Question 1

When a union bargains successfully with employers, what happens to quantity of labour supplied and demanded in that industry?

Accepted Answer

A)  Both the quantity of labour supplied and the quantity of labour demanded increase. 
B)  Both the quantity of labour supplied and the quantity of labour demanded decrease. 
C)  The quantity of labour supplied increases and the quantity of labour demanded decreases. 
D)  The quantity of labour supplied decreases the quantity of labour demanded increases. 
A)  Both the quantity of labour supplied and the quantity of labour demanded increase. 
B)  Both the quantity of labour supplied and the quantity of labour demanded decrease. 
C)  The quantity of labour supplied increases and the quantity of labour demanded decreases. 
D)  The quantity of labour supplied decreases the quantity of labour demanded increases.

Question 2

Full-time students, retirees, and unpaid stay-at-home fathers are counted as unemployed.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

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

Question 4

Who would NOT be included in the labour force?

Accepted Answer

A)  Jay, who is on temporary layoff 
B)  Mike, who has retired and is not looking for work 
C)  Jane, who does not have a job, but has applied for several in the last week 
D)  Joan, who has a part-time job but is looking for a full-time one 
A)  Jay, who is on temporary layoff 
B)  Mike, who has retired and is not looking for work 
C)  Jane, who does not have a job, but has applied for several in the last week 
D)  Joan, who has a part-time job but is looking for a full-time one

Question 5

Government policy can do nothing about the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 6

The unemployment rate reported by Statistics Canada clearly understates the true unemployment rate.

Accepted Answer

A) True 
 B)False

Question 7

Meredith is looking for work as a computer programmer. Although her prospects are good, she hasn't yet taken a job. Julie is looking for work in a steel mill, but there aren't many job ads for steel workers and every time she shows up for an interview, there are many more people than openings. Which statement best describes the nature of their unemployment?

Accepted Answer

A)  Meredith and Julie are both frictionally unemployed. 
B)  Meredith and Julie are both structurally unemployed. 
C)  Meredith is frictionally unemployed, and Julie is structurally unemployed. 
D)  Meredith is structurally unemployed, and Julie is frictionally unemployed. 
A)  Meredith and Julie are both frictionally unemployed. 
B)  Meredith and Julie are both structurally unemployed. 
C)  Meredith is frictionally unemployed, and Julie is structurally unemployed. 
D)  Meredith is structurally unemployed, and Julie is frictionally unemployed.

Question 8

According to your text, what is NOT a reason that actual labour markets experience unemployment?

Accepted Answer

A)  unions 
B)  job search 
C)  flexible wages 
D)  minimum-wage legislation 
A)  unions 
B)  job search 
C)  flexible wages 
D)  minimum-wage legislation

Question 9

What is the theory of efficiency wages? Give a couple of explanations for how efficiency wages might work.

Accepted Answer

According to the theory of efficiency wa

Question 10

Aaron is the owner of a firm that produces wind power in southern Alberta. There are many such firms in the area. Aaron decides that if he pays his workers a wage higher than the going market wage, his profits will increase. What is a likely explanation for his decision?

Accepted Answer

A)  The higher the wage, the less often his workers will choose to leave his firm. 
B)  The higher the wage, the lower will be the cost of obtaining needed supplies. 
C)  The higher the wage, the more he can charge for his wind power. 
D)  The higher the wage, the less competition will be in the industry. 
A)  The higher the wage, the less often his workers will choose to leave his firm. 
B)  The higher the wage, the lower will be the cost of obtaining needed supplies. 
C)  The higher the wage, the more he can charge for his wind power. 
D)  The higher the wage, the less competition will be in the industry.

Question 11

Why have labour-force participation rates for women in Canada increased since World War II while labour-force participation rates for men have decreased?

Accepted Answer

Labour-force participation rates for wom

Question 12

Regarding the categories of unemployment, how does a minimum-wage law compare to firms paying higher-than-equilibrium wages?

Accepted Answer

A)  The minimum wage creates frictional unemployment, while firms paying wages above equilibrium create structural unemployment. 
B)  The minimum wage creates structural unemployment, while firms paying wages above equilibrium create frictional unemployment. 
C)  The minimum wage and firms paying wages above equilibrium both create structural unemployment. 
D)  The minimum wage and firms paying wages above equilibrium both create frictional unemployment. 
A)  The minimum wage creates frictional unemployment, while firms paying wages above equilibrium create structural unemployment. 
B)  The minimum wage creates structural unemployment, while firms paying wages above equilibrium create frictional unemployment. 
C)  The minimum wage and firms paying wages above equilibrium both create structural unemployment. 
D)  The minimum wage and firms paying wages above equilibrium both create frictional unemployment.

Question 13

Suppose the market for landscape workers in Kitchener, Ontario, can be described by the following labour demand and supply equations: LD = 340 - 10w and LS = 100 + 20w. 
a) Calculate the equilibrium wage and employment in this market. 
b) Suppose the local government passes a bill requiring all employers in this industry to provide bottled water to each worker to protect them from hot weather. This has been estimated to cost employers $1 per worker per hour. This way, workers do not need to purchase water by themselves, so that the bill effectively increases the wage by $1 per hour. What are the new labour demand and supply equations?
c) Calculate the new equilibrium wage and employment. Draw a graph to show the change.

Accepted Answer

a)The equilibrium equation is LD = LS, o

Question 14

How is the labour-force participation rate computed?

Accepted Answer

A)  as the number of adults in the labour force divided by the adult population times 100 
B)  as the number of adults in the labour force divided by the number of unemployed times 100 
C)  as the number of adults in the labour force divided by the unemployment rate times 100 
D)  as the number of adults in the labour force times the participation rate times 100 
A)  as the number of adults in the labour force divided by the adult population times 100 
B)  as the number of adults in the labour force divided by the number of unemployed times 100 
C)  as the number of adults in the labour force divided by the unemployment rate times 100 
D)  as the number of adults in the labour force times the participation rate times 100

When a union bargains successfully with employers, what happens to quantity of labour supplied and demanded in that industry?

Full-time students, retirees, and unpaid stay-at-home fathers are counted as unemployed.

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

Who would NOT be included in the labour force?

Government policy can do nothing about the natural rate of unemployment.

The unemployment rate reported by Statistics Canada clearly understates the true unemployment rate.

According to your text, what is NOT a reason that actual labour markets experience unemployment?

What is the theory of efficiency wages? Give a couple of explanations for how efficiency wages might work.

Aaron is the owner of a firm that produces wind power in southern Alberta. There are many such firms in the area. Aaron decides that if he pays his workers a wage higher than the going market wage, his profits will increase. What is a likely explanation for his decision?

Why have labour-force participation rates for women in Canada increased since World War II while labour-force participation rates for men have decreased?

Regarding the categories of unemployment, how does a minimum-wage law compare to firms paying higher-than-equilibrium wages?

How is the labour-force participation rate computed?

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

When a union bargains successfully with employers, what happens to quantity of labour supplied and demanded in that industry?

Full-time students, retirees, and unpaid stay-at-home fathers are counted as unemployed.

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

Who would NOT be included in the labour force?

Government policy can do nothing about the natural rate of unemployment.

The unemployment rate reported by Statistics Canada clearly understates the true unemployment rate.

According to your text, what is NOT a reason that actual labour markets experience unemployment?

What is the theory of efficiency wages? Give a couple of explanations for how efficiency wages might work.

Aaron is the owner of a firm that produces wind power in southern Alberta. There are many such firms in the area. Aaron decides that if he pays his workers a wage higher than the going market wage, his profits will increase. What is a likely explanation for his decision?

Why have labour-force participation rates for women in Canada increased since World War II while labour-force participation rates for men have decreased?

Regarding the categories of unemployment, how does a minimum-wage law compare to firms paying higher-than-equilibrium wages?

How is the labour-force participation rate computed?

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