Question 1

In 1914,Henry Ford began paying his workers $5 per day,about twice the going wage.As a result,turnover and absenteeism fell and productivity and profits rose.

Accepted Answer

A) True 
 B)False

Question 2

According to 2007 data on the U.S.population,which of the following groups of adults (ages 20 and older) has the highest labor-force participation rate?

Accepted Answer

A)   white males
B)   white females
C)   black males
D)   black femalesE) B) and C)
F) None of the above

Question 3

Wages in excess of their equilibrium level help explain

Accepted Answer

A)   structural unemployment but not the natural rate of unemployment.
B)   the natural rate of unemployment but not structural unemployment.
C)   both structural unemployment and the natural rate of unemployment.
D)   neither structural unemployment nor the natural rate of unemployment.E) All of the above
F) A) and B)

Question 4

When a minimum-wage law forces the wage to remain above the level that balances supply and demand,it raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.

Accepted Answer

A) True 
 B)False

Question 5

Frictional unemployment is inevitable because

Accepted Answer

A)   sectoral shifts are always happening.
B)   there is a federal minimum-wage law in the U.S.
C)   some people do not want to be employed.
D)   unions are very popular in the U.S.E) All of the above
F) C) and D)

Question 6

Frictional unemployment can be the consequence of

Accepted Answer

A)   workers leaving existing jobs to find ones they like better.
B)   one industry declining while another is growing.
C)   changes in the working conditions offered by competing firms.
D)   All of the above are correct.E) None of the above
F) B) and D)

Question 7

Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category.

Accepted Answer

A) True 
 B)False

Question 8

Table 28-2
2009 Labor Data for Wrexington
 
-Refer to Table 28-2.How many people were unemployed in Wrexington in 2009?

Accepted Answer

A)   1,400
B)   1,600
C)   2,000
D)   2,780E) A) and D)
F) A) and C)

Question 9

Economists would predict that,other things the same,the more generous unemployment compensation a country has,

Accepted Answer

A)   the shorter the duration of each spell of unemployment,and the higher the unemployment rate.
B)   the shorter the duration of each spell of unemployment,and the lower the unemployment rate.
C)   the longer the duration of each spell of unemployment,and the higher the unemployment rate.
D)   the longer the duration of each spell of unemployment,and the lower the unemployment rate.E) C) and D)
F) None of the above

Question 10

Figure 28-1 
-Refer to Figure 28-1.If the government imposes a minimum wage of $4,then unemployment will increase by

Accepted Answer

A)   0 workers.
B)   2000 workers.
C)   4000 workers.
D)   5000 workers.E) All of the above
F) A) and D)

Question 11

Unions contribute to

Accepted Answer

A)   frictional but not structural unemployment.
B)   structural but not frictional unemployment.
C)   both frictional and structural unemployment.
D)   neither frictional nor structural unemployment.E) None of the above
F) B) and D)

Question 12

The natural rate of unemployment is impervious to economic policy.

Accepted Answer

A) True 
 B)False

Question 13

Suppose that some people are counted as unemployed when,to maintain unemployment compensation,they search for work only at places where they are unlikely to be hired.If these individuals were counted as out of the labor force instead of as unemployed,then

Accepted Answer

A)   both the unemployment rate and labor-force participation rate would be higher.
B)   both the unemployment rate and labor-force participation rate would be lower.
C)   the unemployment rate would be lower and the labor-force participation rate would be higher.
D)   the unemployment rate would be higher and the participation rate would be lower.E) C) and D)
F) A) and B)

Question 14

Unemployment insurance is designed to offer workers partial protection against job loss.

Accepted Answer

A) True 
 B)False

Question 15

According to the theory of efficiency wages,it may be profitable for firms to keep wages high even in the presence of a surplus of labor.

Accepted Answer

A) True 
 B)False

Question 16

Table 28-1
Labor Data for Wrexington
 
-Refer to Table 28-1.The labor-force participation rate of Wrexington in 2005 was

Accepted Answer

A)   43.3%.
B)   54.2%.
C)   63.3%.
D)   68.4%.E) A) and B)
F) A) and C)

Question 17

Table 28-3
2003 Labor Data for Adults (age 16 and older) in Meditor
 
-Refer to Table 28-3.What is the adult male unemployment rate in Meditor?

Accepted Answer

A)   3.7 percent
B)   5 percent
C)   5.6 percent
D)   5.9 percentE) None of the above
F) A) and D)

Question 18

Within the U.S.population,blacks ages 20 and older have lower rates of labor-force participation than whites.

Accepted Answer

A) True 
 B)False

Question 19

If the minimum wage were currently above the equilibrium wage,than a decrease in the minimum wage would

Accepted Answer

A)   increase both the quantity demanded and the quantity supplied of labor.
B)   decrease both the quantity demanded and the quantity supplied of labor.
C)   increase the quantity of labor demanded but decrease the quantity of labor supplied.
D)   decrease the quantity of labor demanded but increase the quantity of labor supplied.E) All of the above
F) A) and D)

Question 20

Almost nine-tenths of all spells of unemployment end when the unemployed person leaves the labor force.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment

Frictional unemployment can be the consequence of

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Unemployment insurance is designed to offer workers partial protection against job loss.

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Within the U.S.population,blacks ages 20 and older have lower rates of labor-force participation than whites.

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Frictional unemployment is inevitable because

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Suppose that some people are counted as unemployed when,to maintain unemployment compensation,they search for work only at places where they are unlikely to be hired.If these individuals were counted as out of the labor force instead of as unemployed,then

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Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category.

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Table 28-3 2003 Labor Data for Adults (age 16 and older) in Meditor -Refer to Table 28-3.What is the adult male unemployment rate in Meditor?

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When a minimum-wage law forces the wage to remain above the level that balances supply and demand,it raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.

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According to 2007 data on the U.S.population,which of the following groups of adults (ages 20 and older) has the highest labor-force participation rate?

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Table 28-2 2009 Labor Data for Wrexington -Refer to Table 28-2.How many people were unemployed in Wrexington in 2009?

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Wages in excess of their equilibrium level help explain

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Figure 28-1 -Refer to Figure 28-1.If the government imposes a minimum wage of $4,then unemployment will increase by

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Almost nine-tenths of all spells of unemployment end when the unemployed person leaves the labor force.

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According to the theory of efficiency wages,it may be profitable for firms to keep wages high even in the presence of a surplus of labor.

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Table 28-1 Labor Data for Wrexington -Refer to Table 28-1.The labor-force participation rate of Wrexington in 2005 was

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Unions contribute to

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If the minimum wage were currently above the equilibrium wage,than a decrease in the minimum wage would

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The natural rate of unemployment is impervious to economic policy.

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Economists would predict that,other things the same,the more generous unemployment compensation a country has,

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In 1914,Henry Ford began paying his workers $5 per day,about twice the going wage.As a result,turnover and absenteeism fell and productivity and profits rose.

Correct AnswerverifiedShow Answer

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