Question 1

Figure 28-3 
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be employed?

Accepted Answer

A)   3,000
B)   4,000
C)   5,000
D)   7,000E) A) and D)
F) A) and C)

Question 2

If the number of people unemployed rose but the number of people employed and the adult population stayed the same, then the labor force participation rate would rise.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a requirement for the Bureau of Labor Statistics to place someone in the "unemployed" category?

Accepted Answer

A)   The person must have worked no more than 10 hours during the past week.
B)   The person must have tried to find employment during the previous four weeks.
C)   The person may not have been laid off.
D)   All of the above are correct.E) None of the above
F) All of the above

Question 4

According to 2012 data on the U.S. population, which of the following groups of teenagers ages (16-19)  had the highest labor-force participation rate?

Accepted Answer

A)   white males
B)   white females
C)   black males
D)   black femalesE) C) and D)
F) B) and D)

Question 5

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.

Accepted Answer

A) True 
 B)False

Question 6

The theory of efficiency wages explains why

Accepted Answer

A)   setting wages at the equilibrium level may increase unemployment.
B)   it may be in the best interest of firms to offer wages that are above the equilibrium level.
C)   the most efficient way to pay workers is to pay them according to their skills.
D)   it is efficient for firms to set wages at the equilibrium level.E) A) and C)
F) B) and C)

Question 7

If the wage is kept above the equilibrium level for any reason, the result is unemployment.

Accepted Answer

A) True 
 B)False

Question 8

Labor unions

Accepted Answer

A)   prefer to operate in states with right-to-work laws.
B)   are similar to cartels.
C)   play a larger role in the current U.S. economy than in European countries such as Norway and Sweden.
D)   attract a membership of about 25 percent of current U.S. workers.E) C) and D)
F) A) and D)

Question 9

Efficiency wages contribute to

Accepted Answer

A)   frictional unemployment and the natural rate of unemployment.
B)   frictional unemployment but not the natural rate of unemployment.
C)   structural unemployment and the natural rate of unemployment.
D)   structural unemployment but not the natural rate of unemployment.E) A) and D)
F) B) and C)

Question 10

Table 28-2
Labor Data for Aridia
 
-Refer to Table 28-2. The labor force of Aridia in 2012 was

Accepted Answer

A)   1,600.
B)   1,800.
C)   3,000.
D)   3,200.E) A) and B)
F) B) and C)

Question 11

When a union raises the wage above the equilibrium level, it

Accepted Answer

A)   reduces both the quantity of labor supplied and the quantity of labor demanded.
B)   reduces the quantity of labor supplied and raises the quantity of labor demanded.
C)   raises the quantity of labor supplied and reduces the quantity of labor demanded.
D)   raises both the quantity of labor supplied and the quantity of labor demanded.E) B) and C)
F) C) and D)

Question 12

Some degree of unemployment is inevitable in a complex economy.

Accepted Answer

A) True 
 B)False

Question 13

Right-to-work laws

Accepted Answer

A)   guarantee workers the right to form unions.
B)   give workers in a unionized firm the right to choose whether to join the union.
C)   prevent employers from hiring permanent replacements for workers who are on strike.
D)   prevent workers from being fired because of increases in wages brought about by collective bargaining.E) None of the above
F) B) and C)

Question 14

Structural unemployment is often thought to explain relatively long spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 15

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

Accepted Answer

A)   increases, and the labor-force participation rate decreases.
B)   and the labor-force participation rate both increase.
C)   increases, and the labor-force participation rate is unaffected.
D)   is unaffected, and the labor-force participation rate decreases.E) B) and C)
F) A) and D)

Question 16

Suppose that garbage collectors and landscaping workers have no unions. Now suppose that garbage collectors form unions. What does this do the labor supply and wages of landscaping workers?

Accepted Answer

A)   Both labor supply and wages increase.
B)   Labor supply increases, and wages decrease.
C)   Labor supply decreases, and wages increase.
D)   Both labor supply and wages decrease.E) A) and D)
F) C) and D)

Question 17

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

Accepted Answer

A)   the natural rate of unemployment.
B)   cyclical unemployment.
C)   structural unemployment.
D)   frictional unemployment.E) A) and B)
F) A) and C)

Question 18

Since 1960, the natural rate of unemployment in the U.S. has been between

Accepted Answer

A)   0% and 1%.
B)   5% and 6%.
C)   10% and 12%.
D)   12% and 24%.E) B) and C)
F) B) and D)

Question 19

Economists at the Congressional Budget Office estimated that for 2012, the U.S. natural rate of unemployment was about 5.5 percent.

Accepted Answer

A) True 
 B)False

Question 20

Some degree of unemployment is in a complex economy.

Accepted Answer

The answer of Some degree of unemployment is in a...

Exam 20: Unemployment

Some degree of unemployment is inevitable in a complex economy.

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Some degree of unemployment is in a complex economy.

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When a union raises the wage above the equilibrium level, it

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Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be employed?

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Right-to-work laws

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Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

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Economists at the Congressional Budget Office estimated that for 2012, the U.S. natural rate of unemployment was about 5.5 percent.

Correct AnswerverifiedShow Answer

According to 2012 data on the U.S. population, which of the following groups of teenagers ages (16-19) had the highest labor-force participation rate?

Correct AnswerverifiedShow Answer

If the number of people unemployed rose but the number of people employed and the adult population stayed the same, then the labor force participation rate would rise.

Correct AnswerverifiedShow Answer

If the wage is kept above the equilibrium level for any reason, the result is unemployment.

Correct AnswerverifiedShow Answer

Since 1960, the natural rate of unemployment in the U.S. has been between

Correct AnswerverifiedShow Answer

The theory of efficiency wages explains why

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Structural unemployment is often thought to explain relatively long spells of unemployment.

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Labor unions

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Which of the following is a requirement for the Bureau of Labor Statistics to place someone in the "unemployed" category?

Correct AnswerverifiedShow Answer

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.

Correct AnswerverifiedShow Answer

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

Correct AnswerverifiedShow Answer

Efficiency wages contribute to

Correct AnswerverifiedShow Answer

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor force of Aridia in 2012 was

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Suppose that garbage collectors and landscaping workers have no unions. Now suppose that garbage collectors form unions. What does this do the labor supply and wages of landscaping workers?

Correct AnswerverifiedShow Answer

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