Question 1

There are always some workers without jobs,even when the overall economy is doing well.

Accepted Answer

A) True 
 B)False

Question 2

Unions are exempt from U.S.antitrust laws.

Accepted Answer

A) True 
 B)False

Question 3

The Bureau of Labor Statistics' U-5 measure of joblessness includes marginally attached workers.

Accepted Answer

A) True 
 B)False

Question 4

When a union raises the wage above the equilibrium level,

Accepted Answer

A)   the quantity of labor supplied and unemployment both rise.
B)   the quantity of labor supplied and unemployment both fall.
C)   the quantity of labor supplied rises and unemployment falls.
D)   the quantity of labor supplied falls and unemployment rises.E) C) and D)
F) All of the above

Question 5

Which of the following is not correct?

Accepted Answer

A)   Most people who become unemployed will soon find jobs.
B)   In an ideal labor market,wages would adjust to ensure that all workers are always fully employed.
C)   The unemployment rate occasionally falls to zero.
D)   There are always some workers without jobs,even when the overall economy is doing well.E) A) and B)
F) A) and D)

Question 6

Four employers have justified their actions as follows.Whose logic is not consistent with the logic of efficiency wage theory?

Accepted Answer

A)   Jay develops a new assembly line technology that limits the amount of shirking workers can do,so he reduces what he pays his employees so as to make it closer to the equilibrium wage.
B)   Kay pays her workers less than the equilibrium wage so they won't have the time or money to look for work somewhere else.
C)   Ray pays his workers in a developing country more than the going wage hoping that they will get a better diet and so be more productive.
D)   None of the above is consistent with the logic of efficiency wage theory.E) B) and C)
F) B) and D)

Question 7

Within the U.S. ,teenagers have similar rates of unemployment as older workers.

Accepted Answer

A) True 
 B)False

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

Teenagers have more frequent unemployment spells so on average they spend more time searching for jobs.Other thing the same this means that teenagers have a

Accepted Answer

A)   higher unemployment rate.If a larger portion of the adult population were teenaged,the natural rate of unemployment would be higher.
B)   higher unemployment rate.The portion of the adult population that is teenaged does not affect the natural rate of unemployment.
C)   lower unemployment rate.If a larger portion of the adult population were teenaged,the natural rate of unemployment would be lower.
D)   lower unemployment rate.The portion of the adult population that is teenaged does not affect the natural rate of unemployment.E) B) and C)
F) A) and D)

Question 10

Within the U.S.population,women ages 20 and older have similar rates of labor-force participation as men.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Within the U.S. ,teenagers have lower rates of labor-force participation than older workers.

Accepted Answer

A) True 
 B)False

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

Question 14

Suppose that some people are counted as unemployed when,to maintain unemployment compensation,they search for work only at places where they are unlikely to be hired.If these individuals were counted as out of the labor force instead of as unemployed,then

Accepted Answer

A)   both the unemployment rate and labor-force participation rate would be higher.
B)   both the unemployment rate and labor-force participation rate would be lower.
C)   the unemployment rate would be lower and the labor-force participation rate would be higher.
D)   the unemployment rate would be higher and the participation rate would be lower.E) A) and B)
F) A) and C)

Question 15

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 16

Most spells of unemployment are short,and most unemployment observed at any given time is long term.How can this be?

Accepted Answer

Most unemployed people in the economy ar...

Question 17

U.S.Department of Labor data show that minimum-wage workers tend to be

Accepted Answer

A)   more likely to be working part time and in the communication industry.
B)   more likely to be working part time and in the leisure and hospitality industry.
C)   more likely to be working full time and in the communication industry.
D)   more likely to be working full time and in the leisure and hospitality industry.E) A) and B)
F) A) and C)

Question 18

Which of the following is not correct?

Accepted Answer

A)   When a union is present in a labor market,wages are not determined by the equilibrium of supply and demand.
B)   Like any cartel,a union is a group of sellers acting together in the hope of exerting their joint market power.
C)   The process by which unions and firms agree on the terms of employment is called a strike.
D)   Most workers in the U.S.economy are not members of a union.E) A) and B)
F) A) and C)

Question 19

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

Question 20

The Bureau of Labor Statistics is part of the U.S.Department of

Accepted Answer

A)   the Treasury.
B)   Commerce.
C)   Labor.
D)   the Interior.E) B) and C)
F) A) and B)

Exam 28: Unemployment

Within the U.S. ,teenagers have lower rates of labor-force participation than older workers.

Correct AnswerverifiedShow Answer

Within the U.S.population,women ages 20 and older have similar rates of labor-force participation as men.

Correct AnswerverifiedShow Answer

Within the U.S. ,teenagers have similar rates of unemployment as older workers.

Correct AnswerverifiedShow Answer

Unions are exempt from U.S.antitrust laws.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When a union raises the wage above the equilibrium level,

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics is part of the U.S.Department of

Correct AnswerverifiedShow Answer

Most spells of unemployment are short,and most unemployment observed at any given time is long term.How can this be?

Correct AnswerverifiedMost unemployed people in the economy ar...View AnswerShow Answer

There are always some workers without jobs,even when the overall economy is doing well.

Correct AnswerverifiedShow Answer

Teenagers have more frequent unemployment spells so on average they spend more time searching for jobs.Other thing the same this means that teenagers have a

Correct AnswerverifiedShow Answer

U.S.Department of Labor data show that minimum-wage workers tend to be

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' U-5 measure of joblessness includes marginally attached workers.

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

Suppose that some people are counted as unemployed when,to maintain unemployment compensation,they search for work only at places where they are unlikely to be hired.If these individuals were counted as out of the labor force instead of as unemployed,then

Correct AnswerverifiedShow Answer

Which of the following is not correct?

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Four employers have justified their actions as follows.Whose logic is not consistent with the logic of efficiency wage theory?

Correct AnswerverifiedShow Answer

Efficiency wages

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Most unemployed people in the economy ar...
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Henry Ford paid $5 per day to ...
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