Question 1

Adults who were waiting to be recalled to a job from which they had been laid off are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 2

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 3

The amount of unemployment that an economy normally experiences is called the

Accepted Answer

A)   average rate of unemployment.
B)   natural rate of unemployment.
C)   cyclical rate of unemployment.
D)   typical rate of unemployment.E) All of the above
F) A) and C)

Question 4

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called structural unemployment.

Accepted Answer

A) True 
 B)False

Question 5

Both full­time and part­time workers are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 6

Policies that reduce the time it takes unemployed workers to find new jobs

Accepted Answer

A)   can reduce both frictional unemployment and the natural rate of unemployment.
B)   can reduce frictional unemployment, but they cannot reduce the natural rate of unemployment.
C)   cannot reduce frictional unemployment, but they can reduce the natural rate of unemployment.
D)   cannot reduce either frictional unemployment or the natural rate of unemployment.E) C) and D)
F) A) and D)

Question 7

Table 28-3
2009 Labor Data for Baltivia
 
-Refer to Table 28-3. What was Baltivia's labor­force participation rate in 2009?

Accepted Answer

A)   55%
B)   63%
C)   66.9%
D)   87.3%E) A) and D)
F) B) and C)

Question 8

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 9

According to the theory of efficiency wages, firms operate more efficiently if wages are below the equilibrium level.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not correct?

Accepted Answer

A)   A union is a worker association that bargains with employers over wages, benefits, and working conditions.
B)   Unions play a much larger role in the U.S. labor market now than they did in the past.
C)   Unions play a large role in many European countries.
D)   A union is a type of cartel.E) B) and C)
F) All of the above

Question 11

Wages in excess of their equilibrium level help explain

Accepted Answer

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

Question 12

For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must

Accepted Answer

A)   be available for work.
B)   have tried to find employment during the previous week.
C)   have previously been employed.
D)   All of the above are correct.E) A) and B)
F) All of the above

Question 13

Efficiency wages

Accepted Answer

A)   increase frictional unemployment by keeping wages above equilibrium.
B)   decrease frictional unemployment by keeping wages at equilibrium.
C)   increase structural unemployment by keeping wages above equilibrium.
D)   decrease structural unemployment by keeping wages at equilibrium.E) B) and D)
F) None of the above

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Figure 28-3 
-Refer to Figure 28-3. If the government imposes a minimum wage of $4, 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) A) and B)

Question 16

Table 28-11
2010 Labor Data for Tajnia
 
-Refer to Table 28-11. The total adult population of Tajnia in 2010 is 30,000.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not a cause of frictional unemployment?

Accepted Answer

A)   the destruction of manufacturing jobs
B)   a worker leaving a job to find one with better benefits
C)   minimum-wage laws
D)   unemployment insuranceE) All of the above
F) A) and B)

Question 18

Buddy is the owner of a firm that bottles beer in St. Louis, Missouri. There are many other such firms in the area. Buddy decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

Accepted Answer

A)   The higher the wage, the less often his workers will choose to leave his firm.
B)   The higher the wage, the lower will be the costs of obtaining needed supplies.
C)   The higher the wage, the more he can charge for his beer
D)   The higher the wage, the more he will have to monitor his workers for shirking.E) B) and C)
F) None of the above

Question 19

The Bureau of Labor Statistics' U­1 measure of joblessness is smaller than its U­6 measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 20

Figure 28-5 
-Refer to Figure 28-5. If the minimum wage is set at $125, then

Accepted Answer

A)   the quantity of labor demanded will equal 20.
B)   the quantity of labor supplied will equal 35.
C)   the surplus of labor will equal 25.
D)   unemployment will equal 10.E) None of the above
F) B) and D)

Exam 20: Unemployment

Both full­time and part­time workers are included in the Bureau of Labor Statistics' "employed" category.

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Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. What was Baltivia's labor­force participation rate in 2009?

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The Bureau of Labor Statistics' U­1 measure of joblessness is smaller than its U­6 measure of joblessness.

Correct AnswerverifiedShow Answer

Wages in excess of their equilibrium level help explain

Correct AnswerverifiedShow Answer

Buddy is the owner of a firm that bottles beer in St. Louis, Missouri. There are many other such firms in the area. Buddy decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

Correct AnswerverifiedShow Answer

Efficiency wages

Correct AnswerverifiedShow Answer

The amount of unemployment that an economy normally experiences is called the

Correct AnswerverifiedShow Answer

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $4, then employment will decrease by

Correct AnswerverifiedShow Answer

Policies that reduce the time it takes unemployed workers to find new jobs

Correct AnswerverifiedShow Answer

For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must

Correct AnswerverifiedShow Answer

Which of the following is not a cause of frictional unemployment?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to the theory of efficiency wages, firms operate more efficiently if wages are below the equilibrium level.

Correct AnswerverifiedShow Answer

Adults who were waiting to be recalled to a job from which they had been laid off are included in the Bureau of Labor Statistics' "employed" category.

Correct AnswerverifiedShow Answer

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called structural unemployment.

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

Table 28-11 2010 Labor Data for Tajnia -Refer to Table 28-11. The total adult population of Tajnia in 2010 is 30,000.

Correct AnswerverifiedShow Answer

Figure 28-5 -Refer to Figure 28-5. If the minimum wage is set at $125, then

Correct AnswerverifiedShow Answer

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called frictional unemployment.

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Which of the following is not correct?

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Both fulltime and parttime workers are included in the Bureau of Labor Statistics' "employed" category.

Correct Answer
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Table 28-3 2009 Labor Data for Baltivia -Refer to Table 28-3. What was Baltivia's laborforce participation rate in 2009?

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The Bureau of Labor Statistics' U1 measure of joblessness is smaller than its U6 measure of joblessness.

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