Question 1

Unemployment that develops as old industries die off is known as ________.

Accepted Answer

A)  cyclical unemployment
B)  structural unemployment
C)  frictional unemployment
D)  voluntary unemployment

Question 2

During a recession,when unemployment is rising,the number of new jobs created is,typically,________.

Accepted Answer

A)  large,and higher than the number of jobs lost
B)  small,and below the number of jobs lost
C)  small,but higher than the number of jobs lost
D)  large,and higher than net entrants to the labor force

Question 3

When productivity growth has been rapid and then slows,the natural rate of unemployment is likely to ________.

Accepted Answer

A)  decrease
B)  be unaffected
C)  increase
D)  vary unpredictably

Question 4

A classic early example of efficiency wages came in ________.

Accepted Answer

A)  Nazi Germany
B)  1973 with the increase in OPEC-determined oil prices
C)  1914 at the Ford Motor Company
D)  1890 with the Sherman Antitrust Act

Question 5

In the market for their services,workers face a trade-off between ________.

Accepted Answer

A)  higher and lower wage jobs
B)  equilibrium and non-equilibrium solutions
C)  labor and leisure
D)  diminishing and increasing marginal productivity

Question 6

Suppose researchers discover that a government program to match job seekers and employers has caused an increase in the unemployment rate.Does this mean that the program has failed?

Accepted Answer

No.A program to facilitate good job matc...

Question 7

The largest number of individuals of working age in the U.S.population are ________.

Accepted Answer

A)  discouraged workers
B)  unemployed
C)  employed
D)  not in the U.S.labor force

Question 8

Referring to the graph above,assume that,at first,the labor market is in equilibrium at point 4.In which scenario does unemployment rise,with no change in the quantity of employment?

Accepted Answer

A)  real wage rises to the level of points 1 and 2
B)  supply shifts to pass through point 5,with no change in the real wage
C)  demand shifts to pass through point 3,with no change in the real wage
D)  supply shifts to pass through point 3,with no change in the real wage

Question 9

Over the last 50 years,the employment ratio has fallen most significantly among ________.

Accepted Answer

A)  men
B)  women
C)  blacks
D)  Hispanics

Question 10

In the wake of Henry Ford's payment of efficiency wages in 1914 ________.

Accepted Answer

A)  absenteeism and productivity fell
B)  absenteeism and productivity rose
C)  absenteeism rose and productivity fell
D)  absenteeism fell and productivity rose

Question 11

Labor Market 
-On the graph above,suppose the labor market is in equilibrium at point 2,then the demand curve shifts down to the position shown on the graph.If the real wage has not changed,then the horizontal distance between points ________ measures the unemployment that results.

Accepted Answer

A)  2 & 4
B)  2 & 1
C)  3 & 4
D)  6 & 4

Question 12

Which of these is not a good example of skill-biased technical change?

Accepted Answer

A)  GPS navigation equipment in delivery trucks
B)  web-enabled virtual classrooms
C)  self-service check out scanners
D)  use of robots in automobile assembly

Question 13

An increase in an effective federal minimum wage would tend to cause ________.

Accepted Answer

A)  a decrease in wage rates and an increase in employment
B)  an increase in wage rates and employment
C)  a decrease in wage rates and employment
D)  an increase in wage rates and a decrease in employment

Question 14

Among the causes of an increase in labor supply is ________.

Accepted Answer

A)  a relaxation of restrictions on child labor
B)  an increase in enrollment at colleges
C)  an improvement in worker productivity
D)  a contraction of economic activity

Question 15

Which of the following is not an aspect of the composition of the labor force?

Accepted Answer

A)  the prison population
B)  workers taking disability
C)  the use of temporary workers
D)  the natural rate of unemployment

Question 16

Net entrants to the labor force is likely to be highest when the economy ________.

Accepted Answer

A)  is entering a recession
B)  nears the peak of an expansion
C)  has passed the peak of an expansion
D)  begins to recover from a recession

Question 17

Over the last 50 years,the employment ratio has risen most significantly among ________.

Accepted Answer

A)  men
B)  women
C)  blacks
D)  Hispanics

Question 18

The natural rate of unemployment is higher in Europe than in the U.S.due to ________.

Accepted Answer

A)  the greater relative strength of American unions
B)  the greater relative generosity of U.S.unemployment benefits
C)  the greater severity of the business cycle in Europe relative to the U.S.
D)  stricter European work rules

Question 19

Over the past 50 years,the average real wage for males who do not have a college diploma has ________.

Accepted Answer

A)  fallen
B)  risen
C)  remained essentially unchanged
D)  risen in economic contractions and fallen in economic expansions

Question 20

The equation Y = A   is known as the ________.

Accepted Answer

A)  Cobb-Douglas production function
B)  labor supply curve
C)  marginal product of labor
D)  capital-to-employment function

Exam 20: The Labor Market, employment, and Unemployment

Over the last 50 years,the employment ratio has fallen most significantly among ________.

Correct AnswerverifiedShow Answer

Unemployment that develops as old industries die off is known as ________.

Correct AnswerverifiedShow Answer

A classic early example of efficiency wages came in ________.

Correct AnswerverifiedShow Answer

Suppose researchers discover that a government program to match job seekers and employers has caused an increase in the unemployment rate.Does this mean that the program has failed?

Correct AnswerverifiedNo.A program to facilitate good job matc...View AnswerShow Answer

In the wake of Henry Ford's payment of efficiency wages in 1914 ________.

Correct AnswerverifiedShow Answer

When productivity growth has been rapid and then slows,the natural rate of unemployment is likely to ________.

Correct AnswerverifiedShow Answer

An increase in an effective federal minimum wage would tend to cause ________.

Correct AnswerverifiedShow Answer

The equation Y = A is known as the ________.

Correct AnswerverifiedShow Answer

During a recession,when unemployment is rising,the number of new jobs created is,typically,________.

Correct AnswerverifiedShow Answer

The natural rate of unemployment is higher in Europe than in the U.S.due to ________.

Correct AnswerverifiedShow Answer

Labor Market -On the graph above,suppose the labor market is in equilibrium at point 2,then the demand curve shifts down to the position shown on the graph.If the real wage has not changed,then the horizontal distance between points ________ measures the unemployment that results.

Correct AnswerverifiedShow Answer

Which of the following is not an aspect of the composition of the labor force?

Correct AnswerverifiedShow Answer

Referring to the graph above,assume that,at first,the labor market is in equilibrium at point 4.In which scenario does unemployment rise,with no change in the quantity of employment?

Correct AnswerverifiedShow Answer

Over the last 50 years,the employment ratio has risen most significantly among ________.

Correct AnswerverifiedShow Answer

Net entrants to the labor force is likely to be highest when the economy ________.

Correct AnswerverifiedShow Answer

In the market for their services,workers face a trade-off between ________.

Correct AnswerverifiedShow Answer

The largest number of individuals of working age in the U.S.population are ________.

Correct AnswerverifiedShow Answer

Which of these is not a good example of skill-biased technical change?

Correct AnswerverifiedShow Answer

Over the past 50 years,the average real wage for males who do not have a college diploma has ________.

Correct AnswerverifiedShow Answer

Among the causes of an increase in labor supply is ________.

Correct AnswerverifiedShow Answer

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No.A program to facilitate good job matc...
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