Question 1

Which of the following is correct?

Accepted Answer

A)  There is consensus among economists that unions are good for the economy.
B)  There is consensus among economists that unions are bad for the economy.
C)  There is consensus among economists that, on net, unions have almost no impact on macroeconomic variables.
D)  There is no consensus among economists about whether unions are good or bad for the economy.E) None of the above
F) All of the above

Question 2

If unions were formed in more industries, the supply of labor in other industries would

Accepted Answer

A)  increase, causing employment in other industries to rise.
B)  increase, causing employment in other industries to fall.
C)  decrease, causing employment in other industries to rise.
D)  decrease, causing employment in other industries to fall.E) B) and C)
F) A) and B)

Question 3

Which of the following is not correct?

Accepted Answer

A)  Frictional unemployment is inevitable in a dynamic economy.
B)  Although the unemployment created by sectoral shifts is unfortunate, in the long run such changes lead to higher productivity and higher living standards.
C)  The internet can help facilitate the job search and reduce frictional unemployment.
D)  Unemployment insurance decreases frictional unemployment.E) A) and B)
F) None of the above

Question 4

Efficiency wages contribute to

Accepted Answer

A)  frictional unemployment and the natural rate of unemployment.
B)  frictional unemployment but not the natural rate of unemployment.
C)  structural unemployment and the natural rate of unemployment.
D)  structural unemployment but not the natural rate of unemployment.E) A) and C)
F) None of the above

Question 5

Most spells of unemployment are short, and most unemployment observed at any given time is short-term.

Accepted Answer

A) True 
 B)False

Question 6

Figure 28-3 
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then employment will decrease by

Accepted Answer

A)  0 workers.
B)  2,000 workers.
C)  3,000 workers.
D)  4,000 workers.E) B) and C)
F) None of the above

Question 7

Which of the following is not a commonly-cited explanation for the dramatically increasing labor-force participation rates for women from 1950 to the present?

Accepted Answer

A)  availability of reliable birth control
B)  invention of household labor-saving devices such as dishwashers and microwave ovens
C)  an increasing number of women who work to support their parents
D)  changing social attitudes about working mothersE) A) and D)
F) A) and C)

Question 8

Which of the following is not correct?

Accepted Answer

A)  Most people who become unemployed will soon find jobs.
B)  In an ideal labor market, wages would adjust to ensure that all workers are always fully employed.
C)  The unemployment rate occasionally falls to zero.
D)  There are always some workers without jobs, even when the overall economy is doing well.E) None of the above
F) C) and D)

Question 9

Table 28-6 
-Refer to Table 28-6. What is the U-4 measure of labor underutilization?

Accepted Answer

A)  6.5%
B)  6.9%
C)  7.0%
D)  17.9%E) A) and D)
F) B) and C)

Question 10

The unemployment that results from the process of matching workers and jobs is called structural unemployment.

Accepted Answer

A) True 
 B)False

Question 11

Eric was laid off two months ago. He has not searched for other work because he is expecting to be recalled to work. The Bureau of Labor Statistics counts Eric 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)  not in the labor force.E) C) and D)
F) None of the above

Question 12

Figure 28-6 
-Refer to Figure 28-6. What type of unemployment is measured by the differences between lines A and B?

Accepted Answer

cyclical u...

Question 13

Minimum-wage laws are one reason there is always some unemployment in the U.S. economy.

Accepted Answer

A) True 
 B)False

Question 14

Minimum-wage laws matter most for the least skilled and least experienced members of the labor force, such as teenagers.

Accepted Answer

A) True 
 B)False

Question 15

Explain how the following apparently contradictory statement can be true: Most spells of unemployment are short, and most unemployment observed at any given time is long-term.

Accepted Answer

Most people who become unemplo...

Question 16

The efficiency-wage theory of worker health is more relevant for less developed countries than rich countries.

Accepted Answer

A) True 
 B)False

Question 17

The introduction of a union into an industry

Accepted Answer

A)  raises wages and employment in that industry.
B)  lowers wages and employment in that industry.
C)  lowers wages and raises employment in that industry.
D)  raises wages and lowers employment in that industry.E) B) and C)
F) B) and D)

Question 18

Most spells of unemployment are short. About half of unemployment spells end with an exit from the labor force.

Accepted Answer

A) True 
 B)False

Question 19

Figure 28-7 
-Refer to Figure 28-7. If the minimum wage increases from $100 to $125, how many additional workers will be unemployed?

Accepted Answer

The answer of Figure 28-7 
-Refer to Figure 28-7. If...

Question 20

Causes of the decline in the U.S. men's labor-force participation rate over the past several decades include young men now staying in school longer than their fathers and grandfathers did, older men now retiring earlier and living longer, and more fathers now staying at home to raise their children.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment and Its Natural Rate

Figure 28-6 -Refer to Figure 28-6. What type of unemployment is measured by the differences between lines A and B?

Correct Answerverifiedcyclical u...View AnswerShow Answer

Most spells of unemployment are short. About half of unemployment spells end with an exit from the labor force.

Correct AnswerverifiedShow Answer

The efficiency-wage theory of worker health is more relevant for less developed countries than rich countries.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Efficiency wages contribute to

Correct AnswerverifiedShow Answer

Table 28-6 -Refer to Table 28-6. What is the U-4 measure of labor underutilization?

Correct AnswerverifiedShow Answer

Which of the following is not a commonly-cited explanation for the dramatically increasing labor-force participation rates for women from 1950 to the present?

Correct AnswerverifiedShow Answer

Explain how the following apparently contradictory statement can be true: Most spells of unemployment are short, and most unemployment observed at any given time is long-term.

Correct AnswerverifiedMost people who become unemplo...View AnswerShow Answer

Figure 28-3 -Refer to Figure 28-3. If the government imposes a minimum wage of $8, then employment will decrease by

Correct AnswerverifiedShow Answer

Most spells of unemployment are short, and most unemployment observed at any given time is short-term.

Correct AnswerverifiedShow Answer

Minimum-wage laws matter most for the least skilled and least experienced members of the labor force, such as teenagers.

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Figure 28-7 -Refer to Figure 28-7. If the minimum wage increases from $100 to $125, how many additional workers will be unemployed?

Correct AnswerverifiedShow Answer

The unemployment that results from the process of matching workers and jobs is called structural unemployment.

Correct AnswerverifiedShow Answer

Eric was laid off two months ago. He has not searched for other work because he is expecting to be recalled to work. The Bureau of Labor Statistics counts Eric as

Correct AnswerverifiedShow Answer

Minimum-wage laws are one reason there is always some unemployment in the U.S. economy.

Correct AnswerverifiedShow Answer

The introduction of a union into an industry

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

If unions were formed in more industries, the supply of labor in other industries would

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

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Most people who become unemplo...
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