Question 1

Employment can rise in one region of the country while it falls in another.

Accepted Answer

A) True 
 B)False

Question 2

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the

Accepted Answer

A)   number of people unemployed.
B)   number of jobs the economy has gained or lost.
C)   size of the labor force.
D)   number of people who own their own businesses.E) A) and B)
F) A) and C)

Question 3

Sectoral shifts contribute to frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 4

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 5

People who report being unemployed but who, in fact, are working for "under the table" pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.

Accepted Answer

A) True 
 B)False

Question 6

One explanation for long-run unemployment is that it takes time for workers to search for the jobs that are best suited for them.

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

Public policy

Accepted Answer

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

Question 9

Figure 28-4 
-Refer to Figure 28-4. If 2,000 workers are unemployed, then the minimum wage must be

Accepted Answer

A)   $3.
B)   $4.
C)   $5.
D)   $6.E) A) and C)
F) C) and D)

Question 10

Suppose that a well-respected study published in Child Psychology Today finds that a very high proportion of children raised by stay-at-home fathers are accepted to Harvard University. If a large number of previously working fathers quit their jobs and become stay-at-home dads, which of the following will occur, all else equal? i)  The unemployment rate will decrease.
Ii)  The size of the labor force will decrease.
Iii)  The number of unemployed people will increase.
Iv)  The unemployment rate will increase.

Accepted Answer

A)   i)  and ii)  only
B)   ii)  and iv)  only
C)   i) , ii) , and iii)  only
D)   ii) , iii) , and iv)  onlyE) A) and B)
F) A) and C)

Question 11

The Bureau of Labor Statistics' U­5 measure of joblessness is the official unemployment rate.

Accepted Answer

A) True 
 B)False

Question 12

The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

Accepted Answer

A) True 
 B)False

Question 13

Cyclical unemployment refers to

Accepted Answer

A)   the relationship between the probability of unemployment and a worker's changing level of experience.
B)   how often a worker is likely to be employed during her lifetime.
C)   year-to-year fluctuations of unemployment around its natural rate.
D)   long-term trends in unemployment.E) None of the above
F) All of the above

Question 14

Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were employed?

Accepted Answer

A)   1.5 million
B)   28.5 million
C)   30 million
D)   47.5 millionE) B) and C)
F) C) and D)

Question 15

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 16

Someone who is without work but is not looking for work is included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 17

Frictional unemployment is inevitable because

Accepted Answer

A)   sectoral shifts are always happening.
B)   there is a federal minimum-wage law in the U.S.
C)   some people do not want to be employed.
D)   unions are very popular in the U.S.E) A) and D)
F) B) and C)

Question 18

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of households called the

Accepted Answer

A)   Census.
B)   Labor Survey.
C)   Survey of Economic Indicators.
D)   Current Population Survey.E) A) and B)
F) None of the above

Question 19

Efficiency wages

Accepted Answer

A)   may increase productivity.
B)   will increase unemployment.
C)   may improve worker health.
D)   All of the above are correct.E) A) and C)
F) All of the above

Question 20

Briefly describe how labor unions can affect wages in non-unionized industries.

Accepted Answer

If labor unions raise wages above the eq...

Exam 15: Unemployment

Someone who is without work but is not looking for work is included in the Bureau of Labor Statistics' "unemployed" category.

Correct Answer
verified

Briefly describe how labor unions can affect wages in non-unionized industries.

Correct Answer
verified
If labor unions raise wages above the eq...
View Answer

The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

Correct Answer
verified

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Correct Answer
verified

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 Answer
verified

Employment can rise in one region of the country while it falls in another.

Correct Answer
verified

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of households called the

Correct Answer
verified

The Bureau of Labor Statistics' U5 measure of joblessness is the official unemployment rate.

Correct Answer
verified

Frictional unemployment is inevitable because

Correct Answer
verified

Figure 28-4 -Refer to Figure 28-4. If 2,000 workers are unemployed, then the minimum wage must be

Correct Answer
verified

Correct Answer
verified

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the

Correct Answer
verified

Public policy

Correct Answer
verified

Sectoral shifts contribute to frictional unemployment.

Correct Answer
verified

Efficiency wages

Correct Answer
verified

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 Answer
verified

Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were employed?

Correct Answer
verified

People who report being unemployed but who, in fact, are working for "under the table" pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.

Correct Answer
verified

Cyclical unemployment refers to

Correct Answer
verified

One explanation for long-run unemployment is that it takes time for workers to search for the jobs that are best suited for them.

Correct Answer
verified

Exam 15: Unemployment

Someone who is without work but is not looking for work is included in the Bureau of Labor Statistics' "unemployed" category.

Correct AnswerverifiedShow Answer

Briefly describe how labor unions can affect wages in non-unionized industries.

Correct AnswerverifiedIf labor unions raise wages above the eq...View AnswerShow Answer

The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

Correct AnswerverifiedShow Answer

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

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

Employment can rise in one region of the country while it falls in another.

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of households called the

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' U­5 measure of joblessness is the official unemployment rate.

Correct AnswerverifiedShow Answer

Frictional unemployment is inevitable because

Correct AnswerverifiedShow Answer

Figure 28-4 -Refer to Figure 28-4. If 2,000 workers are unemployed, then the minimum wage must be

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the

Correct AnswerverifiedShow Answer

Public policy

Correct AnswerverifiedShow Answer

Sectoral shifts contribute to frictional unemployment.

Correct AnswerverifiedShow Answer

Efficiency wages

Correct AnswerverifiedShow Answer

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

Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were employed?

Correct AnswerverifiedShow Answer

People who report being unemployed but who, in fact, are working for "under the table" pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.

Correct AnswerverifiedShow Answer

Cyclical unemployment refers to

Correct AnswerverifiedShow Answer

One explanation for long-run unemployment is that it takes time for workers to search for the jobs that are best suited for them.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
If labor unions raise wages above the eq...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The Bureau of Labor Statistics' U5 measure of joblessness is the official unemployment rate.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified