Question 1

Figure 28-3 
-Refer to Figure 28-3. At the equilibrium wage, how many workers are unemployed?

Accepted Answer

A)   0
B)   4,000
C)   5,000
D)   8,000E) C) and D)
F) None of the above

Question 2

Some persons are counted as out of the labor force because they have made no serious or recent effort to look for work. However, some of these individuals may want to work even though they are too discouraged to make a serious effort to look for work. If these individuals were counted as unemployed instead of out of the labor force, then

Accepted Answer

A)   both the unemployment rate and labor-force participation rate would be higher.
B)   the unemployment rate would be higher ,and the labor-force participation rate would be lower.
C)   the unemployment rate would be lower, and the labor-force participation rate would be higher.
D)   both the unemployment rate and labor-force participation rate would be lower.E) A) and C)
F) All of the above

Question 3

Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level?

Accepted Answer

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

Question 4

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

Accepted Answer

A)   Efficiency wages increase worker health and therefore increase worker productivity.
B)   Efficiency wages decrease worker turnover and therefore decrease hiring and training costs.
C)   Efficiency wages decrease worker shirking and therefore increase worker productivity.
D)   Efficiency wages are below the equilibrium wage rate but still attract a sufficient number of workers.E) B) and D)
F) A) and C)

Question 5

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) A) and B)
F) B) and C)

Question 6

Sectoral shifts temporarily cause unemployment.

Accepted Answer

A) True 
 B)False

Question 7

Unemployment data is collected

Accepted Answer

A)   through a monthly survey of about 20,000 firms.
B)   through a monthly survey of about 60,000 households.
C)   from unemployment insurance claims.
D)   All of the above are correct.E) C) and D)
F) A) and D)

Question 8

Adam is looking for a job in marketing. He has had some offers and his prospects are promising, but he has not yet accepted a job. Amanda lost her job working for Mercury Bicycles because many customers decided they prefer bicycles manufactured by Ultimate Bicycles instead. Who is frictionally unemployed?

Accepted Answer

A)   Adam but not Amanda
B)   Amanda but not Adam
C)   both Adam and Amanda
D)   neither Amanda nor AdamE) A) and D)
F) B) and C)

Question 9

Efficiency wages

Accepted Answer

A)   increase frictional unemployment by keeping wages above equilibrium.
B)   decrease frictional unemployment by keeping wages at equilibrium.
C)   increase structural unemployment by keeping wages above equilibrium.
D)   decrease structural unemployment by keeping wages at equilibrium.E) A) and B)
F) A) and C)

Question 10

The production of which of the following goods was among the four industries with the largest employment in the United States a century ago?

Accepted Answer

A)   horse shoes
B)   woolen goods
C)   candles
D)   minerals from miningE) None of the above
F) A) and D)

Question 11

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 B)
F) A) and C)

Question 12

A firm may pay efficiency wages in an attempt to

Accepted Answer

A)   entice workers to work the night shift rather than the day shift.
B)   improve productivity by reducing turnover.
C)   reduce costs by attracting the least-skilled workers to apply for job vacancies.
D)   All of the above are correct.E) None of the above
F) A) and D)

Question 13

Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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

Accepted Answer

A)   90 million
B)   150 million
C)   160 million
D)   230 millionE) None of the above
F) A) and B)

Question 16

Table 28-2
Labor Data for Aridia
 
-Refer to Table 28-2. The labor-force participation rate of Aridia in 2010 was

Accepted Answer

A)   70%.
B)   77.8%.
C)   80%.
D)   87.5%.E) None of the above
F) A) and C)

Question 17

The natural unemployment rate includes

Accepted Answer

A)   both frictional and structural unemployment.
B)   neither frictional nor structural unemployment.
C)   structural but not frictional unemployment.
D)   frictional but not structural unemployment.E) C) and D)
F) All of the above

Question 18

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

Accepted Answer

A) True 
 B)False

Exam 10: Unemployment and Its Natural Rate

Efficiency wages

Correct Answer
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A firm may pay efficiency wages in an attempt to

Correct Answer
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The production of which of the following goods was among the four industries with the largest employment in the United States a century ago?

Correct Answer
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Figure 28-3 -Refer to Figure 28-3. At the equilibrium wage, how many workers are unemployed?

Correct Answer
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Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level?

Correct Answer
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Unemployment data is collected

Correct Answer
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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?

Correct Answer
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Correct Answer
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The Bureau of Labor Statistics' U1 measure of joblessness is smaller than its U6 measure of joblessness.

Correct Answer
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The natural unemployment rate includes

Correct Answer
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Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor-force participation rate of Aridia in 2010 was

Correct Answer
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Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

Correct Answer
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Correct Answer
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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 Answer
verified

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

Correct Answer
verified

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 Answer
verified

Sectoral shifts temporarily cause unemployment.

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 labor force in Meditor?

Correct Answer
verified

Exam 10: Unemployment and Its Natural Rate

Efficiency wages

Correct AnswerverifiedShow Answer

A firm may pay efficiency wages in an attempt to

Correct AnswerverifiedShow Answer

The production of which of the following goods was among the four industries with the largest employment in the United States a century ago?

Correct AnswerverifiedShow Answer

Figure 28-3 -Refer to Figure 28-3. At the equilibrium wage, how many workers are unemployed?

Correct AnswerverifiedShow Answer

Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level?

Correct AnswerverifiedShow Answer

Unemployment data is collected

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The natural unemployment rate includes

Correct AnswerverifiedShow Answer

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor-force participation rate of Aridia in 2010 was

Correct AnswerverifiedShow Answer

Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

Correct AnswerverifiedShow Answer

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

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

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

Sectoral shifts temporarily cause unemployment.

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 labor force in Meditor?

Correct AnswerverifiedShow Answer

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

Correct Answer
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Correct Answer
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Correct Answer
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