Question 1

During the period from 1990 to 2006, in the United States, most spells of unemployment lasted:

Accepted Answer

A)  less than one month, yet most of the weeks of unemployment occurred in spells lasting two or more months. 
B)  more than one month, and most weeks of unemployment occurred in spells of two or more months. 
C)  less than one month, and most weeks of unemployment occurred in spells of one month or less. 
D)  more than one month, but most weeks of unemployment occurred in spells of one month or less. 
A)  less than one month, yet most of the weeks of unemployment occurred in spells lasting two or more months. 
B)  more than one month, and most weeks of unemployment occurred in spells of two or more months. 
C)  less than one month, and most weeks of unemployment occurred in spells of one month or less. 
D)  more than one month, but most weeks of unemployment occurred in spells of one month or less.

Question 2

Explain how technological changes that have reduced the demand for low-skilled workers can change the natural rate of unemployment.

Accepted Answer

The reduction in the demand for low-skil

Question 3

By paying efficiency wages, firms contribute to higher unemployment because they:

Accepted Answer

A)  increase the wage bill. 
B)  make workers more productive. 
C)  keep the wage below the equilibrium level. 
D)  keep the wage above the equilibrium level. 
A)  increase the wage bill. 
B)  make workers more productive. 
C)  keep the wage below the equilibrium level. 
D)  keep the wage above the equilibrium level.

Question 4

Any policy aimed at lowering the natural rate of unemployment must either ______ the rate of job separation or ______ the rate of job finding.

Accepted Answer

A)  reduce; reduce 
B)  increase; increase 
C)  reduce; increase 
D)  increase; reduce 
A)  reduce; reduce 
B)  increase; increase 
C)  reduce; increase 
D)  increase; reduce

Question 5

Reducing the natural rate of unemployment requires reducing the rate of job separation and increasing the rate of job finding. Explain at least one policy that will impact each of these aspects of the natural rate of unemployment.

Accepted Answer

Policies that could improve job finding

Question 6

A spell of unemployment begins when a person leaves his or her job or:

Accepted Answer

A)  withdraws from the labor force. 
B)  enters the labor force. 
C)  takes a vacation. 
D)  has been without a job for at least four weeks. 
A)  withdraws from the labor force. 
B)  enters the labor force. 
C)  takes a vacation. 
D)  has been without a job for at least four weeks.

Question 7

Since 1960 there has been a substantial increase in unemployment rates in major European countries. Give two reasons for this happening in Europe.

Accepted Answer

Some reasons supporting this i

Question 8

In 2007 in the United States among labor-force members ages 16 to 19, the highest unemployment rate was for:

Accepted Answer

A)  black females. 
B)  black males. 
C)  white females. 
D)  white males. 
A)  black females. 
B)  black males. 
C)  white females. 
D)  white males.

Question 9

Explain how paying efficiency wages can help employers overcome both moral hazard and adverse selection problems in employment.

Accepted Answer

Efficiency wages are wages above the mar

Question 10

One reason for unemployment is that:

Accepted Answer

A)  it takes time to match workers and jobs. 
B)  all jobs are identical. 
C)  the labor market is always in equilibrium. 
D)  a laid-off worker can immediately find a new job at the market wage. 
A)  it takes time to match workers and jobs. 
B)  all jobs are identical. 
C)  the labor market is always in equilibrium. 
D)  a laid-off worker can immediately find a new job at the market wage.

Question 11

The unemployment resulting from wage rigidity and job rationing is called ______ unemployment.

Accepted Answer

A)  frictional 
B)  structural 
C)  minimum-wage 
D)  insider 
A)  frictional 
B)  structural 
C)  minimum-wage 
D)  insider

Question 12

Spells of unemployment end when the unemployed person finds a job or:

Accepted Answer

A)  withdraws from the labor force. 
B)  enters the labor force. 
C)  runs out of unemployment insurance compensation. 
D)  refuses to answer unemployment survey questions. 
A)  withdraws from the labor force. 
B)  enters the labor force. 
C)  runs out of unemployment insurance compensation. 
D)  refuses to answer unemployment survey questions.

Question 13

Firms currently have incentives to temporarily lay off workers because firms typically are charged for ______ of workers' unemployment benefits.

Accepted Answer

A)  all 
B)  only a part 
C)  none 
D)  twice the cost 
A)  all 
B)  only a part 
C)  none 
D)  twice the cost

Question 14

If 250 workers are unemployed for a period of 1 month, 150 for the period of 6 months and 100 for the period of 12 months in a given year, how many spells and months of unemployment occur during a year?

Accepted Answer

Spells of unemployment in this

Question 15

When an economy enters expansion, the unemployment rate first increases and then decreases. Why does this happen?

Accepted Answer

Discouraged workers are counted out of t

Question 16

Centralized union wage bargaining with government intervention in Sweden gives relatively more influence to ______, while firm-level union wage bargaining in the United States gives relatively more influence to ______.

Accepted Answer

A)  efficiency wages; sectoral shifts 
B)  sectoral shifts; efficiency wages 
C)  insiders; outsiders 
D)  outsiders; insiders 
A)  efficiency wages; sectoral shifts 
B)  sectoral shifts; efficiency wages 
C)  insiders; outsiders 
D)  outsiders; insiders

Question 17

Unions contribute to structural unemployment when collective bargaining results in wages:

Accepted Answer

A)  above the equilibrium level. 
B)  below the minimum wage. 
C)  below the equilibrium level. 
D)  above the level of unemployment compensation. 
A)  above the equilibrium level. 
B)  below the minimum wage. 
C)  below the equilibrium level. 
D)  above the level of unemployment compensation.

Question 18

Unemployment insurance increases the amount of frictional unemployment by:

Accepted Answer

A)  making workers more frantic in their search for new jobs. 
B)  inducing workers to accept the first job offer that they receive. 
C)  making employers more reluctant to lay off workers. 
D)  softening the economic hardship of unemployment. 
A)  making workers more frantic in their search for new jobs. 
B)  inducing workers to accept the first job offer that they receive. 
C)  making employers more reluctant to lay off workers. 
D)  softening the economic hardship of unemployment.

During the period from 1990 to 2006, in the United States, most spells of unemployment lasted:

Explain how technological changes that have reduced the demand for low-skilled workers can change the natural rate of unemployment.

By paying efficiency wages, firms contribute to higher unemployment because they:

Any policy aimed at lowering the natural rate of unemployment must either the rate of job separation or the rate of job finding.

Reducing the natural rate of unemployment requires reducing the rate of job separation and increasing the rate of job finding. Explain at least one policy that will impact each of these aspects of the natural rate of unemployment.

A spell of unemployment begins when a person leaves his or her job or:

Since 1960 there has been a substantial increase in unemployment rates in major European countries. Give two reasons for this happening in Europe.

In 2007 in the United States among labor-force members ages 16 to 19, the highest unemployment rate was for:

Explain how paying efficiency wages can help employers overcome both moral hazard and adverse selection problems in employment.

One reason for unemployment is that:

The unemployment resulting from wage rigidity and job rationing is called ______ unemployment.

Spells of unemployment end when the unemployed person finds a job or:

Firms currently have incentives to temporarily lay off workers because firms typically are charged for ______ of workers' unemployment benefits.

If 250 workers are unemployed for a period of 1 month, 150 for the period of 6 months and 100 for the period of 12 months in a given year, how many spells and months of unemployment occur during a year?

When an economy enters expansion, the unemployment rate first increases and then decreases. Why does this happen?

Centralized union wage bargaining with government intervention in Sweden gives relatively more influence to , while firm-level union wage bargaining in the United States gives relatively more influence to .

Unions contribute to structural unemployment when collective bargaining results in wages:

Unemployment insurance increases the amount of frictional unemployment by:

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

During the period from 1990 to 2006, in the United States, most spells of unemployment lasted:

Explain how technological changes that have reduced the demand for low-skilled workers can change the natural rate of unemployment.

By paying efficiency wages, firms contribute to higher unemployment because they:

Any policy aimed at lowering the natural rate of unemployment must either ______ the rate of job separation or ______ the rate of job finding.

Reducing the natural rate of unemployment requires reducing the rate of job separation and increasing the rate of job finding. Explain at least one policy that will impact each of these aspects of the natural rate of unemployment.

A spell of unemployment begins when a person leaves his or her job or:

Since 1960 there has been a substantial increase in unemployment rates in major European countries. Give two reasons for this happening in Europe.

In 2007 in the United States among labor-force members ages 16 to 19, the highest unemployment rate was for:

Explain how paying efficiency wages can help employers overcome both moral hazard and adverse selection problems in employment.

One reason for unemployment is that:

The unemployment resulting from wage rigidity and job rationing is called ______ unemployment.

Spells of unemployment end when the unemployed person finds a job or:

Firms currently have incentives to temporarily lay off workers because firms typically are charged for ______ of workers' unemployment benefits.

If 250 workers are unemployed for a period of 1 month, 150 for the period of 6 months and 100 for the period of 12 months in a given year, how many spells and months of unemployment occur during a year?

When an economy enters expansion, the unemployment rate first increases and then decreases. Why does this happen?

Centralized union wage bargaining with government intervention in Sweden gives relatively more influence to ______, while firm-level union wage bargaining in the United States gives relatively more influence to ______.

Unions contribute to structural unemployment when collective bargaining results in wages:

Unemployment insurance increases the amount of frictional unemployment by:

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

Any policy aimed at lowering the natural rate of unemployment must either the rate of job separation or the rate of job finding.

Centralized union wage bargaining with government intervention in Sweden gives relatively more influence to , while firm-level union wage bargaining in the United States gives relatively more influence to .