Question 1

Frictional unemployment is often thought to explain relatively short spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 2

If unions were formed in more industries, the supply of labor in other industries would

Accepted Answer

A)   increase, causing employment in other industries to rise.
B)   increase, causing employment in other industries to fall.
C)   decrease, causing employment in other industries to rise.
D)   decrease, causing employment in other industries to fall.E) B) and C)
F) A) and D)

Question 3

Changes in the composition of demand among industries or regions are called sectoral shifts.

Accepted Answer

A) True 
 B)False

Question 4

The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate.

Accepted Answer

A) True 
 B)False

Question 5

Most spells of unemployment are short, and most unemployment observed at any given time is short-term.

Accepted Answer

A) True 
 B)False

Question 6

Some individuals would like to have a job, but they have given up looking for a job after an unsuccessful search. These individuals are called

Accepted Answer

A)   detached workers, and they are classified by the Bureau of Labor Statistics as unemployed.
B)   detached workers, and they are not classified by the Bureau of Labor Statistics as unemployed.
C)   discouraged workers, and they are classified by the Bureau of Labor Statistics as unemployed.
D)   discouraged workers, and they are not classified by the Bureau of Labor Statistics as unemployed.E) A) and D)
F) A) and C)

Question 7

The main explanation for the lower growth rate for the American economy in the 21st century compared to the previous 250 years is

Accepted Answer

A)   higher minimum wages.
B)   that although Americans are working more, they are more distracted by technology and therefore are less productive at work.
C)   that Americans are working less.
D)   the increasing labor-force participation rates of women with young children.E) B) and D)
F) B) and C)

Question 8

Suppose that some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were unemployed?

Accepted Answer

A)   2.54 million
B)   2.76 million
C)   3.68 million
D)   8 millionE) None of the above
F) B) and D)

Question 9

Caroline is the owner of a hair-styling salon and spa. She decides to raise the wages of her workers even though she faces an excess supply of labor. Her decision

Accepted Answer

A)   might increase profits if it attracts a better pool of workers to apply for jobs at her salon.
B)   will increase the excess supply of labor.
C)   may increase the quality of her work force.
D)   All of the above are correct.E) B) and C)
F) A) and B)

Question 10

A firm might offer efficiency wages in order to reduce shirking.

Accepted Answer

A) True 
 B)False

Question 11

Table 28-5
Labor Force Statistics by Age
Suppose people in the adult population in a small country are classified based on their age.
 
-Refer to Table 28-5. Suppose that the natural rate of unemployment is 5% for those under 55 and 3% for those 55 and older. The cyclical unemployment rate for those under 55 is

Accepted Answer

A)   0.88% which is greater than the cyclical unemployment rate for those 55 and older.
B)   0.88% which is less than the cyclical unemployment rate for those 55 and older.
C)   -0.83% which is greater than the cyclical unemployment rate for those 55 and older.
D)   -0.83% which is less than the cyclical unemployment rate for those 55 and older.E) B) and C)
F) C) and D)

Question 12

A union is a type of cartel.

Accepted Answer

A) True 
 B)False

Question 13

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

Accepted Answer

A) True 
 B)False

Question 14

Measuring the amount of unemployment in the economy is a straightforward task.

Accepted Answer

A) True 
 B)False

Question 15

The labor-force participation rate tells us the fraction of the population that

Accepted Answer

A)   is able to participate in the labor market.
B)   has ever been employed.
C)   has chosen to participate in the labor market.
D)   has chosen not to participate in the labor market.E) A) and D)
F) A) and C)

Question 16

An economy's natural rate of unemployment refers to the amount of unemployment that the economy normally experiences.

Accepted Answer

A) True 
 B)False

Question 17

Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

Accepted Answer

A) True 
 B)False

Question 18

Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Accepted Answer

A) True 
 B)False

Question 19

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Accepted Answer

A) True 
 B)False

Question 20

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) B) and C)
F) A) and D)

Exam 15: Unemployment

Changes in the composition of demand among industries or regions are called sectoral shifts.

Correct Answer
verified

The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate.

Correct Answer
verified

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Correct Answer
verified

Some individuals would like to have a job, but they have given up looking for a job after an unsuccessful search. These individuals are called

Correct Answer
verified

If unions were formed in more industries, the supply of labor in other industries would

Correct Answer
verified

Caroline is the owner of a hair-styling salon and spa. She decides to raise the wages of her workers even though she faces an excess supply of labor. Her decision

Correct Answer
verified

Most spells of unemployment are short, and most unemployment observed at any given time is short-term.

Correct Answer
verified

Measuring the amount of unemployment in the economy is a straightforward task.

Correct Answer
verified

Frictional unemployment is often thought to explain relatively short spells of unemployment.

Correct Answer
verified

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

Correct Answer
verified

Correct Answer
verified

A firm might offer efficiency wages in order to reduce shirking.

Correct Answer
verified

The labor-force participation rate tells us the fraction of the population that

Correct Answer
verified

Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

Correct Answer
verified

Suppose that some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were unemployed?

Correct Answer
verified

An economy's natural rate of unemployment refers to the amount of unemployment that the economy normally experiences.

Correct Answer
verified

A union is a type of cartel.

Correct Answer
verified

The main explanation for the lower growth rate for the American economy in the 21st century compared to the previous 250 years is

Correct Answer
verified

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

Correct Answer
verified

Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Correct Answer
verified

Exam 15: Unemployment

Changes in the composition of demand among industries or regions are called sectoral shifts.

Correct AnswerverifiedShow Answer

The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate.

Correct AnswerverifiedShow Answer

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Correct AnswerverifiedShow Answer

Some individuals would like to have a job, but they have given up looking for a job after an unsuccessful search. These individuals are called

Correct AnswerverifiedShow Answer

If unions were formed in more industries, the supply of labor in other industries would

Correct AnswerverifiedShow Answer

Caroline is the owner of a hair-styling salon and spa. She decides to raise the wages of her workers even though she faces an excess supply of labor. Her decision

Correct AnswerverifiedShow Answer

Most spells of unemployment are short, and most unemployment observed at any given time is short-term.

Correct AnswerverifiedShow Answer

Measuring the amount of unemployment in the economy is a straightforward task.

Correct AnswerverifiedShow Answer

Frictional unemployment is often thought to explain relatively short spells of unemployment.

Correct AnswerverifiedShow Answer

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A firm might offer efficiency wages in order to reduce shirking.

Correct AnswerverifiedShow Answer

The labor-force participation rate tells us the fraction of the population that

Correct AnswerverifiedShow Answer

Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

Correct AnswerverifiedShow Answer

Suppose that some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were unemployed?

Correct AnswerverifiedShow Answer

An economy's natural rate of unemployment refers to the amount of unemployment that the economy normally experiences.

Correct AnswerverifiedShow Answer

A union is a type of cartel.

Correct AnswerverifiedShow Answer

The main explanation for the lower growth rate for the American economy in the 21st century compared to the previous 250 years is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Correct AnswerverifiedShow Answer

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