Question 1

Which of the following is an economic cost of unemployment?
(i)  Unemployed people often accept lower wages when they eventually find work.
(ii)  Hysteresis occurs.
(iii)  The unemployment rate falls.
(iv)  Children whose parents are unemployed have lower academic outcomes.

Accepted Answer

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

Question 2

(Table: Population Data for Estill County)  If marginally attached workers are included, the number of persons in the labor force in Estill County is:

Accepted Answer

A)  7,400.
B)  7,400
C)  6,500.
D)  6,500
E)  6,000F) 6,000.G) 5,500.H) 5,500I) C) and E)
J) C) and G)

Question 3

The equilibrium unemployment rate is the:

Accepted Answer

A)  rate of unemployment that exists when demand equals supply in a given market.
B)  frictional unemployment rate plus the cyclical unemployment rate.
C)  short-run unemployment rate when the economy is in a recession.
D)  rate of unemployment that exists even when cyclical unemployment has gone to zero.E) None of the above
F) A) and B)

Question 4

Public policy can assist in improving the matching of jobs to workers by:

Accepted Answer

A)  controlling the number of jobs that are offered by businesses.
B)  lowering minimum wages.
C)  running job search centers to help businesses identify unemployed people with the right skills.
D)  providing unemployment benefits for unemployed workers.E) A) and B)
F) A) and C)

Question 5

Employment and Unemployment is the:

Accepted Answer

A)  percent of the labor force that is unemployed.
B)  percent of the labor force that is unemployed
C)  number of people unemployed.
D)  number of people unemployed
E)  the labor force minus the number of people unemployedF) the labor force minus the number of people unemployed.G) average length of time someone is unemployed.H) average length of time someone is unemployedI) B) and D)
J) F) and G)

Question 6

Consider the labor market shown here. Suppose the government enacts a minimum wage of $11. Answer the following questions:
(a) How many workers are employed after implementation of the minimum wage?
(b) How many workers are available to work after the minimum wage is implemented?
(c) After implementation of the minimum wage, does the number of employed workers increase or decrease? By how many workers?
(d) After implementation of the minimum wage, does the number of workers who are willing to work increase or decrease? By how many workers?

Accepted Answer

The answer of Consider the labor market shown here. Suppose...

Question 7

Both _____ and _____ may cause structural unemployment.

Accepted Answer

A)  a binding minimum wage; union wages
B)  a binding minimum wage; union wages.
C)  a nonbinding minimum wage; union wages
D)  a nonbinding minimum wage; union wages.
E)  economic downturns; efficiency wagesF) economic downturns; efficiency wages.G) beneficial unemployment insurance benefits; efficiency wages.H) beneficial unemployment insurance benefits; efficiency wagesI) All of the above
J) B) and G)

Question 8

(Table: Unemployment and Employment Data)  If marginally attached workers are included in the labor force and in the unemployment rate, the unemployment rate in this economy is _____.

Accepted Answer

A)  8.4%.
B)  8.4%
C)  7.8%.
D)  7.8%
E)  5%.F) 5%G) 3%.H) 3%I) G) and H)
J) D) and H)

Question 9

Suppose a labor market is described by the demand equation, Qd = 60 - 2w, and the supply equation, Qs = -10 + w, where Qd is the quantity demanded of labor, Qs is the quantity supplied of labor, and w is the wage (in dollars) . If the government institutes a minimum wage of $25, how many workers will be willing to work in this market?

Accepted Answer

A)  5,000,000
B)  20,000,000
C)  10,000,000
D)  15,000,000E) B) and C)
F) C) and D)

Question 10

When Tayla was laid off at the beginning of 2020, she looked for a job for three months but could not find anything suitable. She then volunteered in a soup kitchen, giving up her job search. Tayla is considered to be:

Accepted Answer

A)  unemployed
B)  unemployed.
C)  underemployed.
D)  underemployed
E)  marginally attached.F) marginally attachedG) a part-time workerH) a part-time worker.I) B) and D)
J) A) and B)

Question 11

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

Accepted Answer

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

Question 12

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.

Accepted Answer

A)  (i) , (ii) , (iii) , and (iv) 
B)  (ii)  and (iv) 
C)  (i) , (ii) , and (iii) 
D)  (iii)  and (iv) E) None of the above
F) A) and B)

Question 13

Suppose that there are 70 million people in the labor force, of whom 60 million are employed. The unemployment rate is:

Accepted Answer

A)  7%.
B)  7%
C)  10%.
D)  10%
E)  14.29%.F) 14.29%G) 4.2%H) 4.2%.I) A) and B)
J) E) and G)

Question 14

(Figure: The Labor Market)  Use Figure: The Labor Market. What is the size of the labor force at an efficiency wage of $16?

Accepted Answer

A)  80,000
B)  80,000.
C)  100,000.
D)  100,000
E)  110,000F) 110,000.G) 200,000.H) 200,000I) A) and B)
J) A) and C)

Question 15

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

Accepted Answer

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 wageE) None of the above
F) A) and B)

Question 16

(Table: Population Data for Estill County)  How many people are in the labor force?

Accepted Answer

A)  6,000
B)  6,000.
C)  9,400.
D)  9,400
E)  7,400F) 7,400.G) 6,500.H) 6,500I) C) and D)
J) F) and H)

Question 17

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?
  Japan  Month and year  Labor force - male  (millions)   Labor force - female  (millions)   Number of  unemployed people  (millions)   January 2014 37.628.12.4 June 2015 37.728.62.2 December 2016 38.029.22.0 March 2017 37.729.01.9 December 2017 37.829.71.8{ 	ext { Japan } } \\begin{array} { | l | c | c | c | } \hline 	ext { Month and year } & \begin{array} { c } 	ext { Labor force - male } \	ext { (millions)  }\end{array} & \begin{array} { c } 	ext { Labor force - female } \	ext { (millions)  }\end{array} & \begin{array} { c } 	ext { Number of } \	ext { unemployed people } \	ext { (millions)  }\end{array} \\hline 	ext { January 2014 } & 37.6 & 28.1 & 2.4 \\hline 	ext { June 2015 } & 37.7 & 28.6 & 2.2 \\hline 	ext { December 2016 } & 38.0 & 29.2 & 2.0 \\hline 	ext { March 2017 } & 37.7 & 29.0 & 1.9 \\hline 	ext { December 2017 } & 37.8 & 29.7 & 1.8 \\hline\end{array} Japan  Month and year  January 2014  June 2015  December 2016  March 2017  December 2017 ​ Labor force - male  (millions)  ​37.637.738.037.737.8​ Labor force - female  (millions)  ​28.128.629.229.029.7​ Number of  unemployed people  (millions)  ​2.42.22.01.91.8​​

Accepted Answer

A)  65.4 million
B)  65.7 million
C)  68.1 million
D)  66.3 million E) B) and D)
F) All of the above

Question 18

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?

Accepted Answer

A)  19.6%
B)  87.7%
C)  10.2%
D)  12.3%E) A) and B)
F) B) and C)

Question 19

Which of the following can help you protect yourself from the harmful effects of unemployment?
(i)  Build up some savings.
(ii)  Watch for new opportunities even while you are employed.
(iii)  Maintain a good network of friends and colleagues who might be able to refer you to new jobs.
(iv)  Send out as many job applications as possible.

Accepted Answer

A)  (i) , (ii,)  and (iii) 
B)  (i)  and (iv) 
C)  (i) , (ii) , (iii,)  and (iv) 
D)  (iv)  onlyE) None of the above
F) A) and D)

Question 20

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?

Accepted Answer

A)  73.5
B)  1,177.6
C)  1,251.1
D)  79.8E) A) and C)
F) B) and C)

Exam 23: Unemployment

Both _ and _ may cause structural unemployment.

Correct Answer
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Correct Answer
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When Tayla was laid off at the beginning of 2020, she looked for a job for three months but could not find anything suitable. She then volunteered in a soup kitchen, giving up her job search. Tayla is considered to be:

Correct Answer
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Correct Answer
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Which of the following is an economic cost of unemployment? (i) Unemployed people often accept lower wages when they eventually find work. (ii) Hysteresis occurs. (iii) The unemployment rate falls. (iv) Children whose parents are unemployed have lower academic outcomes.

Correct Answer
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(Table: Population Data for Estill County) If marginally attached workers are included, the number of persons in the labor force in Estill County is:

Correct Answer
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(Table: Population Data for Estill County) How many people are in the labor force?

Correct Answer
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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?

Correct Answer
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Correct Answer
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The equilibrium unemployment rate is the:

Correct Answer
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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.

Correct Answer
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Correct Answer
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Suppose that there are 70 million people in the labor force, of whom 60 million are employed. The unemployment rate is:

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

Correct Answer
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Public policy can assist in improving the matching of jobs to workers by:

Correct Answer
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Employment and Unemployment is the:

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

Correct Answer
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(Table: Unemployment and Employment Data) If marginally attached workers are included in the labor force and in the unemployment rate, the unemployment rate in this economy is _____.

Correct Answer
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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?

Correct Answer
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(Figure: The Labor Market) Use Figure: The Labor Market. What is the size of the labor force at an efficiency wage of $16?

Correct Answer
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Exam 23: Unemployment

Both _____ and _____ may cause structural unemployment.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When Tayla was laid off at the beginning of 2020, she looked for a job for three months but could not find anything suitable. She then volunteered in a soup kitchen, giving up her job search. Tayla is considered to be:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is an economic cost of unemployment? (i) Unemployed people often accept lower wages when they eventually find work. (ii) Hysteresis occurs. (iii) The unemployment rate falls. (iv) Children whose parents are unemployed have lower academic outcomes.

Correct AnswerverifiedShow Answer

(Table: Population Data for Estill County) If marginally attached workers are included, the number of persons in the labor force in Estill County is:

Correct AnswerverifiedShow Answer

(Table: Population Data for Estill County) How many people are in the labor force?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The equilibrium unemployment rate is the:

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suppose that there are 70 million people in the labor force, of whom 60 million are employed. The unemployment rate is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Public policy can assist in improving the matching of jobs to workers by:

Correct AnswerverifiedShow Answer

Employment and Unemployment is the:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

(Table: Unemployment and Employment Data) If marginally attached workers are included in the labor force and in the unemployment rate, the unemployment rate in this economy is _____.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

(Figure: The Labor Market) Use Figure: The Labor Market. What is the size of the labor force at an efficiency wage of $16?

Correct AnswerverifiedShow Answer

Both _ and _ may cause structural unemployment.

Correct Answer
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Correct Answer
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