Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

For 2015 the U.S. natural rate of unemployment was estimated to be about 4.9 percent, which was close to the actual unemployment rate in 2015.

Accepted Answer

A) True 
 B)False  True

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

When unions raise wages in one part of the economy, the supply of labor increases in other parts of the economy, which reduces wages in industries that are not unionized.

Accepted Answer

A) True 
 B)False

Question 5

Minimum wages create unemployment in markets where they create a

Accepted Answer

A) shortage of labor.Unemployment of this type is called frictional. 
B) shortage of labor.Unemployment of this type is called structural. 
C) surplus of labor.Unemployment of this type is called frictional. 
D) surplus of labor.Unemployment of this type is called structural. 
A) shortage of labor.Unemployment of this type is called frictional. 
B) shortage of labor.Unemployment of this type is called structural. 
C) surplus of labor.Unemployment of this type is called frictional. 
D) surplus of labor.Unemployment of this type is called structural.

Question 6

Frictional unemployment is thought to explain relatively

Accepted Answer

A) short spells of unemployment, as is structural unemployment. 
B) long spells of unemployment, as is structural unemployment. 
C) short spells of unemployment, while structural unemployment is thought to explain relatively long spells of unemployment. 
D) long spells of unemployment, while structural unemployment is thought to explain relatively short spells of unemployment. 
A) short spells of unemployment, as is structural unemployment. 
B) long spells of unemployment, as is structural unemployment. 
C) short spells of unemployment, while structural unemployment is thought to explain relatively long spells of unemployment. 
D) long spells of unemployment, while structural unemployment is thought to explain relatively short spells of unemployment.

Question 7

Someone who loses his job at a truck factory because the demand for trucks has fallen and the demand for cars has risen, is structurally unemployed.

Accepted Answer

A) True 
 B)False

Question 8

If people who report being unemployed are not, in fact, trying hard to find a job, then the reported unemployment rate will be biased upward.

Accepted Answer

A) True 
 B)False

Question 9

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 10

Rupert is collecting unemployment insurance benefits. To continue to receive his benefits, he must be looking for work. Because he'd like to continue collecting benefits rather than take a job, he applies at places that are unlikely to hire him. People like Rupert make the reported unemployment rate less than it would otherwise be.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Within the U.S. population, teenagers (ages 16-19) have higher rates of unemployment than adults of prime working age (ages 25-54), regardless of race or gender.

Accepted Answer

A) True 
 B)False

Question 13

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. 
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.

Question 14

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 15

Right-to-work laws allow striking union members to be permanently replaced.

Accepted Answer

A) True 
 B)False

Question 16

Figure 28-3
​
  
-Refer to Figure 28-3. If the minimum wage is equal to $125, what is the quantity of labor supplied, the quantity of labor demanded, and number unemployed?

Accepted Answer

Labor supplied is 35

Question 17

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous four weeks.

Accepted Answer

A) True 
 B)False

Question 18

Advocates of government-run employment agencies and public training programs believe they make job search more efficient.

Accepted Answer

A) True 
 B)False

Question 19

The labor-force participation rate tells us the fraction of the population that has chosen to participate in the labor market.

Accepted Answer

A) True 
 B)False

Question 20

The unemployment rate is computed as the number of unemployed

Accepted Answer

A) divided by the labor force, all times 100. 
B) divided by the number of employed, all times 100. 
C) divided by the adult population, all times 100. 
D) times the labor-force participation rate, all times 100. 
A) divided by the labor force, all times 100. 
B) divided by the number of employed, all times 100. 
C) divided by the adult population, all times 100. 
D) times the labor-force participation rate, all times 100.

Exam 28: Unemployment and Its Natural Rate

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

For 2015 the U.S. natural rate of unemployment was estimated to be about 4.9 percent, which was close to the actual unemployment rate in 2015.

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

When unions raise wages in one part of the economy, the supply of labor increases in other parts of the economy, which reduces wages in industries that are not unionized.

Minimum wages create unemployment in markets where they create a

Frictional unemployment is thought to explain relatively

Someone who loses his job at a truck factory because the demand for trucks has fallen and the demand for cars has risen, is structurally unemployed.

If people who report being unemployed are not, in fact, trying hard to find a job, then the reported unemployment rate will be biased upward.

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

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.

Within the U.S. population, teenagers (ages 16-19) have higher rates of unemployment than adults of prime working age (ages 25-54), regardless of race or gender.

Unions contribute to

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

Right-to-work laws allow striking union members to be permanently replaced.

Figure 28-3 ​ -Refer to Figure 28-3. If the minimum wage is equal to $125, what is the quantity of labor supplied, the quantity of labor demanded, and number unemployed?

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous four weeks.

Advocates of government-run employment agencies and public training programs believe they make job search more efficient.

The labor-force participation rate tells us the fraction of the population that has chosen to participate in the labor market.

The unemployment rate is computed as the number of unemployed

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Applications: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Tools of Finance

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters

Figure 28-3 -Refer to Figure 28-3. If the minimum wage is equal to $125, what is the quantity of labor supplied, the quantity of labor demanded, and number unemployed?