Question 1

Which of the following is not correct?

Accepted Answer

A)   Minimum-wage laws are one reason there is always some unemployment in the U.S.economy.
B)   Minimum-wage laws affect all workers.
C)   Most U.S.workers have wages well above the legal minimum,so minimum-wage laws do not prevent the wage from adjusting to balance supply and demand.
D)   Minimum-wage laws matter most for the least skilled and least experienced members of the labor force,such as teenagers.E) A) and D)
F) C) and D)

Question 2

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 3

Table 28-1
Labor Data for Wrexington
 
-Refer to Table 28-1.The unemployment rate of Wrexington

Accepted Answer

A)   increased from 2004 to 2005 and increased from 2005 to 2006.
B)   increased from 2004 to 2005 and decreased from 2005 to 2006.
C)   decreased from 2004 to 2005 and increased from 2005 to 2006.
D)   decreased from 2004 to 2005 and decreased from 2005 to 2006.E) A) and C)
F) None of the above

Question 4

According to the theory of efficiency wages,firms operate more efficiently if wages are above the equilibrium level.

Accepted Answer

A) True 
 B)False

Question 5

Job search

Accepted Answer

A)   and firms paying wages above equilibrium to improve worker health both create frictional unemployment.
B)   creates frictional unemployment,while firms paying wages above equilibrium to improve worker health creates structural unemployment.
C)   creates structural unemployment,while firms paying wages above equilibrium to improve worker health creates frictional unemployment.
D)   and firms paying wages above equilibrium to improve worker health both create structural unemployment.E) A) and C)
F) B) and D)

Question 6

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Accepted Answer

A) True 
 B)False

Question 7

Suppose that there is an excess supply of economics professors.Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Accepted Answer

Standard economic theory suggests that i...

Question 8

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Accepted Answer

A) True 
 B)False

Question 9

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) All of the above
F) None of the above

Question 10

Which of the following is not a requirement for the Bureau of Labor Statistics to place someone in the "unemployed" category?

Accepted Answer

A)   The person must not have been employed.
B)   The person must not have been fired from their previous job.
C)   The person must have tried to find employment during the previous 4 weeks.
D)   The person must have been available for work.E) B) and C)
F) None of the above

Question 11

Table 28-1
Labor Data for Wrexington
 
-Refer to Table 28-1.The number of adults not in the labor force of Wrexington

Accepted Answer

A)   increased from 2004 to 2005 and increased from 2005 to 2006.
B)   increased from 2004 to 2005 and decreased from 2005 to 2006.
C)   decreased from 2004 to 2005 and increased from 2005 to 2006.
D)   decreased from 2004 to 2005 and decreased from 2005 to 2006.E) B) and D)
F) B) and C)

Question 12

Some persons are counted as out of the labor force because they have made no serious or recent effort to look for work.However,some of these individuals may want to work even though they are too discouraged to make a serious effort to look for work.If these individuals were counted as unemployed instead of out of the labor force,then

Accepted Answer

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

Question 13

Sectoral shifts temporarily cause unemployment.

Accepted Answer

A) True 
 B)False

Question 14

Cyclical unemployment

Accepted Answer

A)   has a different explanation than does the natural rate of unemployment.
B)   refers to the year-to-year fluctuation in unemployment around an economy's natural rate of unemployment.
C)   is closely associated with short-run ups and downs of economic activity.
D)   All of the above are correct.E) A) and C)
F) B) and C)

Question 15

When a minimum-wage law forces the wage to remain above the level that balances supply and demand,it reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)   shortage of labor and a shortage of jobs.
B)   shortage of labor and a surplus of jobs.
C)   surplus of labor and a shortage of jobs.
D)   surplus of labor and a surplus of jobs.E) A) and C)
F) A) and B)

Question 17

Satchel loses his job and immediately begins looking for another.Other things the same,the unemployment rate

Accepted Answer

A)   increases and the labor-force participation rate decreases.
B)   and the labor-force participation rate both increase.
C)   increases and the labor-force participation rate is unaffected.
D)   is unaffected and the labor-force participation rate decreases.E) A) and C)
F) A) and B)

Question 18

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 19

Unemployment insurance causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment.

Accepted Answer

A) True 
 B)False

Question 20

Over the past several decades in the United States,the labor-force participation rate of women has

Accepted Answer

A)   increased and the labor-force participation rate of men has increased.
B)   increased and the labor-force participation rate of men has decreased.
C)   decreased and the labor-force participation rate of men has increased.
D)   decreased and the labor-force participation rate of men has decreased.E) B) and C)
F) None of the above

Exam 28: Unemployment

Which of the following is not a requirement for the Bureau of Labor Statistics to place someone in the "unemployed" category?

Correct Answer
verified

Satchel loses his job and immediately begins looking for another.Other things the same,the unemployment rate

Correct Answer
verified

Correct Answer
verified

When a minimum-wage law forces the wage to remain above the level that balances supply and demand,it reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level.

Correct Answer
verified

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Correct Answer
verified

Unemployment insurance causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment.

Correct Answer
verified

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

Correct Answer
verified

Over the past several decades in the United States,the labor-force participation rate of women has

Correct Answer
verified

Suppose that there is an excess supply of economics professors.Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Correct Answer
verified
Standard economic theory suggests that i...
View Answer

Cyclical 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

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Correct Answer
verified

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

Correct Answer
verified

Sectoral shifts temporarily cause unemployment.

Correct Answer
verified

Table 28-1 Labor Data for Wrexington -Refer to Table 28-1.The unemployment rate of Wrexington

Correct Answer
verified

Table 28-1 Labor Data for Wrexington -Refer to Table 28-1.The number of adults not in the labor force of Wrexington

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

According to the theory of efficiency wages,firms operate more efficiently if wages are above the equilibrium level.

Correct Answer
verified

Job search

Correct Answer
verified

Exam 28: Unemployment

Which of the following is not a requirement for the Bureau of Labor Statistics to place someone in the "unemployed" category?

Correct AnswerverifiedShow Answer

Satchel loses his job and immediately begins looking for another.Other things the same,the unemployment rate

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When a minimum-wage law forces the wage to remain above the level that balances supply and demand,it reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level.

Correct AnswerverifiedShow Answer

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Correct AnswerverifiedShow Answer

Unemployment insurance causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment.

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

Over the past several decades in the United States,the labor-force participation rate of women has

Correct AnswerverifiedShow Answer

Suppose that there is an excess supply of economics professors.Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Correct AnswerverifiedStandard economic theory suggests that i...View AnswerShow Answer

Cyclical 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

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Correct AnswerverifiedShow Answer

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

Correct AnswerverifiedShow Answer

Sectoral shifts temporarily cause unemployment.

Correct AnswerverifiedShow Answer

Table 28-1 Labor Data for Wrexington -Refer to Table 28-1.The unemployment rate of Wrexington

Correct AnswerverifiedShow Answer

Table 28-1 Labor Data for Wrexington -Refer to Table 28-1.The number of adults not in the labor force of Wrexington

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

According to the theory of efficiency wages,firms operate more efficiently if wages are above the equilibrium level.

Correct AnswerverifiedShow Answer

Job search

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Standard economic theory suggests that i...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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