Question 1

In the early 1900s, Henry Ford introduced

Accepted Answer

A)  a high-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory.
B)  a high-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory.
C)  a low-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory.
D)  a low-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory.E) A) and C)
F) A) and D)

Question 2

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Accepted Answer

According to the theory of efficiency wa...

Question 3

Sectoral shifts temporarily cause unemployment.

Accepted Answer

A) True 
 B)False

Question 4

Paying efficiency wages means that wages are

Accepted Answer

A)  above equilibrium and profits are higher than otherwise.
B)  above equilibrium and profits are lower than otherwise.
C)  below equilibrium and profits are higher than otherwise.
D)  below equilibrium and profits are lower than otherwise.E) B) and D)
F) B) and C)

Question 5

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

Accepted Answer

A)  cyclical unemployment.
B)  frictional unemployment.
C)  seasonal unemployment.
D)  structural unemployment.E) A) and B)
F) All of the above

Question 6

Josh is a full-time college student who is not working or looking for a job. The Bureau of Labor Statistics counts Josh as

Accepted Answer

A)  unemployed and in the labor force.
B)  unemployed, but not in the labor force.
C)  in the labor force, but not unemployed.
D)  neither in the labor force nor unemployed.E) B) and D)
F) A) and B)

Question 7

The efficiency-wage theory of worker quality suggests that if firms respond to a surplus of labor by reducing the wage, then highly qualified workers will be

Accepted Answer

A)  more likely to apply, and unemployment will increase.
B)  more likely to apply, and unemployment will decrease
C)  less likely to apply, and unemployment will Increase.
D)  less likely to apply, and unemployment will increase.E) A) and B)
F) B) and C)

Question 8

Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power.

Accepted Answer

A) True 
 B)False

Question 9

Figure 15-1 
-Refer to Figure 15-1. If the government imposes a minimum wage of $8, then unemployment will increase by

Accepted Answer

A)  0 workers.
B)  2000 workers.
C)  4000 workers.
D)  7000 workers.E) A) and B)
F) B) and C)

Question 10

Unemployment insurance

Accepted Answer

A)  reduces search effort which raises unemployment.
B)  reduces search effort which lowers unemployment.
C)  increases search effort which raises unemployment.
D)  increases search effort which decreases unemployment.E) None of the above
F) A) and C)

Question 11

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Accepted Answer

A) True 
 B)False

Question 12

Figure 15-1 
-Refer to Figure 15-1. At the equilibrium wage, how many workers are employed?

Accepted Answer

A)  0
B)  1000
C)  5000
D)  9000E) B) and D)
F) All of the above

Question 13

When the wage is above the equilibrium level,

Accepted Answer

A)  the labor market is functioning more efficiently than it otherwise would function.
B)  there is a shortage of labor.
C)  the quantity of labor supplied exceeds the quantity of labor demanded.
D)  job search is the primary explanation for the unemployment that is observed.E) C) and D)
F) B) and C)

Question 14

Today, the four industries with the largest employment in the United States are autos, aircraft, communications, and electrical components.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not an explanation for the existence of structural unemployment?

Accepted Answer

A)  efficiency wages
B)  job search
C)  minimum-wage laws
D)  unionsE) B) and D)
F) A) and B)

Question 16

Unemployment insurance is designed to offer workers full protection against job loss.

Accepted Answer

A) True 
 B)False

Question 17

Economists at the Congressional Budget Office estimated that for 2009, the U.S. natural rate of unemployment was 5.0 percent.

Accepted Answer

A) True 
 B)False

Question 18

Jouke is on a temporary layoff from his factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Jouke as

Accepted Answer

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

Question 19

When a union is present in a labor market, wages are not determined by the equilibrium of supply and demand.

Accepted Answer

A) True 
 B)False

Question 20

Frictional unemployment is often the result of changes in the demand for labor among different firms.

Accepted Answer

A) True 
 B)False

Exam 15: Unemployment

Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power.

Correct AnswerverifiedShow Answer

The efficiency-wage theory of worker quality suggests that if firms respond to a surplus of labor by reducing the wage, then highly qualified workers will be

Correct AnswerverifiedShow Answer

Paying efficiency wages means that wages are

Correct AnswerverifiedShow Answer

When the wage is above the equilibrium level,

Correct AnswerverifiedShow Answer

Unemployment insurance is designed to offer workers full protection against job loss.

Correct AnswerverifiedShow Answer

In the early 1900s, Henry Ford introduced

Correct AnswerverifiedShow Answer

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Correct AnswerverifiedAccording to the theory of efficiency wa...View AnswerShow Answer

Figure 15-1 -Refer to Figure 15-1. If the government imposes a minimum wage of $8, then unemployment will increase by

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Frictional unemployment is often the result of changes in the demand for labor among different firms.

Correct AnswerverifiedShow Answer

Today, the four industries with the largest employment in the United States are autos, aircraft, communications, and electrical components.

Correct AnswerverifiedShow Answer

Figure 15-1 -Refer to Figure 15-1. At the equilibrium wage, how many workers are employed?

Correct AnswerverifiedShow Answer

Which of the following is not an explanation for the existence of structural unemployment?

Correct AnswerverifiedShow Answer

Josh is a full-time college student who is not working or looking for a job. The Bureau of Labor Statistics counts Josh as

Correct AnswerverifiedShow Answer

When a union is present in a labor market, wages are not determined by the equilibrium of supply and demand.

Correct AnswerverifiedShow Answer

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Correct AnswerverifiedShow Answer

Sectoral shifts temporarily cause unemployment.

Correct AnswerverifiedShow Answer

Jouke is on a temporary layoff from his factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Jouke as

Correct AnswerverifiedShow Answer

Unemployment insurance

Correct AnswerverifiedShow Answer

Economists at the Congressional Budget Office estimated that for 2009, the U.S. natural rate of unemployment was 5.0 percent.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
According to the theory of efficiency wa...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified