Question 1

The natural rate of unemployment

Accepted Answer

A)  refers mostly to unemployment created by the cyclical fluctuations in real GDP.
B)  cannot be changed by government policy.
C)  varies over time.
D)  is the optimal rate of unemployment in an economy.E) A) and D)
F) B) and D)

Question 2

Since World War II,the labor-force participation rate

Accepted Answer

A)  has increased for both men and women.
B)  increased for women and decreased for men.
C)  has decreased for both men and women.
D)  decreased for women and increased for men.E) A) and B)
F) None of the above

Question 3

An increase in the minimum wage would

Accepted Answer

A)  increase both the quantity demanded and the quantity supplied of labor.
B)  decrease both the quantity demanded and the quantity supplied of labor.
C)  increase the quantity of labor demanded while decreasing the quantity supplied.
D)  decrease the quantity of labor demanded while increasing the quantity supplied.E) None of the above
F) All of the above

Question 4

Figure 28-1
 
-Refer to Figure 28-1.The equilibrium wage and employment in this market is

Accepted Answer

A)  $6 and 20 workers.
B)  $5 and 30 workers.
C)  $4 and 40 workers.
D)  Any of the above could be correct.E) A) and C)
F) A) and B)

Question 5

Suppose that neither textile workers nor shoemakers are unionized.If textile workers unionize and so are able to raise their wages,then the supply of shoemakers

Accepted Answer

A)  rises and their wages rise.
B)  rises and their wages fall.
C)  falls and their wages fall.
D)  falls and their wages rise.E) None of the above
F) B) and D)

Question 6

The sum of which of the following would necessarily be equal to the adult population in the US statistics on labor?

Accepted Answer

A)  employed, unemployed
B)  discouraged workers, employed, unemployed
C)  employed, unemployed, not in the labor force
D)  discouraged workers, employed, not in the labor forceE) C) and D)
F) None of the above

Question 7

Just after World War II,the labor-force participation rate of women was

Accepted Answer

A)  about 1/3 and currently is about 1/2.
B)  about 1/3 and currently is about 3/5.
C)  about 1/2 and currently is about 3/5.
D)  about 3/5 and currently is about 1/2.E) None of the above
F) A) and C)

Question 8

Compared to the United States,Germany historically has had higher unemployment rates.One explanation for this difference could be

Accepted Answer

A)  a very low minimum wage in German.
B)  the relatively low expenditures of the German government..
C)  the relatively high unemployment insurance in Germany.
D)  the refusal of German firms to set wages according to efficiency wage theory.E) All of the above
F) A) and D)

Question 9

Just after World War II,the labor-force participation rate of men was

Accepted Answer

A)  about 87 and currently is about 73.
B)  about 73 and currently is about 63.
C)  about 63 and currently is about 73.
D)  about 73 and currently is about 73.E) A) and D)
F) B) and C)

Question 10

Suppose that butchers and bakers had no unions.Now suppose the butchers form a union.What does this do the labor supply of and wages of bakers?

Accepted Answer

A)  it increases the labor supply and wages of bakers.
B)  it increases the labor supply and decreases the wages of bakers.
C)  it decreases the labor supply and increases the wages of bakers.
D)  it decreases the labor supply and wages of bakers.E) C) and D)
F) All of the above

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Union workers earn what percent more than similar nonunion workers?

Accepted Answer

A)  0 to 5
B)  5 to 10
C)  10 to 20
D)  20 to 30E) None of the above
F) All of the above

Question 13

Even though most spells of unemployment are short,most unemployment results from long-term unemployment.

Accepted Answer

A) True 
 B)False

Question 14

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

Question 15

Efficiency wages refer to wages set at a level

Accepted Answer

A)  that would make the natural rate of unemployment zero.
B)  to encourage greater worker productivity.
C)  to maximize union members' total earnings.
D)  that would result in equilibrium in the labor market of each industry.E) A) and B)
F) All of the above

Question 16

Collective bargaining refers to

Accepted Answer

A)  the process by which the government sets exemptions from the minimum wage law.
B)  setting the same wage for all employees to prevent jealousy among workers.
C)  firms colluding to set the wages of employees in order to keep them below equilibrium.
D)  the process by which unions and firms agree on the terms of employment.E) B) and C)
F) A) and B)

Question 17

In the absence of right-to-work laws,workers

Accepted Answer

A)  that went on strike could not be permanently replaced.
B)  might have to join the union if they worked for a unionized firm.
C)  would not be able to unionize.
D)  would not be able to strike.E) B) and C)
F) None of the above

Question 18

The BLS reported in 2005 that there were 50.40 million people over age 25 whose highest level of education was some college or an associate degree.33.86 million of them were employed and 1.27 million of them were unemployed.About what were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)  69.7%, 3.6%
B)  69.7%, 2.5%
C)  67.2%, 3.6%
D)  67.2%, 2.5%E) All of the above
F) B) and C)

Question 19

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.(Hint: who is likely to get paid more?)

Accepted Answer

People who are experienced and educated ...

Question 20

Of women earning an hourly wage,about what percent earn a wage at or below the minimum wage?

Accepted Answer

A)  4%
B)  10%
C)  25%
D)  33%E) None of the above
F) B) and C)

Exam 28: Unemployment

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.(Hint: who is likely to get paid more?)

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

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

Correct Answer
verified

Suppose that butchers and bakers had no unions.Now suppose the butchers form a union.What does this do the labor supply of and wages of bakers?

Correct Answer
verified

Of women earning an hourly wage,about what percent earn a wage at or below the minimum wage?

Correct Answer
verified

In the absence of right-to-work laws,workers

Correct Answer
verified

Compared to the United States,Germany historically has had higher unemployment rates.One explanation for this difference could be

Correct Answer
verified

Efficiency wages refer to wages set at a level

Correct Answer
verified

Just after World War II,the labor-force participation rate of women was

Correct Answer
verified

The sum of which of the following would necessarily be equal to the adult population in the US statistics on labor?

Correct Answer
verified

Correct Answer
verified

Figure 28-1 -Refer to Figure 28-1.The equilibrium wage and employment in this market is

Correct Answer
verified

An increase in the minimum wage would

Correct Answer
verified

Just after World War II,the labor-force participation rate of men was

Correct Answer
verified

Since World War II,the labor-force participation rate

Correct Answer
verified

Collective bargaining refers to

Correct Answer
verified

The natural rate of unemployment

Correct Answer
verified

Union workers earn what percent more than similar nonunion workers?

Correct Answer
verified

Even though most spells of unemployment are short,most unemployment results from long-term unemployment.

Correct Answer
verified

Suppose that neither textile workers nor shoemakers are unionized.If textile workers unionize and so are able to raise their wages,then the supply of shoemakers

Correct Answer
verified

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

Correct Answer
verified

Exam 28: Unemployment

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.(Hint: who is likely to get paid more?)

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

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

Correct AnswerverifiedShow Answer

Suppose that butchers and bakers had no unions.Now suppose the butchers form a union.What does this do the labor supply of and wages of bakers?

Correct AnswerverifiedShow Answer

Of women earning an hourly wage,about what percent earn a wage at or below the minimum wage?

Correct AnswerverifiedShow Answer

In the absence of right-to-work laws,workers

Correct AnswerverifiedShow Answer

Compared to the United States,Germany historically has had higher unemployment rates.One explanation for this difference could be

Correct AnswerverifiedShow Answer

Efficiency wages refer to wages set at a level

Correct AnswerverifiedShow Answer

Just after World War II,the labor-force participation rate of women was

Correct AnswerverifiedShow Answer

The sum of which of the following would necessarily be equal to the adult population in the US statistics on labor?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 28-1 -Refer to Figure 28-1.The equilibrium wage and employment in this market is

Correct AnswerverifiedShow Answer

An increase in the minimum wage would

Correct AnswerverifiedShow Answer

Just after World War II,the labor-force participation rate of men was

Correct AnswerverifiedShow Answer

Since World War II,the labor-force participation rate

Correct AnswerverifiedShow Answer

Collective bargaining refers to

Correct AnswerverifiedShow Answer

The natural rate of unemployment

Correct AnswerverifiedShow Answer

Union workers earn what percent more than similar nonunion workers?

Correct AnswerverifiedShow Answer

Even though most spells of unemployment are short,most unemployment results from long-term unemployment.

Correct AnswerverifiedShow Answer

Suppose that neither textile workers nor shoemakers are unionized.If textile workers unionize and so are able to raise their wages,then the supply of shoemakers

Correct AnswerverifiedShow Answer

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

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

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Correct Answer
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