Question 1

Table 10-2
2009 Labor Data for Baltivia
 
-Refer to Table 10-2. What was Baltivia's unemployment rate in 2009?

Accepted Answer

A)   8.0 percent
B)   12.7 percent
C)   15.9 percent
D)   22.1 percentE) A) and C)
F) C) and D)

Question 2

More than one-third of the unemployed are recent entrants into the labor force.

Accepted Answer

A) True 
 B)False

Question 3

The labor-force participation rate is computed as

Accepted Answer

A)   (Employed Adult Population)  100.
B)   (Employed Labor Force)  100.
C)   (Labor Force Adult Population)  100.
D)   (Adult Population Labor Force)  100.E) A) and B)
F) C) and D)

Question 4

Spells of unemployment end about

Accepted Answer

A)   1/5 of the time with the person leaving the labor force.
B)   1/4 of the time with the person leaving the labor force.
C)   1/3 of the time with the person leaving the labor force.
D)   1/2 of the time with the person leaving the labor force.E) A) and B)
F) A) and C)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Some long-run unemployment may be explained by the fact that the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Over the past several decades in the United States, the labor-force participation rate of women has

Accepted Answer

A)   increased and the labor-force participation rate of men has increased.
B)   increased and the labor-force participation rate of men has decreased.
C)   decreased and the labor-force participation rate of men has increased.
D)   decreased and the labor-force participation rate of men has decreased.E) C) and D)
F) B) and C)

Question 10

Suppose that telemarketers are not unionized. If they unionize, then the supply of labor in other sectors of the economy will

Accepted Answer

A)   decrease, raising wages in industries that are not unionized.
B)   decrease, reducing wages in industries that are not unionized.
C)   increase, raising wages in industries that are not unionized.
D)   increase, reducing wages in industries that are not unionized.E) C) and D)
F) A) and B)

Question 11

It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 12

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.E) All of the above
F) C) and D)

Question 13

Policies that reduce the time it takes unemployed workers to find new jobs

Accepted Answer

A)   can reduce both frictional unemployment and the natural rate of unemployment.
B)   can reduce frictional unemployment, but it cannot reduce the natural rate of unemployment.
C)   cannot reduce frictional unemployment, but it can reduce the natural rate of unemployment.
D)   cannot reduce either frictional unemployment or the natural rate of unemployment.E) C) and D)
F) B) and C)

Question 14

Studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed.

Accepted Answer

A) True 
 B)False

Question 15

Frictional unemployment results from

Accepted Answer

A)   job searching. It is often thought to explain relatively short spells of unemployment.
B)   job searching. It is often thought to explain relatively long spells of unemployment
C)   a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment.
D)   a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment.E) A) and D)
F) None of the above

Question 16

The Bureau of Labor Statistics' U-2 measure of joblessness includes job losers and job leavers.

Accepted Answer

A) True 
 B)False

Question 17

Wages in excess of their equilibrium level help explain

Accepted Answer

A)   frictional but not structural unemployment.
B)   structural but not frictional unemployment.
C)   both frictional and structural unemployment.
D)   neither frictional nor structural unemployment.E) A) and B)
F) None of the above

Question 18

If the minimum wage is currently above the equilibrium wage, then a decrease 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) A) and B)
F) All of the above

Question 19

Refer to Figure 10-1. If unemployment is 2000 workers, then the minimum wage must be

Accepted Answer

A)   $4.
B)   $5.
C)   $7.
D)   $8.E) B) and C)
F) C) and D)

Question 20

The Bureau of Labor Statistics' U-5 measure of joblessness includes marginally attached workers.

Accepted Answer

A) True 
 B)False

Exam 10: Unemployment

Over the past several decades in the United States, the labor-force participation rate of women has

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Wages in excess of their equilibrium level help explain

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Suppose that telemarketers are not unionized. If they unionize, then the supply of labor in other sectors of the economy will

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Table 10-2 2009 Labor Data for Baltivia -Refer to Table 10-2. What was Baltivia's unemployment rate in 2009?

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Spells of unemployment end about

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The Bureau of Labor Statistics' U-5 measure of joblessness includes marginally attached workers.

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

Correct AnswerverifiedShow Answer

Some long-run unemployment may be explained by the fact that the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one.

Correct AnswerverifiedShow Answer

Refer to Figure 10-1. If unemployment is 2000 workers, then the minimum wage must be

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Wages in excess of their equilibrium level help explain

Correct AnswerverifiedShow Answer

The labor-force participation rate is computed as

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Policies that reduce the time it takes unemployed workers to find new jobs

Correct AnswerverifiedShow Answer

If the minimum wage is currently above the equilibrium wage, then a decrease in the minimum wage

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' U-2 measure of joblessness includes job losers and job leavers.

Correct AnswerverifiedShow Answer

Frictional unemployment results from

Correct AnswerverifiedShow Answer

It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.

Correct AnswerverifiedShow Answer

Studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed.

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More than one-third of the unemployed are recent entrants into the labor force.

Correct AnswerverifiedShow Answer

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

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