Question 1

The natural rate of unemployment is impervious to economic policy.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

Which of the following is not correct?

Accepted Answer

A)   An organized withdrawal of labor from a firm by a union is called a strike.
B)   The power of a union comes from its ability to strike if the union and the firm do not agree on the terms of employment.
C)   Economists who study the effects of unions typically find that union workers earn about 25 to 35 percent more than similar workers who do not belong to unions.
D)   Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.E) A) and B)
F) A) and C)

Question 5

Economists at the Congressional Budget Office estimated that for 2009, the U.S. natural rate of unemployment was 5.0 percent.

Accepted Answer

A) True 
 B)False

Question 6

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 C)
F) All of the above

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 C)

Question 8

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 C)
F) A) and B)

Question 9

Which of the following is a cause of the changing role of women in American society over the past several decades?

Accepted Answer

A)   new technologies that have reduced the amount of time required to complete routine household tasks
B)   improved birth control
C)   changing political and social attitudes
D)   All of the above are correct.E) B) and C)
F) A) and D)

Question 10

The BLS classifies people who would like to work but have given up looking for a job as

Accepted Answer

A)   unemployed. If they were classified as out of the labor force, the reported unemployment rate would be larger.
B)   unemployed. If they were classified as out of the labor force, the reported unemployment rate would be smaller.
C)   out of the labor force. If they were classified as unemployed, the reported unemployment rate would be larger.
D)   out of the labor force. If they were classified as unemployed, the reported unemployment rate would be smaller.E) C) and D)
F) A) and D)

Question 11

John is a stockbroker. He has had several job offers, but he has turned them down because he thinks he can find a firm that better matches his tastes and skills. Curtis has looked for work as an accountant for some time. While the demand for accountants doesn't appear to be falling, there seems to be more people applying than jobs available.

Accepted Answer

A)   John and Curtis are both frictionally unemployed.
B)   John and Curtis are both structurally unemployed.
C)   John is frictionally unemployed, and Curtis is structurally unemployed.
D)   John is structurally unemployed, and Curtis is frictionally unemployed.E) A) and B)
F) All of the above

Question 12

More than three-fourths of the unemployed are recent entrants into the labor force.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Accepted Answer

A)   minimum-wage laws
B)   unions
C)   efficiency wages
D)   All of the above are correct.E) None of the above
F) B) and C)

Question 14

The unemployment rate is computed as the number of unemployed

Accepted Answer

A)   divided by the labor force, all times 100.
B)   divided by the number of employed, all times 100.
C)   divided by the adult population, all times 100.
D)   times the labor-force participation rate, all times 100.E) A) and B)
F) None of the above

Question 15

In June 2009 the BLS reported a U.S. foreign-born population of 35.3 million. Of these, 22.7 million were employed and 1.4 million were unemployed. Based on these numbers what were the unemployment rate and the labor-force participation rate of the foreign-born U.S. population?

Accepted Answer

A)   1.4/35.3 and 22.7/35.3
B)   1.4/35.3 and 24.1/35.3
C)   1.4/24.1 and 22.7/24.1
D)   None of the above are correct.E) A) and B)
F) C) and D)

Question 16

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Accepted Answer

A) True 
 B)False

Question 17

The labor-force participation rate measures the percentage of the

Accepted Answer

A)   total adult population that is in the labor force.
B)   total adult population that is employed.
C)   labor force that is employed.
D)   labor force that is either employed or unemployed.E) All of the above
F) B) and D)

Question 18

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) B) and C)

Question 19

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate sometimes is close to zero.

Accepted Answer

A) True 
 B)False

Question 20

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) B) and C)
F) None of the above

Exam 10: Unemployment

Correct Answer
verified

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 Answer
verified

Correct Answer
verified

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Correct Answer
verified

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

Correct Answer
verified

In June 2009 the BLS reported a U.S. foreign-born population of 35.3 million. Of these, 22.7 million were employed and 1.4 million were unemployed. Based on these numbers what were the unemployment rate and the labor-force participation rate of the foreign-born U.S. population?

Correct Answer
verified

The natural rate of unemployment is impervious to economic policy.

Correct Answer
verified

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 Answer
verified

The BLS classifies people who would like to work but have given up looking for a job as

Correct Answer
verified

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 Answer
verified

More than three-fourths of the unemployed are recent entrants into the labor force.

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

Economists at the Congressional Budget Office estimated that for 2009, the U.S. natural rate of unemployment was 5.0 percent.

Correct Answer
verified

Which of the following is a cause of the changing role of women in American society over the past several decades?

Correct Answer
verified

Unions contribute to

Correct Answer
verified

The unemployment rate is computed as the number of unemployed

Correct Answer
verified

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Correct Answer
verified

The labor-force participation rate measures the percentage of the

Correct Answer
verified

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

Correct Answer
verified

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate sometimes is close to zero.

Correct Answer
verified

Exam 10: Unemployment

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

Correct AnswerverifiedShow Answer

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In June 2009 the BLS reported a U.S. foreign-born population of 35.3 million. Of these, 22.7 million were employed and 1.4 million were unemployed. Based on these numbers what were the unemployment rate and the labor-force participation rate of the foreign-born U.S. population?

Correct AnswerverifiedShow Answer

The natural rate of unemployment is impervious to economic policy.

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

The BLS classifies people who would like to work but have given up looking for a job as

Correct AnswerverifiedShow Answer

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

More than three-fourths of the unemployed are recent entrants into the labor force.

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Economists at the Congressional Budget Office estimated that for 2009, the U.S. natural rate of unemployment was 5.0 percent.

Correct AnswerverifiedShow Answer

Which of the following is a cause of the changing role of women in American society over the past several decades?

Correct AnswerverifiedShow Answer

Unions contribute to

Correct AnswerverifiedShow Answer

The unemployment rate is computed as the number of unemployed

Correct AnswerverifiedShow Answer

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Correct AnswerverifiedShow Answer

The labor-force participation rate measures the percentage of the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate sometimes is close to zero.

Correct AnswerverifiedShow Answer

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