Question 1

Between the 1940s and today,union membership in the U.S.

Accepted Answer

A)   rose from about one-eighth to one-third of the labor force.
B)   rose from about one-third to one-half of the labor force.
C)   fell from about one-half to one-third of the labor force.
D)   fell from about one-third to one-eighth of the labor force.E) A) and C)
F) B) and C)

Question 2

From time to time,the demand for workers has risen in one region of the United States and fallen in another.This illustrates

Accepted Answer

A)   frictional unemployment created by efficiency wages.
B)   structural unemployment created by efficiency wages.
C)   frictional unemployment created by sectoral shifts.
D)   structural unemployment created by sectoral shifts.E) A) and B)
F) C) and D)

Question 3

Minimum-wage laws and unions are similar to each other but different from efficiency wages in that minimum-wage law and unions

Accepted Answer

A)   cause unemployment,but efficiency wages do not.
B)   cause the quantity of labor supplied to exceed the quantity of labor demanded,but efficiency wages do not.
C)   cause wages to be above the equilibrium level.
D)   prevent firms from lowering wages in the presence of a surplus of workers.E) A) and B)
F) A) and C)

Question 4

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 5

Marginally attached workers are people who

Accepted Answer

A)   are looking for a better job than they currently have.
B)   are not working and are not looking for work,but would work if asked.
C)   are working part-time while they go to school or get training for a better job.
D)   are only a few years from retirement.E) A) and B)
F) All of the above

Question 6

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

Accepted Answer

A)   Cemal,a full-time student who is not looking for work
B)   Halim,who is on temporary layoff
C)   Zeynep,who has retired and is not looking for work
D)   All of the above are correct.E) A) and C)
F) B) and D)

Question 7

If a union and a firm cannot reach an agreement on the terms of employment,then the union can organize a withdrawal of labor from the firm,called a strike.

Accepted Answer

A) True 
 B)False

Question 8

Minimum-wage laws can keep wages

Accepted Answer

A)   above equilibrium and cause a surplus of labor.
B)   above equilibrium and cause a shortage of labor.
C)   below equilibrium and cause a surplus of labor.
D)   below equilibrium and cause a shortage of labor.E) A) and B)
F) All of the above

Question 9

Which of the following is not a cause of frictional unemployment?

Accepted Answer

A)   the destruction of manufacturing jobs
B)   a worker leaving a job to find one with better benefits
C)   minimum-wage laws
D)   unemployment insuranceE) A) and B)
F) C) and D)

Question 10

Maxine,the owner of a furniture company,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 attracts a better pool of workers to apply for her firm's jobs.
B)   will increase the excess supply of labor.
C)   may increase the quality of her work force.
D)   All of the above are correct.E) A) and D)
F) All of the above

Question 11

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 12

Structural unemployment is often thought to explain relatively short spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)   90 million
B)   150 million
C)   160 million
D)   230 millionE) A) and D)
F) All of the above

Question 14

The Bureau of Labor Statistics defines discouraged workers as marginally attached workers who have given a job-market related reason for not currently looking for a job.

Accepted Answer

A) True 
 B)False

Question 15

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) A) and D)
F) A) and C)

Question 16

Which of the following is not correct?

Accepted Answer

A)   Unions raise the wages above the level that would prevail in competitive markets.
B)   Unions reduce the quantity of labor demanded,cause some workers to be unemployed,and reduce the wages in the rest of the economy.
C)   Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable.
D)   All of the above are correct.E) A) and B)
F) B) and C)

Question 17

When a minimum-wage law forces the wage to remain above the level that balances supply and demand,there are more workers willing to work than there are jobs,so some workers are unemployed.

Accepted Answer

A) True 
 B)False

Question 18

Table 28-1
Labor Data for Wrexington
 
-Refer to Table 28-1.The number of adults not in the labor force of Wrexington in 2004 was

Accepted Answer

A)   200
B)   400
C)   600
D)   1800E) B) and C)
F) None of the above

Question 19

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

Question 20

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

Accepted Answer

A)   cyclical unemployment.
B)   frictional unemployment.
C)   natural rate of unemployment.
D)   structural unemployment.E) None of the above
F) B) and C)

Exam 28: Unemployment

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

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When a minimum-wage law forces the wage to remain above the level that balances supply and demand,there are more workers willing to work than there are jobs,so some workers are unemployed.

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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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Between the 1940s and today,union membership in the U.S.

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Minimum-wage laws and unions are similar to each other but different from efficiency wages in that minimum-wage law and unions

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Structural unemployment is often thought to explain relatively short spells of unemployment.

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

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Which of the following is not a cause of frictional unemployment?

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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

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Frictional unemployment is thought to explain

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Minimum-wage laws matter most for the least skilled and least experienced members of the labor force,such as teenagers.

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Maxine,the owner of a furniture company,decides to raise the wages of her workers even though she faces an excess supply of labor.Her decision

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If a union and a firm cannot reach an agreement on the terms of employment,then the union can organize a withdrawal of labor from the firm,called a strike.

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Minimum-wage laws can keep wages

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Marginally attached workers are people who

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Which of the following is not correct?

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Table 28-1 Labor Data for Wrexington -Refer to Table 28-1.The number of adults not in the labor force of Wrexington in 2004 was

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The Bureau of Labor Statistics defines discouraged workers as marginally attached workers who have given a job-market related reason for not currently looking for a job.

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Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

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From time to time,the demand for workers has risen in one region of the United States and fallen in another.This illustrates

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