Question 1

Suppose that neither textile workers nor shoemakers are unionized. If textile workers unionize, then the supply of shoemakers will

Accepted Answer

A)   rise and their wages will rise.
B)   rise and their wages will fall.
C)   fall and their wages will fall.
D)   fall and their wages will rise.E) None of the above
F) A) and C)

Question 2

The Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to

Accepted Answer

A)   frictional unemployment created by efficiency wages.
B)   structural unemployment created by efficiency wages.
C)   frictional unemployment created by sectoral shifts.
D)   structural unemployment created by sectoral shifts.E) All of the above
F) B) and D)

Question 3

Which of the following is correct?

Accepted Answer

A)   Nearly all economists believe that unions are bad for the economy as a whole.
B)   Unionized firms pay wages above the competitive equilibrium level.
C)   Unions increase the level of employment in unionized firms.
D)   Unions decrease the level of employment in firms without unions.E) All of the above
F) None of the above

Question 4

An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

Accepted Answer

A) True 
 B)False

Question 5

The labor-force participation rate equals the percentage of the labor force that is employed.

Accepted Answer

A) True 
 B)False

Question 6

Table 10-4
 
-Refer to Table 10-4. What is the U-4 measure of labor underutilization?

Accepted Answer

A)   6.5 percent
B)   6.9 percent
C)   7.0 percent
D)   17.9 percentE) B) and D)
F) B) and C)

Question 7

In the U.S., the National Labor Relations Board is the government agency that enforces workers' right to unionize.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)   90 million
B)   160 million
C)   230 million
D)   240 millionE) None of the above
F) A) and B)

Question 9

One explanation for long-run unemployment is that it takes time for workers to search for the jobs that are best suited for them.

Accepted Answer

A) True 
 B)False

Question 10

Unions are exempt from U.S. antitrust laws.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not a cause of frictional unemployment?

Accepted Answer

A)   the destruction of manufacturing jobs
B)   a worker leaving a job to find one with better benefits
C)   minimum-wage laws
D)   unemployment insuranceE) A) and D)
F) A) and C)

Question 12

Table 10-5
2010 Labor Data for Tajnia
 
-Refer to Table 10-5. The labor force of Tajnia in 2010 is 10,000.

Accepted Answer

A) True 
 B)False

Question 13

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 D)
F) B) and C)

Question 14

Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labor force instead of as unemployed, then

Accepted Answer

A)   both the unemployment rate and labor-force participation rate would be higher.
B)   both the unemployment rate and labor-force participation rate would be lower.
C)   the unemployment rate would be lower and the labor-force participation rate would be higher.
D)   the unemployment rate would be higher and the participation rate would be lower.E) B) and C)
F) A) and B)

Question 15

Some of a firm's workers are made worse off by the introduction of a union.

Accepted Answer

A) True 
 B)False

Question 16

Figure 10-1
 
-Refer to Figure 10-1. 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) A) and B)
F) A) and C)

Question 17

Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level?

Accepted Answer

A)   efficiency wages
B)   job search
C)   minimum-wage laws
D)   unionsE) None of the above
F) A) and D)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Unions

Accepted Answer

A)   and firms paying wages above equilibrium to improve worker effort both create frictional unemployment.
B)   creates frictional unemployment, while firms paying wages above equilibrium to improve worker effort creates structural unemployment.
C)   creates structural unemployment, while firms paying wages above equilibrium to improve worker effort creates frictional unemployment.
D)   and firms paying wages above equilibrium to improve worker effort both create structural unemployment.E) A) and B)
F) All of the above

Question 20

Unions contribute to

Accepted Answer

A)   frictional unemployment but not the natural rate of unemployment.
B)   the natural rate of unemployment but not frictional unemployment.
C)   both frictional unemployment and the natural rate of unemployment.
D)   neither frictional unemployment nor the natural rate of unemployment.E) B) and D)
F) A) and C)

Exam 10: Unemployment

Table 10-4 -Refer to Table 10-4. What is the U-4 measure of labor underutilization?

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Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labor force instead of as unemployed, then

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Suppose that neither textile workers nor shoemakers are unionized. If textile workers unionize, then the supply of shoemakers will

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Unions are exempt from U.S. antitrust laws.

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

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Which of the following is not a cause of frictional unemployment?

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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 population in Meditor?

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One explanation for long-run unemployment is that it takes time for workers to search for the jobs that are best suited for them.

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Table 10-5 2010 Labor Data for Tajnia -Refer to Table 10-5. The labor force of Tajnia in 2010 is 10,000.

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Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level?

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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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Some of a firm's workers are made worse off by the introduction of a union.

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An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

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Unions

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Unions contribute to

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In the U.S., the National Labor Relations Board is the government agency that enforces workers' right to unionize.

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The Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to

Correct AnswerverifiedShow Answer

Figure 10-1 -Refer to Figure 10-1. If the government imposes a minimum wage of $4, then unemployment will increase by

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Which of the following is correct?

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The labor-force participation rate equals the percentage of the labor force that is employed.

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