Question 1

More than one-third of the unemployed are recent entrants into the labor force.

Accepted Answer

A) True 
 B)False

Question 2

List the four ways to explain unemployment in the long run.

Accepted Answer

search costs, minimu...

Question 3

Table 28-2
Labor Data for Aridia
 
-Refer to Table 28-2. The number of adults not in the labor force of Aridia in 2011 was

Accepted Answer

A)   600.
B)   1,100.
C)   1,700.
D)   2,400.E) A) and B)
F) A) and C)

Question 4

Some people who are employed or who are not making serious effort to find employment will report themselves as unemployed. Some people who want to find work will be counted as out of the labor force.

Accepted Answer

A)   Both the first and the second fact tend to make the reported unemployment rate lower than otherwise.
B)   Both the first and the second fact tend to make the reported unemployment rate higher than otherwise.
C)   The first fact tends to make the reported unemployment rate higher than otherwise, while the second fact tends to make the reported unemployment rate lower than otherwise.
D)   The first fact tends to make the reported unemployment rate lower than otherwise, while the second fact tends to make the reported unemployment rate higher than otherwise.E) A) and C)
F) A) and D)

Question 5

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually decreased.

Accepted Answer

A) True 
 B)False

Question 6

Briefly explain the four rationales for efficiency wages.

Accepted Answer

1. Better paid workers are healthier and...

Question 7

Which of the following is correct?

Accepted Answer

A)   Typically more than one-third of the unemployed are new entrants into the job market.
B)   Most spells of unemployment are short.
C)   Most unemployment observed at any time is long term.
D)   All of the above are correct.E) A) and D)
F) All of the above

Question 8

Which of the following is the correct formula for calculating the unemployment rate?

Accepted Answer

A)   
B)   
C)   
D)   E) All of the above
F) B) and C)

Question 9

In terms of duration, how does cyclical unemployment differ from structural unemployment?

Accepted Answer

Cyclical unemploymen...

Question 10

In Belgium, Norway, and Sweden, the percentage of workers who belong to unions is

Accepted Answer

A)   almost zero.
B)   less than it is in the United States.
C)   about the same as it is in the United States.
D)   greater than it is in the United States.E) B) and D)
F) None of the above

Question 11

Table 28-11
2010 Labor Data for Tajnia
 
-Refer to Table 28-11. The labor force of Tajnia in 2010 is 10,000.

Accepted Answer

A) True 
 B)False

Question 12

Figure 28-4 
-Refer to Figure 28-4. If the government imposes a minimum wage of $4, how many workers will be unemployed?

Accepted Answer

A)   0
B)   2,000
C)   4,000
D)   6,000E) A) and C)
F) A) and B)

Question 13

Which of the following is not correct?

Accepted Answer

A)   Unions are exempt from U.S. antitrust laws.
B)   The Wagner Act of 1935 prevents U.S. employers from interfering when workers try to organize unions.
C)   The National Labor Relations Board is the U.S. government agency that enforces workers' right to unionize.
D)   Right-to-work laws prevent firms from hiring permanent replacements for workers who are on strike.E) B) and D)
F) A) and D)

Question 14

When unions raise wages in one part of the economy, the supply of labor increases in other parts of the economy, which reduces wages in industries that are not unionized.

Accepted Answer

A) True 
 B)False

Question 15

Job search

Accepted Answer

A)   is one reason economies always experience some unemployment.
B)   is the process of matching workers with appropriate jobs.
C)   would not be a problem if all workers and all jobs were the same.
D)   All of the above are correct.E) All of the above
F) B) and C)

Question 16

The unemployment rate equals the percentage of the labor force that is unemployed.

Accepted Answer

A) True 
 B)False

Question 17

Octavia does not currently have a job, but she has applied for several jobs in the previous week. Eve is an unpaid stay-at-home mom who has not searched for work in recent years. Who does the Bureau of Labor Statistics count as "out of the labor force"?

Accepted Answer

A)   Octavia but not Eve
B)   Eve but not Octavia
C)   both Octavia and Eve
D)   neither Octavia nor EveE) All of the above
F) C) and D)

Question 18

Unemployment insurance

Accepted Answer

A)   may improve the ability of the economy to match workers with appropriate jobs.
B)   reduces the job search efforts of the unemployed.
C)   increases the amount of frictional unemployment in the economy.
D)   All of the above are correct.E) None of the above
F) B) and C)

Question 19

In which of the following situations should a firm pay efficiency wages?

Accepted Answer

A)   A hiring manager can easily judge the quality of applicants, and after workers have worked for the firm a while, they tend not to look for other jobs.
B)   A hiring manager can easily judge the quality of applicants, and after workers have worked for the firm a while, they tend to look for other jobs.
C)   A hiring manager cannot easily judge the quality of applicants, and after workers have worked for the firm a while, they tend to look for other jobs.
D)   A hiring manager cannot easily judge the quality of applicants, and after workers have worked for the firm a while, they tend not to look for other jobs.E) None of the above
F) B) and C)

Question 20

Which of the following is correct?

Accepted Answer

A)   Union membership in the United States peaked in the 1940s and 1950s.
B)   Unions play a larger role in the United States than in European countries such as Belgium, France, and Germany.
C)   Because of the popularity of unions, most workers in the United States discuss their wages, benefits, and working conditions with their employers as a group.
D)   Collective bargaining is the process by which unions negotiate membership dues with the National Labor Relations Board.E) A) and B)
F) C) and D)

Exam 10: Unemployment and Its Natural Rate

Octavia does not currently have a job, but she has applied for several jobs in the previous week. Eve is an unpaid stay-at-home mom who has not searched for work in recent years. Who does the Bureau of Labor Statistics count as "out of the labor force"?

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The unemployment rate equals the percentage of the labor force that is unemployed.

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List the four ways to explain unemployment in the long run.

Correct Answerverifiedsearch costs, minimu...View AnswerShow Answer

Which of the following is not correct?

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Unemployment insurance

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Table 28-11 2010 Labor Data for Tajnia -Refer to Table 28-11. The labor force of Tajnia in 2010 is 10,000.

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In which of the following situations should a firm pay efficiency wages?

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Job search

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Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually decreased.

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When unions raise wages in one part of the economy, the supply of labor increases in other parts of the economy, which reduces wages in industries that are not unionized.

Correct AnswerverifiedShow Answer

Briefly explain the four rationales for efficiency wages.

Correct Answerverified1. Better paid workers are healthier and...View AnswerShow Answer

Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $4, how many workers will be unemployed?

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Which of the following is correct?

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Which of the following is correct?

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Some people who are employed or who are not making serious effort to find employment will report themselves as unemployed. Some people who want to find work will be counted as out of the labor force.

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Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The number of adults not in the labor force of Aridia in 2011 was

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In terms of duration, how does cyclical unemployment differ from structural unemployment?

Correct AnswerverifiedCyclical unemploymen...View AnswerShow Answer

More than one-third of the unemployed are recent entrants into the labor force.

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In Belgium, Norway, and Sweden, the percentage of workers who belong to unions is

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Which of the following is the correct formula for calculating the unemployment rate?

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search costs, minimu...
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1. Better paid workers are healthier and...
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Cyclical unemploymen...
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