Question 1

An increase in the minimum wage

Accepted Answer

A)   reduces structural unemployment.
B)   reduces frictional unemployment,
C)   increases structural unemployment.
D)   increases fricitional unemployment.E) All of the above
F) C) and D)

Question 2

Within the U.S.population,women have higher rates of unemployment than men.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is correct?

Accepted Answer

A)   In the U.S.the natural rate of unemployment is frequently near 2%.
B)   The natural rate of unemployment fluctuates more than the cyclical rate of unemployment.
C)   The cyclical rate of unemployment is sometimes below the natural rate of unemployment.
D)   None of the above is correct.E) A) and B)
F) All of the above

Question 4

If an unemployed person quits looking for work,then,eventually the unemployment rate

Accepted Answer

A)   decreases and the labor-force participation rate is unaffected.
B)   and the labor-force participation rate both decrease.
C)   is unaffected and the labor-force participation rate decreases.
D)   and the labor-force participation rate are both unaffected.E) All of the above
F) B) and C)

Question 5

Shannon is a full-time homemaker not currently searching for paid work.Noah is a full-time student who is not looking for a job.Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)   only Shannon
B)   only Noah
C)   both Shannon and Noah
D)   neither Shannon nor NoahE) B) and D)
F) A) and D)

Question 6

Suppose that the adult population is 4 million,the number of unemployed is 0.25 million,and the labor-force participation rate is 75%.What is the unemployment rate?

Accepted Answer

A)   6.25%
B)   8.3%
C)   9.1%
D)   18.75%E) B) and D)
F) B) and C)

Question 7

-Refer to Labor Market Data.If the government imposed a minimum wage of $7,what would unemployment be?

Accepted Answer

A)   0
B)   2,000
C)   3,000
D)   5,000E) A) and C)
F) None of the above

Question 8

In Belgium,Norway,and Sweden,the percentage of workers who belong to unions is

Accepted Answer

A)   almost zero.
B)   less than it is in the United States.
C)   about the same as it is in the United States.
D)   greater than it is in the United States.E) C) and D)
F) A) and B)

Question 9

The Bureau of Labor Statistics' U-1 measure of joblessness is larger than its U-6 measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 10

An increase in the minimum wage

Accepted Answer

A)   increases both the quantity demanded and the quantity supplied of labor.
B)   decreases both the quantity demanded and the quantity supplied of labor.
C)   increases the quantity of labor demanded but decreases the quantity of labor supplied.
D)   decreases the quantity of labor demanded but increases the quantity of labor supplied.E) C) and D)
F) A) and B)

Question 11

A minimum wage that is below the equilibrium wage rate does not raise unemployment.

Accepted Answer

A) True 
 B)False

Question 12

Suppose some country had an adult population of about 50 million,a labor-force participation rate of 60 percent,and an unemployment rate of 5 percent.How many people were employed?

Accepted Answer

A)   1.5 million
B)   28.5 million
C)   30 million
D)   47.5 millionE) A) and C)
F) All of the above

Question 13

The unemployment that results from the process of matching workers and jobs is called structural unemployment.

Accepted Answer

A) True 
 B)False

Question 14

Within the U.S. ,teenagers have similar rates of labor-force participation as older workers.

Accepted Answer

A) True 
 B)False

Question 15

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

Accepted Answer

A)   14 years old.
B)   16 years old.
C)   18 years old.
D)   21 years old.E) A) and B)
F) None of the above

Question 16

The deviation of unemployment from its natural rate is called cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 17

Figure 15-1 
-Refer to Figure 15-1.If the government imposes a minimum wage of $4,then unemployment will increase by

Accepted Answer

A)   0 workers.
B)   2000 workers.
C)   4000 workers.
D)   5000 workers.E) B) and D)
F) None of the above

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.E) B) and C)
F) None of the above

Question 19

Which of the following is an example of an efficiency wage?

Accepted Answer

A)   a high wage paid to compensate for dangerous work such as coal mining
B)   an above-equilibrium wage offered by a firm to attract a more talented pool of job applicants
C)   a wage below the minimum wage but supplemented by customer tips
D)   a high wage paid to a college graduate for a high-skill job such as electrical engineeringE) None of the above
F) A) and B)

Question 20

Frictional unemployment can be the consequence of

Accepted Answer

A)   workers leaving existing jobs to find ones they like better.
B)   one industry declining while another is growing.
C)   changes in the working conditions offered by competing firms.
D)   All of the above are correct.E) A) and B)
F) None of the above

Exam 28: Unemployment

-Refer to Labor Market Data.If the government imposed a minimum wage of $7,what would unemployment be?

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Figure 15-1 -Refer to Figure 15-1.If the government imposes a minimum wage of $4,then unemployment will increase by

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Which of the following is an example of an efficiency wage?

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Which of the following is not correct?

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Which of the following is correct?

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The deviation of unemployment from its natural rate is called cyclical unemployment.

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An increase in the minimum wage

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The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

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Suppose that the adult population is 4 million,the number of unemployed is 0.25 million,and the labor-force participation rate is 75%.What is the unemployment rate?

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An increase in the minimum wage

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Within the U.S. ,teenagers have similar rates of labor-force participation as older workers.

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Within the U.S.population,women have higher rates of unemployment than men.

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In Belgium,Norway,and Sweden,the percentage of workers who belong to unions is

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Shannon is a full-time homemaker not currently searching for paid work.Noah is a full-time student who is not looking for a job.Who is included in the labor force by the Bureau of Labor Statistics?

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A minimum wage that is below the equilibrium wage rate does not raise unemployment.

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Suppose some country had an adult population of about 50 million,a labor-force participation rate of 60 percent,and an unemployment rate of 5 percent.How many people were employed?

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Frictional unemployment can be the consequence of

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If an unemployed person quits looking for work,then,eventually the unemployment rate

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The unemployment that results from the process of matching workers and jobs is called structural unemployment.

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The Bureau of Labor Statistics' U-1 measure of joblessness is larger than its U-6 measure of joblessness.

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