Question 1

The labor-force participation rate tells us the fraction of the population that

Accepted Answer

A)   is able to participate in the labor market.
B)   has ever been employed.
C)   has chosen to participate in the labor market.
D)   has chosen not to participate in the labor market.E) A) and B)
F) None of the above

Question 2

A person who is counted as "unemployed" by the Bureau of Labor Statistics

Accepted Answer

A)   is also in the labor force.
B)   must have recently looked for work or be on temporary layoff.
C)   must be at least 16 years old.
D)   All of the above are correct.E) A) and C)
F) C) and D)

Question 3

Unemployment insurance increases frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 4

Economists have found that 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) B) and D)

Question 5

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

Accepted Answer

A)   37%
B)   63%
C)   66.7%
D)   96.3%E) B) and C)
F) A) and D)

Question 6

Figure 28-3 
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then employment will decrease by

Accepted Answer

A)   0 workers.
B)   2,000 workers.
C)   3,000 workers.
D)   4,000 workers.E) None of the above
F) C) and D)

Question 7

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous four weeks.

Accepted Answer

A) True 
 B)False

Question 8

The Bureau of Labor Statistics' U­4 measure of joblessness includes discouraged workers.

Accepted Answer

A) True 
 B)False

Question 9

Measuring unemployment is the job of the Bureau of Labor Statistics.

Accepted Answer

A) True 
 B)False

Question 10

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

Accepted Answer

A) True 
 B)False

Question 11

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 conflict among workers.
C)   firms colluding to set the wages of employees below equilibrium.
D)   the process by which unions and firms agree on the terms of employment.E) A) and B)
F) C) and D)

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Frictional unemployment results from

Accepted Answer

A)   job searching. It is often thought to explain relatively short spells of unemployment.
B)   job searching. It is often thought to explain relatively long spells of unemployment
C)   a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment.
D)   a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment.E) None of the above
F) B) and D)

Question 14

A firm might offer efficiency wages in order to attract a better pool of applicants.

Accepted Answer

A) True 
 B)False

Question 15

President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You conclude that

Accepted Answer

A)   one of them must be lying.
B)   both of them could be telling the truth if the labor force, and employment grew at the exact same rate.
C)   both of them could be telling the truth if the labor force grew slower than employment.
D)   both of them could be telling the truth if the labor force grew faster than employment.E) A) and B)
F) A) and C)

Question 16

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) A) and D)
F) None of the above

Question 17

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Accepted Answer

A) True 
 B)False

Question 18

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Accepted Answer

A) True 
 B)False

Question 19

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) All of the above
F) A) and B)

Question 20

Adults who are waiting to be recalled to a job from which they had been laid off are counted as "unemployed."

Accepted Answer

A) True 
 B)False

Exam 10: Unemployment and Its Natural Rate

Economists have found that union workers earn what percent more than similar nonunion workers?

Correct AnswerverifiedShow Answer

Unemployment insurance increases frictional unemployment.

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The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous four weeks.

Correct AnswerverifiedShow Answer

Adults who are waiting to be recalled to a job from which they had been laid off are counted as "unemployed."

Correct AnswerverifiedShow Answer

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Correct AnswerverifiedShow Answer

President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You conclude that

Correct AnswerverifiedShow Answer

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

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The labor-force participation rate tells us the fraction of the population that

Correct AnswerverifiedShow Answer

A firm might offer efficiency wages in order to attract a better pool of applicants.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Frictional unemployment results from

Correct AnswerverifiedShow Answer

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Correct AnswerverifiedShow Answer

Collective bargaining refers to

Correct AnswerverifiedShow Answer

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A person who is counted as "unemployed" by the Bureau of Labor Statistics

Correct AnswerverifiedShow Answer

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then employment will decrease by

Correct AnswerverifiedShow Answer

Measuring unemployment is the job of the Bureau of Labor Statistics.

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' U­4 measure of joblessness includes discouraged workers.

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The Bureau of Labor Statistics' U4 measure of joblessness includes discouraged workers.

Correct Answer
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