Question 1

Cyclical unemployment is caused by

Accepted Answer

A)   frictional and structural unemployment
B)   frictional but not structural unemployment
C)   structural but not frictional unemployment
D)   neither frictional nor structural unemploymentE) None of the above
F) A) and B)

Question 2

Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

Accepted Answer

A) True 
 B)False

Question 3

Between the 1940s and today, union membership in the U.S.

Accepted Answer

A)   rose from about one-eighth to one-third of the labor force.
B)   rose from about one-third to one-half of the labor force.
C)   fell from about one-half to one-third of the labor force.
D)   fell from about one-third to one-eighth of the labor force.E) B) and C)
F) C) and D)

Question 4

In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Swedish adult non-institutionalized population was 7.568 million, the labor force was 4.888 million, and the number of people employed was 4.486 million. According to these numbers, the Swedish labor-force participation rate and unemployment rate were about

Accepted Answer

A)   64.6% and 8.2%.
B)   64.6% and 5.3%.
C)   59.3% and 8.2%.
D)   59.3% and 5.3%.E) All of the above
F) B) and C)

Question 5

Measuring the amount of unemployment in the economy is a straightforward task.

Accepted Answer

A) True 
 B)False

Question 6

Who of the following is counted as unemployed by the BLS?

Accepted Answer

A)   someone working without pay for a family member's business
B)   someone who is absent from their job due to illness
C)   someone on temporary layoff
D)   All of the above are correct.E) B) and D)
F) B) and C)

Question 7

Which of the following is not correct?

Accepted Answer

A)   Frictional unemployment results from the process of matching workers and jobs.
B)   Structural unemployment results when the number of jobs is insufficient for the number of workers.
C)   Minimum wages are the predominant reason for unemployment in the U.S. economy.
D)   When a minimum-wage law forces the wage to remain above the level that balances supply and demand, it raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.E) A) and B)
F) A) and C)

Question 8

The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

Accepted Answer

A)   higher production costs and higher profits.
B)   higher production costs and lower profits.
C)   lower production costs and higher profits.
D)   lower production costs and lower profits.E) B) and D)
F) A) and D)

Question 9

A person who is counted as unemployed by the Bureau of Labor Statistics

Accepted Answer

A)   is also in the labor force.
B)   must have recently looked for work or be on temporary layoff.
C)   must be at least 16 years old.
D)   All of the above are correct.E) A) and B)
F) B) and D)

Question 10

Which of the following is correct?

Accepted Answer

A)   In the U.S. it is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment. Unions may keep wages above their equilibrium level.
B)   In the U.S. it is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment. Unions cannot keep wages above their equilibrium level.
C)   In the U.S. minimum-wage laws cause unemployment even for people with high skills and much experience. Unions may keep wages above their equilibrium level.
D)   In the U.S. minimum-wage laws cause unemployment even for people with high skills and much experience. Unions cannot keep wages above their equilibrium level.E) B) and D)
F) B) and C)

Question 11

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

Question 12

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 600 households, called the Current Population Survey.

Accepted Answer

A) True 
 B)False

Question 13

Figure 10-1
 
-Refer to Figure 10-1. If the government imposes a minimum wage of $8, then employment will decrease by

Accepted Answer

A)   0 workers.
B)   2000 workers.
C)   3000 workers.
D)   4000 workers.E) A) and B)
F) B) and D)

Question 14

Refer to Labor
Labor Market Data
Below is some hypothetical data on the labor market.
 
-Refer to Labor Market Data. If the government imposed a minimum wage of $5, what would unemployment be?

Accepted Answer

A)   0
B)   2,000
C)   3,000
D)   5,000E) B) and D)
F) All of the above

Question 15

Why have labor-force participation rates for women in the United States increased since World War II while labor-force participation rates for men have decreased?

Accepted Answer

Causes of the increase in the U.S. women...

Question 16

In an ideal labor market, wages would adjust to balance the quantity of labor supplied and the quantity of labor demanded, ensuring that all workers are always fully employed.

Accepted Answer

A) True 
 B)False

Question 17

Evidence indicates that the typical person who becomes unemployed will

Accepted Answer

A)   soon find a job.
B)   find a job, but not before a year or more has gone by.
C)   leave the labor force and never return.
D)   retire soon afterE) A) and D)
F) A) and C)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Suppose that consumers choose to smoke less and chew gum more. Tobacco companies cut back on the number of people they employ while chewing gum manufacturers employ more. This is an example of

Accepted Answer

A)   structural unemployment created by efficiency wages.
B)   structural unemployment created by sectoral shifts.
C)   frictional unemployment created by efficiency wages.
D)   frictional unemployment created by sectoral shifts.E) None of the above
F) All of the above

Question 20

In the 1990's Ireland made unemployment benefits less generous. This change would likely have

Accepted Answer

A)   reduced structural unemployment and the natural rate of unemployment
B)   reduced structural unemployment but not the natural rate of unemployment
C)   reduced frictional unemployment and the natural rate of unemployment
D)   reduced frictional unemployment but not the natural rate of unemploymentE) B) and C)
F) None of the above

Exam 10: Unemployment

Cyclical unemployment is caused by

Correct Answer
verified

Suppose that consumers choose to smoke less and chew gum more. Tobacco companies cut back on the number of people they employ while chewing gum manufacturers employ more. This is an example of

Correct Answer
verified

In the 1990's Ireland made unemployment benefits less generous. This change would likely have

Correct Answer
verified

Why have labor-force participation rates for women in the United States increased since World War II while labor-force participation rates for men have decreased?

Correct Answer
verified
Causes of the increase in the U.S. women...
View Answer

Which of the following is correct?

Correct Answer
verified

There is a clear consensus among economists that unions are

Correct Answer
verified

A person who is counted as unemployed by the Bureau of Labor Statistics

Correct Answer
verified

The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

Correct Answer
verified

Figure 10-1 -Refer to Figure 10-1. If the government imposes a minimum wage of $8, then employment will decrease by

Correct Answer
verified

Between the 1940s and today, union membership in the U.S.

Correct Answer
verified

Refer to Labor Labor Market Data Below is some hypothetical data on the labor market. -Refer to Labor Market Data. If the government imposed a minimum wage of $5, what would unemployment be?

Correct Answer
verified

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

Correct Answer
verified

Evidence indicates that the typical person who becomes unemployed will

Correct Answer
verified

Correct Answer
verified

Measuring the amount of unemployment in the economy is a straightforward task.

Correct Answer
verified

In an ideal labor market, wages would adjust to balance the quantity of labor supplied and the quantity of labor demanded, ensuring that all workers are always fully employed.

Correct Answer
verified

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 600 households, called the Current Population Survey.

Correct Answer
verified

Who of the following is counted as unemployed by the BLS?

Correct Answer
verified

Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

Exam 10: Unemployment

Cyclical unemployment is caused by

Correct AnswerverifiedShow Answer

Suppose that consumers choose to smoke less and chew gum more. Tobacco companies cut back on the number of people they employ while chewing gum manufacturers employ more. This is an example of

Correct AnswerverifiedShow Answer

In the 1990's Ireland made unemployment benefits less generous. This change would likely have

Correct AnswerverifiedShow Answer

Why have labor-force participation rates for women in the United States increased since World War II while labor-force participation rates for men have decreased?

Correct AnswerverifiedCauses of the increase in the U.S. women...View AnswerShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

There is a clear consensus among economists that unions are

Correct AnswerverifiedShow Answer

A person who is counted as unemployed by the Bureau of Labor Statistics

Correct AnswerverifiedShow Answer

The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

Correct AnswerverifiedShow Answer

Figure 10-1 -Refer to Figure 10-1. If the government imposes a minimum wage of $8, then employment will decrease by

Correct AnswerverifiedShow Answer

Between the 1940s and today, union membership in the U.S.

Correct AnswerverifiedShow Answer

Refer to Labor Labor Market Data Below is some hypothetical data on the labor market. -Refer to Labor Market Data. If the government imposed a minimum wage of $5, what would unemployment be?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Evidence indicates that the typical person who becomes unemployed will

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Measuring the amount of unemployment in the economy is a straightforward task.

Correct AnswerverifiedShow Answer

In an ideal labor market, wages would adjust to balance the quantity of labor supplied and the quantity of labor demanded, ensuring that all workers are always fully employed.

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 600 households, called the Current Population Survey.

Correct AnswerverifiedShow Answer

Who of the following is counted as unemployed by the BLS?

Correct AnswerverifiedShow Answer

Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Causes of the increase in the U.S. women...
View Answer

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified