Question 1

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called

Accepted Answer

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

Question 2

The labor force equals the

Accepted Answer

A)  number of people employed.
B)  number of people employed plus the number of people unemployed.
C)  number of people employed plus the number of people unemployed plus teenagers between ages 14 and 16 who work at least 10 hours a week.
D)  adult population.E) B) and C)
F) None of the above

Question 3

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.

Accepted Answer

People who are experienced and educated ...

Question 4

If a union and a firm cannot reach an agreement on the terms of employment, then the union can organize a withdrawal of labor from the firm, called a strike.

Accepted Answer

A) True 
 B)False

Question 5

Define efficiency wages.

Accepted Answer

Efficiency wages are...

Question 6

Table 28-2
Labor Data for Aridia 
-Refer to Table 28-2. The labor-force participation rate of Aridia in 2011 was

Accepted Answer

A)  43.3%.
B)  54.2%.
C)  63.3%.
D)  68.4%.E) C) and D)
F) A) and B)

Question 7

John is a stockbroker. He has had several job offers, but he has turned them down because he thinks he can find a firm that better matches his tastes and skills. Curtis has looked for work as an accountant for some time. While the demand for accountants does not appear to be falling, there seems to be more people applying than jobs available.

Accepted Answer

A)  John and Curtis are both frictionally unemployed.
B)  John and Curtis are both structurally unemployed.
C)  John is frictionally unemployed, and Curtis is structurally unemployed.
D)  John is structurally unemployed, and Curtis is frictionally unemployed.E) A) and C)
F) A) and B)

Question 8

Frictional unemployment is inevitable because the economy is always changing.

Accepted Answer

A) True 
 B)False

Question 9

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 $10, how many people would be unemployed?

Accepted Answer

A)  0
B)  10,000
C)  20,000
D)  40,000E) A) and B)
F) A) and D)

Question 10

Unemployment insurance tends to

Accepted Answer

A)  decrease structural unemployment.
B)  decrease cyclical unemployment.
C)  increase frictional unemployment.
D)  increase the number of discouraged workers.E) A) and B)
F) A) and C)

Question 11

Cyclical unemployment refers to

Accepted Answer

A)  the relationship between the probability of unemployment and a worker's changing level of experience.
B)  how often a worker is likely to be employed during her lifetime.
C)  year-to-year fluctuations of unemployment around its natural rate.
D)  long-term trends in unemployment.E) A) and D)
F) B) and C)

Question 12

The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to

Accepted Answer

A)  decrease, raising wages in industries that are not unionized.
B)  decrease, reducing wages in industries that are not unionized.
C)  increase, raising wages in industries that are not unionized.
D)  increase, reducing wages in industries that are not unionized.E) A) and D)
F) C) and D)

Question 13

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

Accepted Answer

A)  600 households.
B)  6,000 households.
C)  60,000 households.
D)  6,000,000 households.E) A) and B)
F) A) and C)

Question 14

Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household?

Accepted Answer

A)  employed
B)  unemployed
C)  underemployed
D)  not in the labor forceE) None of the above
F) B) and C)

Question 15

In 2016 based on people ages 15-74 the Swedish adult non-institutionalized population was about 7.3 million, the labor force was 5.2 million, and the number of people employed was 4.8 million. According to these numbers, the Swedish labor-force participation rate and unemployment rate were about

Accepted Answer

A)  71.2% and 7.7%
B)  71.2% and 5.5%
C)  65.8% and 7.7%
D)  65.8% and 5.5%E) C) and D)
F) A) and D)

Question 16

The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.

Accepted Answer

A) True 
 B)False

Question 17

Table 28-9
The table below lists the number of people by labor force classification for the country of Shelbyville. 
-Refer to Table 28-9. What is the unemployment rate?

Accepted Answer

The answer of Table 28-9
The table below lists the number...

Question 18

Wages set above the equilibrium wage by

Accepted Answer

A)  firms to increase morale are called collective bargaining wages.
B)  lawmakers to decrease cyclical unemployment are called minimum wages laws.
C)  firms to increase productivity are called efficiency wages.
D)  lawmakers to decrease the length of a job search are called efficiency wages.E) A) and D)
F) A) and C)

Question 19

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a source of frictional unemployment?

Accepted Answer

A)  changes in the composition of demand among industries or regions
B)  minimum wages
C)  labor unions
D)  None of the above is correct.E) None of the above
F) A) and D)

Exam 28: Unemployment and Its Natural Rate

Correct Answer
verified

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

Correct Answer
verified

If a union and a firm cannot reach an agreement on the terms of employment, then the union can organize a withdrawal of labor from the firm, called a strike.

Correct Answer
verified

Frictional unemployment is inevitable because the economy is always changing.

Correct Answer
verified

Define efficiency wages.

Correct Answer
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Efficiency wages are...
View Answer

Cyclical unemployment refers to

Correct Answer
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The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.

Correct Answer
verified

In 2016 based on people ages 15-74 the Swedish adult non-institutionalized population was about 7.3 million, the labor force was 5.2 million, and the number of people employed was 4.8 million. According to these numbers, the Swedish labor-force participation rate and unemployment rate were about

Correct Answer
verified

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 $10, how many people would be unemployed?

Correct Answer
verified

Wages set above the equilibrium wage by

Correct Answer
verified

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.

Correct Answer
verified
People who are experienced and educated ...
View Answer

Which of the following is a source of frictional unemployment?

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 2011 was

Correct Answer
verified

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called

Correct Answer
verified

Table 28-9 The table below lists the number of people by labor force classification for the country of Shelbyville. -Refer to Table 28-9. What is the unemployment rate?

Correct Answer
verified

The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to

Correct Answer
verified

Unemployment insurance tends to

Correct Answer
verified

The labor force equals the

Correct Answer
verified

Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household?

Correct Answer
verified

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

Correct Answer
verified

Exam 28: Unemployment and Its Natural Rate

Correct AnswerverifiedShow Answer

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

Correct AnswerverifiedShow Answer

If a union and a firm cannot reach an agreement on the terms of employment, then the union can organize a withdrawal of labor from the firm, called a strike.

Correct AnswerverifiedShow Answer

Frictional unemployment is inevitable because the economy is always changing.

Correct AnswerverifiedShow Answer

Define efficiency wages.

Correct AnswerverifiedEfficiency wages are...View AnswerShow Answer

Cyclical unemployment refers to

Correct AnswerverifiedShow Answer

The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.

Correct AnswerverifiedShow Answer

In 2016 based on people ages 15-74 the Swedish adult non-institutionalized population was about 7.3 million, the labor force was 5.2 million, and the number of people employed was 4.8 million. According to these numbers, the Swedish labor-force participation rate and unemployment rate were about

Correct AnswerverifiedShow Answer

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 $10, how many people would be unemployed?

Correct AnswerverifiedShow Answer

Wages set above the equilibrium wage by

Correct AnswerverifiedShow Answer

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.

Correct AnswerverifiedPeople who are experienced and educated ...View AnswerShow Answer

Which of the following is a source of frictional unemployment?

Correct AnswerverifiedShow Answer

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor-force participation rate of Aridia in 2011 was

Correct AnswerverifiedShow Answer

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called

Correct AnswerverifiedShow Answer

Table 28-9 The table below lists the number of people by labor force classification for the country of Shelbyville. -Refer to Table 28-9. What is the unemployment rate?

Correct AnswerverifiedShow Answer

The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to

Correct AnswerverifiedShow Answer

Unemployment insurance tends to

Correct AnswerverifiedShow Answer

The labor force equals the

Correct AnswerverifiedShow Answer

Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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Efficiency wages are...
View Answer

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Correct Answer
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People who are experienced and educated ...
View Answer

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Correct Answer
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