Question 1

If wage rigidity holds the real wage above the equilibrium level, an increase in the demand for labor will ______ the number unemployed.

Accepted Answer

A)  increase 
B)  decrease 
C)  not change 
D)  possibly increase, decrease, or leave unchanged 
A)  increase 
B)  decrease 
C)  not change 
D)  possibly increase, decrease, or leave unchanged

Question 2

A country has changed its labor laws and decreased the minimum age of working from 18 years to 16 years. What is the effect of this change on equilibrium wages?

Accepted Answer

A decrease in the minimum age for work w

Question 3

Assume that the real wage in an economy is held above equilibrium. a. Graphically illustrate how an increase in the supply of labor will change the number of unemployed workers. Be sure to label the axes and the quantities of labor hired before and after the increase in the lab or supply.
b. Explain in words what happens to the number of unemployed as a result of this change.

Accepted Answer

a. @#IMG-DLM& b. The number of

Question 4

All of the following statements about minimum-wage workers in the United States are correct except:

Accepted Answer

A)  minimum-wage workers are more likely to be male. 
B)  minimum-wage workers are more likely to work part time. 
C)  minimum-wage workers are more likely to be less educated. 
D)  minimum-wage workers are more likely to be young. 
A)  minimum-wage workers are more likely to be male. 
B)  minimum-wage workers are more likely to work part time. 
C)  minimum-wage workers are more likely to be less educated. 
D)  minimum-wage workers are more likely to be young.

Question 5

Which of the following is the best example of structural unemployment?

Accepted Answer

A)  Tim is looking for a job with flexible hours but has not been offered one yet. 
B)  Vickie lost her job as a graphic artist at a movie studio because she did not have training in computer-generated animation. 
C)  Kirby is seeking a job as an airline pilot, but the high union wages in the industry have limited the number of jobs available. 
D)  Fatima lost her job at a packing plant but has not looked very intensively for a new job because she still has 2 months of unemployment insurance benefits left. 
A)  Tim is looking for a job with flexible hours but has not been offered one yet. 
B)  Vickie lost her job as a graphic artist at a movie studio because she did not have training in computer-generated animation. 
C)  Kirby is seeking a job as an airline pilot, but the high union wages in the industry have limited the number of jobs available. 
D)  Fatima lost her job at a packing plant but has not looked very intensively for a new job because she still has 2 months of unemployment insurance benefits left.

Question 6

Data on unemployment in the United States show that:

Accepted Answer

A)  most spells of unemployment are long. 
B)  most weeks of unemployment are attributable to the long-term unemployed. 
C)  members of the labor force over age 55 have the highest unemployment rates. 
D)  the duration of unemployment falls during recessions. 
A)  most spells of unemployment are long. 
B)  most weeks of unemployment are attributable to the long-term unemployed. 
C)  members of the labor force over age 55 have the highest unemployment rates. 
D)  the duration of unemployment falls during recessions.

Question 7

Frictional unemployment is inevitable because:

Accepted Answer

A)  different sectors do not shift. 
B)  the economy needs to be lubricated. 
C)  workers never quit their jobs to change careers. 
D)  the demand for different goods always fluctuates. 
A)  different sectors do not shift. 
B)  the economy needs to be lubricated. 
C)  workers never quit their jobs to change careers. 
D)  the demand for different goods always fluctuates.

Question 8

A policy that increases the job-finding rate _____ the natural rate of unemployment.

Accepted Answer

A)  will increase 
B)  will decrease 
C)  will not change 
D)  could either increase or decrease 
A)  will increase 
B)  will decrease 
C)  will not change 
D)  could either increase or decrease

Question 9

Most current unemployment-insurance programs are:

Accepted Answer

A)  paid for fully by state governments. 
B)  paid for fully by the federal government. 
C)  100 percent experience rated. 
D)  partially experience rated. 
A)  paid for fully by state governments. 
B)  paid for fully by the federal government. 
C)  100 percent experience rated. 
D)  partially experience rated.

Question 10

The minimum wage:

Accepted Answer

A)  is usually about 75 percent of the average wage earned in manufacturing. 
B)  raises the wages of highly skilled workers. 
C)  encourages master workers to take on apprentices. 
D)  has its greatest impact on teenage unemployment. 
A)  is usually about 75 percent of the average wage earned in manufacturing. 
B)  raises the wages of highly skilled workers. 
C)  encourages master workers to take on apprentices. 
D)  has its greatest impact on teenage unemployment.

Question 11

The recent reduced demand for unskilled workers relative to skilled workers has led to ______ for unskilled workers in Europe compared to ______ for unskilled workers in the United States.

Accepted Answer

A)  unemployment; lower wages 
B)  lower wages; unemployment 
C)  more unionization; efficiency wages 
D)  efficiency wages; more unionization 
A)  unemployment; lower wages 
B)  lower wages; unemployment 
C)  more unionization; efficiency wages 
D)  efficiency wages; more unionization

Question 12

Economists who have studied minimum-wage laws in the United States find that a 10 percent increase in the minimum wage increases teenage unemployment by about:

Accepted Answer

A)  10 to 30 percent. 
B)  5 percent. 
C)  1 to 3 percent. 
D)  0 percent. 
A)  10 to 30 percent. 
B)  5 percent. 
C)  1 to 3 percent. 
D)  0 percent.

Question 13

Assume that the real wage in an economy is held above equilibrium. a. Graphically illustrate how an increase in technology that raises the demand for labor will change the number of unemployed workers. Be sure to label the axes and the quantities of labor hired before and after the technological progress.
b. Explain in words what happens to the number of unemployed as a result of this change.

Accepted Answer

The answer of Assume that the real wage in an...

Question 14

Which of the following is not a proposed explanation for that fact that Americans on average work 20 percent more hours than the typical resident of western Europe?

Accepted Answer

A)  Europeans have more taste for leisure than Americans. 
B)  Americans have a lower unionization rate than Europeans. 
C)  Europeans face higher tax rates than Americans. 
D)  The underground economy is larger in America than in Europe. 
A)  Europeans have more taste for leisure than Americans. 
B)  Americans have a lower unionization rate than Europeans. 
C)  Europeans face higher tax rates than Americans. 
D)  The underground economy is larger in America than in Europe.

Question 15

The unemployment resulting when real wages are held above equilibrium is called ______ unemployment, while the unemployment that occurs as workers search for a job that best suits their skills is called ______ unemployment.

Accepted Answer

A)  efficiency; inefficiency 
B)  efficiency; structural 
C)  frictional; efficiency 
D)  structural; frictional 
A)  efficiency; inefficiency 
B)  efficiency; structural 
C)  frictional; efficiency 
D)  structural; frictional

Question 16

Consider two countries: Flexiland and Stuckland. The labor force in each country consists of 100,000 workers. In Flexiland a different 500 workers are unemployed each month. In Stuckland the same 500 workers are unemployed for the entire year. Compare and contrast the unemployment situation in the two countries by explaining: a. the unemployment rate,
b. the number of spells of unemployment,
c. the average durati on of each unemployment spell, and
d. whether the unemployment is more likely to be frictional or structural.

Accepted Answer

a. The unemployment rate in both countri

Question 17

In recent years, Europe has experienced ______ unemployment than the United States, and employed Europeans work ______ hours than employed Americans.

Accepted Answer

A)  more; more 
B)  more; fewer 
C)  less; fewer 
D)  less; more 
A)  more; more 
B)  more; fewer 
C)  less; fewer 
D)  less; more

Question 18

Short-term unemployment is most likely to be ______ unemployment, while long-term unemployment is mostly likely to be _____ unemployment.

Accepted Answer

A)  structural; frictional 
B)  structural; the natural rate of 
C)  the natural rate of; frictional 
D)  frictional; structural 
A)  structural; frictional 
B)  structural; the natural rate of 
C)  the natural rate of; frictional 
D)  frictional; structural

Question 19

According to efficiency-wage theories, firms benefit by paying higher-than-equilibrium wages because worker _____ increases.

Accepted Answer

A)  productivity 
B)  turnover 
C)  unionization 
D)  shirking 
A)  productivity 
B)  turnover 
C)  unionization 
D)  shirking

Question 20

More frequent holidays for workers in Europe than in the United States contribute to:

Accepted Answer

A)  higher employment-to-population ratios in Europe than in the United States. 
B)  lower employment-to-population ratios in Europe than in the United States. 
C)  more hours worked per year by the average employed person in Europe than the average employed person in the United States. 
D)  fewer hours worked per year by the average employed person in Europe than the average employed person in the United States. 
A)  higher employment-to-population ratios in Europe than in the United States. 
B)  lower employment-to-population ratios in Europe than in the United States. 
C)  more hours worked per year by the average employed person in Europe than the average employed person in the United States. 
D)  fewer hours worked per year by the average employed person in Europe than the average employed person in the United States.

If wage rigidity holds the real wage above the equilibrium level, an increase in the demand for labor will ______ the number unemployed.

A country has changed its labor laws and decreased the minimum age of working from 18 years to 16 years. What is the effect of this change on equilibrium wages?

All of the following statements about minimum-wage workers in the United States are correct except:

Which of the following is the best example of structural unemployment?

Data on unemployment in the United States show that:

Frictional unemployment is inevitable because:

A policy that increases the job-finding rate _____ the natural rate of unemployment.

Most current unemployment-insurance programs are:

The minimum wage:

The recent reduced demand for unskilled workers relative to skilled workers has led to for unskilled workers in Europe compared to for unskilled workers in the United States.

Economists who have studied minimum-wage laws in the United States find that a 10 percent increase in the minimum wage increases teenage unemployment by about:

Which of the following is not a proposed explanation for that fact that Americans on average work 20 percent more hours than the typical resident of western Europe?

The unemployment resulting when real wages are held above equilibrium is called unemployment, while the unemployment that occurs as workers search for a job that best suits their skills is called unemployment.

In recent years, Europe has experienced unemployment than the United States, and employed Europeans work hours than employed Americans.

Short-term unemployment is most likely to be __ unemployment, while long-term unemployment is mostly likely to be _ unemployment.

According to efficiency-wage theories, firms benefit by paying higher-than-equilibrium wages because worker _____ increases.

More frequent holidays for workers in Europe than in the United States contribute to:

The Science of Macroeconomics

The Data of Macroeconomics

National Income: Where It Comes From and Where It Goes

The Monetary System: What It Is and How It Works

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Is-Lm Model

Aggregate Demand Ii: Applying the Is-Lm Model

The Open Economy Revisited: the Mundell-Fleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Understanding Consumer Behavior

The Theory of Investment

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

Filters

Exam 7: Unemployment and the Labor Market

If wage rigidity holds the real wage above the equilibrium level, an increase in the demand for labor will ______ the number unemployed.

A country has changed its labor laws and decreased the minimum age of working from 18 years to 16 years. What is the effect of this change on equilibrium wages?

All of the following statements about minimum-wage workers in the United States are correct except:

Which of the following is the best example of structural unemployment?

Data on unemployment in the United States show that:

Frictional unemployment is inevitable because:

A policy that increases the job-finding rate _____ the natural rate of unemployment.

Most current unemployment-insurance programs are:

The minimum wage:

The recent reduced demand for unskilled workers relative to skilled workers has led to ______ for unskilled workers in Europe compared to ______ for unskilled workers in the United States.

Economists who have studied minimum-wage laws in the United States find that a 10 percent increase in the minimum wage increases teenage unemployment by about:

Which of the following is not a proposed explanation for that fact that Americans on average work 20 percent more hours than the typical resident of western Europe?

The unemployment resulting when real wages are held above equilibrium is called ______ unemployment, while the unemployment that occurs as workers search for a job that best suits their skills is called ______ unemployment.

In recent years, Europe has experienced ______ unemployment than the United States, and employed Europeans work ______ hours than employed Americans.

Short-term unemployment is most likely to be ______ unemployment, while long-term unemployment is mostly likely to be _____ unemployment.

According to efficiency-wage theories, firms benefit by paying higher-than-equilibrium wages because worker _____ increases.

More frequent holidays for workers in Europe than in the United States contribute to:

The Science of Macroeconomics

The Data of Macroeconomics

National Income: Where It Comes From and Where It Goes

The Monetary System: What It Is and How It Works

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Is-Lm Model

Aggregate Demand Ii: Applying the Is-Lm Model

The Open Economy Revisited: the Mundell-Fleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Understanding Consumer Behavior

The Theory of Investment

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

Filters

The recent reduced demand for unskilled workers relative to skilled workers has led to for unskilled workers in Europe compared to for unskilled workers in the United States.

The unemployment resulting when real wages are held above equilibrium is called unemployment, while the unemployment that occurs as workers search for a job that best suits their skills is called unemployment.

In recent years, Europe has experienced unemployment than the United States, and employed Europeans work hours than employed Americans.

Short-term unemployment is most likely to be __ unemployment, while long-term unemployment is mostly likely to be _ unemployment.