Question 1

Tara, the CEO of a corporation operating in a relatively poor country where wages are low, decides to raise the wages of her workers even though she faces an excess supply of labor. Her decision

Accepted Answer

A)  might increase profits if it means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive.
B)  will help eliminate the excess supply of labor.
C)  may cause her workers to increase shirking.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 2

According to the theory of efficiency wages, firms operate more efficiently if wages are above the equilibrium level.

Accepted Answer

A) True 
 B)False

Question 3

Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. 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)  and the labor-force participation rate are both unaffected.E) None of the above
F) B) and C)

Question 4

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 5

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

Accepted Answer

A) True 
 B)False

Question 6

Someone who has a job but is absent from work because she is on vacation is counted as employed.

Accepted Answer

A) True 
 B)False

Question 7

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

Accepted Answer

A)  14 years old.
B)  16 years old.
C)  18 years old.
D)  21 years old.E) A) and B)
F) None of the above

Question 8

When a union bargains successfully with employers, in that industry,

Accepted Answer

A)  wages and unemployment increase.
B)  wages increase and unemployment decreases.
C)  wages decrease and unemployment increases.
D)  wages and unemployment decrease.E) A) and B)
F) A) and C)

Question 9

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous 4 weeks.

Accepted Answer

A) True 
 B)False

Question 10

An increase in the minimum wage

Accepted Answer

A)  reduces structural unemployment.
B)  reduces frictional unemployment,
C)  increases structural unemployment.
D)  increases fricitional unemployment.E) A) and D)
F) All of the above

Question 11

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.

Accepted Answer

A) True 
 B)False

Question 12

Tom was laid off and is expecting to be recalled. He has not looked for work since being laid off. Bill is not employed and not laid off. Who is counted as unemployed in the U.S. labor force statistics?

Accepted Answer

A)  Tom and Bill even if he has not looked for work during the previous 4 weeks.
B)  Tom and Bill if he has looked for work during the previous 4 weeks.
C)  Not Tom. Bill even if he has not looked for work during the previous 4 weeks.
D)  Not Tom. Bill if he has looked for work during the previous 4 weeks.E) A) and B)
F) A) and C)

Question 13

The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

Accepted Answer

A) True 
 B)False

Question 14

An increase in the minimum wage

Accepted Answer

A)  increases both the quantity demanded and the quantity supplied of labor.
B)  decreases both the quantity demanded and the quantity supplied of labor.
C)  increases the quantity of labor demanded but decreases the quantity of labor supplied.
D)  decreases the quantity of labor demanded but increases the quantity of labor supplied.E) B) and C)
F) B) and D)

Question 15

The National Labor Relations Board

Accepted Answer

A)  enforces antitrust laws against unions.
B)  enforces workers' rights to unionize.
C)  acts as a union's representative in collective bargaining.
D)  is required to approve all collective bargaining agreements before they can be enforced.E) C) and D)
F) A) and C)

Question 16

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called structural unemployment.

Accepted Answer

A) True 
 B)False

Question 17

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

Question 18

Public policy, without intending to do so, can increase frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 19

A person who is counted as unemployed by the Bureau of Labor Statistics

Accepted Answer

A)  is also in the labor force.
B)  must have recently looked for work or be on temporary layoff.
C)  must be at least 16 years old.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 20

Suppose that the adult population is 4 million, the number of unemployed is 0.25 million, and the labor-force participation rate is 75%. What is the unemployment rate?

Accepted Answer

A)  6.25%
B)  8.3%
C)  9.1%
D)  18.75%E) A) and D)
F) All of the above

Exam 15: Unemployment

Suppose that the adult population is 4 million, the number of unemployed is 0.25 million, and the labor-force participation rate is 75%. What is the unemployment rate?

Correct AnswerverifiedShow Answer

An increase in the minimum wage

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous 4 weeks.

Correct AnswerverifiedShow Answer

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

Correct AnswerverifiedShow Answer

A person who is counted as unemployed by the Bureau of Labor Statistics

Correct AnswerverifiedShow Answer

The National Labor Relations Board

Correct AnswerverifiedShow Answer

Tara, the CEO of a corporation operating in a relatively poor country where wages are low, decides to raise the wages of her workers even though she faces an excess supply of labor. Her decision

Correct AnswerverifiedShow Answer

Someone who has a job but is absent from work because she is on vacation is counted as employed.

Correct AnswerverifiedShow Answer

Public policy, without intending to do so, can increase frictional unemployment.

Correct AnswerverifiedShow Answer

When a union bargains successfully with employers, in that industry,

Correct AnswerverifiedShow Answer

Tom was laid off and is expecting to be recalled. He has not looked for work since being laid off. Bill is not employed and not laid off. Who is counted as unemployed in the U.S. labor force statistics?

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

Correct AnswerverifiedShow Answer

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.

Correct AnswerverifiedShow Answer

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called structural unemployment.

Correct AnswerverifiedShow Answer

An increase in the minimum wage

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

Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. Other things the same, the unemployment rate

Correct AnswerverifiedShow Answer

According to the theory of efficiency wages, firms operate more efficiently if wages are above the equilibrium level.

Correct AnswerverifiedShow Answer

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