Question 1

Which of the following is not correct?

Accepted Answer

A)  Frictional unemployment is inevitable in a dynamic economy.
B)  Although the unemployment created by sectoral shifts is unfortunate, in the long run such changes lead to higher productivity and higher living standards.
C)  At least 10 percent of U.S. manufacturing jobs are destroyed every year.
D)  More than 13 percent of U.S. workers leave their jobs in a typical month.E) B) and D)
F) A) and D)

Question 2

Causes of the changing role of women in American society over the past several decades include new technologies that have reduced the amount of time required to complete routine household tasks, improved birth control, and changing political and social attitudes.

Accepted Answer

A) True 
 B)False

Question 3

Frictional unemployment is

Accepted Answer

A)  not inevitable; rather, it can be reduced to zero by well-designed public policies.
B)  not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance.
C)  inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms.
D)  inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium.E) None of the above
F) A) and B)

Question 4

Which of the following is an explanation for the existence of frictional unemployment?

Accepted Answer

A)  efficiency wages
B)  minimum-wage laws
C)  unions
D)  job searchE) A) and B)
F) B) and C)

Question 5

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is

Accepted Answer

A)  cyclical unemployment amounting to 0.5 percent of the labor force.
B)  frictional unemployment amounting to 0.5 percent of the labor force.
C)  structural unemployment amounting to 0.5 percent of the labor force.
D)  search unemployment amounting to 0.5 percent of the labor force.E) B) and C)
F) A) and D)

Question 6

Which of the following is not a cause of the decline in the U.S. men's labor-force participation rate over the past several decades?

Accepted Answer

A)  young men now stay in school longer than their fathers and grandfathers did
B)  older men now retire earlier and live longer
C)  with more women employed, there are fewer jobs now available to men
D)  more fathers now stay at home to raise their childrenE) All of the above
F) None of the above

Question 7

Monique is the newly appointed CEO of a company that manufactures external hard drives on an assembly line. Her staff has told her that the output the firm produces, given the number of workers employed, indicates that some workers may be shirking. According to efficiency wage theory, what should she do?

Accepted Answer

A)  pay all workers more than the equilibrium wage rate
B)  pay all workers below the equilibrium wage rate to make up for the loss from shirking
C)  make sure that workers are getting paid exactly the equilibrium wage rate
D)  pay bonuses to workers who report the shirking of other workersE) C) and D)
F) All of the above

Question 8

The Bureau of Labor Statistics' U-1 measure of joblessness is smaller than its U-6 measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 9

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor.

Accepted Answer

A) True 
 B)False

Question 10

Unions are often thought to cause conflict between different groups of workers -- between the insiders who benefit from high union wages and the outsiders who do not get the union jobs.

Accepted Answer

A) True 
 B)False

Question 11

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

Question 12

Which of the following do unions not cause?

Accepted Answer

A)  frictional unemployment
B)  the wage to rise above the equilibrium level
C)  conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs
D)  reduced wages in industries without unionsE) A) and B)
F) B) and D)

Question 13

Which of the following is a source of frictional unemployment?

Accepted Answer

A)  changes in the composition of demand among industries or regions
B)  minimum wages
C)  labor unions
D)  None of the above is correct.E) A) and B)
F) All of the above

Question 14

When job search is the explanation for unemployment, workers are searching for the jobs that best suit their tastes and skills, but when the wage is above the equilibrium level, the quantity of labor supplied exceeds the quantity of labor demanded, and workers are unemployed because they are waiting for jobs to open up.

Accepted Answer

A) True 
 B)False

Question 15

According to 2009 data on the U.S. population, which of the following groups of teenagers (ages 16-19)  had the highest unemployment rate?

Accepted Answer

A)  white males
B)  white females
C)  black males
D)  black femalesE) A) and C)
F) All of the above

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

The Bureau of Labor Statistics reported in 2005 that there were 28.19 million people over age 25 who had no high school degree or its equivalent, 11.73 million of whom were employed and 1.04 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)  45.3% and 3.7%
B)  45.3% and 8.1%
C)  41.6% and 3.7%
D)  41.6% and 8.1%E) A) and C)
F) A) and B)

Question 18

Government-run employment agencies and public training programs both seek to reduce frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 19

Unemployment generated by the existence of labor unions is structural unemployment and so contributes to the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 20

Consider two people who are currently out of work. Tim is not looking for work because there have been many job cuts where he lives and he doesn't think it likely that he will find work. Bev is not currently looking for work, but she would like a job and she has looked for work in the past. The Bureau of Labor Statistics considers

Accepted Answer

A)  both Tim and Bev to be marginally attached workers.
B)  neither Tim nor Bev to be marginally attached workers.
C)  only Tim to be a marginally attached worker.
D)  only Bev to be a marginally attached worker.E) None of the above
F) B) and C)

Exam 15: Unemployment

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is

Correct Answer
verified

According to 2009 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the highest unemployment rate?

Correct Answer
verified

Which of the following is not correct?

Correct Answer
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Correct Answer
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Government-run employment agencies and public training programs both seek to reduce frictional unemployment.

Correct Answer
verified

Which of the following is an explanation for the existence of frictional unemployment?

Correct Answer
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The Bureau of Labor Statistics' U-1 measure of joblessness is smaller than its U-6 measure of joblessness.

Correct Answer
verified

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

Correct Answer
verified

Which of the following is not a cause of the decline in the U.S. men's labor-force participation rate over the past several decades?

Correct Answer
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Unemployment generated by the existence of labor unions is structural unemployment and so contributes to the natural rate of unemployment.

Correct Answer
verified

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor.

Correct Answer
verified

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

Correct Answer
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Correct Answer
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Causes of the changing role of women in American society over the past several decades include new technologies that have reduced the amount of time required to complete routine household tasks, improved birth control, and changing political and social attitudes.

Correct Answer
verified

Correct Answer
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Which of the following do unions not cause?

Correct Answer
verified

Unions are often thought to cause conflict between different groups of workers -- between the insiders who benefit from high union wages and the outsiders who do not get the union jobs.

Correct Answer
verified

Correct Answer
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Which of the following is a source of frictional unemployment?

Correct Answer
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Frictional unemployment is

Correct Answer
verified

Exam 15: Unemployment

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is

Correct AnswerverifiedShow Answer

According to 2009 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the highest unemployment rate?

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Government-run employment agencies and public training programs both seek to reduce frictional unemployment.

Correct AnswerverifiedShow Answer

Which of the following is an explanation for the existence of frictional unemployment?

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' U-1 measure of joblessness is smaller than its U-6 measure of joblessness.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is not a cause of the decline in the U.S. men's labor-force participation rate over the past several decades?

Correct AnswerverifiedShow Answer

Unemployment generated by the existence of labor unions is structural unemployment and so contributes to the natural rate of unemployment.

Correct AnswerverifiedShow Answer

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Causes of the changing role of women in American society over the past several decades include new technologies that have reduced the amount of time required to complete routine household tasks, improved birth control, and changing political and social attitudes.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following do unions not cause?

Correct AnswerverifiedShow Answer

Unions are often thought to cause conflict between different groups of workers -- between the insiders who benefit from high union wages and the outsiders who do not get the union jobs.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a source of frictional unemployment?

Correct AnswerverifiedShow Answer

Frictional unemployment is

Correct AnswerverifiedShow Answer

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