Question 1

Changes in the composition of demand among industries or regions are called sectoral shifts.

Accepted Answer

A) True 
 B)False  True

Question 2

According to the theory of efficiency wages, it may be profitable for firms to keep wages high even in the presence of a surplus of labor.

Accepted Answer

A) True 
 B)False  True

Question 3

Suppose there are a large number of men who used to work or seek work who now no longer do either. Other things the same, this makes

Accepted Answer

A) the number of people unemployed rise but does not change the labor force. 
B) the number of people unemployed rise but makes the labor force fall. 
C) both the number of people unemployed and the labor force fall. 
D) the number of people unemployed fall but does not change the labor force. 
A) the number of people unemployed rise but does not change the labor force. 
B) the number of people unemployed rise but makes the labor force fall. 
C) both the number of people unemployed and the labor force fall. 
D) the number of people unemployed fall but does not change the labor force. C

Question 4

Which of the following is correct?

Accepted Answer

A) Labor force = number of employed. 
B) Labor force = population - number of unemployed. 
C) Unemployment Rate = number of unemployed(number of employed + number of unemployed)100. 
D) Unemployment Rate = number of unemployedadult population100. 
A) Labor force = number of employed. 
B) Labor force = population - number of unemployed. 
C) Unemployment Rate = number of unemployed(number of employed + number of unemployed)100. 
D) Unemployment Rate = number of unemployedadult population100.

Question 5

The Bureau of Labor Statistics is part of the U.S. Department of

Accepted Answer

A) the Treasury. 
B) Commerce. 
C) Labor. 
D) the Interior. 
A) the Treasury. 
B) Commerce. 
C) Labor. 
D) the Interior.

Question 6

Most spells of unemployment are short. About half of unemployment spells end with an exit from the labor force.

Accepted Answer

A) True 
 B)False

Question 7

Figure 15-1  
-Refer to Figure 15-1. If the government imposes a minimum wage of $4, then unemployment will increase by

Accepted Answer

A) 0 workers. 
B) 2000 workers. 
C) 4000 workers. 
D) 5000 workers. 
A) 0 workers. 
B) 2000 workers. 
C) 4000 workers. 
D) 5000 workers.

Question 8

Table 15-1
Labor Data for Aridia
 $$\begin{array} { | l | c | c | c | } 
\hline \text { Year } & \mathbf { 2 0 1 0 } & \mathbf { 2 0 1 1 } & \mathbf { 2 0 1 2 } \
\hline \text { Adult population } & 2000 & 3000 & 3200 \
\hline \text { Number of emplayed } & 1400 & 1300 & 1600 \
\hline \text { Number of unemplayed } & 200 & 600 & 200 \
\hline
\end{array}$$
-Refer to Table 15-1. The unemployment rate of Aridia

Accepted Answer

A) increased from 2010 to 2011 and increased from 2011 to 2012. 
B) increased from 2010 to 2011 and decreased from 2011 to 2012. 
C) decreased from 2010 to 2011 and increased from 2011 to 2012. 
D) decreased from 2010 to 2011 and decreased from 2011 to 2012. 
A) increased from 2010 to 2011 and increased from 2011 to 2012. 
B) increased from 2010 to 2011 and decreased from 2011 to 2012. 
C) decreased from 2010 to 2011 and increased from 2011 to 2012. 
D) decreased from 2010 to 2011 and decreased from 2011 to 2012.

Question 9

Sam has no job but keeps applying to get a job with a business that is unionized. He is qualified and he finds the pay attractive, but the firm is not hiring. Sam is

Accepted Answer

A) structurally unemployed. Structural unemployment exists even in the long run. 
B) structurally unemployed. Structural unemployment does not exist in the long run. 
C) frictionally unemployed. Frictional unemployment exists even in the long run. 
D) frictionally unemployed. Frictional unemployment does not exist in the long run. 
A) structurally unemployed. Structural unemployment exists even in the long run. 
B) structurally unemployed. Structural unemployment does not exist in the long run. 
C) frictionally unemployed. Frictional unemployment exists even in the long run. 
D) frictionally unemployed. Frictional unemployment does not exist in the long run.

Question 10

The unemployment rate never falls to zero.

Accepted Answer

A) True 
 B)False

Question 11

For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must

Accepted Answer

A) be available for work. 
B) have tried to find employment during the previous week. 
C) have previously been employed. 
D) All of the above are correct. 
A) be available for work. 
B) have tried to find employment during the previous week. 
C) have previously been employed. 
D) All of the above are correct.

Question 12

Table 15-2
2009 Labor Data for Baltivia
 \(\begin{array}{|l|l}
\hline \text { Number of adults } & 20,000 \
\hline \text { Number of adults who are paid employees } & 8,000 \
\hline \text { Number of adults who work in their own businesses } & 1,600 \
\hline \text { Number of adults who are unpaid workers in a family member's business } & 1,000 \
\hline \text { Number of adults who were temporarily absent from their jobs because of an earthquake } & 400 \
\hline \text { Number of adults who were waiting to be recalled to a job from which they had been laid off } & 200 \
\hline \begin{array}{l}
\text { Number of adults who do not have a job, are available for work, and have tried to find a job } \
\text { within the past four weeks }
\end{array} & 1,400 \
\hline \begin{array}{l}
\text { Number of adults who do not have a job, are available for work, but have not tried to find a job } \
\text { within the past four weeks }
\end{array} & 780 \
\hline \text { Number of adults who are full-time students } & 3,000 \
\hline \text { Number of adults who are homemakers or retirees } & 3,620
\end{array}\)

-Refer to Table 15-2. How many people were unemployed in Baltivia in 2009?

Accepted Answer

A) 1,400 
B) 1,600 
C) 2,000 
D) 2,780 
A) 1,400 
B) 1,600 
C) 2,000 
D) 2,780

Question 13

The labor force equals the sum of the employed and the unemployed.

Accepted Answer

A) True 
 B)False

Question 14

Other things the same, an increase in wages above their equilibrium level

Accepted Answer

A) increases frictional unemployment but leaves the natural rate of unemployment unchanged. 
B) increases frictional unemployment and increases the natural rate of unemployment. 
C) increases structural unemployment but leaves the natural rate of unemployment unchanged. 
D) increases structural unemployment and increases the natural rate of unemployment. 
A) increases frictional unemployment but leaves the natural rate of unemployment unchanged. 
B) increases frictional unemployment and increases the natural rate of unemployment. 
C) increases structural unemployment but leaves the natural rate of unemployment unchanged. 
D) increases structural unemployment and increases the natural rate of unemployment.

Question 15

Frictional unemployment results from

Accepted Answer

A) job searching. It is often thought to explain relatively short spells of unemployment. 
B) job searching. It is often thought to explain relatively long spells of unemployment 
C) a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment. 
D) a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment. 
A) job searching. It is often thought to explain relatively short spells of unemployment. 
B) job searching. It is often thought to explain relatively long spells of unemployment 
C) a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment. 
D) a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment.

Question 16

Most spells of unemployment are short, and most unemployment observed at any given time is long term. How can this be?

Accepted Answer

Most unemployed people in the economy ar

Question 17

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

Accepted Answer

A) True 
 B)False

Question 18

The BLS classifies people who would like to work but have given up looking for a job as

Accepted Answer

A) unemployed. If they were classified as out of the labor force, the reported unemployment rate would be larger. 
B) unemployed. If they were classified as out of the labor force, the reported unemployment rate would be smaller. 
C) out of the labor force. If they were classified as unemployed, the reported unemployment rate would be larger. 
D) out of the labor force. If they were classified as unemployed, the reported unemployment rate would be smaller. 
A) unemployed. If they were classified as out of the labor force, the reported unemployment rate would be larger. 
B) unemployed. If they were classified as out of the labor force, the reported unemployment rate would be smaller. 
C) out of the labor force. If they were classified as unemployed, the reported unemployment rate would be larger. 
D) out of the labor force. If they were classified as unemployed, the reported unemployment rate would be smaller.

Question 19

In June 2009 the BLS reported a U.S. foreign-born population of 35.3 million. Of these, 22.7 million were employed and 1.4 million were unemployed. Based on these numbers what were the unemployment rate and the labor-force participation rate of the foreign-born U.S. population?

Accepted Answer

A) 1.4/35.3 and 22.7/35.3 
B) 1.4/35.3 and 24.1/35.3 
C) 1.4/24.1 and 22.7/24.1 
D) None of the above are correct. 
A) 1.4/35.3 and 22.7/35.3 
B) 1.4/35.3 and 24.1/35.3 
C) 1.4/24.1 and 22.7/24.1 
D) None of the above are correct.

Question 20

The labor-force participation rate equals the percentage of the total adult population that is in the labor force.

Accepted Answer

A) True 
 B)False

Exam 15: Unemployment

Changes in the composition of demand among industries or regions are called sectoral shifts.

According to the theory of efficiency wages, it may be profitable for firms to keep wages high even in the presence of a surplus of labor.

Suppose there are a large number of men who used to work or seek work who now no longer do either. Other things the same, this makes

Which of the following is correct?

The Bureau of Labor Statistics is part of the U.S. Department of

Most spells of unemployment are short. About half of unemployment spells end with an exit from the labor force.

Figure 15-1 -Refer to Figure 15-1. If the government imposes a minimum wage of $4, then unemployment will increase by

Table 15-1 Labor Data for Aridia Year Adult population 2000 3000 3200 Number of emplayed 1400 1300 1600 Number of unemplayed 200 600 200 -Refer to Table 15-1. The unemployment rate of Aridia

Sam has no job but keeps applying to get a job with a business that is unionized. He is qualified and he finds the pay attractive, but the firm is not hiring. Sam is

The unemployment rate never falls to zero.

For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must

The labor force equals the sum of the employed and the unemployed.

Other things the same, an increase in wages above their equilibrium level

Frictional unemployment results from

Most spells of unemployment are short, and most unemployment observed at any given time is long term. How can this be?

Most people rely primarily on income other than their labor earnings to maintain their standard of living.

The BLS classifies people who would like to work but have given up looking for a job as

In June 2009 the BLS reported a U.S. foreign-born population of 35.3 million. Of these, 22.7 million were employed and 1.4 million were unemployed. Based on these numbers what were the unemployment rate and the labor-force participation rate of the foreign-born U.S. population?

The labor-force participation rate equals the percentage of the total adult population that is in the labor force.

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

Application: The Costs of Taxation

Application: International Trade

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomic Models

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 Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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