Question 1

When a minimum-wage law forces the wage to remain above the level that balances supply and demand,it

Accepted Answer

A)   raises the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level.
B)   raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.
C)   reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level.
D)   reduces the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.E) A) and C)
F) A) and D)

Question 2

Minimum-wage laws

Accepted Answer

A)   create frictional unemployment,while firms paying wages above equilibrium to reduce worker turnover creates structural unemployment.
B)   create structural unemployment,while firms paying wages above equilibrium to reduce worker turnover creates frictional unemployment.
C)   and firms paying wages above equilibrium to reduce worker turnover both create structural unemployment.
D)   and firms paying wages above equilibrium to reduce worker turnover both create frictional unemployment.E) B) and D)
F) A) and D)

Question 3

If all workers and all jobs were the same such that all workers were equally well suited for all jobs,then there would be no frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 4

People who are unemployed because of job search are best classified as

Accepted Answer

A)   cyclically unemployed.
B)   structurally unemployed.
C)   frictionally unemployed.
D)   discouraged workers.E) A) and D)
F) A) and C)

Question 5

Which of the following is not a cause of the decline in the U.S.men's labor-force participation rate over the past several decades?

Accepted Answer

A)   young men now stay in school longer than their fathers and grandfathers did
B)   older men now retire earlier and live longer
C)   with more women employed,there are fewer jobs now available to men
D)   more fathers now stay at home to raise their childrenE) A) and D)
F) All of the above

Question 6

Which list contains two periods when the U.S.unemployment rate was below the natural rate of unemployment?

Accepted Answer

A)   1965-1968,1981-1984
B)   1965-1968,1997-2000
C)   1981-1984,1991-1994
D)   1991-1994,1997-2000E) A) and B)
F) A) and C)

Question 7

Monique is the newly appointed CEO of a company that manufactures external hard drives on an assembly line.Her staff has told her that the output the firm produces,given the number of workers employed,indicates that some workers may be shirking.According to efficiency wage theory,what should she do?

Accepted Answer

A)   pay all workers more than the equilibrium wage rate
B)   pay all workers below the equilibrium wage rate to make up for the loss from shirking
C)   make sure that workers are getting paid exactly the equilibrium wage rate
D)   pay bonuses to workers who report the shirking of other workersE) A) and D)
F) A) and B)

Question 8

The Bureau of Labor Statistics produces data on

Accepted Answer

A)   unemployment.
B)   types of employment.
C)   length of the average workweek.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 9

There is a clear consensus among economists that unions are

Accepted Answer

A)   good for the economy because they result in higher wages for most workers.
B)   good for the economy because they are a necessary antidote to the market power of employers.
C)   bad for the economy because they are cartels and therefore detrimental to an efficient allocation of resources.
D)   None of the above is correct;there is no clear consensus among economists about whether unions are good or bad for the economy.E) A) and D)
F) A) and B)

Question 10

Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household?

Accepted Answer

A)   employed
B)   unemployed
C)   underemployed
D)   not in the labor forceE) A) and D)
F) A) and C)

Question 11

Most U.S.workers have wages well above the legal minimum,so minimum-wage laws do not prevent the wage from adjusting to balance supply and demand.

Accepted Answer

A) True 
 B)False

Question 12

Data on the unemployment rate in the U.S.since 1960 show that the economy always has some unemployment and that the amount changes from year to year.

Accepted Answer

A) True 
 B)False

Question 13

The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.

Accepted Answer

A) True 
 B)False

Question 14

Who in the adult population is counted as employed in U.S.labor statistics?

Accepted Answer

A)   people who are temporarily absent from their job and people who work without pay in a family member's business
B)   people who are temporarily absent from their job but not people who work without pay in a family member's business
C)   people who work without pay in a family member's business but not people who are temporarily absent from their job
D)   neither people who are temporarily absent from their job nor people who work without pay in a family member's businessE) B) and D)
F) B) and C)

Question 15

The unemployed who quit their jobs,were fired for cause,or just entered the labor force are eligible for unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 16

Unemployment insurance increases frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 17

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) C) and D)
F) B) and D)

Question 18

The Bureau of Labor Statistics produces data on unemployment,types of employment,length of the average workweek,and the duration of unemployment.

Accepted Answer

A) True 
 B)False

Question 19

Like any cartel,a union is a group of sellers acting together in the hope of exerting their joint market power.

Accepted Answer

A) True 
 B)False

Question 20

When a union raises the wage above the equilibrium level,it

Accepted Answer

A)   reduces both the quantity of labor supplied and the quantity of labor demanded.
B)   reduces the quantity of labor supplied and raises the quantity of labor demanded.
C)   raises the quantity of labor supplied and reduces the quantity of labor demanded.
D)   raises both the quantity of labor supplied and the quantity of labor demanded.E) All of the above
F) A) and B)

Exam 28: Unemployment

The Bureau of Labor Statistics produces data on unemployment,types of employment,length of the average workweek,and the duration of unemployment.

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Minimum-wage laws

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The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.

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People who are unemployed because of job search are best classified as

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When a union raises the wage above the equilibrium level,it

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Unemployment insurance increases frictional unemployment.

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There is a clear consensus among economists that unions are

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Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household?

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If all workers and all jobs were the same such that all workers were equally well suited for all jobs,then there would be no frictional unemployment.

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

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When a minimum-wage law forces the wage to remain above the level that balances supply and demand,it

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Who in the adult population is counted as employed in U.S.labor statistics?

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Data on the unemployment rate in the U.S.since 1960 show that the economy always has some unemployment and that the amount changes from year to year.

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The unemployed who quit their jobs,were fired for cause,or just entered the labor force are eligible for unemployment insurance.

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Which of the following is not a cause of the decline in the U.S.men's labor-force participation rate over the past several decades?

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Like any cartel,a union is a group of sellers acting together in the hope of exerting their joint market power.

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Which list contains two periods when the U.S.unemployment rate was below the natural rate of unemployment?

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The Bureau of Labor Statistics produces data on

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Most U.S.workers have wages well above the legal minimum,so minimum-wage laws do not prevent the wage from adjusting to balance supply and demand.

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