Question 1

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate is

Accepted Answer

A)   always zero.
B)   sometimes zero.
C)   rarely zero.
D)   never zero.

Question 2

The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment.

Accepted Answer

A) True 
 B)False  True

Question 3

Table 28-7
Below is data about the labor market in the city of Productionville. 
-Refer to Table 28-7. If the local government imposed a minimum wage of $7 in Productionville, how many people would be unemployed?

Accepted Answer

A)   0
B)   2,000
C)   5,000
D)   10,000 C

Question 4

In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Swedish adult non- institutionalized population was 7.568 million, the labor force was 4.888 million, and the number of people employed was 4.486 million. According to these numbers, the Swedish labor-force participation rate and unemployment rate were about

Accepted Answer

A)   64.6% and 8.2%.
B)   64.6% and 5.3%.
C)   59.3% and 8.2%.
D)   59.3% and 5.3%.

Question 5

Eric was laid off two months ago. He has not searched for other work because he is expecting to be recalled to work. The Bureau of Labor Statistics counts Eric 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)   not in the labor force.

Question 6

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.

Question 7

People who are unemployed because they are in search of a job that suits their skills are included within

Accepted Answer

A)   structural unemployment.
B)   frictional unemployment.
C)   cyclical unemployment.
D)   marginal unemployment.

Question 8

President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You conclude that

Accepted Answer

A)   one of them must be lying.
B)   both of them could be telling the truth if the labor force, and employment grew at the exact same rate.
C)   both of them could be telling the truth if the labor force grew slower than employment.
D)   both of them could be telling the truth if the labor force grew faster than employment.

Question 9

Minimum-wage laws can keep wages

Accepted Answer

A)   above equilibrium and cause a surplus of labor.
B)   above equilibrium and cause a shortage of labor.
C)   below equilibrium and cause a surplus of labor.
D)   below equilibrium and cause a shortage of labor.

Question 10

Give a few examples of how sectoral shifts temporarily cause unemployment.

Accepted Answer

Examples should focus on sectors of the ...

Question 11

Most spells of unemployment are long, and most unemployment observed at any given time is long-term.

Accepted Answer

A) True 
 B)False

Question 12

Structural unemployment results when the number of jobs is insufficient for the number of workers.

Accepted Answer

A) True 
 B)False

Question 13

Octavia does not currently have a job, but she has applied for several jobs in the previous week. Eve is an unpaid stay-at-home mom who has not searched for work in recent years. Who does the Bureau of Labor Statistics count as "out of the labor force"?

Accepted Answer

A)   Octavia but not Eve
B)   Eve but not Octavia
C)   both Octavia and Eve
D)   neither Octavia nor Eve

Question 14

Three possible reasons for an above-equilibrium wage are minimum-wage laws, unions, and efficiency wages.

Accepted Answer

A) True 
 B)False

Question 15

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

Accepted Answer

A) True 
 B)False

Question 16

Discouraged workers are included in

Accepted Answer

A)   the number of unemployed.
B)   frictional unemployment.
C)   the labor force.
D)   None of the above is correct.

Question 17

Suppose that the adult population in the country of Atlantis is 115 million. If 80 million people are employed and 5 million are unemployed, then

Accepted Answer

A)   30 million are not in the labor force.
B)   35 million are in the labor force.
C)   75 million are in the labor force.
D)   35 million are not in the labor force.

Question 18

Which of the following is not correct?

Accepted Answer

A)   A union is a worker association that bargains with employers over wages, benefits, and working conditions.
B)   Unions play a much larger role in the U.S. labor market now than they did in the past.
C)   Unions play a large role in many European countries.
D)   A union is a type of cartel.

Question 19

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

Accepted Answer

A)   40 million
B)   70 million
C)   100 million
D)   105 million

Question 20

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate. All workers are equally able to do either job. Initially, both labor markets are perfectly competitive. If a union organizes workers in one of the markets, then the wage rates will tend to

Accepted Answer

A)   rise in both markets.
B)   fall in both markets
C)   rise for the union jobs, but remain unchanged for the nonunion jobs.
D)   rise for the union jobs and fall for the nonunion jobs. D

Exam 28: Unemployment

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate is

Correct Answer
verified

The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment.

Correct Answer
verified
True

Table 28-7 Below is data about the labor market in the city of Productionville. -Refer to Table 28-7. If the local government imposed a minimum wage of $7 in Productionville, how many people would be unemployed?

Correct Answer
verified
C

Correct Answer
verified

Eric was laid off two months ago. He has not searched for other work because he is expecting to be recalled to work. The Bureau of Labor Statistics counts Eric as

Correct Answer
verified

Wages in excess of their equilibrium level help explain

Correct Answer
verified

People who are unemployed because they are in search of a job that suits their skills are included within

Correct Answer
verified

President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You conclude that

Correct Answer
verified

Minimum-wage laws can keep wages

Correct Answer
verified

Give a few examples of how sectoral shifts temporarily cause unemployment.

Correct Answer
verified
Examples should focus on sectors of the ...
View Answer

Most spells of unemployment are long, and most unemployment observed at any given time is long-term.

Correct Answer
verified

Structural unemployment results when the number of jobs is insufficient for the number of workers.

Correct Answer
verified

Octavia does not currently have a job, but she has applied for several jobs in the previous week. Eve is an unpaid stay-at-home mom who has not searched for work in recent years. Who does the Bureau of Labor Statistics count as "out of the labor force"?

Correct Answer
verified

Three possible reasons for an above-equilibrium wage are minimum-wage laws, unions, and efficiency wages.

Correct Answer
verified

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

Correct Answer
verified

Discouraged workers are included in

Correct Answer
verified

Suppose that the adult population in the country of Atlantis is 115 million. If 80 million people are employed and 5 million are unemployed, then

Correct Answer
verified

Which of the following is not correct?

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 female population in Meditor?

Correct Answer
verified

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate. All workers are equally able to do either job. Initially, both labor markets are perfectly competitive. If a union organizes workers in one of the markets, then the wage rates will tend to

Correct Answer
verified
D

Exam 28: Unemployment

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate is

Correct AnswerverifiedShow Answer

The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment.

Correct AnswerverifiedTrue

Table 28-7 Below is data about the labor market in the city of Productionville. -Refer to Table 28-7. If the local government imposed a minimum wage of $7 in Productionville, how many people would be unemployed?

Correct AnswerverifiedC

Correct AnswerverifiedShow Answer

Eric was laid off two months ago. He has not searched for other work because he is expecting to be recalled to work. The Bureau of Labor Statistics counts Eric as

Correct AnswerverifiedShow Answer

Wages in excess of their equilibrium level help explain

Correct AnswerverifiedShow Answer

People who are unemployed because they are in search of a job that suits their skills are included within

Correct AnswerverifiedShow Answer

President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You conclude that

Correct AnswerverifiedShow Answer

Minimum-wage laws can keep wages

Correct AnswerverifiedShow Answer

Give a few examples of how sectoral shifts temporarily cause unemployment.

Correct AnswerverifiedExamples should focus on sectors of the ...View AnswerShow Answer

Most spells of unemployment are long, and most unemployment observed at any given time is long-term.

Correct AnswerverifiedShow Answer

Structural unemployment results when the number of jobs is insufficient for the number of workers.

Correct AnswerverifiedShow Answer

Octavia does not currently have a job, but she has applied for several jobs in the previous week. Eve is an unpaid stay-at-home mom who has not searched for work in recent years. Who does the Bureau of Labor Statistics count as "out of the labor force"?

Correct AnswerverifiedShow Answer

Three possible reasons for an above-equilibrium wage are minimum-wage laws, unions, and efficiency wages.

Correct AnswerverifiedShow Answer

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

Correct AnswerverifiedShow Answer

Discouraged workers are included in

Correct AnswerverifiedShow Answer

Suppose that the adult population in the country of Atlantis is 115 million. If 80 million people are employed and 5 million are unemployed, then

Correct AnswerverifiedShow Answer

Which of the following is not correct?

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 female population in Meditor?

Correct AnswerverifiedShow Answer

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate. All workers are equally able to do either job. Initially, both labor markets are perfectly competitive. If a union organizes workers in one of the markets, then the wage rates will tend to

Correct AnswerverifiedD

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True

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C

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Correct Answer
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Correct Answer
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Examples should focus on sectors of the ...
View Answer

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D