  Unemployment of government workers.
D)  All of these contribute to the natural rate.E) A) and B)
F) C) and D)

Question 16

Economists believe that lower taxes should reduce unemployment because:

Accepted Answer

A)  people have more incentive to find a job,knowing they will keep more of the income they earn from the job when taxes are low.
B)  people will not want to miss out on the opportunity to keep more of the income they earn when taxes are lower,so they will have an incentive to keep their job and not quit.
C)  people have more incentive to be productive if the money they earn is not being taxed as much when taxes are low.
D)  None of these is true.E) A) and D)
F) None of the above

Question 17

The labor force excludes:

Accepted Answer

A)  those younger than age 16 years old.
B)  those who don't want to work.
C)  those who are disabled and can't work.
D)  The labor force excludes all of these.E) A) and B)
F) A) and D)

Question 18

Bob just graduated from college and has just landed his first job with a local accounting firm that will start in three months.Bob plans to use that time to find a place to live,and adjust to the new area.Bob would be considered:

Accepted Answer

A)  frictionally unemployed.
B)  employed.
C)  structurally unemployed.
D)  Bob is not in the labor force.E) B) and D)
F) A) and D)

Question 19

If the minimum wage is set at a level below the equilibrium wage:

Accepted Answer

A)  it will have no effect.
B)  it would be a nonbinding minimum wage.
C)  it would not interfere with the market reaching equilibrium.
D)  All of these are true.E) A) and B)
F) A) and C)

Question 20

Unemployment occurs when someone:

Accepted Answer

A)  wants to work but cannot find a job.
B)  is not working.
C)  should be working but chooses not to.
D)  has useful skills that are not being used.E) A) and B)
F) A) and C)

Exam 27: Unemployment and the Demand for Labor

The labor force excludes:

Correct Answer
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The equilibrium price of labor is called:

Correct Answer
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Unemployment insurance:

Correct Answer
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The labor force consists of people in the working-age population who are:

Correct Answer
verified

Policies that make it more difficult to fire an employee are likely to:

Correct Answer
verified

Economists believe that lower taxes should reduce unemployment because:

Correct Answer
verified

If minimum wage legislation does not cause unemployment,then:

Correct Answer
verified

Unemployment occurs when someone:

Correct Answer
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An economic boom predicts the new equilibrium wage would be:

Correct Answer
verified

Which type of unemployment contributes to the natural rate of unemployment?

Correct Answer
verified

Which type of unemployment leads to a natural rate of unemployment above zero?

Correct Answer
verified

Sonia has a PhD in art history,and is currently working full-time as a waitress.The Bureau of Labor Statistics would count Sonia as:

Correct Answer
verified

Some economists argue that the minimum wage:

Correct Answer
verified

Bob just graduated from college and has just landed his first job with a local accounting firm that will start in three months.Bob plans to use that time to find a place to live,and adjust to the new area.Bob would be considered:

Correct Answer
verified

Don worked as a machinist all his life,and was recently laid off because his plant closed and the jobs were outsourced to India.There don't seem to be any machinist jobs in the area anymore.Don would be considered:

Correct Answer
verified

If the minimum wage is set at a level below the equilibrium wage:

Correct Answer
verified

Correct Answer
verified

Unemployment insurance is:

Correct Answer
verified

One way for governments to try and minimize the effects of structural unemployment is to:

Correct Answer
verified

If you hear that unemployment increased by 2 percentage points to 4 percent in the past year,while the labor force participation rate and the population remained constant,it means:

Correct Answer
verified

Exam 27: Unemployment and the Demand for Labor

The labor force excludes:

Correct AnswerverifiedShow Answer

The equilibrium price of labor is called:

Correct AnswerverifiedShow Answer

Unemployment insurance:

Correct AnswerverifiedShow Answer

The labor force consists of people in the working-age population who are:

Correct AnswerverifiedShow Answer

Policies that make it more difficult to fire an employee are likely to:

Correct AnswerverifiedShow Answer

Economists believe that lower taxes should reduce unemployment because:

Correct AnswerverifiedShow Answer

If minimum wage legislation does not cause unemployment,then:

Correct AnswerverifiedShow Answer

Unemployment occurs when someone:

Correct AnswerverifiedShow Answer

An economic boom predicts the new equilibrium wage would be:

Correct AnswerverifiedShow Answer

Which type of unemployment contributes to the natural rate of unemployment?

Correct AnswerverifiedShow Answer

Which type of unemployment leads to a natural rate of unemployment above zero?

Correct AnswerverifiedShow Answer

Sonia has a PhD in art history,and is currently working full-time as a waitress.The Bureau of Labor Statistics would count Sonia as:

Correct AnswerverifiedShow Answer

Some economists argue that the minimum wage:

Correct AnswerverifiedShow Answer

Bob just graduated from college and has just landed his first job with a local accounting firm that will start in three months.Bob plans to use that time to find a place to live,and adjust to the new area.Bob would be considered:

Correct AnswerverifiedShow Answer

Don worked as a machinist all his life,and was recently laid off because his plant closed and the jobs were outsourced to India.There don't seem to be any machinist jobs in the area anymore.Don would be considered:

Correct AnswerverifiedShow Answer

If the minimum wage is set at a level below the equilibrium wage:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Unemployment insurance is:

Correct AnswerverifiedShow Answer

One way for governments to try and minimize the effects of structural unemployment is to:

Correct AnswerverifiedShow Answer

If you hear that unemployment increased by 2 percentage points to 4 percent in the past year,while the labor force participation rate and the population remained constant,it means:

Correct AnswerverifiedShow Answer

Correct Answer
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