Question 1

Unemployment insurance

Accepted Answer

A)   reduces search effort which raises unemployment.
B)   reduces search effort which lowers unemployment.
C)   increases search effort which raises unemployment.
D)   increases search effort which decreases unemployment.E) B) and C)
F) A) and C)

Question 2

Within the U.S. population, blacks of prime working age ages 25-54) have similar rates of unemployment than whites of prime working age ages 25-54), regardless of gender.

Accepted Answer

A) True 
 B)False

Question 3

Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. 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)   and the labor-force participation rate are both unaffected.E) A) and B)
F) A) and C)

Question 4

Do economists believe that labor unions are good or bad for the U.S. economy?

Accepted Answer

Economists disagree. Critics argue that ...

Question 5

Scenario 28-1
Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment.
-Refer to Scenario 28-1. How many people are unemployed?

Accepted Answer

A)   1 million
B)   3 million
C)   4 million
D)   5 millionE) B) and C)
F) All of the above

Question 6

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 D)
F) B) and C)

Question 7

According to the theory of efficiency wages, it may be profitable for firms to keep wages high even in the presence of a surplus of labor.

Accepted Answer

A) True 
 B)False

Question 8

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called

Accepted Answer

A)   the natural rate of unemployment.
B)   cyclical unemployment.
C)   structural unemployment.
D)   frictional unemployment.E) B) and C)
F) A) and B)

Question 9

Some degree of unemployment is inevitable in a complex economy.

Accepted Answer

A) True 
 B)False

Question 10

The natural rate of unemployment
I is the economy's desirable level of unemployment.
Ii cannot be affected by economic policy.
Iii is typically constant over time.

Accepted Answer

A)   i)  and ii)  only
B)   iii)  only
C)   i) , ii) , and iii) 
D)   None of the above is correct.E) B) and C)
F) A) and B)

Question 11

If a union and a firm cannot reach an agreement on the terms of employment, then the union can organize a withdrawal of labor from the firm, called a strike.

Accepted Answer

A) True 
 B)False

Question 12

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 13

In the U.S., it is illegal for employers to interfere when workers try to organize unions.

Accepted Answer

A) True 
 B)False

Question 14

Minimum-wage laws matter most for the least skilled and least experienced members of the labor force, such as teenagers.

Accepted Answer

A) True 
 B)False

Question 15

Table 28-4
2010 Labor Data for Adults ages 16 and older)  in Meditor
 
-Refer to Table 28-4. What is the adult male labor force in Meditor?

Accepted Answer

A)   50 million
B)   85 million
C)   90 million
D)   130 millionE) None of the above
F) B) and C)

Question 16

Wages in excess of their equilibrium level help explain

Accepted Answer

A)   structural unemployment but not the natural rate of unemployment.
B)   the natural rate of unemployment but not structural unemployment.
C)   both structural unemployment and the natural rate of unemployment.
D)   neither structural unemployment nor the natural rate of unemployment.E) A) and D)
F) A) and C)

Question 17

Efficiency wages, minimum-wage laws, and unions all keep wages

Accepted Answer

A)   below the equilibrium level, causing a shortage of labor.
B)   below the equilibrium level, causing a surplus of labor.
C)   above the equilibrium level, causing a shortage of labor.
D)   above the equilibrium level, causing a surplus of labor.E) A) and D)
F) C) and D)

Question 18

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

Question 19

The amount of unemployment varies little over time and across countries.

Accepted Answer

A) True 
 B)False

Question 20

Efficiency wages contribute to

Accepted Answer

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

Exam 10: Unemployment and Its Natural Rate

Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. Other things the same, the unemployment rate

Correct Answer
verified

Correct Answer
verified

In the U.S., it is illegal for employers to interfere when workers try to organize unions.

Correct Answer
verified

Within the U.S. population, blacks of prime working age ages 25-54) have similar rates of unemployment than whites of prime working age ages 25-54), regardless of gender.

Correct Answer
verified

Minimum-wage laws matter most for the least skilled and least experienced members of the labor force, such as teenagers.

Correct Answer
verified

Which of the following is a source of frictional unemployment?

Correct Answer
verified

According to the theory of efficiency wages, it may be profitable for firms to keep wages high even in the presence of a surplus of labor.

Correct Answer
verified

Some degree of unemployment is inevitable in a complex economy.

Correct Answer
verified

The natural rate of unemployment I is the economy's desirable level of unemployment. Ii cannot be affected by economic policy. Iii is typically constant over time.

Correct Answer
verified

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called

Correct Answer
verified

The amount of unemployment varies little over time and across countries.

Correct Answer
verified

Do economists believe that labor unions are good or bad for the U.S. economy?

Correct Answer
verified
Economists disagree. Critics argue that ...
View Answer

Wages in excess of their equilibrium level help explain

Correct Answer
verified

If a union and a firm cannot reach an agreement on the terms of employment, then the union can organize a withdrawal of labor from the firm, called a strike.

Correct Answer
verified

Efficiency wages, minimum-wage laws, and unions all keep wages

Correct Answer
verified

Table 28-4 2010 Labor Data for Adults ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult male labor force in Meditor?

Correct Answer
verified

Unemployment insurance

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

Efficiency wages contribute to

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

Correct Answer
verified

Exam 10: Unemployment and Its Natural Rate

Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. Other things the same, the unemployment rate

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the U.S., it is illegal for employers to interfere when workers try to organize unions.

Correct AnswerverifiedShow Answer

Within the U.S. population, blacks of prime working age ages 25-54) have similar rates of unemployment than whites of prime working age ages 25-54), regardless of gender.

Correct AnswerverifiedShow Answer

Minimum-wage laws matter most for the least skilled and least experienced members of the labor force, such as teenagers.

Correct AnswerverifiedShow Answer

Which of the following is a source of frictional unemployment?

Correct AnswerverifiedShow Answer

According to the theory of efficiency wages, it may be profitable for firms to keep wages high even in the presence of a surplus of labor.

Correct AnswerverifiedShow Answer

Some degree of unemployment is inevitable in a complex economy.

Correct AnswerverifiedShow Answer

The natural rate of unemployment I is the economy's desirable level of unemployment. Ii cannot be affected by economic policy. Iii is typically constant over time.

Correct AnswerverifiedShow Answer

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called

Correct AnswerverifiedShow Answer

The amount of unemployment varies little over time and across countries.

Correct AnswerverifiedShow Answer

Do economists believe that labor unions are good or bad for the U.S. economy?

Correct AnswerverifiedEconomists disagree. Critics argue that ...View AnswerShow Answer

Wages in excess of their equilibrium level help explain

Correct AnswerverifiedShow Answer

If a union and a firm cannot reach an agreement on the terms of employment, then the union can organize a withdrawal of labor from the firm, called a strike.

Correct AnswerverifiedShow Answer

Efficiency wages, minimum-wage laws, and unions all keep wages

Correct AnswerverifiedShow Answer

Table 28-4 2010 Labor Data for Adults ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult male labor force in Meditor?

Correct AnswerverifiedShow Answer

Unemployment insurance

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

Efficiency wages contribute to

Correct AnswerverifiedShow Answer

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

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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
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Correct Answer
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Economists disagree. Critics argue that ...
View Answer

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
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