Question 1

Data on unemployment indicate that most people who become unemployed will soon find jobs.

Accepted Answer

A) True 
 B)False

Question 2

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Accepted Answer

A) True 
 B)False

Question 3

Data show that at least 10 percent of U.S. manufacturing jobs are destroyed every year.

Accepted Answer

A) True 
 B)False

Question 4

Efficiency wages

Accepted Answer

A)   increase frictional unemployment by keeping wages above equilibrium.
B)   decrease frictional unemployment by keeping wages at equilibrium.
C)   increase structural unemployment by keeping wages above equilibrium.
D)   decrease structural unemployment by keeping wages at equilibrium.E) A) and B)
F) A) and C)

Question 5

The labor-force participation rate tells us the fraction of the population that

Accepted Answer

A)   is able to participate in the labor market.
B)   has ever been employed.
C)   has chosen to participate in the labor market.
D)   has chosen not to participate in the labor market.E) A) and D)
F) A) and C)

Question 6

Unions

Accepted Answer

A)   raise the wages of unionized workers and raise unemployment.
B)   raise the wages of unionized workers and reduce unemployment.
C)   reduce the wages of unionized workers and raise unemployment.
D)   reduce the wages of unionized workers and reduce unemployment.E) A) and B)
F) A) and C)

Question 7

Who of the following is not included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)   those who worked in their own business
B)   those who worked as unpaid workers in a family member's business
C)   those waiting to be recalled to a job from which they had been laid off
D)   those who were temporarily absent from work because of vacation.E) C) and D)
F) B) and D)

Question 8

Who is not included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)   Calvin, who is on temporary layoff
B)   Michael, who has retired and is not looking for work
C)   Lauren, who does not have a job, but has applied for several in the last week
D)   None of the above is correct.E) A) and B)
F) All of the above

Question 9

Table 10-4
 
-Refer to Table 10-4. What is the U-3 measure of labor underutilization?

Accepted Answer

A)   4.7 percent
B)   6.2 percent
C)   7.0 percent
D)   10.9 percentE) C) and D)
F) All of the above

Question 10

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Accepted Answer

A) True 
 B)False

Question 11

The process by which unions and firms agree on the terms of employment is called collective bargaining.

Accepted Answer

A) True 
 B)False

Question 12

If people who report being unemployed are not, in fact, trying hard to find a job, then the reported unemployment rate will be baised upward.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is correct?

Accepted Answer

A)   Unemployment insurance raises structural unemployment because it reduces the job search efforts of the unemployed.
B)   Most economists are skeptical of the value of unemployment insurance primarily because they believe that it results in a poorer match between workers and jobs.
C)   Studies show that when the unemployed become ineligible for benefits, the probability of their finding a job rises markedly.
D)   All of the above are correct.E) C) and D)
F) A) and B)

Question 14

Renee is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, then

Accepted Answer

A)   the profits of her firm might increase.
B)   the higher wages will induce her workers to shirk.
C)   the turnover of her workers may increase.
D)   she will face a shortage of labor.E) A) and B)
F) C) and D)

Question 15

Which of the following do unions not cause?

Accepted Answer

A)   frictional unemployment
B)   the wage to rise above the equilibrium level
C)   conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs
D)   reduced wages in industries without unionsE) B) and C)
F) B) and D)

Question 16

According to 2009 data on the U.S. population, which of the following groups of teenagers (ages 16-19)  had the highest labor-force participation rate?

Accepted Answer

A)   white males
B)   white females
C)   black males
D)   black femalesE) All of the above
F) B) and D)

Question 17

Unpaid stay-at-home fathers are included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 18

Frictional unemployment is thought to explain

Accepted Answer

A)   relatively short spells of unemployment, as is structural unemployment.
B)   relatively long spells of unemployment, as is structural unemployment.
C)   relatively short spells of unemployment, while structural unemployment is thought to explain relatively long spells of unemployment.
D)   relatively long spells of unemployment, while structural unemployment is thought to explain relatively short spells of unemployment.E) C) and D)
F) A) and C)

Question 19

Workers searching for jobs that best suit them is most closely associated with

Accepted Answer

A)   cyclical unemployment.
B)   frictional unemployment.
C)   seasonal unemployment.
D)   structural unemployment.E) B) and D)
F) A) and D)

Question 20

The Bureau of Labor Statistics is part of the U.S. Department of

Accepted Answer

A)   the Treasury.
B)   Commerce.
C)   Labor.
D)   the Interior.E) B) and C)
F) C) and D)

Exam 10: Unemployment

Which of the following do unions not cause?

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Who of the following is not included in the Bureau of Labor Statistics' "employed" category?

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The Bureau of Labor Statistics is part of the U.S. Department of

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Efficiency wages

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Which of the following is correct?

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Data on unemployment indicate that most people who become unemployed will soon find jobs.

Correct AnswerverifiedShow Answer

Unpaid stay-at-home fathers are included in the Bureau of Labor Statistics' "unemployed" category.

Correct AnswerverifiedShow Answer

If people who report being unemployed are not, in fact, trying hard to find a job, then the reported unemployment rate will be baised upward.

Correct AnswerverifiedShow Answer

Workers searching for jobs that best suit them is most closely associated with

Correct AnswerverifiedShow Answer

The process by which unions and firms agree on the terms of employment is called collective bargaining.

Correct AnswerverifiedShow Answer

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Correct AnswerverifiedShow Answer

Unions

Correct AnswerverifiedShow Answer

Renee is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, then

Correct AnswerverifiedShow Answer

Frictional unemployment is thought to explain

Correct AnswerverifiedShow Answer

The labor-force participation rate tells us the fraction of the population that

Correct AnswerverifiedShow Answer

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Correct AnswerverifiedShow Answer

Data show that at least 10 percent of U.S. manufacturing jobs are destroyed every year.

Correct AnswerverifiedShow Answer

Table 10-4 -Refer to Table 10-4. What is the U-3 measure of labor underutilization?

Correct AnswerverifiedShow Answer

Who is not included in the labor force by the Bureau of Labor Statistics?

Correct AnswerverifiedShow Answer

According to 2009 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the highest labor-force participation rate?

Correct AnswerverifiedShow Answer

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