Question 1

There is a clear consensus among economists that unions are

Accepted Answer

A)  good for the economy because they result in higher wages for most workers. 
B)  good for the economy because they are a necessary antidote to the market power of employers. 
C)  bad for the economy because they are cartels and therefore detrimental to an efficient allocation of resources. 
D)  None of the above is correct; there is no clear consensus among economists about whether unions are good or bad for the economy. 
A)  good for the economy because they result in higher wages for most workers. 
B)  good for the economy because they are a necessary antidote to the market power of employers. 
C)  bad for the economy because they are cartels and therefore detrimental to an efficient allocation of resources. 
D)  None of the above is correct; there is no clear consensus among economists about whether unions are good or bad for the economy. D

Question 2

Table 28-1
Sample Population
  
-Refer to Table 28-1. How many in the sample are in the labor force?

Accepted Answer

A)  11 
B)  10 
C)  9 
D)  8 
A)  11 
B)  10 
C)  9 
D)  8 B

Question 3

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called structural unemployment.

Accepted Answer

A) True 
 B)False  True

Question 4

Suppose that the Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to

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 5

From time to time, the demand for workers has risen in one region of the United States and fallen in another. This illustrates

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 6

Figure 28-7  
-Refer to Figure 28-7. If the minimum wage is equal to $125, what is the quantity of labor supplied, the quantity of labor demanded, and number unemployed?

Accepted Answer

Labor supplied is 35

Question 7

Table 28-4
2010 Labor Data for Adults ages 16 and older) in Meditor
  
-Refer to Table 28-4. What is the adult labor-force participation rate in Meditor?

Accepted Answer

A)  37.5% 
B)  62.5% 
C)  66.7% 
D)  95.8% 
A)  37.5% 
B)  62.5% 
C)  66.7% 
D)  95.8%

Question 8

Table 28-4
2010 Labor Data for Adults ages 16 and older) in Meditor
  
-Refer to Table 28-4. What is the adult female labor-force participation rate in Meditor?

Accepted Answer

A)  38.1% 
B)  61.9% 
C)  66.7% 
D)  95.2% 
A)  38.1% 
B)  61.9% 
C)  66.7% 
D)  95.2%

Question 9

Within the U.S. population, blacks of prime working age ages 25-54) have higher rates of unemployment than whites of prime working age ages 25-54), regardless of gender.

Accepted Answer

A) True 
 B)False

Question 10

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 60,000 households, called the Current Population Survey.

Accepted Answer

A) True 
 B)False

Question 11

Why might a favorable change in the economy, such as technological improvement or a decrease in the price of imported oil, be associated with an increase in frictional unemployment?

Accepted Answer

Even generally favorable changes will us

Question 12

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

Accepted Answer

A)  the natural rate of unemployment. 
B)  cyclical unemployment. 
C)  structural unemployment. 
D)  frictional unemployment. 
A)  the natural rate of unemployment. 
B)  cyclical unemployment. 
C)  structural unemployment. 
D)  frictional unemployment.

Question 13

If the wage is kept above the equilibrium level for any reason, the result is unemployment.

Accepted Answer

A) True 
 B)False

Question 14

List a few of the characteristics of workers who typically earn at or below the minimum wage.

Accepted Answer

teenagers, the least skilled m

Question 15

Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power.

Accepted Answer

A) True 
 B)False

Question 16

Consider two people who are currently out of work. Tim is not looking for work because there have been many job cuts where he lives, and he doesn't think it likely that he will find work. Bev is not currently looking for work, but she would like a job, and she has looked for work in the past. The Bureau of Labor Statistics considers

Accepted Answer

A)  both Tim and Bev to be marginally attached workers. 
B)  neither Tim nor Bev to be marginally attached workers. 
C)  only Tim to be a marginally attached worker. 
D)  only Bev to be a marginally attached worker. 
A)  both Tim and Bev to be marginally attached workers. 
B)  neither Tim nor Bev to be marginally attached workers. 
C)  only Tim to be a marginally attached worker. 
D)  only Bev to be a marginally attached worker.

Question 17

The natural rate of unemployment

Accepted Answer

A)  arises from a single problem that has a single solution. 
B)  is easy for policymakers to reduce. 
C)  Both a and b are correct. 
D)  None of the above is correct. 
A)  arises from a single problem that has a single solution. 
B)  is easy for policymakers to reduce. 
C)  Both a and b are correct. 
D)  None of the above is correct.

Question 18

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 19

Even though the difference in labor-force participation rates of U.S. males and females has narrowed, the labor- force participation rate of males remains higher than that of females.

Accepted Answer

A) True 
 B)False

Question 20

The theory of efficiency wages provides a possible explanation as to why

Accepted Answer

A)  workers form unions. 
B)  firms should try to reduce surpluses of labor. 
C)  firms may be inclined to keep their workers' wages above the equilibrium level. 
D)  firms may be inclined to keep their workers' wages below the equilibrium level. 
A)  workers form unions. 
B)  firms should try to reduce surpluses of labor. 
C)  firms may be inclined to keep their workers' wages above the equilibrium level. 
D)  firms may be inclined to keep their workers' wages below the equilibrium level.

There is a clear consensus among economists that unions are

Table 28-1 Sample Population -Refer to Table 28-1. How many in the sample are in the labor force?

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called structural unemployment.

Suppose that the Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to

From time to time, the demand for workers has risen in one region of the United States and fallen in another. This illustrates

Figure 28-7 -Refer to Figure 28-7. If the minimum wage is equal to $125, what is the quantity of labor supplied, the quantity of labor demanded, and number unemployed?

Table 28-4 2010 Labor Data for Adults ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult labor-force participation rate in Meditor?

Table 28-4 2010 Labor Data for Adults ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult female labor-force participation rate in Meditor?

Within the U.S. population, blacks of prime working age ages 25-54) have higher rates of unemployment than whites of prime working age ages 25-54), regardless of gender.

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 60,000 households, called the Current Population Survey.

Why might a favorable change in the economy, such as technological improvement or a decrease in the price of imported oil, be associated with an increase in frictional unemployment?

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

If the wage is kept above the equilibrium level for any reason, the result is unemployment.

List a few of the characteristics of workers who typically earn at or below the minimum wage.

Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power.

The natural rate of unemployment

The efficiency-wage theory of worker health is

Even though the difference in labor-force participation rates of U.S. males and females has narrowed, the labor- force participation rate of males remains higher than that of females.

The theory of efficiency wages provides a possible explanation as to why

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 Macroeconomics: Basic Concepts

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 Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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Exam 10: Unemployment and Its Natural Rate

There is a clear consensus among economists that unions are

Table 28-1 Sample Population -Refer to Table 28-1. How many in the sample are in the labor force?

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called structural unemployment.

Suppose that the Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to

From time to time, the demand for workers has risen in one region of the United States and fallen in another. This illustrates

Figure 28-7 -Refer to Figure 28-7. If the minimum wage is equal to $125, what is the quantity of labor supplied, the quantity of labor demanded, and number unemployed?

Table 28-4 2010 Labor Data for Adults ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult labor-force participation rate in Meditor?

Table 28-4 2010 Labor Data for Adults ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult female labor-force participation rate in Meditor?

Within the U.S. population, blacks of prime working age ages 25-54) have higher rates of unemployment than whites of prime working age ages 25-54), regardless of gender.

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 60,000 households, called the Current Population Survey.

Why might a favorable change in the economy, such as technological improvement or a decrease in the price of imported oil, be associated with an increase in frictional unemployment?

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

If the wage is kept above the equilibrium level for any reason, the result is unemployment.

List a few of the characteristics of workers who typically earn at or below the minimum wage.

Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power.

The natural rate of unemployment

The efficiency-wage theory of worker health is

Even though the difference in labor-force participation rates of U.S. males and females has narrowed, the labor- force participation rate of males remains higher than that of females.

The theory of efficiency wages provides a possible explanation as to why

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 Macroeconomics: Basic Concepts

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 Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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