Question 1

Which of the following is an example of frictional unemployment?

Accepted Answer

A)  Dora lost her job when the textile factory closed. She does not have skills to work in another industry and has been unemployed for over a year. 
B)  Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. She expects to get her job back when the economy picks up. 
C)  George is an unskilled worker who mows lawns in the summer, but is unemployed the rest of the year. 
D)  Hector looked for a job for five weeks after finishing college. He turned down several jobs that didn't make good use of his skills, but now has a job that requires the expertise he gained in college. 
A)  Dora lost her job when the textile factory closed. She does not have skills to work in another industry and has been unemployed for over a year. 
B)  Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. She expects to get her job back when the economy picks up. 
C)  George is an unskilled worker who mows lawns in the summer, but is unemployed the rest of the year. 
D)  Hector looked for a job for five weeks after finishing college. He turned down several jobs that didn't make good use of his skills, but now has a job that requires the expertise he gained in college.

Question 2

Holding other factors constant, technological progress ______ the real wage and ______ employment.

Accepted Answer

A)  increases; increases 
B)  increases; decreases 
C)  increases; does not change 
D)  decreases; increases 
A)  increases; increases 
B)  increases; decreases 
C)  increases; does not change 
D)  decreases; increases

Question 3

One trend in labor markets is:

Accepted Answer

A)  a decrease in average real wages in the United States and other industrial countries. 
B)  decreasing wage inequality in the United States. 
C)  weak rates of job creation in the United States since 1980. 
D)  a slowdown in the rate of real wage growth since the early 1970s. 
A)  a decrease in average real wages in the United States and other industrial countries. 
B)  decreasing wage inequality in the United States. 
C)  weak rates of job creation in the United States since 1980. 
D)  a slowdown in the rate of real wage growth since the early 1970s.

Question 4

Which of the following events would increase the unemployment rate, if nothing else changed?

Accepted Answer

A)  Unemployed workers leave the labor force. 
B)  Employed workers leave the labor force. 
C)  Workers from outside the labor force become employed. 
D)  Unemployed workers become employed. 
A)  Unemployed workers leave the labor force. 
B)  Employed workers leave the labor force. 
C)  Workers from outside the labor force become employed. 
D)  Unemployed workers become employed.

Question 5

Who from among the following would be counted as unemployed?

Accepted Answer

A)  A person with a part-time job who wants and is looking for a full-time job. 
B)  All of these people would be counted as unemployed. 
C)  A person who is willing to work and has looked for a job in the last week. 
D)  A person who is willing to work but has not looked for a job in two months. 
A)  A person with a part-time job who wants and is looking for a full-time job. 
B)  All of these people would be counted as unemployed. 
C)  A person who is willing to work and has looked for a job in the last week. 
D)  A person who is willing to work but has not looked for a job in two months.

Question 6

Two explanations for increasing wage inequality are ______ and ________.

Accepted Answer

A)  technological progress; a modernized capital stock 
B)  increased labor supply; a slowdown in productivity growth 
C)  increased worker mobility; transition aid 
D)  globalization; skill-biased technological change 
A)  technological progress; a modernized capital stock 
B)  increased labor supply; a slowdown in productivity growth 
C)  increased worker mobility; transition aid 
D)  globalization; skill-biased technological change

Question 7

The demand for labor depends on ______ and _______.

Accepted Answer

A)  the supply of labor; the marginal product of labor 
B)  the supply of labor; the price of output produced 
C)  the rate of price inflation; the price of the output produced 
D)  the marginal product of labor; the price of output produced 
A)  the supply of labor; the marginal product of labor 
B)  the supply of labor; the price of output produced 
C)  the rate of price inflation; the price of the output produced 
D)  the marginal product of labor; the price of output produced

Question 8

The labor force divided by the working age population equals the:

Accepted Answer

A)  unemployment rate. 
B)  employment rate. 
C)  participation rate. 
D)  population rate. 
A)  unemployment rate. 
B)  employment rate. 
C)  participation rate. 
D)  population rate.

Question 9

The growth rate of average annual earnings in the United States from 1973 to 1996 was:

Accepted Answer

A)  higher than it was from 1960 to 1973. 
B)  lower than it was from 1960 to 1973. 
C)  the same as it was from 1960 to 1973. 
D)  roughly equal to zero. 
A)  higher than it was from 1960 to 1973. 
B)  lower than it was from 1960 to 1973. 
C)  the same as it was from 1960 to 1973. 
D)  roughly equal to zero.

Question 10

Susan Suarez would like to work forty hours per week, but can only find twenty hours per week of work. In the official employment statistics, Susan is classified as:

Accepted Answer

A)  employed. 
B)  unemployed. 
C)  out of the labor force. 
D)  underemployed. 
A)  employed. 
B)  unemployed. 
C)  out of the labor force. 
D)  underemployed.

Question 11

Who of the following would be considered a discouraged worker?

Accepted Answer

A)  Ray wants to work forty hours per week, but can only find work for twenty hours per week. 
B)  Anna Marie has been looking for a job every day for the last month, but has not been hired. 
C)  Frank would like to work, but has not looked for work because he believes no jobs are available. 
D)  Melissa has a Ph.D. in physics, but is currently employed full time driving a taxi. 
A)  Ray wants to work forty hours per week, but can only find work for twenty hours per week. 
B)  Anna Marie has been looking for a job every day for the last month, but has not been hired. 
C)  Frank would like to work, but has not looked for work because he believes no jobs are available. 
D)  Melissa has a Ph.D. in physics, but is currently employed full time driving a taxi.

Question 12

If the Luddites had succeeded in ______ the introduction of labor-saving machinery, economic growth in Great Britain may have been ______.

Accepted Answer

A)  blocking; slower 
B)  blocking; more rapid 
C)  promoting; slower 
D)  promoting; more rapid 
A)  blocking; slower 
B)  blocking; more rapid 
C)  promoting; slower 
D)  promoting; more rapid

Question 13

The following table provides information about production at the XYZ-TV Company. $$\begin{array} { | c | c | c | c | } 
\hline \text { Number of Workers } & \text { TVs Produced } & \text { Marginal Product } & \begin{array} { c } 
\text { Value of Marginal } \
\text { Product }
\end{array} \
\hline 0 & 0 & \cdots & \cdots \
\hline 1 & 35 & 35 & \$ 35,000 \
\hline 2 & 68 & 33 & \$ 33,000 \
\hline 3 & 99 & 31 & \$ 31,000 \
\hline 4 & 128 & 29 & \$ 29,000 \
\hline 5 & 155 & 27 & \$ 27,000 \
\hline
\end{array}$$ How many workers will the XYZ-TV Company hire if the going wage for TV production workers is $32,000?

Accepted Answer

A)  0 
B)  1 
C)  2 
D)  3 
A)  0 
B)  1 
C)  2 
D)  3

Question 14

Structural unemployment will decrease when:

Accepted Answer

A)  the minimum wage is increased. 
B)  the minimum wage is decreased. 
C)  unemployment insurance benefits are increased. 
D)  union wages are increased. 
A)  the minimum wage is increased. 
B)  the minimum wage is decreased. 
C)  unemployment insurance benefits are increased. 
D)  union wages are increased.

Question 15

Heterogeneity and the dynamic nature of labor markets are the principal causes of ______ unemployment.

Accepted Answer

A)  cyclical 
B)  chronic 
C)  structural 
D)  frictional 
A)  cyclical 
B)  chronic 
C)  structural 
D)  frictional

Question 16

Features of the labor market that are likely to cause structural unemployment include all of the following EXCEPT:

Accepted Answer

A)  labor unions. 
B)  minimum wage laws. 
C)  unemployment compensation. 
D)  differences in the skills and experience of workers. 
A)  labor unions. 
B)  minimum wage laws. 
C)  unemployment compensation. 
D)  differences in the skills and experience of workers.

Question 17

The demand for labor increases when the:

Accepted Answer

A)  real wage increases. 
B)  real wage decreases. 
C)  value of the marginal product of labor increases. 
D)  value of the marginal product of labor decreases. 
A)  real wage increases. 
B)  real wage decreases. 
C)  value of the marginal product of labor increases. 
D)  value of the marginal product of labor decreases.

Question 18

Involuntary part-time workers are:

Accepted Answer

A)  chronically unemployed. 
B)  considered out of the labor force. 
C)  short-term unemployed workers. 
D)  not counted as unemployed. 
A)  chronically unemployed. 
B)  considered out of the labor force. 
C)  short-term unemployed workers. 
D)  not counted as unemployed.

Question 19

The duration of an unemployment spell is a measure of the:

Accepted Answer

A)  income lost while unemployed. 
B)  length of time a spell of unemployment lasts. 
C)  number of times during a year a worker becomes unemployed. 
D)  number of workers unemployed during a specific period of time. 
A)  income lost while unemployed. 
B)  length of time a spell of unemployment lasts. 
C)  number of times during a year a worker becomes unemployed. 
D)  number of workers unemployed during a specific period of time.

Question 20

A Luddite is:

Accepted Answer

A)  someone who opposes the introduction of new technologies. 
B)  a worker whose real wage rises as a result of globalization. 
C)  a fictional character from American folk history. 
D)  a consumer who refuses to buy imported goods, even if they are cheaper. 
A)  someone who opposes the introduction of new technologies. 
B)  a worker whose real wage rises as a result of globalization. 
C)  a fictional character from American folk history. 
D)  a consumer who refuses to buy imported goods, even if they are cheaper.

Which of the following is an example of frictional unemployment?

Holding other factors constant, technological progress the real wage and employment.

One trend in labor markets is:

Which of the following events would increase the unemployment rate, if nothing else changed?

Who from among the following would be counted as unemployed?

Two explanations for increasing wage inequality are and __.

The demand for labor depends on and _.

The labor force divided by the working age population equals the:

The growth rate of average annual earnings in the United States from 1973 to 1996 was:

Susan Suarez would like to work forty hours per week, but can only find twenty hours per week of work. In the official employment statistics, Susan is classified as:

Who of the following would be considered a discouraged worker?

If the Luddites had succeeded in the introduction of labor-saving machinery, economic growth in Great Britain may have been .

Structural unemployment will decrease when:

Heterogeneity and the dynamic nature of labor markets are the principal causes of ______ unemployment.

Features of the labor market that are likely to cause structural unemployment include all of the following EXCEPT:

The demand for labor increases when the:

Involuntary part-time workers are:

The duration of an unemployment spell is a measure of the:

A Luddite is:

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Macroeconomics: the Birds-Eye View of the Economy

Measuring Economic Activity: Gdp and Unemployment

Economic Growth, Productivity, and Living Standards

Workers, Wages, and Unemployment

Saving and Capital Formation

Money, Prices, and the Federal Reserve

Financial Markets and International Capital Flows

Short-Term Economics Fluctuations: An Introduction

Spending and Output in the Short Run

Stabilizing the Economy: the Role of the Fed

Aggregate Demand, Aggregate Supply, and Inflation

Filters

Exam 6: Measuring the Price Level and Inflation

Which of the following is an example of frictional unemployment?

Holding other factors constant, technological progress ______ the real wage and ______ employment.

One trend in labor markets is:

Which of the following events would increase the unemployment rate, if nothing else changed?

Who from among the following would be counted as unemployed?

Two explanations for increasing wage inequality are ______ and ________.

The demand for labor depends on ______ and _______.

The labor force divided by the working age population equals the:

The growth rate of average annual earnings in the United States from 1973 to 1996 was:

Susan Suarez would like to work forty hours per week, but can only find twenty hours per week of work. In the official employment statistics, Susan is classified as:

Who of the following would be considered a discouraged worker?

If the Luddites had succeeded in ______ the introduction of labor-saving machinery, economic growth in Great Britain may have been ______.

Structural unemployment will decrease when:

Heterogeneity and the dynamic nature of labor markets are the principal causes of ______ unemployment.

Features of the labor market that are likely to cause structural unemployment include all of the following EXCEPT:

The demand for labor increases when the:

Involuntary part-time workers are:

The duration of an unemployment spell is a measure of the:

A Luddite is:

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Macroeconomics: the Birds-Eye View of the Economy

Measuring Economic Activity: Gdp and Unemployment

Economic Growth, Productivity, and Living Standards

Workers, Wages, and Unemployment

Saving and Capital Formation

Money, Prices, and the Federal Reserve

Financial Markets and International Capital Flows

Short-Term Economics Fluctuations: An Introduction

Spending and Output in the Short Run

Stabilizing the Economy: the Role of the Fed

Aggregate Demand, Aggregate Supply, and Inflation

Filters

Holding other factors constant, technological progress the real wage and employment.

Two explanations for increasing wage inequality are and __.

The demand for labor depends on and _.

If the Luddites had succeeded in the introduction of labor-saving machinery, economic growth in Great Britain may have been .