Question 1

Which of the following does not create unemployment by keeping wages above the equilibrium level?

Accepted Answer

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

Question 2

If the wage is kept above the equilibrium level because of minimum-wage laws,then the result is unemployment;if the wage is kept above the equilibrium level for some other reason,the result need not be unemployment.

Accepted Answer

A) True 
 B)False

Question 3

Minimum wages create unemployment in markets where they create a

Accepted Answer

A)   shortage of labor.Unemployment of this type is called frictional.
B)   shortage of labor.Unemployment of this type is called structural.
C)   surplus of labor.Unemployment of this type is called frictional.
D)   surplus of labor.Unemployment of this type is called structural.E) A) and B)
F) All of the above

Question 4

Minimum-wage laws

Accepted Answer

A)   create unemployment.
B)   do not apply in states with right-to-work laws.
C)   affect highly-educated workers more than high school dropouts.
D)   cause labor shortages,which further raise wages above equilibrium.E) C) and D)
F) A) and D)

Question 5

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

Accepted Answer

A)   0.4 and 0.6 percent.
B)   4 and 6 percent.
C)   6 and 12 percent.
D)   12 and 24 percent.E) None of the above
F) A) and C)

Question 6

Which of the following do unions not cause?

Accepted Answer

A)   frictional unemployment
B)   the wage to rise above the equilibrium level
C)   conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs
D)   reduced wages in industries without unionsE) All of the above
F) C) and D)

Question 7

Who of the following are included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)   certain unpaid workers
B)   part-time workers
C)   workers on vacation
D)   All of the above are correct.E) All of the above
F) None of the above

Question 8

The Bureau of Labor Statistics reported in 2005 that there were 53.23 million people over age 25 who had at least a bachelor's degree,40.59 million of whom were employed and 0.98 million of whom were unemployed.What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)   76.3% and 1.8%
B)   76.3% and 2.4%
C)   78.1% and 1.8%
D)   78.1% and 2.4%E) C) and D)
F) A) and C)

Question 9

The labor force equals the sum of the employed and the unemployed.

Accepted Answer

A) True 
 B)False

Question 10

The natural unemployment rate includes

Accepted Answer

A)   both frictional and structural unemployment.
B)   neither frictional nor structural unemployment.
C)   structural,but not frictional unemployment.
D)   frictional,but not structural unemployment.E) All of the above
F) C) and D)

Question 11

Critics of government-run employment agencies and public training programs argue that the private market is better at matching workers and jobs than the government is.

Accepted Answer

A) True 
 B)False

Question 12

Suppose that there is an excess supply of economics professors.Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Accepted Answer

Standard economic theory suggests that i...

Question 13

Suppose that neither textile workers nor shoemakers are unionized.If textile workers unionize,then the supply of shoemakers will

Accepted Answer

A)   rise and their wages will rise.
B)   rise and their wages will fall.
C)   fall and their wages will fall.
D)   fall and their wages will rise.E) B) and C)
F) A) and C)

Question 14

The unemployment rate never falls to zero.

Accepted Answer

A) True 
 B)False

Question 15

If people who report being unemployed are not,in fact,trying hard to find a job,then the reported unemployment rate will be baised upward.

Accepted Answer

A) True 
 B)False

Question 16

Table 15-2
2009 Labor Data for Baltivia
 
-Refer to Table 15-2.What was Baltivia's unemployment rate in 2009?

Accepted Answer

A)   8.0 percent
B)   12.7 percent
C)   15.9 percent
D)   22.1 percentE) A) and B)
F) A) and D)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 4 weeks.

Accepted Answer

A) True 
 B)False

Question 19

Unions

Accepted Answer

A)   and firms paying wages above equilibrium to improve worker effort both create frictional unemployment.
B)   creates frictional unemployment,while firms paying wages above equilibrium to improve worker effort creates structural unemployment.
C)   creates structural unemployment,while firms paying wages above equilibrium to improve worker effort creates frictional unemployment.
D)   and firms paying wages above equilibrium to improve worker effort both create structural unemployment.E) A) and B)
F) A) and C)

Question 20

Suppose people in the adult population in a small country are classified based on their age.
 
-Refer to Labor Force Statistics by Age.Suppose that the natural rate of unemployment is 5% for those under 55 and 3% for those 55 and older.The cyclical unemployment rate for those under 55 is

Accepted Answer

A)   .88% which is greater than the cyclical unemployment rate for those 55 and older.
B)   .88% which is less than the cyclical unemployment rate for those 55 and older.
C)   -.83% which is greater than the cyclical unemployment rate for those 55 and older.
D)   -.83% which is less than the cyclical unemployment rate for those 55 and older.E) B) and C)
F) A) and D)

Exam 28: Unemployment

Which of the following do unions not cause?

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Who of the following are included in the Bureau of Labor Statistics' "employed" category?

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The Bureau of Labor Statistics reported in 2005 that there were 53.23 million people over age 25 who had at least a bachelor's degree,40.59 million of whom were employed and 0.98 million of whom were unemployed.What were the labor-force participation rate and the unemployment rate for this group?

Correct AnswerverifiedShow Answer

Critics of government-run employment agencies and public training programs argue that the private market is better at matching workers and jobs than the government is.

Correct AnswerverifiedShow Answer

Which of the following does not create unemployment by keeping wages above the equilibrium level?

Correct AnswerverifiedShow Answer

Suppose that neither textile workers nor shoemakers are unionized.If textile workers unionize,then the supply of shoemakers will

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Unions

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

Correct AnswerverifiedShow Answer

The natural unemployment rate includes

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The labor force equals the sum of the employed and the unemployed.

Correct AnswerverifiedShow Answer

Minimum wages create unemployment in markets where they create a

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Suppose that there is an excess supply of economics professors.Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Correct AnswerverifiedStandard economic theory suggests that i...View AnswerShow Answer

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 4 weeks.

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If people who report being unemployed are not,in fact,trying hard to find a job,then the reported unemployment rate will be baised upward.

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Minimum-wage laws

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Table 15-2 2009 Labor Data for Baltivia -Refer to Table 15-2.What was Baltivia's unemployment rate in 2009?

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

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If the wage is kept above the equilibrium level because of minimum-wage laws,then the result is unemployment;if the wage is kept above the equilibrium level for some other reason,the result need not be unemployment.

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The unemployment rate never falls to zero.

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Suppose people in the adult population in a small country are classified based on their age. -Refer to Labor Force Statistics by Age.Suppose that the natural rate of unemployment is 5% for those under 55 and 3% for those 55 and older.The cyclical unemployment rate for those under 55 is

Correct AnswerverifiedShow Answer

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Standard economic theory suggests that i...
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