Question 1

How is the labour-force participation rate defined?

Accepted Answer

A)  (Employed ÷ Adult population) × 100 
B)  (Employed ÷ Labour force) × 100 
C)  (Labour force ÷ Adult population) × 100 
D)  (Adult population ÷ Labour force) × 100 
A)  (Employed ÷ Adult population) × 100 
B)  (Employed ÷ Labour force) × 100 
C)  (Labour force ÷ Adult population) × 100 
D)  (Adult population ÷ Labour force) × 100

Question 2

Yohanna, the CEO of a corporation operating in Ethiopia, decides to raise the wages of her workers, even though she faces an excess supply of labour. Which of the following is an expected result from her decision?

Accepted Answer

A)  It will increase productivity, according to the efficiency wage theory. 
B)  It will help eliminate the excess supply of labour if she raises it sufficiently. 
C)  It will attract a larger pool of workers to fill vacancies but of lesser quality. 
D)  It will decrease profits, according to the efficiency wage theory. 
A)  It will increase productivity, according to the efficiency wage theory. 
B)  It will help eliminate the excess supply of labour if she raises it sufficiently. 
C)  It will attract a larger pool of workers to fill vacancies but of lesser quality. 
D)  It will decrease profits, according to the efficiency wage theory.

Question 3

Which group has the highest unemployment rate in Canada?

Accepted Answer

A)  females, 45-64 years 
B)  males, 45-64 years 
C)  females, 25-44 years 
D)  males, 25-44 years 
A)  females, 45-64 years 
B)  males, 45-64 years 
C)  females, 25-44 years 
D)  males, 25-44 years

Question 4

Unemployment due to job search is best classified as structural unemployment.

Accepted Answer

A) True 
 B)False

Question 5

According to most economists, what would be an effect of eliminating unemployment insurance?

Accepted Answer

A)  It would cause an increase in unemployment because people would quit jobs they thought were not secure. 
B)  It would cause an increase in unemployment because if the government didn't provide unemployment insurance, private firms would offer superior insurance. 
C)  It would cause a decrease in unemployment and an improvement in economic well-being. 
D)  It would cause a decrease in unemployment, but economists disagree about whether economic well-being would be enhanced by such a change. 
A)  It would cause an increase in unemployment because people would quit jobs they thought were not secure. 
B)  It would cause an increase in unemployment because if the government didn't provide unemployment insurance, private firms would offer superior insurance. 
C)  It would cause a decrease in unemployment and an improvement in economic well-being. 
D)  It would cause a decrease in unemployment, but economists disagree about whether economic well-being would be enhanced by such a change.

Question 6

Figure 9-1
This figure shows the effect of a minimum-wage law.
  
-Refer to the Figure 9-1. If there was no minimum wage and then the government instituted a minimum wage of $6, what would happen to employment in this market?

Accepted Answer

A)  Employment would rise by 10. 
B)  Employment would fall by 20. 
C)  Unemployment would increase by 10. 
D)  Unemployment would increase by 20. 
A)  Employment would rise by 10. 
B)  Employment would fall by 20. 
C)  Unemployment would increase by 10. 
D)  Unemployment would increase by 20.

Question 7

In 2014, Madeleine opens up a new interior design business and creates five additional jobs in her firm. If net employment growth in 2014 was zero, what was a likely explanation for this?

Accepted Answer

A)  the number of jobs created by new firms was less than jobs created in established firms in 2014 
B)  the number of jobs created by new firms was equal to jobs created in established firms in 2014 
C)  job creation was less than job destruction in 2014 
D)  job destruction was equal to job creation in 2014 
A)  the number of jobs created by new firms was less than jobs created in established firms in 2014 
B)  the number of jobs created by new firms was equal to jobs created in established firms in 2014 
C)  job creation was less than job destruction in 2014 
D)  job destruction was equal to job creation in 2014

Question 8

Since World War II, what has happened to the labour-force participation rate?

Accepted Answer

A)  It has increased for both men and women. 
B)  It increased for women and decreased for men. 
C)  It has decreased for both men and women. 
D)  It decreased for women and increased for men. 
A)  It has increased for both men and women. 
B)  It increased for women and decreased for men. 
C)  It has decreased for both men and women. 
D)  It decreased for women and increased for men.

Question 9

Which of the following lists includes all the categories into which Statistics Canada divides the adult population?

Accepted Answer

A)  employed, unemployed 
B)  discouraged workers, employed, unemployed 
C)  employed, unemployed, not in the labour force 
D)  discouraged workers, employed, not in the labour force 
A)  employed, unemployed 
B)  discouraged workers, employed, unemployed 
C)  employed, unemployed, not in the labour force 
D)  discouraged workers, employed, not in the labour force

Question 10

What will an efficient wage most likely do?

Accepted Answer

A)  require increased turnover 
B)  increase profitability 
C)  help reduce the level of unemployment 
D)  make the union stronger 
A)  require increased turnover 
B)  increase profitability 
C)  help reduce the level of unemployment 
D)  make the union stronger

Question 11

Figure 9-2
  
-Refer to the Figure 9-2. If the minimum wage is $5 or $6, what is the number of people unemployed, respectively?

Accepted Answer

A)  40 and 0 
B)  20 and 20 
C)  40 and 20 
D)  0 and 0 
A)  40 and 0 
B)  20 and 20 
C)  40 and 20 
D)  0 and 0

Question 12

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 unemployment rate in Bolivar?

Accepted Answer

A)  3.70 percent 
B)  4.00 percent 
C)  5.56 percent 
D)  6.67 percent 
A)  3.70 percent 
B)  4.00 percent 
C)  5.56 percent 
D)  6.67 percent

Question 13

Which statement is characteristic of the natural rate of unemployment?

Accepted Answer

A)  It is a consistent rate, year after year. 
B)  It is the desirable rate of unemployment. 
C)  It is a variable that cannot be altered by economic policy. 
D)  It is the amount of unemployment that the economy normally experiences. 
A)  It is a consistent rate, year after year. 
B)  It is the desirable rate of unemployment. 
C)  It is a variable that cannot be altered by economic policy. 
D)  It is the amount of unemployment that the economy normally experiences.

Question 14

In 2014, Mark opens up a new vehicle detailing business and creates six additional jobs in his company. If net employment growth in 2014 was 2 percent, what was a likely explanation for this?

Accepted Answer

A)  the number of jobs created by new firms was less than jobs created in established firms in 2014 
B)  the number of jobs created by new firms was greater than jobs created in established firms in 2014 
C)  job creation was greater than job destruction in 2014 
D)  job creation was less than job destruction in 2014 
A)  the number of jobs created by new firms was less than jobs created in established firms in 2014 
B)  the number of jobs created by new firms was greater than jobs created in established firms in 2014 
C)  job creation was greater than job destruction in 2014 
D)  job creation was less than job destruction in 2014

Question 15

Which group of unemployed persons is the largest (has the highest unemployment rate) in Canada?

Accepted Answer

A)  unemployed 5 to 13 weeks 
B)  unemployed 14 to 25 weeks 
C)  unemployed 26 to 52 weeks 
D)  unemployed more than 52 weeks 
A)  unemployed 5 to 13 weeks 
B)  unemployed 14 to 25 weeks 
C)  unemployed 26 to 52 weeks 
D)  unemployed more than 52 weeks

Question 16

Which group has the highest labour-force participation rate in Canada?

Accepted Answer

A)  females, 15-24 years 
B)  males, 15-24 years 
C)  females, 25-44 years 
D)  males, 25-44 years 
A)  females, 15-24 years 
B)  males, 15-24 years 
C)  females, 25-44 years 
D)  males, 25-44 years

Question 17

About what fraction of unemployed persons have been unemployed for less than a month?

Accepted Answer

A)  1/3 
B)  2/3 
C)  3/4 
D)  4/5 
A)  1/3 
B)  2/3 
C)  3/4 
D)  4/5

Question 18

How does Statistics Canada define the unemployment rate?

Accepted Answer

A)  as the percentage of those unemployed relative to the percentage employed 
B)  as the percentage of the labour force that is unemployed 
C)  as the percentage of the adult population that is unemployed 
D)  as the percentage of the labour force without full-time employment 
A)  as the percentage of those unemployed relative to the percentage employed 
B)  as the percentage of the labour force that is unemployed 
C)  as the percentage of the adult population that is unemployed 
D)  as the percentage of the labour force without full-time employment

Question 19

Four employers have justified their actions as follows. Whose logic is consistent with the logic of efficiency wage theory?

Accepted Answer

A)  Jay develops a new assembly line technology that limits the amount shirking workers may do, so he reduces what he pays his employees so as to make it closer to the equilibrium wage. 
B)  Kay pays her workers less than the equilibrium wage so they won't have the time or money to look for work somewhere else. 
C)  Ray pays his workers in a developing country more than the going wage, hoping that they will get a better diet and so be more productive. 
D)  Ms. Fay pays her workers the market wages, but she hires more supervisors to make sure workers do not shirk. 
A)  Jay develops a new assembly line technology that limits the amount shirking workers may do, so he reduces what he pays his employees so as to make it closer to the equilibrium wage. 
B)  Kay pays her workers less than the equilibrium wage so they won't have the time or money to look for work somewhere else. 
C)  Ray pays his workers in a developing country more than the going wage, hoping that they will get a better diet and so be more productive. 
D)  Ms. Fay pays her workers the market wages, but she hires more supervisors to make sure workers do not shirk.

Question 20

Some people are unemployed because they are searching for a very specific job. How are these people best classified?

Accepted Answer

A)  as cyclically unemployed 
B)  as structurally unemployed 
C)  as frictionally unemployed 
D)  as discouraged workers 
A)  as cyclically unemployed 
B)  as structurally unemployed 
C)  as frictionally unemployed 
D)  as discouraged workers

How is the labour-force participation rate defined?

Yohanna, the CEO of a corporation operating in Ethiopia, decides to raise the wages of her workers, even though she faces an excess supply of labour. Which of the following is an expected result from her decision?

Which group has the highest unemployment rate in Canada?

Unemployment due to job search is best classified as structural unemployment.

According to most economists, what would be an effect of eliminating unemployment insurance?

Figure 9-1 This figure shows the effect of a minimum-wage law. -Refer to the Figure 9-1. If there was no minimum wage and then the government instituted a minimum wage of $6, what would happen to employment in this market?

In 2014, Madeleine opens up a new interior design business and creates five additional jobs in her firm. If net employment growth in 2014 was zero, what was a likely explanation for this?

Since World War II, what has happened to the labour-force participation rate?

Which of the following lists includes all the categories into which Statistics Canada divides the adult population?

What will an efficient wage most likely do?

Figure 9-2 -Refer to the Figure 9-2. If the minimum wage is $5 or $6, what is the number of people unemployed, respectively?

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 unemployment rate in Bolivar?

Which statement is characteristic of the natural rate of unemployment?

In 2014, Mark opens up a new vehicle detailing business and creates six additional jobs in his company. If net employment growth in 2014 was 2 percent, what was a likely explanation for this?

Which group of unemployed persons is the largest (has the highest unemployment rate) in Canada?

Which group has the highest labour-force participation rate in Canada?

About what fraction of unemployed persons have been unemployed for less than a month?

How does Statistics Canada define the unemployment rate?

Four employers have justified their actions as follows. Whose logic is consistent with the logic of efficiency wage theory?

Some people are unemployed because they are searching for a very specific job. How are these people best classified?

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

How is the labour-force participation rate defined?

Yohanna, the CEO of a corporation operating in Ethiopia, decides to raise the wages of her workers, even though she faces an excess supply of labour. Which of the following is an expected result from her decision?

Which group has the highest unemployment rate in Canada?

Unemployment due to job search is best classified as structural unemployment.

According to most economists, what would be an effect of eliminating unemployment insurance?

Figure 9-1 This figure shows the effect of a minimum-wage law. -Refer to the Figure 9-1. If there was no minimum wage and then the government instituted a minimum wage of $6, what would happen to employment in this market?

In 2014, Madeleine opens up a new interior design business and creates five additional jobs in her firm. If net employment growth in 2014 was zero, what was a likely explanation for this?

Since World War II, what has happened to the labour-force participation rate?

Which of the following lists includes all the categories into which Statistics Canada divides the adult population?

What will an efficient wage most likely do?

Figure 9-2 -Refer to the Figure 9-2. If the minimum wage is $5 or $6, what is the number of people unemployed, respectively?

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 unemployment rate in Bolivar?

Which statement is characteristic of the natural rate of unemployment?

In 2014, Mark opens up a new vehicle detailing business and creates six additional jobs in his company. If net employment growth in 2014 was 2 percent, what was a likely explanation for this?

Which group of unemployed persons is the largest (has the highest unemployment rate) in Canada?

Which group has the highest labour-force participation rate in Canada?

About what fraction of unemployed persons have been unemployed for less than a month?

How does Statistics Canada define the unemployment rate?

Four employers have justified their actions as follows. Whose logic is consistent with the logic of efficiency wage theory?

Some people are unemployed because they are searching for a very specific job. How are these people best classified?

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