Question 1

The deviation of unemployment from its natural rate is called

Accepted Answer

A)   the normal rate of unemployment.
B)   deviant unemployment.
C)   cyclical unemployment.
D)   fluctuating unemployment.E) A) and B)
F) B) and C)

Question 2

In the 1940s and 1950s, about one-third of U.S. workers belonged to unions, but today, only about one-fifth of U.S. workers belong to unions.

Accepted Answer

A) True 
 B)False

Question 3

Who of the following are included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)   certain unpaid workers
B)   part-time workers
C)   workers on vacation
D)   All of the above are correct.E) A) and B)
F) All of the above

Question 4

Of the following groups, who is eligible for unemployment insurance benefits?

Accepted Answer

A)   the unemployed who quit their jobs
B)   the unemployed who were laid off because their previous employers no longer needed their skills
C)   the unemployed who were fired for cause
D)   the unemployed who just entered the labor forceE) B) and C)
F) None of the above

Question 5

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 B)
F) A) and C)

Question 6

People who report being not in the labor force but who, in fact, want to work but have given up trying to find a job after an unsuccessful search cause the reported unemployment rate to be lower than it would otherwise be.

Accepted Answer

A) True 
 B)False

Question 7

The natural rate of unemployment refers to the current unemployment rate.

Accepted Answer

A) True 
 B)False

Question 8

If outsiders had more say in union contracts then it is likely that union wages would be

Accepted Answer

A)   higher so unemployment would be higher.
B)   higher so unemployment would be lower.
C)   lower so unemployment would be higher.
D)   lower so unemployment would be lower.E) All of the above
F) B) and C)

Question 9

Most U.S. workers have wages well above the legal minimum, so minimum-wage laws do not prevent the wage from adjusting to balance supply and demand.

Accepted Answer

A) True 
 B)False

Question 10

Economists have found that union workers earn what percent more than similar nonunion workers?

Accepted Answer

A)   0 to 5
B)   5 to 10
C)   10 to 20
D)   20 to 30E) A) and C)
F) None of the above

Question 11

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

Question 12

The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 13

Table 10-3
2010 Labor Data for Adults (age 16 and older)  in Meditor
 
-Refer to Table 10-3. What is the adult unemployment rate in Meditor?

Accepted Answer

A)   4.2 percent
B)   6.25 percent
C)   6.7 percent
D)   10 percentE) B) and C)
F) A) and B)

Question 14

If the wage is kept above the equilibrium level for any reason, the result is unemployment.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Juanita decides to hire some additional workers for her vinyl siding factory. The equilibrium wage is $14 per hour. Efficiency wage theory suggests that it is reasonable for Juanita to offer

Accepted Answer

A)   $14 per hour.
B)   less than $14 per hour, since some people would be willing to work for less.
C)   less than $14 an hour to prevent shirking.
D)   more than $14 per hour, so as to attract a better pool of applicants.E) A) and B)
F) A) and C)

Question 17

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)   about 25 percent, and in 2009, it was about 50 percent.
B)   about 33 percent, and in 2009 it was about 60 percent.
C)   about 50 percent, and in 2009, it was about 70 percent.
D)   about 60 percent, and in 2009, it was about 80 percent.E) A) and B)
F) A) and C)

Question 19

A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job

Accepted Answer

A)   is counted as out of the labor force but should be counted as unemployed.
B)   is counted as unemployed but should be counted as out of the labor force.
C)   is correctly counted as out of the labor force.
D)   is correctly counted as unemployed.E) A) and D)
F) B) and D)

Question 20

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 D)
F) All of the above

Exam 10: Unemployment

The deviation of unemployment from its natural rate is called

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If outsiders had more say in union contracts then it is likely that union wages would be

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A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job

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Of the following groups, who is eligible for unemployment insurance benefits?

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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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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

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Economists have found that union workers earn what percent more than similar nonunion workers?

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Table 10-3 2010 Labor Data for Adults (age 16 and older) in Meditor -Refer to Table 10-3. What is the adult unemployment rate in Meditor?

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Most U.S. workers have wages well above the legal minimum, so minimum-wage laws do not prevent the wage from adjusting to balance supply and demand.

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Who of the following are included in the Bureau of Labor Statistics' "employed" category?

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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

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When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

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Juanita decides to hire some additional workers for her vinyl siding factory. The equilibrium wage is $14 per hour. Efficiency wage theory suggests that it is reasonable for Juanita to offer

Correct AnswerverifiedShow Answer

In the 1940s and 1950s, about one-third of U.S. workers belonged to unions, but today, only about one-fifth of U.S. workers belong to unions.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

People who report being not in the labor force but who, in fact, want to work but have given up trying to find a job after an unsuccessful search cause the reported unemployment rate to be lower than it would otherwise be.

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If the wage is kept above the equilibrium level for any reason, the result is unemployment.

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The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting unemployment insurance.

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The natural rate of unemployment refers to the current unemployment rate.

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

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