Question 1

Policies that make it more difficult to fire an employee are likely to:

Accepted Answer

A)   lead to greater unemployment.
B)   lead to less unemployment.
C)   have no impact on unemployment.
D)   affect frictionally unemployed workers more than other unemployed workers.E) B) and D)
F) A) and B)

Question 2

For economic purposes in the United States, the working-age population does not include:

Accepted Answer

A)   anyone in the military.
B)   someone who is 16 and does not want to work.
C)   someone who is 65.
D)   anyone without a driver's license.E) B) and C)
F) None of the above

Question 3

Sarah used to be a music teacher at a local school, but got let go last year due to budget cuts. Sarah now works part-time as a waitress while looking for another teaching job. Sarah would be considered:

Accepted Answer

A)   frictionally unemployed.
B)   underemployed.
C)   structurally unemployed.
D)   real-wage unemployed.E) A) and D)
F) All of the above

Question 4

When growth goes down, unemployment tends to go:

Accepted Answer

A)   up shortly after, and vice versa.
B)   down shortly after, and vice versa.
C)   down at the same time, and vice versa.
D)   up at the same time, but remains sticky on the way down and lags behind.E) None of the above
F) A) and C)

Question 5

Unemployment:

Accepted Answer

A)   changes primarily because of macroeconomic forces.
B)   can have serious social consequences.
C)   can create uncertainty about the future.
D)   All of these are true.E) A) and D)
F) All of the above

Question 6

The employer who has the most unionized workers is the:

Accepted Answer

A)   government.
B)   airline industry.
C)   trucking industry.
D)   auto industry.E) A) and B)
F) A) and C)

Question 7

If GDP growth were to increase, it would cause the labor:

Accepted Answer

A)   demand curve to shift left.
B)   demand curve to shift right.
C)   supply curve to shift left.
D)   supply curve to shift right.E) B) and C)
F) B) and D)

Question 8

When the economy is going strong:

Accepted Answer

A)   firms expand their operations.
B)   demand for workers decreases.
C)   GDP growth is negative.
D)   firms tend to lay off workers.E) A) and B)
F) A) and C)

Question 9

Unemployment insurance is:

Accepted Answer

A)   offered by companies as a way to affect the level of frictional unemployment.
B)   offered by the government as a way to affect the level of seasonal unemployment.
C)   money that is paid by the government to people who are unemployed.
D)   All of these are true.E) None of the above
F) A) and B)

Question 10

The Bureau of Labor Statistics collects _______ measures of unemployment.

Accepted Answer

A)   4
B)   5
C)   6
D)   7E) B) and D)
F) None of the above

Question 11

John earned a PhD in biomedical engineering, and works full-time as a faculty member at the local university. He also does some private consulting work on the side. He would like to give up teaching and do consulting full-time, but he fears there isn't enough demand for it. The best way to describe John is to say he is:

Accepted Answer

A)   a discouraged worker.
B)   underemployed.
C)   overemployed.
D)   employed.E) None of the above
F) B) and D)

Question 12

Supporters of minimum-wage legislation argue that:

Accepted Answer

A)   workers deserve a basic standard of living.
B)   it would not be fair for firms to pay a wage that would leave workersstruggling to escape poverty.
C)   a worker earning minimum wage should be able to live above the poverty line.
D)   All of these are true.E) B) and C)
F) All of the above

Question 13

If you hear that unemployment increased in the last year by 3.5 percentage points to 8 %it means:

Accepted Answer

A)   35 out of every 100 people lost their job in the last year.
B)   35 out of every 1,000 people lost their job in the last year.
C)   8 out of every 1,000 people who want a job can't find one.
D)   80 out of every 100 people who want a job can't find one.E) A) and D)
F) A) and C) B

Question 14

On average, younger people have:

Accepted Answer

A)   higher unemployment rates than older people.
B)   lower unemployment rates than older people.
C)   similar unemployment rates than older people.
D)   uncorrelated unemployment rates compared to those of older people.E) A) and B)
F) All of the above

Question 15

The degree of wage stickiness in the real world:

Accepted Answer

A)   is controversial, even among economists.
B)   is agreed upon by economists, but not accepted by others, like policymakers.
C)   is agreed upon by economists as a concept, but controversial in how it's measured.
D)   has been estimated by economists.E) B) and C)
F) C) and D)

Question 16

If the minimum wage is set at a level above the equilibrium wage:

Accepted Answer

A)   it will have no effect.
B)   it will be a nonbinding minimum wage.
C)   it could cause unemployment.
D)   All of these are true.E) B) and C)
F) A) and C)

Question 17

Real-wage unemployment is:

Accepted Answer

A)   a mismatch between the skills workers can offer and the skills that are in demand.
B)   unemployment caused by workers who are changing their location, job, or career.
C)   the effect of wages remaining persistently above the market-clearing level.
D)   also called cyclical unemployment.E) A) and B)
F) B) and C) C

Question 18

In the United States, to count as unemployed, you must:

Accepted Answer

A)   be younger than 65 years old.
B)   actively looking for work.
C)   be skilled enough to hold a job.
D)   All of these are true.E) A) and B)
F) A) and C) B

Question 19

We would expect, all else equal, that:

Accepted Answer

A)   lower taxes would reduce unemployment.
B)   higher taxes would reduce unemployment.
C)   taxes would have no effect on unemployment.
D)   taxes would be negatively related to unemployment.E) None of the above
F) All of the above

Question 20

Real-wage unemployment can be caused by which of the following?

Accepted Answer

A)   Minimum wage laws
B)   Retraining programs
C)   Low-interest student loans
D)   None of these cause real-wage unemployment.E) A) and B)
F) C) and D)

Exam 9: Unemployment and the Labor Market

Policies that make it more difficult to fire an employee are likely to:

Correct Answer
verified

For economic purposes in the United States, the working-age population does not include:

Correct Answer
verified

Sarah used to be a music teacher at a local school, but got let go last year due to budget cuts. Sarah now works part-time as a waitress while looking for another teaching job. Sarah would be considered:

Correct Answer
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When growth goes down, unemployment tends to go:

Correct Answer
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Unemployment:

Correct Answer
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The employer who has the most unionized workers is the:

Correct Answer
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If GDP growth were to increase, it would cause the labor:

Correct Answer
verified

When the economy is going strong:

Correct Answer
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Unemployment insurance is:

Correct Answer
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The Bureau of Labor Statistics collects _______ measures of unemployment.

Correct Answer
verified

Correct Answer
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Supporters of minimum-wage legislation argue that:

Correct Answer
verified

If you hear that unemployment increased in the last year by 3.5 percentage points to 8 %it means:

Correct Answer
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B

On average, younger people have:

Correct Answer
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The degree of wage stickiness in the real world:

Correct Answer
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If the minimum wage is set at a level above the equilibrium wage:

Correct Answer
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Real-wage unemployment is:

Correct Answer
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C

In the United States, to count as unemployed, you must:

Correct Answer
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B

We would expect, all else equal, that:

Correct Answer
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Real-wage unemployment can be caused by which of the following?

Correct Answer
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Exam 9: Unemployment and the Labor Market

Policies that make it more difficult to fire an employee are likely to:

Correct AnswerverifiedShow Answer

For economic purposes in the United States, the working-age population does not include:

Correct AnswerverifiedShow Answer

Sarah used to be a music teacher at a local school, but got let go last year due to budget cuts. Sarah now works part-time as a waitress while looking for another teaching job. Sarah would be considered:

Correct AnswerverifiedShow Answer

When growth goes down, unemployment tends to go:

Correct AnswerverifiedShow Answer

Unemployment:

Correct AnswerverifiedShow Answer

The employer who has the most unionized workers is the:

Correct AnswerverifiedShow Answer

If GDP growth were to increase, it would cause the labor:

Correct AnswerverifiedShow Answer

When the economy is going strong:

Correct AnswerverifiedShow Answer

Unemployment insurance is:

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics collects _______ measures of unemployment.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Supporters of minimum-wage legislation argue that:

Correct AnswerverifiedShow Answer

If you hear that unemployment increased in the last year by 3.5 percentage points to 8 %it means:

Correct AnswerverifiedB

On average, younger people have:

Correct AnswerverifiedShow Answer

The degree of wage stickiness in the real world:

Correct AnswerverifiedShow Answer

If the minimum wage is set at a level above the equilibrium wage:

Correct AnswerverifiedShow Answer

Real-wage unemployment is:

Correct AnswerverifiedC

In the United States, to count as unemployed, you must:

Correct AnswerverifiedB

We would expect, all else equal, that:

Correct AnswerverifiedShow Answer

Real-wage unemployment can be caused by which of the following?

Correct AnswerverifiedShow Answer

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B

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C

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B

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