Question 1

Discuss the labor-force participation trends for men and women since 1950.

Accepted Answer

The labor-force participation rates for ...

Question 2

Which of the following is correct?

Accepted Answer

A)  Unemployment insurance raises structural unemployment because it reduces the job search efforts of the unemployed.
B)  Most economists are skeptical of the value of unemployment insurance primarily because they believe that it results in a poorer match between workers and jobs.
C)  Studies show that when the unemployed become ineligible for benefits, the probability of their finding a job rises markedly.
D)  All of the above are correct.E) All of the above
F) None of the above

Question 3

Sectoral changes in demand

Accepted Answer

A)  create frictional unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates structural unemployment.
B)  create structural unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates frictional unemployment.
C)  and firms paying wages above equilibrium to attract a better pool of candidates both create structural unemployment.
D)  and firms paying wages above equilibrium to attract a better pool of candidates both create frictional unemployment.E) All of the above
F) B) and C)

Question 4

Give an historical example of an efficiency wage that was considered by the firm to be "one of the finest cost-cutting moves we ever made."

Accepted Answer

Henry Ford paid $5 per day to ...

Question 5

The labor force minus the number of employed equals the number of unemployed.

Accepted Answer

A) True 
 B)False

Question 6

Suppose the demand for hard-wood flooring increases, while the demand for wall-to-wall carpeting decreases. Based on this change in consumer tastes, the demand for hard-wood-flooring factory workers in North Carolina increases, while the demand for carpet factory workers in Georgia decreases. This is an example of

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

Question 7

Table 28-3
2009 Labor Data for Baltivia 
-Refer to Table 28-3. How many people were unemployed in Baltivia in 2009?

Accepted Answer

A)  1,400
B)  1,600
C)  2,000
D)  2,780E) A) and C)
F) A) and B)

Question 8

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

Accepted Answer

A)  Efficiency wages increase worker health and therefore increase worker productivity.
B)  Efficiency wages decrease worker turnover and therefore decrease hiring and training costs.
C)  Efficiency wages decrease worker shirking and therefore increase worker productivity.
D)  Efficiency wages are below the equilibrium wage rate but still attract a sufficient number of workers.E) None of the above
F) A) and B)

Question 9

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

Question 10

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

Accepted Answer

A)  about 25 percent, and in 2015 it was about 50 percent.
B)  about 33 percent, and in 2015 it was about 60 percent.
C)  about 50 percent, and in 2015 it was about 70 percent.
D)  about 60 percent, and in 2015 it was about 80 percent.E) A) and B)
F) B) and D)

Question 11

Of the following groups, who is eligible for unemployment insurance benefits?

Accepted Answer

A)  the unemployed who quit their jobs
B)  the unemployed who were laid off because their previous employers no longer needed their skills
C)  the unemployed who were fired for cause
D)  the unemployed who just entered the labor forceE) A) and B)
F) A) and C)

Question 12

Measuring unemployment is the job of the

Accepted Answer

A)  Congressional Budget Office.
B)  Department of Commerce.
C)  Council of Economic Advisers.
D)  Bureau of Labor Statistics.E) C) and D)
F) None of the above

Question 13

The amount of unemployment varies little over time and across countries.

Accepted Answer

A) True 
 B)False

Question 14

Table 28-10
The table below lists the number of people by labor force classification for the country of Springfield. 
-Refer to Table 28-10. Calculate the number in the adult population, and the labor force participation rate.

Accepted Answer

The adult population...

Question 15

Full-time students and homemakers are included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 16

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was

Accepted Answer

A)  154/234.9.
B)  141.6/234.9.
C)  141.6/154.
D)  None of the above is correct.E) None of the above
F) A) and B)

Question 17

There is a clear consensus among economists that unions are

Accepted Answer

A)  good for the economy because they result in higher wages for most workers.
B)  good for the economy because they are a necessary antidote to the market power of employers.
C)  bad for the economy because they are cartels and therefore detrimental to an efficient allocation of resources.
D)  None of the above is correct; there is no clear consensus among economists about whether unions are good or bad for the economy.E) C) and D)
F) A) and B)

Question 18

The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.

Accepted Answer

A) True 
 B)False

Question 19

The labor-force participation rate is computed as

Accepted Answer

A)  (Employed  Adult Population)   100.
B)  (Employed  Labor Force)   100.
C)  (Labor Force  Adult Population)   100.
D)  (Adult Population  Labor Force)   100.E) None of the above
F) B) and D)

Question 20

The designation "natural" implies that the natural rate of unemployment

Accepted Answer

A)  is desirable.
B)  is constant over time.
C)  is impervious to economic policy.
D)  does not go away on its own even in the long run.E) None of the above
F) A) and D)

Exam 28: Unemployment and Its Natural Rate

There is a clear consensus among economists that unions are

Correct Answer
verified

Table 28-10 The table below lists the number of people by labor force classification for the country of Springfield. -Refer to Table 28-10. Calculate the number in the adult population, and the labor force participation rate.

Correct Answer
verified
The adult population...
View Answer

Discuss the labor-force participation trends for men and women since 1950.

Correct Answer
verified
The labor-force participation rates for ...
View Answer

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was

Correct Answer
verified

The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.

Correct Answer
verified

Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. How many people were unemployed in Baltivia in 2009?

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

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

Correct Answer
verified

The designation "natural" implies that the natural rate of unemployment

Correct Answer
verified

Give an historical example of an efficiency wage that was considered by the firm to be "one of the finest cost-cutting moves we ever made."

Correct Answer
verified
Henry Ford paid $5 per day to ...
View Answer

Correct Answer
verified

Full-time students and homemakers are included in the Bureau of Labor Statistics' "unemployed" category.

Correct Answer
verified

The labor force minus the number of employed equals the number of unemployed.

Correct Answer
verified

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

Correct Answer
verified

The labor-force participation rate is computed as

Correct Answer
verified

Sectoral changes in demand

Correct Answer
verified

Measuring unemployment is the job of the

Correct Answer
verified

Of the following groups, who is eligible for unemployment insurance benefits?

Correct Answer
verified

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

Correct Answer
verified

The amount of unemployment varies little over time and across countries.

Correct Answer
verified

Exam 28: Unemployment and Its Natural Rate

There is a clear consensus among economists that unions are

Correct AnswerverifiedShow Answer

Table 28-10 The table below lists the number of people by labor force classification for the country of Springfield. -Refer to Table 28-10. Calculate the number in the adult population, and the labor force participation rate.

Correct AnswerverifiedThe adult population...View AnswerShow Answer

Discuss the labor-force participation trends for men and women since 1950.

Correct AnswerverifiedThe labor-force participation rates for ...View AnswerShow Answer

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.

Correct AnswerverifiedShow Answer

Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. How many people were unemployed in Baltivia in 2009?

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The designation "natural" implies that the natural rate of unemployment

Correct AnswerverifiedShow Answer

Give an historical example of an efficiency wage that was considered by the firm to be "one of the finest cost-cutting moves we ever made."

Correct AnswerverifiedHenry Ford paid $5 per day to ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Full-time students and homemakers are included in the Bureau of Labor Statistics' "unemployed" category.

Correct AnswerverifiedShow Answer

The labor force minus the number of employed equals the number of unemployed.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The labor-force participation rate is computed as

Correct AnswerverifiedShow Answer

Sectoral changes in demand

Correct AnswerverifiedShow Answer

Measuring unemployment is the job of the

Correct AnswerverifiedShow Answer

Of the following groups, who is eligible for unemployment insurance benefits?

Correct AnswerverifiedShow Answer

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

Correct AnswerverifiedShow Answer

The amount of unemployment varies little over time and across countries.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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The adult population...
View Answer

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The labor-force participation rates for ...
View Answer

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Henry Ford paid $5 per day to ...
View Answer

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