Question 1

From time to time, the demand for workers has risen in one region of Canada and fallen in another. Which type of unemployment does this occurrence illustrate?

Accepted Answer

A)  frictional unemployment created by efficiency wages 
B)  structural unemployment created by efficiency wages 
C)  frictional unemployment created by sectoral shifts 
D)  structural unemployment created by sectoral shifts 
A)  frictional unemployment created by efficiency wages 
B)  structural unemployment created by efficiency wages 
C)  frictional unemployment created by sectoral shifts 
D)  structural unemployment created by sectoral shifts

Question 2

Typically, how much more do union members earn than similar workers who do not belong to a union?

Accepted Answer

A)  0 to 5 percent 
B)  5 to 10 percent 
C)  10 to 20 percent 
D)  20 to 30 percent 
A)  0 to 5 percent 
B)  5 to 10 percent 
C)  10 to 20 percent 
D)  20 to 30 percent

Question 3

The table below uses adjusted data for the year 2000 provided by Statistics Canada. All values are in millions. Fill in the blank entries in the table.

Accepted Answer

The following formulas should be applied

Question 4

In 2014, how much did the government budget for the EI program?

Accepted Answer

A)  about $5 billion 
B)  about $10 billion 
C)  about $12 million 
D)  about $17 billion 
A)  about $5 billion 
B)  about $10 billion 
C)  about $12 million 
D)  about $17 billion

Question 5

Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Accepted Answer

Standard economic theory suggests that i

Question 6

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 female unemployment rate in Bolivar?

Accepted Answer

A)  4.76 percent 
B)  5.56 percent 
C)  7.14 percent 
D)  8.33 percent 
A)  4.76 percent 
B)  5.56 percent 
C)  7.14 percent 
D)  8.33 percent

Question 7

Which statement best defines the natural rate of unemployment?

Accepted Answer

A)  It is the unemployment rate that would prevail with zero immigration. 
B)  It is the rate associated with the highest possible level of GDP. 
C)  It is the difference between long-run and short-run unemployment rates. 
D)  It is the amount of unemployment that the economy normally experiences. 
A)  It is the unemployment rate that would prevail with zero immigration. 
B)  It is the rate associated with the highest possible level of GDP. 
C)  It is the difference between long-run and short-run unemployment rates. 
D)  It is the amount of unemployment that the economy normally experiences.

Question 8

What would be the most likely effect of an increase in the world price of oil, which would create a sectoral shift?

Accepted Answer

A)  There would be a decrease in unemployment, and the decrease would be greater in a country with unemployment insurance than in one without. 
B)  There would be a decrease in unemployment, but the decrease would be smaller in a country with unemployment insurance than in one without. 
C)  There would be an increase in unemployment, and the increase would be greater in a country with unemployment insurance than in one without. 
D)  There would be an increase in unemployment, but the increase would be smaller in a country with unemployment insurance than in one without. 
A)  There would be a decrease in unemployment, and the decrease would be greater in a country with unemployment insurance than in one without. 
B)  There would be a decrease in unemployment, but the decrease would be smaller in a country with unemployment insurance than in one without. 
C)  There would be an increase in unemployment, and the increase would be greater in a country with unemployment insurance than in one without. 
D)  There would be an increase in unemployment, but the increase would be smaller in a country with unemployment insurance than in one without.

Question 9

Who would be included in the labour force?

Accepted Answer

A)  Derrick, who is waiting for his new job to start 
B)  Brett, who has become discouraged looking for a job and has quit looking for a while 
C)  Homer, an unpaid homemaker 
D)  Dave, a 20-year-old student who does not work and is not looking for work 
A)  Derrick, who is waiting for his new job to start 
B)  Brett, who has become discouraged looking for a job and has quit looking for a while 
C)  Homer, an unpaid homemaker 
D)  Dave, a 20-year-old student who does not work and is not looking for work

Question 10

Where is the unemployment rate more likely higher?

Accepted Answer

A)  where minimum wages are lower, because people don't take low-paid jobs 
B)  in the public sector, because less workers are unionized 
C)  where EI benefits are higher, because people have less incentive to find jobs 
D)  in the private sector, because minimum wages are higher 
A)  where minimum wages are lower, because people don't take low-paid jobs 
B)  in the public sector, because less workers are unionized 
C)  where EI benefits are higher, because people have less incentive to find jobs 
D)  in the private sector, because minimum wages are higher

Question 11

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 female labour-force participation rate in Bolivar?

Accepted Answer

A)  4.76 percent 
B)  37.03 percent 
C)  38.10 percent 
D)  63.16 percent 
A)  4.76 percent 
B)  37.03 percent 
C)  38.10 percent 
D)  63.16 percent

Question 12

Frictional unemployment exists because of the time it takes for workers to search for the jobs that best suit their tastes and skills.

Accepted Answer

A) True 
 B)False

Question 13

Figure 9-1
This figure shows the effect of a minimum-wage law.
  
-Refer to the Figure 9-1. Which of the following describes the equilibrium point in the diagram where there is an absence of the minimum-wage law?

Accepted Answer

A)  $4 and 20 workers 
B)  $5 and 30 workers 
C)  $5 and 40 workers 
D)  $6 and 40 workers 
A)  $4 and 20 workers 
B)  $5 and 30 workers 
C)  $5 and 40 workers 
D)  $6 and 40 workers

Question 14

Prime Minister Bigego is running for re-election against Finance Minister Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. What can you conclude?

Accepted Answer

A)  Both of them could be telling the truth if the labour-force participation rate and the labour force both grew. 
B)  Both of them could be telling the truth if the labour-force participation rate and the labour force both fell. 
C)  Both of them could be telling the truth if the labour force grew slower than employment. 
D)  Both of them could be telling the truth if the labour force grew faster than employment. 
A)  Both of them could be telling the truth if the labour-force participation rate and the labour force both grew. 
B)  Both of them could be telling the truth if the labour-force participation rate and the labour force both fell. 
C)  Both of them could be telling the truth if the labour force grew slower than employment. 
D)  Both of them could be telling the truth if the labour force grew faster than employment.

Question 15

Which cause of unemployment is associated with a wage rate above the market equilibrium level?

Accepted Answer

A)  mismatch between skills and available jobs 
B)  economic recession 
C)  sectoral changes 
D)  unions 
A)  mismatch between skills and available jobs 
B)  economic recession 
C)  sectoral changes 
D)  unions

Question 16

What might increase the natural rate of unemployment?

Accepted Answer

A)  an increased access to the Internet 
B)  a natural increase in population 
C)  an aging population 
D)  an increase in the legal retirement age 
A)  an increased access to the Internet 
B)  a natural increase in population 
C)  an aging population 
D)  an increase in the legal retirement age

Question 17

Which cause of unemployment is NOT associated with a wage rate above the equilibrium level?

Accepted Answer

A)  unions 
B)  efficiency wages 
C)  employment insurance 
D)  minimum-wage laws 
A)  unions 
B)  efficiency wages 
C)  employment insurance 
D)  minimum-wage laws

Question 18

What is most likely to happen when someone becomes unemployed?

Accepted Answer

A)  It is likely that the person will be unemployed a long time and that most of the unemployed he or she joins have been unemployed a long time. 
B)  It is likely that the person will be unemployed for a long time, even though most of the unemployed he or she joins have been unemployed for a short time. 
C)  It is likely that the person will be unemployed for a short time, even though most of the unemployed he or she joins have been unemployed for a long time. 
D)  It is likely that the person will be unemployed for a short time, and that most of the unemployed he or she joins have been unemployed for a short time. 
A)  It is likely that the person will be unemployed a long time and that most of the unemployed he or she joins have been unemployed a long time. 
B)  It is likely that the person will be unemployed for a long time, even though most of the unemployed he or she joins have been unemployed for a short time. 
C)  It is likely that the person will be unemployed for a short time, even though most of the unemployed he or she joins have been unemployed for a long time. 
D)  It is likely that the person will be unemployed for a short time, and that most of the unemployed he or she joins have been unemployed for a short time.

Question 19

Nancy is searching for a job that suits her tastes about where to live and the people she works with. Laura is looking for a job that makes best use of her skills. Which statement best describes the nature of Nancy and Laura's unemployment?

Accepted Answer

A)  Nancy and Laura are both frictionally unemployed. 
B)  Nancy and Laura are both structurally unemployed. 
C)  Nancy is frictionally unemployed, and Laura is structurally unemployed. 
D)  Nancy is structurally unemployed, and Laura is frictionally unemployed. 
A)  Nancy and Laura are both frictionally unemployed. 
B)  Nancy and Laura are both structurally unemployed. 
C)  Nancy is frictionally unemployed, and Laura is structurally unemployed. 
D)  Nancy is structurally unemployed, and Laura is frictionally unemployed.

Question 20

Statistics Canada uses data from each province's unemployment insurance agency to compute unemployment statistics.

Accepted Answer

A) True 
 B)False

From time to time, the demand for workers has risen in one region of Canada and fallen in another. Which type of unemployment does this occurrence illustrate?

Typically, how much more do union members earn than similar workers who do not belong to a union?

The table below uses adjusted data for the year 2000 provided by Statistics Canada. All values are in millions. Fill in the blank entries in the table.

In 2014, how much did the government budget for the EI program?

Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

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 female unemployment rate in Bolivar?

Which statement best defines the natural rate of unemployment?

What would be the most likely effect of an increase in the world price of oil, which would create a sectoral shift?

Who would be included in the labour force?

Where is the unemployment rate more likely higher?

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 female labour-force participation rate in Bolivar?

Frictional unemployment exists because of the time it takes for workers to search for the jobs that best suit their tastes and skills.

Figure 9-1 This figure shows the effect of a minimum-wage law. -Refer to the Figure 9-1. Which of the following describes the equilibrium point in the diagram where there is an absence of the minimum-wage law?

Prime Minister Bigego is running for re-election against Finance Minister Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. What can you conclude?

Which cause of unemployment is associated with a wage rate above the market equilibrium level?

What might increase the natural rate of unemployment?

Which cause of unemployment is NOT associated with a wage rate above the equilibrium level?

What is most likely to happen when someone becomes unemployed?

Nancy is searching for a job that suits her tastes about where to live and the people she works with. Laura is looking for a job that makes best use of her skills. Which statement best describes the nature of Nancy and Laura's unemployment?

Statistics Canada uses data from each province's unemployment insurance agency to compute unemployment statistics.

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

From time to time, the demand for workers has risen in one region of Canada and fallen in another. Which type of unemployment does this occurrence illustrate?

Typically, how much more do union members earn than similar workers who do not belong to a union?

The table below uses adjusted data for the year 2000 provided by Statistics Canada. All values are in millions. Fill in the blank entries in the table.

In 2014, how much did the government budget for the EI program?

Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

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 female unemployment rate in Bolivar?

Which statement best defines the natural rate of unemployment?

What would be the most likely effect of an increase in the world price of oil, which would create a sectoral shift?

Who would be included in the labour force?

Where is the unemployment rate more likely higher?

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 female labour-force participation rate in Bolivar?

Frictional unemployment exists because of the time it takes for workers to search for the jobs that best suit their tastes and skills.

Figure 9-1 This figure shows the effect of a minimum-wage law. -Refer to the Figure 9-1. Which of the following describes the equilibrium point in the diagram where there is an absence of the minimum-wage law?

Prime Minister Bigego is running for re-election against Finance Minister Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. What can you conclude?

Which cause of unemployment is associated with a wage rate above the market equilibrium level?

What might increase the natural rate of unemployment?

Which cause of unemployment is NOT associated with a wage rate above the equilibrium level?

What is most likely to happen when someone becomes unemployed?

Nancy is searching for a job that suits her tastes about where to live and the people she works with. Laura is looking for a job that makes best use of her skills. Which statement best describes the nature of Nancy and Laura's unemployment?

Statistics Canada uses data from each province's unemployment insurance agency to compute unemployment statistics.

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