Question 1

Public policy can reduce frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 2

Data on unemployment indicate that most people who become unemployed will soon find jobs.

Accepted Answer

A) True 
 B)False

Question 3

List the four types of efficiency-wage theory.

Accepted Answer

Worker health, worke...

Question 4

Figure 28-3 
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be unemployed?

Accepted Answer

A)   0
B)   3,000
C)   4,000
D)   7,000E) A) and B)
F) A) and C)

Question 5

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 6

Minimum wage laws, labor unions, and efficiency wages all generate unemployment by what common mechanism?

Accepted Answer

Wages bein...

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The unemployment rate never falls to zero.

Accepted Answer

A) True 
 B)False

Question 9

Just after World War II, the labor-force participation rate of women was

Accepted Answer

A)   about 25 percent, and in 2012, it was about 50 percent.
B)   about 33 percent, and in 2012, it was about 60 percent.
C)   about 50 percent, and in 2012, it was about 70 percent.
D)   about 60 percent, and in 2012, it was about 80 percent.E) B) and D)
F) B) and C)

Question 10

Other things the same, an increase in wages above their equilibrium level

Accepted Answer

A)   increases frictional unemployment but leaves the natural rate of unemployment unchanged.
B)   increases frictional unemployment and increases the natural rate of unemployment.
C)   increases structural unemployment but leaves the natural rate of unemployment unchanged.
D)   increases structural unemployment and increases the natural rate of unemployment.E) B) and C)
F) All of the above

Question 11

Maury did not work last week because fire forced an evacuation of his workplace. The Bureau of Labor Statistics counts Maury as

Accepted Answer

A)   unemployed and in the labor force.
B)   unemployed and not in the labor force.
C)   employed and in the labor force.
D)   employed and not in the labor force.E) B) and D)
F) B) and C)

Question 12

An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?

Accepted Answer

A)   both the changes in information technology and unemployment insurance
B)   only the changes in information technology
C)   only the changes in unemployment insurance
D)   neither the changes in information technology nor the changes in unemployment insuranceE) C) and D)
F) B) and D)

Question 13

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

Accepted Answer

A) True 
 B)False

Question 14

Unemployment data are collected

Accepted Answer

A)   from unemployment insurance claims.
B)   through a regular survey of about 60,000 households.
C)   through a regular survey of about 200,000 firms.
D)   All of the above are correct.E) B) and C)
F) All of the above

Question 15

Unions are exempt from U.S. antitrust laws.

Accepted Answer

A) True 
 B)False

Question 16

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

Accepted Answer

A) True 
 B)False

Question 17

Minimum-wage laws

Accepted Answer

A)   create unemployment.
B)   do not apply in states with right-to-work laws.
C)   affect highly-educated workers more than high school dropouts.
D)   cause labor shortages, which further raise wages above equilibrium.E) All of the above
F) B) and C)

Question 18

The labor-force participation rate equals the percentage of the labor force that is either employed or unemployed.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not correct?

Accepted Answer

A)   The unemployment rate is an imperfect measure of a nation's overall level of economic well­being.
B)   Most job search in the U.S. economy takes place without intervention by the government.
C)   Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being.
D)   Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.E) A) and B)
F) B) and C)

Question 20

Unions

Accepted Answer

A)   do not affect the natural rate of unemployment.
B)   lower the wages of unionized workers.
C)   raise the profits of unionized firms.
D)   lower the wages of workers in industries without unions.E) A) and B)
F) A) and C)

Exam 15: Unemployment

Minimum wage laws, labor unions, and efficiency wages all generate unemployment by what common mechanism?

Correct AnswerverifiedWages bein...View AnswerShow Answer

Just after World War II, the labor-force participation rate of women was

Correct AnswerverifiedShow Answer

An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Unemployment data are collected

Correct AnswerverifiedShow Answer

List the four types of efficiency-wage theory.

Correct AnswerverifiedWorker health, worke...View AnswerShow Answer

Unions

Correct AnswerverifiedShow Answer

Minimum-wage laws

Correct AnswerverifiedShow Answer

Public policy can reduce frictional unemployment.

Correct AnswerverifiedShow Answer

Data on unemployment indicate that most people who become unemployed will soon find jobs.

Correct AnswerverifiedShow Answer

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

Correct AnswerverifiedShow Answer

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

Correct AnswerverifiedShow Answer

The unemployment rate never falls to zero.

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 surplus of labor.

Correct AnswerverifiedShow Answer

Other things the same, an increase in wages above their equilibrium level

Correct AnswerverifiedShow Answer

Unions are exempt from U.S. antitrust laws.

Correct AnswerverifiedShow Answer

The labor-force participation rate equals the percentage of the labor force that is either employed or unemployed.

Correct AnswerverifiedShow Answer

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be unemployed?

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

Maury did not work last week because fire forced an evacuation of his workplace. The Bureau of Labor Statistics counts Maury as

Correct AnswerverifiedShow Answer

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Wages bein...
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Worker health, worke...
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