Deck 23: Unemployment

Question 1

You make some new friends at a party. Which of your new friends described here is unemployed?

A)Kevin, who is a lifeguard in the summer but does not work the rest of the year
B)Jason, who is a full-time student
C)Jacinta, who is a full-time student on an unpaid internship
D)Melinda, who was recently laid off

Answer 1

D

Question 2

The working age population includes people who are:

A)age 16 or older who are not in the military or institutionalized.
B)not in the military or institutionalized.
C)age 16 or older.
D)not retired.

Answer 2

A

Question 3

In order to be considered unemployed, the person must be:
(i) over the age of 16.
(ii) actively searching for work.
(iii) available to work.
(iv) skilled.

A)(i), (ii), (iii), and (iv)
B)(ii) and (iv)
C)(i), (ii), and (iii)
D)(iii) and (iv)

Answer 3

C

Question 4

In order to be considered unemployed, a person must:
(i) be part of the working-age population.
(ii) be actively looking for work.
(iii) not have been self-employed.
(iv) must be noninstitutionalized.

A)(iii) and (iv)
B)(i), (ii), and (iv)
C)(i) and (ii)
D)(ii) and (iv)

Question 5

Which of the following people can be classified as "unemployed"?

A)Damien, who does not have a job but has not looked for work
B)Fred, who is on medical leave from his job
C)Jose, who is in the military
D)Laura, who has been seeking employment for two months

Question 6

During the Great Recession, the United States Congress increased the length of time that unemployment benefits could be received from 52 weeks to 99 weeks. This change caused:

A)a decrease in unemployment.
B)an increase in the costs for the government.
C)an increase in the number of employed people in the economy.
D)an increase in the labor force participation rate.

Question 7

Which of the following people could qualify as a "discouraged worker"?

A)Paul, who works in Chicago but is looking for a better job in California
B)Leonard, who thinks there are no jobs available and has given up trying to find work
C)Desmond, who has stopped work to become a stay-at-home parent
D)Lucille, a full-time student

Question 8

You have four friends. Which of your friends can be described as "structurally unemployed"?

A)Dolly, a recent graduate who is looking for the job that best suits her qualifications
B)Kirstie, who was fired for being inefficient at her job
C)Kevin, who does not like the company he works for
D)Marty, who cannot find a job, though he is willing to accept less than the existing wage

Question 9

You have four friends. Which of your friends can be described as "frictionally unemployed"?

A)Mona, who recently went on medical leave from her work
B)Davis, who wants to work as an automation engineer but finds that he is required to get additional certification to qualify for available automation engineer jobs
C)Francis, who works part-time at the skating rink until he finishes his training as a snake handler
D)Melia, who is has been looking for work for nine months but now believes that there are no jobs available

Question 10

You have four friends. Which of your friends can be described as "cyclically unemployed"?

A)Regan, who is in a nursing home
B)Keele, who lost her job after her company lost a lot of customers during an economic downturn
C)Arthur, who quit his job to look for a better job
D)Martha, who is a full-time stay-at-home parent

Question 11

The higher the minimum wage, as compared to the equilibrium wage, the:

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

Question 12

Which of the following people can be described as "structurally unemployed"?
(i) Mola is trained as a textile worker but is currently unemployed. He wants to work in the textile industry, which is unionized. Wages are high, but firms in this industry cannot offer jobs at lower wages due to the union requirements. Therefore, no jobs are available.
(ii) Agnes believes that she can get a better job in Alaska. Therefore, she quits her job in West Virginia and is looking for a job in Alaska.
(iii) Pratt has just retired after working for 40 years in a candle-making factory.
(iv) The minimum wage has just been raised, and Philomena finds that fewer jobs are available in the fast-food industry. She is unable to find a job.
(v) Cary will graduate in two months, after being a full-time student for the past four years. She wants to find a job in the investment banking sector.

A)Agnes and Philomena
B)Agnes and Pratt
C)Mola and Cary
D)Mola and Philomena

Question 13

You run a factory that makes leather shoes. You opt to pay your workers twice the going wage in order to reduce tardiness and shirking and to increase workers' morale and effort. This scenario is an example of:

A)a minimum wage.
B)an efficiency wage.
C)discouraged workers.
D)cyclical unemployment.

Question 14

In which of the following scenarios would you be classified as "cyclically unemployed"?

A)You are trained to work as a fitness trainer, but due to poor economic conditions, falling consumer incomes, and falling demand for personal trainers, no gyms are hiring.
B)The available jobs all require knowledge of computer programming in Python, and you cannot get a job because you know only Fortran.
C)The available jobs all require knowledge of both English and Spanish, and you cannot speak Spanish.
D)You are looking for a full-time job, but in the meantime, you take on a part-time job.

Question 15

Which people are not counted as part of the official measure of the labor force in the United States?
(i) individuals under the age of 16
(ii) retirees
(iii) institutionalized people
(iv) those who are not working but getting job training

A)(i) only
B)(ii) and (iii)
C)(iii) only
D)(i), (ii), and (iii)

Question 16

In May 2019, there were approximately 68,980,000 people in Japan's labor force. About 1,650,000 people were unemployed. What was the unemployment rate?

A)2.4%
B)5.0%
C)6.1%
D)1.8%

Question 17

In a 2016 to 2017 labor force survey, the working age population in Uganda was 18,843,000. The labor force was 9,932,000. What was the labor force participation rate in Uganda?

A)19.8%
B)24.3%
C)52.7%
D)48.3%

Question 18

In a 2011 to 2012 labor force survey, the working age population in Uganda was 15,764,000. The labor force was 12,623,000. What was the labor force participation rate in Uganda?

A)19.93%
B)26.1%
C)52.7%
D)80.01%

Question 19

In 2018, there were 111.01 million people aged 15 years and older in Japan. There were also 68.3 million people in the labor force. What was the labor force participation rate?

A)38.47%
B)68.3%
C)50%
D)61.53%

Question 20

Refer to the following table that shows monthly data for Japan. What was the total number of people (in millions) in the labor force in January 2014?
$${ \text { Japan } } \\\begin{array} { | l | c | c | c | } \hline \text { Month and year } & \begin{array} { c } \text { Labor force - male } \\\text { (millions) }\end{array} & \begin{array} { c } \text { Labor force - female } \\\text { (millions) }\end{array} & \begin{array} { c } \text { Number of } \\\text { unemployed people } \\\text { (millions) }\end{array} \\\hline \text { January 2014 } & 37.6 & 28.1 & 2.4 \\\hline \text { June 2015 } & 37.7 & 28.6 & 2.2 \\\hline \text { December 2016 } & 38.0 & 29.2 & 2.0 \\\hline \text { March 2017 } & 37.7 & 29.0 & 1.9 \\\hline \text { December 2017 } & 37.8 & 29.7 & 1.8 \\\hline\end{array}$$

A)65.4 million
B)65.7 million
C)68.1 million
D)66.3 million

Question 21

Refer to the following table that shows monthly data for Japan. What was the total number of people (in millions) in the labor force in June 2015?
$${ \text { Japan } } \\\begin{array} { | l | c | c | c | } \hline \text { Month and year } & \begin{array} { c } \text { Labor force - male } \\\text { (millions) }\end{array} & \begin{array} { c } \text { Labor force - female } \\\text { (millions) }\end{array} & \begin{array} { c } \text { Number of } \\\text { unemployed people } \\\text { (millions) }\end{array} \\\hline \text { January 2014 } & 37.6 & 28.1 & 2.4 \\\hline \text { June 2015 } & 37.7 & 28.6 & 2.2 \\\hline \text { December 2016 } & 38.0 & 29.2 & 2.0 \\\hline \text { March 2017 } & 37.7 & 29.0 & 1.9 \\\hline \text { December 2017 } & 37.8 & 29.7 & 1.8 \\\hline\end{array}$$

A)65.4 million
B)65.7 million
C)68.1 million
D)66.3 million

Question 22

Refer to the following table that shows monthly data for Japan. What was the total number of people (in millions) in the labor force in March 2017?
$${ \text { Japan } } \\\begin{array} { | l | c | c | c | } \hline \text { Month and year } & \begin{array} { c } \text { Labor force - male } \\\text { (millions) }\end{array} & \begin{array} { c } \text { Labor force - female } \\\text { (millions) }\end{array} & \begin{array} { c } \text { Number of } \\\text { unemployed people } \\\text { (millions) }\end{array} \\\hline \text { January 2014 } & 37.6 & 28.1 & 2.4 \\\hline \text { June 2015 } & 37.7 & 28.6 & 2.2 \\\hline \text { December 2016 } & 38.0 & 29.2 & 2.0 \\\hline \text { March 2017 } & 37.7 & 29.0 & 1.9 \\\hline \text { December 2017 } & 37.8 & 29.7 & 1.8 \\\hline\end{array}$$

A)66.7 million
B)67.2 million
C)67.5 million
D)68.6 million

Question 23

Refer to the following table that shows monthly data for Japan. What was the unemployment rate in December 2016?
$${ \text { Japan } } \\\begin{array} { | l | c | c | c | } \hline \text { Month and year } & \begin{array} { c } \text { Labor force - male } \\\text { (ten thousands) }\end{array} & \begin{array} { c } \text { Labor force - female } \\\text { (ten thousands) }\end{array} & \begin{array} { c } \text { Number of } \\\text { unemployed people } \\\text { (ten thousands) }\end{array} \\\hline \text { January 2014 } & 3,759 & 2,814 & 240 \\\hline \text { June 2015 } & 3,771 & 2,857 & 222 \\\hline \text { December 2016 } & 3,801 & 2,917 & 202 \\\hline \text { March 2017 } & 3,771 & 2,900 & 187 \\\hline \text { December 2017 } & 3,783 & 2,971 & 181 \\\hline\end{array}$$

A)3.7%
B)3%
C)2.8%
D)3.3%

Question 24

Refer to the following table that shows monthly data for Japan. What was the unemployment rate in January 2014?
$${ \text { Japan } } \\\begin{array} { | l | c | c | c | } \hline \text { Month and year } & \begin{array} { c } \text { Labor force - male } \\\text { (millions) }\end{array} & \begin{array} { c } \text { Labor force - female } \\\text { (millions) }\end{array} & \begin{array} { c } \text { Number of } \\\text { unemployed people } \\\text { (millions) }\end{array} \\\hline \text { January 2014 } & 37.6 & 28.1 & 2.4 \\\hline \text { June 2015 } & 37.7 & 28.6 & 2.2 \\\hline \text { December 2016 } & 38.0 & 29.2 & 2.0 \\\hline \text { March 2017 } & 37.7 & 29.0 & 1.9 \\\hline \text { December 2017 } & 37.8 & 29.7 & 1.8 \\\hline\end{array}$$

A)3.7%
B)3%
C)2.8%
D)3.3%

Question 25

Refer to the following table that shows monthly data for Japan. What was the unemployment rate in December 2017?
$${ \text { Japan } } \\\begin{array} { | l | c | c | c | } \hline \text { Month and year } & \begin{array} { c } \text { Labor force - male } \\\text { (millions) }\end{array} & \begin{array} { c } \text { Labor force - female } \\\text { (millions) }\end{array} & \begin{array} { c } \text { Number of } \\\text { unemployed people } \\\text { (millions) }\end{array} \\\hline \text { January 2014 } & 37.6 & 28.1 & 2.4 \\\hline \text { June 2015 } & 37.7 & 28.6 & 2.2 \\\hline \text { December 2016 } & 38.0 & 29.2 & 2.0 \\\hline \text { March 2017 } & 37.7 & 29.0 & 1.9 \\\hline \text { December 2017 } & 37.8 & 29.7 & 1.8 \\\hline\end{array}$$

A)2.7%
B)3%
C)2.1%
D)3.6%

Question 26

In December 2018, West Virginia reported a civilian labor force of 784,574 people. The number of employed people was 744,178. How many people were unemployed?

A)40,396
B)1,528,752
C)47,304
D)744,178

Question 27

In December of 2018, West Virginia reported a civilian labor force of 784,574 people. The number of employed people was 744,178. What was the unemployment rate?

A)4.2%
B)5.1%
C)4.9%
D)94.9%

Question 28

In March 2010, California reported a civilian labor force of 18,304,098. The number of unemployed people was 2,242,732. What was the unemployment rate?

A)19.6%
B)87.7%
C)10.2%
D)12.3%

Question 29

In May 2019, Texas reported a civilian labor force of 14,012,711. The number of employed people was 13,516,387. What was the unemployment rate?

A)4.9%
B)5.3%
C)3.5%
D)96.5%

Question 30

In April 2019, the state of New York reported a civilian labor force of 9,603,801. The number of unemployed people was 378,371. What was the unemployment rate?

A)3.9%
B)96.1%
C)18.2%
D)5.3%

Question 31

The table shows Canada's labor force characteristics. What was Canada's labor force in January 2019?
$$\begin{array} { | l | c | c | c | } \hline & \text { January 2019 } & \text { March 2019 } & \text { May 2019 } \\\hline \begin{array} { l } \text { Number of people of } \\\text { working age }\end{array} & 30,526,600 & 30,582,400 & 30,662,400 \\\hline \text { Labor force } & & 20,079,700 & 20,138,600 \\\hline \text { Employed } & 18,873,900 & 18,922,600 & \\\hline \text { Unemployed } & 1,162,000 & 1,157,200 & 1,081,800 \\\hline \begin{array} { l } \text { Labor force } \\\text { participation rate }\end{array} & 65.6 \% & & 65.7 \% \\\hline \text { Unemployment rate } & 5.8 \% & & \\\hline\end{array}$$

A)30,526,600
B)20,079,700
C)20,035,900
D)19,056,800

Question 32

The table shows Canada's labor force characteristics. What was Canada's labor force participation rate in March 2019?
$$\begin{array} { | l | c | c | c | } \hline & \text { January 2019 } & \text { March 2019 } & \text { May 2019 } \\\hline \begin{array} { l } \text { Number of people of } \\\text { working age }\end{array} & 30,526,600 & 30,582,400 & 30,662,400 \\\hline \text { Labor force } & & 20,079,700 & 20,138,600 \\\hline \text { Employed } & 18,873,900 & 18,922,600 & \\\hline \text { Unemployed } & 1,162,000 & 1,157,200 & 1,081,800 \\\hline \begin{array} { l } \text { Labor force } \\\text { participation rate }\end{array} & 65.6 \% & & 65.7 \% \\\hline \text { Unemployment rate } & 5.8 \% & & \\\hline\end{array}$$

A)5.8%
B)65.7%
C)63.2%
D)57.2%

Question 33

The table shows Canada's labor force characteristics. What was Canada's unemployment rate in March 2019?
$$\begin{array} { | l | c | c | c | } \hline & \text { January 2019 } & \text { March 2019 } & \text { May 2019 } \\\hline \begin{array} { l } \text { Number of people of } \\\text { working age }\end{array} & 30,526,600 & 30,582,400 & 30,662,400 \\\hline \text { Labor force } & & 20,079,700 & 20,138,600 \\\hline \text { Employed } & 18,873,900 & 18,922,600 & \\\hline \text { Unemployed } & 1,162,000 & 1,157,200 & 1,081,800 \\\hline \begin{array} { l } \text { Labor force } \\\text { participation rate }\end{array} & 65.6 \% & & 65.7 \% \\\hline \text { Unemployment rate } & 5.8 \% & & \\\hline\end{array}$$

A)9.1%
B)3.4%
C)5.4%
D)5.8%

Question 34

The table shows Canada's labor force characteristics. How many people were employed in Canada in May 2019?
$$\begin{array} { | l | c | c | c | } \hline & \text { January 2019 } & \text { March 2019 } & \text { May 2019 } \\\hline \begin{array} { l } \text { Number of people of } \\\text { working age }\end{array} & 30,526,600 & 30,582,400 & 30,662,400 \\\hline \text { Labor force } & & 20,079,700 & 20,138,600 \\\hline \text { Employed } & 18,873,900 & 18,922,600 & \\\hline \text { Unemployed } & 1,162,000 & 1,157,200 & 1,081,800 \\\hline \begin{array} { l } \text { Labor force } \\\text { participation rate }\end{array} & 65.6 \% & & 65.7 \% \\\hline \text { Unemployment rate } & 5.8 \% & & \\\hline\end{array}$$

A)30,526,600
B)20,079,700
C)20,035,900
D)19,056,800

Question 35

The table shows Canada's labor force characteristics. What was Canada's unemployment rate in May 2019?
$$\begin{array} { | l | c | c | c | } \hline & \text { January 2019 } & \text { March 2019 } & \text { May 2019 } \\\hline \begin{array} { l } \text { Number of people of } \\\text { working age }\end{array} & 30,526,600 & 30,582,400 & 30,662,400 \\\hline \text { Labor force } & & 20,079,700 & 20,138,600 \\\hline \text { Employed } & 18,873,900 & 18,922,600 & \\\hline \text { Unemployed } & 1,162,000 & 1,157,200 & 1,081,800 \\\hline \begin{array} { l } \text { Labor force } \\\text { participation rate }\end{array} & 65.6 \% & & 65.7 \% \\\hline \text { Unemployment rate } & 5.8 \% & & \\\hline\end{array}$$

A)5.4%
B)5.8%
C)3.2%
D)8.4%

Question 36

Which of the following is a reason that female labor force participation increased to 60% in the United States?

A)laws that forbid gender discrimination
B)laws that encourage the hiring of males
C)decreased male labor force participation
D)decreased access to female control over fertility

Question 37

Which of the following is NOT a reason that female labor force participation increased to 60% in the United States?

A)the breakdown of cultural attitudes against working mothers
B)innovations such as washing machines, prepackaged meals, and dishwashers
C)increased access to female control over fertility
D)decreased male labor force participation

Question 38

Which of the following is a reason that male labor force participation has declined over the last several decades in the United States?

A)most men emigrating out of the country
B)more men opting to complete college
C)government regulations on the distribution of the labor force
D)increased female labor force participation

Question 39

Which of the following is a reason that male labor force participation has declined over the last several decades in the United States?

A)more men opting to retire
B)the majority of men looking for jobs outside the United States
C)a lack of available jobs
D)lower minimum wage rates

Question 40

Which of the following is a reason that male labor force participation has declined over the last several decades in the United States?

A)fewer men with families
B)the Equal Pay Act of 1963
C)economic downturns
D)higher minimum wage rates

Question 41

An underemployed person is one who is:

A)employed in the underground economy.
B)working but whose skills are not fully utilized.
C)retired or outside of the labor force.
D)cyclically unemployed.

Question 42

A marginally attached person is one who:

A)is frictionally unemployed at the present time.
B)believes that there are no jobs available.
C)is employed but wants more work.
D)is unemployed, has looked for a job within the past year, but has now stopped looking.

Question 43

An involuntarily part-time worker is one who:

A)is marginally attached to the labor force.
B)has taken a part-time job in order to go to school full-time.
C)works full-time but wants to find a part-time job.
D)works part-time but wants to find a full-time job.

Question 44

David is looking for a full-time job in the insurance industry. He is able to find only a 10-hour per week job as a fill-in insurance agent. Davis can be described as:

A)unemployed.
B)a discouraged worker.
C)a marginally attached worker.
D)an involuntary part-time worker.

Question 45

Unemployment insurance can lead to:

A)a reduction in the government budget deficit.
B)an increase in the number of retirees.
C)fewer unemployment benefit claims.
D)longer unemployment durations.

Question 46

An increase in the length of time that unemployment insurance is provided can lead to:

A)an increase in the government budget deficit.
B)an increase in the minimum wage.
C)fewer unemployment benefit claims.
D)shorter unemployment durations.

Question 47

Following a significant recessionary period in which there were periodic wage freezes, workers negotiate higher wages. However, the higher wages lead to a decrease in the number of new workers getting hired, so unemployment persists in the region. The scenario described here is an example of:

A)efficiency wages.
B)frictional unemployment.
C)hysteresis.
D)a government mandated minimum wage.

Question 48

The table shows statistics for three Canadian cities at several different points in time. What was the number of people (in thousands) in Montreal's labor force in January 2005?

A)2,003.1
B)171.4
C)2,888.8
D)1,831.7

Question 49

The table shows statistics for three Canadian cities at several different points in time. What was the number of unemployed people (in thousands) in Montreal in January 2009?

A)2,059.7
B)1,878.1
C)171.4
D)181.6

Question 50

The table shows statistics for three Canadian cities at several different points in time. What was the unemployment rate in Montreal in January 2019?

A)8.8%
B)6.2%
C)93.8%
D)5.4%

Question 51

The table shows statistics for three Canadian cities at several different points in time. What was the number of people (in thousands) in Toronto's labor force in January 2005?

A)2,003.1
B)171.4
C)2,888.8
D)1831.7

Question 52

The table shows statistics for three Canadian cities at several different points in time. What was the number of unemployed people (in thousands) in Toronto in January 2019?

A)3,405.3
B)250.9
C)234.2
D)3,639.5

Question 53

The table shows statistics for three Canadian cities at several different points in time. What was the unemployment rate in Toronto in January 2009?

A)7.0%
B)6.4%
C)91.9%
D)8.1%

Question 54

The table shows statistics for three Canadian cities at several different points in time. What was the number of people (in thousands) in Vancouver's labor force in January 2005?

A)1,251.1
B)78.9
C)1,194.3
D)1,115.4

Question 55

The table shows statistics for three Canadian cities at several different points in time. What was the number of unemployed people (in thousands) in Vancouver in January 2009?

A)73.5
B)1,177.6
C)1,251.1
D)79.8

Question 56

The table shows statistics for three Canadian cities at several different points in time. What was the unemployment rate in Vancouver in January 2019?

A)6.2%
B)6.6%
C)5.9%
D)5.2%

Question 57

Structural unemployment is unemployment:

A)due to a temporary downturn in the economy.
B)due to the time it takes for employers to search for workers and for workers to search for jobs.
C)that occurs because wages don't fall to bring labor demand and labor supply into equilibrium.
D)that occurs because of seasonal changes.

Question 58

Frictional unemployment is unemployment:

A)due to a temporary downturn in the economy.
B)due to the time it takes for employers to search for workers and for workers to search for jobs.
C)that occurs because wages don't fall to bring labor demand and labor supply into equilibrium.
D)that occurs because of seasonal changes.

Question 59

Cyclical unemployment is unemployment:

A)due to a temporary downturn in the economy.
B)due to the time it takes for employers to search for workers and for workers to search for jobs.
C)that occurs because wages don't fall to bring labor demand and labor supply into equilibrium.
D)that occurs because of seasonal changes.

Question 60

Consider these four graphs of the labor market, showing four different minimum wage levels. Which graph(s) shows a wage level where there is no unemployment?

A)graphs A and D
B)graph B
C)graphs A and C
D)graph D

Question 61

Consider these four graphs of the labor market, showing four different minimum wage levels. Which graph(s) shows a wage level where there is an excess supply of workers?

A)graphs A and D
B)graph B
C)graphs A and C
D)graphs B and C

Question 62

Consider these four graphs of the labor market, showing four different minimum wage levels. Which graph(s) shows a wage level where there is a shortage of workers?

A)graph D
B)graph B
C)graph C
D)graphs B and C

Question 63

Consider these four graphs of the labor market, showing four different minimum wage levels. Which graph(s) shows a wage level that leads to unemployment?

A)graphs A and D
B)graph B
C)graphs A and C
D)graphs B and C

Question 64

Consider the graph of the labor market shown here. At the wage rate of $14, the number of unemployed people in this market is:

A)4,000.
B)2,000.
C)22,000.
D)zero.

Question 65

Consider the graph of the labor market shown here. At the wage rate of $15, the number of unemployed people in this market is:

A)4,000.
B)2,000.
C)22,000.
D)zero.

Question 66

Consider the graph of the labor market shown here. At the wage rate of $13, the number of unemployed people in this market is:

A)4,000.
B)2,000.
C)22,000.
D)zero.

Question 67

Consider the graph of the labor market shown here. At the wage rate of $13, the market has a:

A)surplus of 2,000 workers.
B)shortage of 4,000 workers.
C)surplus of 4,000 workers.
D)shortage of 2,000 workers.

Question 68

Consider the graph of the labor market shown here. At the wage rate of $15, the market has a:

A)surplus of 2,000 workers.
B)shortage of 4,000 workers.
C)surplus of 4,000 workers.
D)shortage of 2,000 workers.

Question 69

Consider the graph of the labor market shown here. At the wage rate of $23:

A)there are 6,000 people who cannot get jobs in this market.
B)the number of unemployed people in this market is zero.
C)there is a labor shortage of 2,000 workers.
D)there is a labor surplus of 4,000 workers.

Question 70

Consider the graph of the labor market shown here. A wage rate of $25 could be an example of:
(i) an efficiency wage.
(ii) a minimum wage.
(iii) a wage rate negotiated by a labor union.
(iv) hysteresis.

A)(ii) and (iii) only
B)(iv) only
C)(i), (ii), (iii), and (iv)
D)(i), (ii), and (iii)

Question 71

Consider the graph of the labor market shown here. If the government mandates a minimum wage of $25, there is a labor:

A)surplus of 6,000 workers.
B)surplus of 2,000 workers.
C)shortage of 2,000 workers.
D)surplus of 4,000 workers.

Question 72

Consider the graph of the labor market shown below. If the government raises the minimum wage from $23 to $25:

A)the total number of people employed in this market will rise by 6,000 people.
B)the number of people working in this market will fall by 4,000 people.
C)2,000 people who want to work will be unemployed.
D)8,000 people who want to work will be unemployed.

Question 73

The equilibrium unemployment rate is also known as the _____ unemployment rate.

A)structural
B)cyclical
C)frictional
D)long-run

Question 74

Labor unions can lead to:

A)an increase in cyclical unemployment.
B)an increase in marginal unemployment.
C)a decrease in the natural rate of unemployment.
D)an increase in structural unemployment.

Question 75

A minimum wage that is above the equilibrium wage is:

A)an example of a price floor.
B)an efficiency wage.
C)a labor union negotiated wage.
D)an unemployment benefit.

Question 76

Henry Ford's $5 per day wage led to:
(i) an increase in the number of workers willing to work at the Ford plant.
(ii) workers who were more dedicated to their work.
(iii) unemployment.
(iv) lower total labor costs.

A)(i) and (ii)
B)(ii) and (iii)
C)(i), (ii), and (iv)
D)(i), (ii), (iii), and (iv)

Question 77

Henry Ford's $5 per day wage is an example of:

A)an efficiency wage.
B)a minimum wage law.
C)an equilibrium wage.
D)a government regulated wage.

Question 78

Structural unemployment can be caused by:
(i) efficiency wages.
(ii) union-determined wages.
(iii) minimum wage laws.
(iv) job protection regulations.

A)(i), (ii), and (iv)
B)(ii) and (iii)
C)(i), (ii), (iii), and (iv)
D)(ii), (iii), and (iv)

Question 79

Consider the labor market shown here. If an efficiency wage of $14 is instituted in this market:

A)4,000 workers who are willing to work will not find employment.
B)6,000 workers will be employed.
C)8,000 workers who are willing to work will not find employment.
D)the available number of workers will be 14,000.

Question 80

Consider the labor market shown here. If an efficiency wage of $14 is instituted in this market, the number of workers willing to work will:

A)increase by 4,000.
B)decrease by 2,000.
C)increase by 2,000.
D)decrease by 4,000.