Question 1

The unemployment rate for young adults is higher in France and Spain than it is in the United States. To what extent can these differences be explained by

Accepted Answer

The answer of The unemployment rate for young adults is...

Question 2

On average, the percentage of unemployed workers unemployed for more than six months is approximately

Accepted Answer

A) 50 percent. 
B) 17 percent. 
C) 5 percent. 
D) 3 percent. 
E) 35 percent. 
A) 50 percent. 
B) 17 percent. 
C) 5 percent. 
D) 3 percent. 
E) 35 percent. B

Question 3

Housewives are generally not counted as part of the labor force.

Accepted Answer

A) True 
 B)False  True

Question 4

The rate of growth of aggregate hours was higher in the 1970s and 1980s than it was in the 1990s.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following people would be unemployed according to official statistics? Why?

Accepted Answer

The answer of Which of the following people would be...

Question 6

Suppose that the wage is $10 per hour. At this wage, firms are willing to hire 100 million people, and 125 million people are willing to work. Identify the number of people employed and unemployed, and illustrate on a labor-supply-and-demand diagram. What would cause the wage to remain at $10?

Accepted Answer

At a wage of $10 per hour, firms are wil

Question 7

According to the labor supply curve, as the real wage rises,

Accepted Answer

A) employers are willing to provide fewer jobs. 
B) workers are willing to provide more labor. 
C) employers are willing to provide more jobs. 
D) workers are willing to provide less labor. 
E) employers will not change the number of jobs they provide. 
A) employers are willing to provide fewer jobs. 
B) workers are willing to provide more labor. 
C) employers are willing to provide more jobs. 
D) workers are willing to provide less labor. 
E) employers will not change the number of jobs they provide.

Question 8

Lowering the minimum wage will reduce unemployment by decreasing the amount of time it takes to search for a job.

Accepted Answer

A) True 
 B)False

Question 9

Why is there very little change in unemployment due to job leavers during a recession?

Accepted Answer

During a recession, people are less like

Question 10

If the working-age population is 100 million, the labor force is 85 million, and the number employed is 74.8 million, what is the unemployment rate?

Accepted Answer

A) 5 percent 
B) 10.2 percent 
C) 12 percent 
D) 15.6 percent 
E) 16.8 percent 
A) 5 percent 
B) 10.2 percent 
C) 12 percent 
D) 15.6 percent 
E) 16.8 percent

Question 11

To be counted as unemployed a person must

Accepted Answer

A) be looking for work for at least two weeks. 
B) have had a job sometime in the past. 
C) be looking for work for at least a week. 
D) be actively looking for work. 
E) be a discouraged worker. 
A) be looking for work for at least two weeks. 
B) have had a job sometime in the past. 
C) be looking for work for at least a week. 
D) be actively looking for work. 
E) be a discouraged worker.

Question 12

Which of the following statements is true concerning unemployment among young people in the United States, France, and Spain?

Accepted Answer

A) Spain has the highest level of unemployment of these three countries and the smallest percentage of young people living with their parents. 
B) The United States has the highest level of unemployment of these three countries and the highest percentage of young people living with their parents. 
C) The United States has the highest level of unemployment of these three countries and the smallest percentage of young people living with their parents. 
D) Spain has the lowest level of unemployment of these three countries and the smallest percentage of young people living with their parents. 
E) The United States has the lowest level of unemployment of these three countries and the smallest percentage of young people living with their parents. 
A) Spain has the highest level of unemployment of these three countries and the smallest percentage of young people living with their parents. 
B) The United States has the highest level of unemployment of these three countries and the highest percentage of young people living with their parents. 
C) The United States has the highest level of unemployment of these three countries and the smallest percentage of young people living with their parents. 
D) Spain has the lowest level of unemployment of these three countries and the smallest percentage of young people living with their parents. 
E) The United States has the lowest level of unemployment of these three countries and the smallest percentage of young people living with their parents.

Question 13

According to the job-rationing explanation of unemployment,

Accepted Answer

A) there is an excess supply of labor at the prevailing wage. 
B) the prevailing wage is higher than the equilibrium wage. 
C) the amount employed depends on the demand for labor at the prevailing wage. 
D) All of these 
E) None of these 
A) there is an excess supply of labor at the prevailing wage. 
B) the prevailing wage is higher than the equilibrium wage. 
C) the amount employed depends on the demand for labor at the prevailing wage. 
D) All of these 
E) None of these

Question 14

A lower real wage gives firms an incentive to hire more labor.

Accepted Answer

A) True 
 B)False

Question 15

If more jobs are created than destroyed on average, then according to the labor-supply-and-demand model, more people are employed, and the real wage will increase.

Accepted Answer

A) True 
 B)False

Question 16

If both hours worked per employee and the number of employed workers stay constant while the working-age population increases,

Accepted Answer

A) the unemployment rate will decrease. 
B) aggregate hours will decline. 
C) the unemployment rate will increase. 
D) aggregate hours will not change. 
E) aggregate hours will increase. 
A) the unemployment rate will decrease. 
B) aggregate hours will decline. 
C) the unemployment rate will increase. 
D) aggregate hours will not change. 
E) aggregate hours will increase.

Question 17

If more jobs are destroyed than created, the unemployment rate is likely to increase.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following best explains the meaning of the term labor force?

Accepted Answer

A) All people 16 years of age and over who are employed 
B) All people between the ages of 16 and 65 
C) The population that is 16 years of age or over 
D) Any individual who has a job 
E) All people 16 years of age and over who are counted as employed or unemployed 
A) All people 16 years of age and over who are employed 
B) All people between the ages of 16 and 65 
C) The population that is 16 years of age or over 
D) Any individual who has a job 
E) All people 16 years of age and over who are counted as employed or unemployed

Question 19

As the labor force ages, the natural unemployment rate is likely to increase.

Accepted Answer

A) True 
 B)False

Question 20

Joe works at a local newspaper 20 hours a week as a columnist and spends 20 hours a week writing his first novel, which he hopes to get published someday. Joe is

Accepted Answer

A) employed part-time. 
B) not in the labor force. 
C) employed full-time. 
D) a discouraged worker. 
E) unemployed. 
A) employed part-time. 
B) not in the labor force. 
C) employed full-time. 
D) a discouraged worker. 
E) unemployed.

Exam 20: Unemployment and Employment

The unemployment rate for young adults is higher in France and Spain than it is in the United States. To what extent can these differences be explained by

On average, the percentage of unemployed workers unemployed for more than six months is approximately

Housewives are generally not counted as part of the labor force.

The rate of growth of aggregate hours was higher in the 1970s and 1980s than it was in the 1990s.

Which of the following people would be unemployed according to official statistics? Why?

Suppose that the wage is $10 per hour. At this wage, firms are willing to hire 100 million people, and 125 million people are willing to work. Identify the number of people employed and unemployed, and illustrate on a labor-supply-and-demand diagram. What would cause the wage to remain at $10?

According to the labor supply curve, as the real wage rises,

Lowering the minimum wage will reduce unemployment by decreasing the amount of time it takes to search for a job.

Why is there very little change in unemployment due to job leavers during a recession?

If the working-age population is 100 million, the labor force is 85 million, and the number employed is 74.8 million, what is the unemployment rate?

To be counted as unemployed a person must

Which of the following statements is true concerning unemployment among young people in the United States, France, and Spain?

According to the job-rationing explanation of unemployment,

A lower real wage gives firms an incentive to hire more labor.

If more jobs are created than destroyed on average, then according to the labor-supply-and-demand model, more people are employed, and the real wage will increase.

If both hours worked per employee and the number of employed workers stay constant while the working-age population increases,

If more jobs are destroyed than created, the unemployment rate is likely to increase.

Which of the following best explains the meaning of the term labor force?

As the labor force ages, the natural unemployment rate is likely to increase.

Joe works at a local newspaper 20 hours a week as a columnist and spends 20 hours a week writing his first novel, which he hopes to get published someday. Joe is

The Central Idea

Observing and Explaining the Economy

The Supply and Demand Model

Subtleties of the Supply and Demand Model

The Demand Curve and the Behavior of Consumers

The Supply Curve and the Behavior of Firms

The Efficiency of Markets

Costs and the Changes at Firms Over Time

The Rise and Fall of Industries

Monopoly

Product Differentiation, Monopolistic Competition, and Oligopoly

Antitrust Policy and Regulation

Labor Markets

Taxes, Transfers, and Income Distribution

Public Goods, Externalities, and Government Behavior

Capital and Financial Markets

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Economic Growth Around the World

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