Question 1

The deviation of unemployment from its natural rate is called cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 2

Someone who loses his job at a truck factory because the demand for trucks has fallen and the demand for cars has risen, is structurally unemployed.

Accepted Answer

A) True 
 B)False

Question 3

Providing training for unemployed individuals is primarily intended to reduce

Accepted Answer

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

Question 4

Most spells of unemployment are

Accepted Answer

A)  long, and most unemployment observed at any given time is long term.
B)  long, but most unemployment observed at any given time is short term.
C)  short, but most unemployment observed at any given time is long term.
D)  short, and most unemployment observed at any given time is short term.E) A) and C)
F) A) and B)

Question 5

Table 28-2
Labor Data for Aridia 
-Refer to Table 28-2. The labor-force participation rate of Aridia in 2012 was

Accepted Answer

A)  50%.
B)  53.3%.
C)  56.25%.
D)  88.9%.E) B) and D)
F) B) and C)

Question 6

Karena was laid off, but she is expecting to be recalled. She has not looked for work since being laid off. Nathan is not employed, nor was he laid off. Who is counted as "unemployed" in the U.S. labor force statistics?

Accepted Answer

A)  1)  Karena and 2)  Nathan, even if Nathan has not looked for work during the previous four weeks
B)  1)  Karena and 2)  Nathan, if Nathan has looked for work during the previous four weeks
C)  1)  not Karena but 2)  Nathan, even if Nathan has not looked for work during the previous four weeks
D)  1)  not Karena but 2)  Nathan, if Nathan has looked for work during the previous four weeksE) None of the above
F) B) and C)

Question 7

Figure 28-4
​ 
-Refer to Figure 28-4. If the government imposes a minimum wage of $10, how many workers will be unemployed?

Accepted Answer

A)  0
B)  2,000
C)  4,000
D)  8,000E) A) and D)
F) All of the above

Question 8

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

Accepted Answer

A)  increases, and the labor-force participation rate decreases.
B)  and the labor-force participation rate both increase.
C)  increases, and the labor-force participation rate is unaffected.
D)  is unaffected, and the labor-force participation rate decreases.E) C) and D)
F) None of the above

Question 9

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 60,000 households, called the Current Population Survey.

Accepted Answer

A) True 
 B)False

Question 10

According to 2014 data on the U.S. population, which of the following groups of adults of prime working age (ages 25-54)  had the lowest unemployment rate?

Accepted Answer

A)  white males
B)  white females
C)  black males
D)  black femalesE) B) and C)
F) A) and D)

Question 11

Advocates of unions contend that unions are a necessary antidote to the market power of the firms that hire workers and that unions are important for helping firms respond efficiently to workers' concerns.

Accepted Answer

A) True 
 B)False

Question 12

List the four ways to explain unemployment in the long run.

Accepted Answer

job search, minimum-...

Question 13

The labor-force participation rate equals the percentage of the labor force that is either employed or unemployed.

Accepted Answer

A) True 
 B)False

Question 14

Job search

Accepted Answer

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

Question 15

Amy is working part-time. Tavaris is on temporary layoff. Who is included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)  only Amy
B)  only Tavaris
C)  both Amy and Tavaris
D)  neither Amy nor TavarisE) All of the above
F) C) and D)

Question 16

Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were employed?

Accepted Answer

A)  1.5 million
B)  28.5 million
C)  30 million
D)  47.5 millionE) B) and D)
F) A) and B)

Question 17

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Accepted Answer

A) True 
 B)False

Question 18

Esmerelda worked part-time for her mother's business without pay. Tabitha was absent from work because she had strep throat. Who is counted as "employed" by the Bureau of Labor Statistics?

Accepted Answer

A)  Esmerelda but not Tabitha
B)  Tabitha but not Esmerelda
C)  both Esmerelda and Tabitha
D)  neither Esmerelda nor TabithaE) B) and C)
F) None of the above

Question 19

The adult population must equal the sum of the employed, the unemployed, and those not in the labor force.

Accepted Answer

A) True 
 B)False

Question 20

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) All of the above
F) C) and D)

Exam 28: Unemployment and Its Natural Rate

Figure 28-4 ​ -Refer to Figure 28-4. If the government imposes a minimum wage of $10, how many workers will be unemployed?

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Most spells of unemployment are

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Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The labor-force participation rate of Aridia in 2012 was

Correct AnswerverifiedShow Answer

Advocates of unions contend that unions are a necessary antidote to the market power of the firms that hire workers and that unions are important for helping firms respond efficiently to workers' concerns.

Correct AnswerverifiedShow Answer

According to 2014 data on the U.S. population, which of the following groups of adults of prime working age (ages 25-54) had the lowest unemployment rate?

Correct AnswerverifiedShow Answer

Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were employed?

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 60,000 households, called the Current Population Survey.

Correct AnswerverifiedShow Answer

Amy is working part-time. Tavaris is on temporary layoff. Who is included in the Bureau of Labor Statistics' "employed" category?

Correct AnswerverifiedShow Answer

Esmerelda worked part-time for her mother's business without pay. Tabitha was absent from work because she had strep throat. Who is counted as "employed" by the Bureau of Labor Statistics?

Correct AnswerverifiedShow Answer

Someone who loses his job at a truck factory because the demand for trucks has fallen and the demand for cars has risen, is structurally unemployed.

Correct AnswerverifiedShow Answer

Job search

Correct AnswerverifiedShow Answer

Providing training for unemployed individuals is primarily intended to reduce

Correct AnswerverifiedShow Answer

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

Correct AnswerverifiedShow Answer

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics produces data on

Correct AnswerverifiedShow Answer

List the four ways to explain unemployment in the long run.

Correct Answerverifiedjob search, minimum-...View AnswerShow Answer

Karena was laid off, but she is expecting to be recalled. She has not looked for work since being laid off. Nathan is not employed, nor was he laid off. Who is counted as "unemployed" in the U.S. labor force statistics?

Correct AnswerverifiedShow Answer

The adult population must equal the sum of the employed, the unemployed, and those not in the labor force.

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The labor-force participation rate equals the percentage of the labor force that is either employed or unemployed.

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The deviation of unemployment from its natural rate is called cyclical unemployment.

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Figure 28-4 -Refer to Figure 28-4. If the government imposes a minimum wage of $10, how many workers will be unemployed?

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job search, minimum-...
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