Question 1

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being.

Accepted Answer

A) True 
 B)False  False

Question 2

In the early 1900s, Henry Ford introduced

Accepted Answer

A)  a high-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. 
B)  a high-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory. 
C)  a low-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. 
D)  a low-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory. 
A)  a high-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. 
B)  a high-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory. 
C)  a low-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. 
D)  a low-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory. A

Question 3

Unemployment insurance

Accepted Answer

A)  reduces the hardship of unemployment, but it also increases the amount of unemployment. 
B)  reduces the incentive for the unemployed to find and take new jobs. 
C)  causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment. 
D)  All of the above are correct. 
A)  reduces the hardship of unemployment, but it also increases the amount of unemployment. 
B)  reduces the incentive for the unemployed to find and take new jobs. 
C)  causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment. 
D)  All of the above are correct. D

Question 4

Right-to-work laws

Accepted Answer

A)  guarantee workers the right to form unions. 
B)  give workers in a unionized firm the right to choose whether to join the union. 
C)  prevent employers from hiring permanent replacements for workers who are on strike. 
D)  prevent workers from being fired because of increases in wages brought about by collective bargaining. 
A)  guarantee workers the right to form unions. 
B)  give workers in a unionized firm the right to choose whether to join the union. 
C)  prevent employers from hiring permanent replacements for workers who are on strike. 
D)  prevent workers from being fired because of increases in wages brought about by collective bargaining.

Question 5

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Accepted Answer

According to the theory of efficiency wa

Question 6

According to 2009 data on the U.S. population which of the following was correct for people ages 20 and over?

Accepted Answer

A)  Blacks had higher rates of labor-force participation and lower rates of unemployment compared to whites. 
B)  Blacks had higher rates of labor-force participation and higher rates of unemployment compared to whites. 
C)  Blacks had similar rates of labor-force participation and lower rates of unemployment compared to whites. 
D)  Blacks had similar rates of labor-force participation and higher rates of unemployment compared to whites. 
A)  Blacks had higher rates of labor-force participation and lower rates of unemployment compared to whites. 
B)  Blacks had higher rates of labor-force participation and higher rates of unemployment compared to whites. 
C)  Blacks had similar rates of labor-force participation and lower rates of unemployment compared to whites. 
D)  Blacks had similar rates of labor-force participation and higher rates of unemployment compared to whites.

Question 7

The Bureau of Labor Statistics reported in 2005 that there were 50.40 million people over age 25 whose highest level of education was some college or an associate degree, 33.86 million of whom were employed and 1.27 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)  69.7% and 2.5% 
B)  69.7% and 3.6% 
C)  67.2% and 2.5% 
D)  67.2% and 3.6% 
A)  69.7% and 2.5% 
B)  69.7% and 3.6% 
C)  67.2% and 2.5% 
D)  67.2% and 3.6%

Question 8

Figure 10-1
  
-Refer to Figure 10-1. If the government imposes a minimum wage of $8, then how many workers will be employed?

Accepted Answer

A)  3000 
B)  4000 
C)  5000 
D)  7000 
A)  3000 
B)  4000 
C)  5000 
D)  7000

Question 9

Minimum-wage laws

Accepted Answer

A)  create frictional unemployment, while firms paying wages above equilibrium to reduce worker turnover creates structural unemployment. 
B)  create structural unemployment, while firms paying wages above equilibrium to reduce worker turnover creates frictional unemployment. 
C)  and firms paying wages above equilibrium to reduce worker turnover both create structural unemployment. 
D)  and firms paying wages above equilibrium to reduce worker turnover both create frictional unemployment. 
A)  create frictional unemployment, while firms paying wages above equilibrium to reduce worker turnover creates structural unemployment. 
B)  create structural unemployment, while firms paying wages above equilibrium to reduce worker turnover creates frictional unemployment. 
C)  and firms paying wages above equilibrium to reduce worker turnover both create structural unemployment. 
D)  and firms paying wages above equilibrium to reduce worker turnover both create frictional unemployment.

Question 10

The efficiency-wage theory of worker health is

Accepted Answer

A)  more relevant for explaining unemployment in less developed countries than in rich countries. 
B)  more relevant for explaining unemployment in rich countries than in less developed countries. 
C)  equally relevant for explaining unemployment in less developed countries and in rich countries. 
D)  not relevant for explaining unemployment. 
A)  more relevant for explaining unemployment in less developed countries than in rich countries. 
B)  more relevant for explaining unemployment in rich countries than in less developed countries. 
C)  equally relevant for explaining unemployment in less developed countries and in rich countries. 
D)  not relevant for explaining unemployment.

Question 11

The natural unemployment rate includes

Accepted Answer

A)  both frictional and structural unemployment. 
B)  neither frictional nor structural unemployment. 
C)  structural, but not frictional unemployment. 
D)  frictional, but not structural unemployment. 
A)  both frictional and structural unemployment. 
B)  neither frictional nor structural unemployment. 
C)  structural, but not frictional unemployment. 
D)  frictional, but not structural unemployment.

Question 12

The unemployment rate never falls to zero.

Accepted Answer

A) True 
 B)False

Question 13

Shannon is a full-time homemaker not currently searching for paid work. Noah is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)  only Shannon 
B)  only Noah 
C)  both Shannon and Noah 
D)  neither Shannon nor Noah 
A)  only Shannon 
B)  only Noah 
C)  both Shannon and Noah 
D)  neither Shannon nor Noah

Question 14

Job search

Accepted Answer

A)  and firms paying wages above equilibrium to improve worker health both create frictional unemployment. 
B)  creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment. 
C)  creates structural unemployment, while firms paying wages above equilibrium to improve worker health creates frictional unemployment. 
D)  and firms paying wages above equilibrium to improve worker health both create structural unemployment. 
A)  and firms paying wages above equilibrium to improve worker health both create frictional unemployment. 
B)  creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment. 
C)  creates structural unemployment, while firms paying wages above equilibrium to improve worker health creates frictional unemployment. 
D)  and firms paying wages above equilibrium to improve worker health both create structural unemployment.

Question 15

When a union raises the wage above the equilibrium level, it

Accepted Answer

A)  reduces both the quantity of labor supplied and the quantity of labor demanded. 
B)  reduces the quantity of labor supplied and raises the quantity of labor demanded. 
C)  raises the quantity of labor supplied and reduces the quantity of labor demanded. 
D)  raises both the quantity of labor supplied and the quantity of labor demanded. 
A)  reduces both the quantity of labor supplied and the quantity of labor demanded. 
B)  reduces the quantity of labor supplied and raises the quantity of labor demanded. 
C)  raises the quantity of labor supplied and reduces the quantity of labor demanded. 
D)  raises both the quantity of labor supplied and the quantity of labor demanded.

Question 16

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous 4 weeks.

Accepted Answer

A) True 
 B)False

Question 17

A typical American worker covered by unemployment insurance receives

Accepted Answer

A)  50 percent of his former wages for 26 weeks. 
B)  50 percent of his former wages for 52 weeks. 
C)  100 percent of his former wages for 26 weeks. 
D)  100 percent of his former wages for 52 weeks. 
A)  50 percent of his former wages for 26 weeks. 
B)  50 percent of his former wages for 52 weeks. 
C)  100 percent of his former wages for 26 weeks. 
D)  100 percent of his former wages for 52 weeks.

Question 18

Jouke is on a temporary layoff from his factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Jouke as

Accepted Answer

A)  unemployed and in the labor force. 
B)  unemployed and not in the labor force. 
C)  employed and in the labor force. 
D)  employed and not in the labor force. 
A)  unemployed and in the labor force. 
B)  unemployed and not in the labor force. 
C)  employed and in the labor force. 
D)  employed and not in the labor force.

Question 19

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

Question 20

Sectoral shifts in demand for output

Accepted Answer

A)  create structural unemployment. 
B)  immediately reduce unemployment. 
C)  increase unemployment due to job search. 
D)  do not affect demand for labor. 
A)  create structural unemployment. 
B)  immediately reduce unemployment. 
C)  increase unemployment due to job search. 
D)  do not affect demand for labor.

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being.

In the early 1900s, Henry Ford introduced

Unemployment insurance

Right-to-work laws

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

According to 2009 data on the U.S. population which of the following was correct for people ages 20 and over?

Figure 10-1 -Refer to Figure 10-1. If the government imposes a minimum wage of $8, then how many workers will be employed?

Minimum-wage laws

The efficiency-wage theory of worker health is

The natural unemployment rate includes

The unemployment rate never falls to zero.

Shannon is a full-time homemaker not currently searching for paid work. Noah is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?

Job search

When a union raises the wage above the equilibrium level, it

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous 4 weeks.

A typical American worker covered by unemployment insurance receives

Jouke is on a temporary layoff from his factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Jouke as

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.

Sectoral shifts in demand for output

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 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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Exam 10: Unemployment

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being.

In the early 1900s, Henry Ford introduced

Unemployment insurance

Right-to-work laws

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

According to 2009 data on the U.S. population which of the following was correct for people ages 20 and over?

Figure 10-1 -Refer to Figure 10-1. If the government imposes a minimum wage of $8, then how many workers will be employed?

Minimum-wage laws

The efficiency-wage theory of worker health is

The natural unemployment rate includes

The unemployment rate never falls to zero.

Shannon is a full-time homemaker not currently searching for paid work. Noah is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?

Job search

When a union raises the wage above the equilibrium level, it

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous 4 weeks.

A typical American worker covered by unemployment insurance receives

Jouke is on a temporary layoff from his factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Jouke as

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.

Sectoral shifts in demand for output

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 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

Filters