Question 1

What would we predict if a country increases its unemployment compensation?

Accepted Answer

A)  The country would have shorter durations of each spell of unemployment, and it would have a higher unemployment. 
B)  The country would have shorter durations of each spell of unemployment, and it would have a lower unemployment rate 
C)  The country would have longer durations of each spell of unemployment, and it would have a higher unemployment rate. 
D)  The country would have longer durations of each spell of unemployment, and it would have a lower unemployment. 
A)  The country would have shorter durations of each spell of unemployment, and it would have a higher unemployment. 
B)  The country would have shorter durations of each spell of unemployment, and it would have a lower unemployment rate 
C)  The country would have longer durations of each spell of unemployment, and it would have a higher unemployment rate. 
D)  The country would have longer durations of each spell of unemployment, and it would have a lower unemployment. C

Question 2

What is characteristic of the relationship between unemployment insurance and job-search effort?

Accepted Answer

A)  Unemployment insurance raises structural unemployment because it reduces the job search of the unemployed. 
B)  Most economists are sceptical of the value of unemployment insurance because they believe that it results in a poorer match between workers and jobs. 
C)  A typical unemployed worker near the end of the time in which he or she can receive benefits increases job-search efforts. 
D)  Unemployed people need to put less job-search effort now than they did in 1971 because in 1971 the conditions to receive unemployment benefits were stricter than today. 
A)  Unemployment insurance raises structural unemployment because it reduces the job search of the unemployed. 
B)  Most economists are sceptical of the value of unemployment insurance because they believe that it results in a poorer match between workers and jobs. 
C)  A typical unemployed worker near the end of the time in which he or she can receive benefits increases job-search efforts. 
D)  Unemployed people need to put less job-search effort now than they did in 1971 because in 1971 the conditions to receive unemployment benefits were stricter than today. C

Question 3

What impact do employment insurance and unions have on unemployment?

Accepted Answer

A)  Unemployment insurance and unions both create structural unemployment. 
B)  Unemployment insurance and unions both create frictional unemployment. 
C)  Unemployment insurance creates frictional unemployment, and unions create structural unemployment. 
D)  Unemployment insurance creates structural unemployment, and unions create frictional unemployment. 
A)  Unemployment insurance and unions both create structural unemployment. 
B)  Unemployment insurance and unions both create frictional unemployment. 
C)  Unemployment insurance creates frictional unemployment, and unions create structural unemployment. 
D)  Unemployment insurance creates structural unemployment, and unions create frictional unemployment. C

Question 4

Figure 9-2
  
-Refer to the Figure 9-2. If the minimum wage rose from $5 to $7, what would happen to unemployment?

Accepted Answer

A)  It would rise by 40. 
B)  It would rise by 20. 
C)  It would fall by 20. 
D)  It would fall by 40. 
A)  It would rise by 40. 
B)  It would rise by 20. 
C)  It would fall by 20. 
D)  It would fall by 40.

Question 5

According to economists, how should the reported unemployment rate be viewed?

Accepted Answer

A)  as a useful but imperfect measure of joblessness 
B)  as clearly smaller than the true unemployment rate 
C)  as clearly larger than the true unemployment rate 
D)  as being very close to the true unemployment rate 
A)  as a useful but imperfect measure of joblessness 
B)  as clearly smaller than the true unemployment rate 
C)  as clearly larger than the true unemployment rate 
D)  as being very close to the true unemployment rate

Question 6

Which cause of unemployment is NOT associated with an excess supply of labour?

Accepted Answer

A)  minimum-wage laws 
B)  unions 
C)  job search 
D)  efficiency wages 
A)  minimum-wage laws 
B)  unions 
C)  job search 
D)  efficiency wages

Question 7

Suppose that in some country neither textile workers nor shoemakers are unionized. If textile workers unionize and so are able to raise their wages, what will most likely happen to shoemakers?

Accepted Answer

A)  The demand for shoemakers will rise, and their wages will rise. 
B)  The demand for shoemakers will fall, and their wages will fall. 
C)  The supply of shoemakers will rise, and their wages will fall. 
D)  The supply of shoemakers will fall, and their wages will rise. 
A)  The demand for shoemakers will rise, and their wages will rise. 
B)  The demand for shoemakers will fall, and their wages will fall. 
C)  The supply of shoemakers will rise, and their wages will fall. 
D)  The supply of shoemakers will fall, and their wages will rise.

Question 8

Tom is looking for work after school, but everywhere he fills out an application he is told that so have lots of others. Simon has a law degree. Several firms have made him offers, but he thinks he might be able to find a firm where his talents could be put to better use. Which category of unemployment do Tom and Simon belong to?

Accepted Answer

A)  Tom and Simon are both frictionally unemployed. 
B)  Tom and Simon are both structurally unemployed. 
C)  Tom is frictionally unemployed, and Simon is structurally unemployed. 
D)  Tom is structurally unemployed, and Simon is frictionally unemployed. 
A)  Tom and Simon are both frictionally unemployed. 
B)  Tom and Simon are both structurally unemployed. 
C)  Tom is frictionally unemployed, and Simon is structurally unemployed. 
D)  Tom is structurally unemployed, and Simon is frictionally unemployed.

Question 9

Firms might offer efficiency wages in order to attract a better pool of applicants.

Accepted Answer

A) True 
 B)False

Question 10

Consider two people who are currently out of work. Bernie is not looking for work because there have been many job cuts where he lives and he doesn't think it likely that he will find work. Bev is not currently looking for work, but she would like a job. While she hasn't looked for work for some time, she has looked for work in the past. How does Statistics Canada consider Bernie and Bev?

Accepted Answer

A)  Statistics Canada considers both Bernie and Bev to be discouraged searchers. 
B)  Statistics Canada considers neither Bernie nor Bev to be discouraged searchers. 
C)  Statistics Canada considers only Bernie to be a discouraged searcher. 
D)  Statistics Canada considers only Bev to be a discouraged searcher. 
A)  Statistics Canada considers both Bernie and Bev to be discouraged searchers. 
B)  Statistics Canada considers neither Bernie nor Bev to be discouraged searchers. 
C)  Statistics Canada considers only Bernie to be a discouraged searcher. 
D)  Statistics Canada considers only Bev to be a discouraged searcher.

Question 11

Who would be included in the labour force?

Accepted Answer

A)  Holly, instead of being paid, cares for children in exchange for room and board 
B)  Tiffany, a full-time student not looking for work 
C)  Cody, who does not have a job, but is looking for work 
D)  Kara, who has interrupted her career to raise her two children 
A)  Holly, instead of being paid, cares for children in exchange for room and board 
B)  Tiffany, a full-time student not looking for work 
C)  Cody, who does not have a job, but is looking for work 
D)  Kara, who has interrupted her career to raise her two children

Question 12

What led to the decrease in labour-force participation rates among Canadian men since World War II?

Accepted Answer

A)  longer schooling, an increase in stay-at-home dads, earlier retirement, and longer lives 
B)  longer lives, laws that prevent mandatory retirement, and an increase in stay-at-home dads 
C)  better employment insurance benefits and laws that prevent mandatory retirement and age discrimination in hiring 
D)  easier job searches, better training, and laws that prevent mandatory retirement and age discrimination in hiring 
A)  longer schooling, an increase in stay-at-home dads, earlier retirement, and longer lives 
B)  longer lives, laws that prevent mandatory retirement, and an increase in stay-at-home dads 
C)  better employment insurance benefits and laws that prevent mandatory retirement and age discrimination in hiring 
D)  easier job searches, better training, and laws that prevent mandatory retirement and age discrimination in hiring

Question 13

What is the effect of unions on wages and employment?

Accepted Answer

A)  Unions are unlikely to affect wages and employment. 
B)  Unions raise wages above the competitive equilibrium level. 
C)  Unions increase the level of employment in unionized firms. 
D)  Unions decrease the level of employment in nonunionized firms. 
A)  Unions are unlikely to affect wages and employment. 
B)  Unions raise wages above the competitive equilibrium level. 
C)  Unions increase the level of employment in unionized firms. 
D)  Unions decrease the level of employment in nonunionized firms.

Question 14

What is a possible effect of unions?

Accepted Answer

A)  Unions decrease the natural rate of unemployment. 
B)  Unions decrease the wages of workers in the union. 
C)  Unions raise the profits of firms they work for. 
D)  Unions cause wages of nonunionized workers to fall. 
A)  Unions decrease the natural rate of unemployment. 
B)  Unions decrease the wages of workers in the union. 
C)  Unions raise the profits of firms they work for. 
D)  Unions cause wages of nonunionized workers to fall.

Question 15

Which law is most likely to reduce the natural rate of unemployment?

Accepted Answer

A)  a law that makes all provinces repeal right-to-work laws 
B)  a law that makes it harder to find out about job candidates' past job history 
C)  a law that abolishes the minimum wage 
D)  a law that make it more difficult to monitor the efforts of workers 
A)  a law that makes all provinces repeal right-to-work laws 
B)  a law that makes it harder to find out about job candidates' past job history 
C)  a law that abolishes the minimum wage 
D)  a law that make it more difficult to monitor the efforts of workers

Question 16

Which data does Statistics Canada NOT produce?

Accepted Answer

A)  monthly data on unemployment 
B)  data on types of employment 
C)  data on length of the average workweek 
D)  daily data on unemployment 
A)  monthly data on unemployment 
B)  data on types of employment 
C)  data on length of the average workweek 
D)  daily data on unemployment

Question 17

Efficiency wages create structural unemployment.

Accepted Answer

A) True 
 B)False

Question 18

Why was net employment growth in 2009 negative?

Accepted Answer

A)  Job creation exceeded job destruction that year. 
B)  The economy had previously been in a recession but was now in recovery 
C)  Job destruction exceeded job creation that year. 
D)  Employees were in the process of moving from failing to growing firms. 
A)  Job creation exceeded job destruction that year. 
B)  The economy had previously been in a recession but was now in recovery 
C)  Job destruction exceeded job creation that year. 
D)  Employees were in the process of moving from failing to growing firms.

Question 19

Table 9-1
This table shows the 2013 data for males and females aged 15 and over in the country of Bolivar.  
-Refer to the Table 9-1. What is the adult male labour force in Bolivar?

Accepted Answer

A)  75 million 
B)  90 million 
C)  100 million 
D)  120 million 
A)  75 million 
B)  90 million 
C)  100 million 
D)  120 million

Question 20

Which statement best explains how unemployment relates to business cycles?

Accepted Answer

A)  Unemployment can be eliminated through economic policies when the economy grows at normal rates. 
B)  Unemployment only exists during periods of economic slowdown. 
C)  Cyclical unemployment is inversely related to short-run economic fluctuations. 
D)  Unemployment is unrelated to short-run economic fluctuations. 
A)  Unemployment can be eliminated through economic policies when the economy grows at normal rates. 
B)  Unemployment only exists during periods of economic slowdown. 
C)  Cyclical unemployment is inversely related to short-run economic fluctuations. 
D)  Unemployment is unrelated to short-run economic fluctuations.

What would we predict if a country increases its unemployment compensation?

What is characteristic of the relationship between unemployment insurance and job-search effort?

What impact do employment insurance and unions have on unemployment?

Figure 9-2 -Refer to the Figure 9-2. If the minimum wage rose from $5 to $7, what would happen to unemployment?

According to economists, how should the reported unemployment rate be viewed?

Which cause of unemployment is NOT associated with an excess supply of labour?

Suppose that in some country neither textile workers nor shoemakers are unionized. If textile workers unionize and so are able to raise their wages, what will most likely happen to shoemakers?

Firms might offer efficiency wages in order to attract a better pool of applicants.

Who would be included in the labour force?

What led to the decrease in labour-force participation rates among Canadian men since World War II?

What is the effect of unions on wages and employment?

What is a possible effect of unions?

Which law is most likely to reduce the natural rate of unemployment?

Which data does Statistics Canada NOT produce?

Efficiency wages create structural unemployment.

Why was net employment growth in 2009 negative?

Table 9-1 This table shows the 2013 data for males and females aged 15 and over in the country of Bolivar. -Refer to the Table 9-1. What is the adult male labour force in Bolivar?

Which statement best explains how unemployment relates to business cycles?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small 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

Five Debates Over Macroeconomic Policy

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Exam 9: Unemployment and Its Natural Rate

What would we predict if a country increases its unemployment compensation?

What is characteristic of the relationship between unemployment insurance and job-search effort?

What impact do employment insurance and unions have on unemployment?

Figure 9-2 -Refer to the Figure 9-2. If the minimum wage rose from $5 to $7, what would happen to unemployment?

According to economists, how should the reported unemployment rate be viewed?

Which cause of unemployment is NOT associated with an excess supply of labour?

Suppose that in some country neither textile workers nor shoemakers are unionized. If textile workers unionize and so are able to raise their wages, what will most likely happen to shoemakers?

Firms might offer efficiency wages in order to attract a better pool of applicants.

Who would be included in the labour force?

What led to the decrease in labour-force participation rates among Canadian men since World War II?

What is the effect of unions on wages and employment?

What is a possible effect of unions?

Which law is most likely to reduce the natural rate of unemployment?

Which data does Statistics Canada NOT produce?

Efficiency wages create structural unemployment.

Why was net employment growth in 2009 negative?

Table 9-1 This table shows the 2013 data for males and females aged 15 and over in the country of Bolivar. -Refer to the Table 9-1. What is the adult male labour force in Bolivar?

Which statement best explains how unemployment relates to business cycles?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small 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

Five Debates Over Macroeconomic Policy

Filters