Question 1

An important determinant of a country's standard of living is the amount of it typically experiences.

Accepted Answer

The answer of An important determinant of a country's standard...

Question 2

Suppose that because of the popularity of the low-carb diet, bakeries need fewer workers and steak houses need more workers. The unemployment created by this change is

Accepted Answer

A)   frictional unemployment created by efficiency wages.
B)   frictional unemployment created by sectoral shifts.
C)   structural unemployment created by efficiency wages.
D)   structural unemployment created by sectoral shifts.E) None of the above
F) A) and C)

Question 3

A typical American worker covered by unemployment insurance receives 50 percent of his former wages for 52 weeks.

Accepted Answer

A) True 
 B)False

Question 4

According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see an)

Accepted Answer

A)   increase in the number of job applicants and an increase in how long workers stay on the job.
B)   increase in the number of job applicants and a decrease in how long workers stay on the job.
C)   decrease in the number of job applicants and an increase in how long workers stay on the job.
D)   decrease in the number of job applicants and a decrease in how long workers stay on the job.E) A) and B)
F) B) and D)

Question 5

To maintain their standard of living, most people rely on

Accepted Answer

A)   government assistance.
B)   their labor earnings.
C)   their personal savings.
D)   All of the above are correct.E) A) and C)
F) A) and B)

Question 6

One reason economies always experience some unemployment is job search.

Accepted Answer

A) True 
 B)False

Question 7

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

Accepted Answer

A) True 
 B)False

Question 8

An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?

Accepted Answer

A)   both the changes in information technology and unemployment insurance
B)   only the changes in information technology
C)   only the changes in unemployment insurance
D)   neither the changes in information technology nor the changes in unemployment insuranceE) B) and D)
F) B) and C)

Question 9

Which of the following is not correct?

Accepted Answer

A)   Unions are exempt from U.S. antitrust laws.
B)   The Wagner Act of 1935 prevents U.S. employers from interfering when workers try to organize unions.
C)   The National Labor Relations Board is the U.S. government agency that enforces workers' right to unionize.
D)   Right-to-work laws prevent firms from hiring permanent replacements for workers who are on strike.E) A) and B)
F) A) and C)

Question 10

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

Question 11

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 12

When the wage is above the equilibrium level,

Accepted Answer

A)   the labor market is functioning more efficiently than it otherwise would function.
B)   there is a shortage of labor.
C)   the quantity of labor supplied exceeds the quantity of labor demanded.
D)   job search is the primary explanation for the unemployment that is observed.E) None of the above
F) A) and B)

Question 13

Three employers have justified their actions as follows. Whose logic is not consistent with the logic of efficiency wage theory?

Accepted Answer

A)   Instead of spending money on an electronic timing system that monitors worker hours, Tom spends an equivalent amount of money on higher wages.
B)   Dick pays his workers less than the equilibrium wage so that they will not have the time or money to look for work somewhere else.
C)   Harry pays his workers in a developing country more than the going wage hoping that they will get a better diet and so be more productive.
D)   None of the above is consistent with the logic of efficiency wage theory.E) A) and D)
F) B) and D)

Question 14

Suppose that a well-respected study published in Child Psychology Today finds that a very high proportion of children raised by stay-at-home fathers are accepted to Harvard University. If a large number of previously working fathers quit their jobs and become stay-at-home dads, which of the following will occur, all else equal? i)  The unemployment rate will decrease.
Ii)  The size of the labor force will decrease.
Iii)  The number of unemployed people will increase.
Iv)  The unemployment rate will increase.

Accepted Answer

A)   i)  and ii)  only
B)   ii)  and iv)  only
C)   i) , ii) , and iii)  only
D)   ii) , iii) , and iv)  onlyE) A) and B)
F) A) and C)

Question 15

In one year, you meet 52 people who are each unemployed for one week and eight people who are each unemployed for the whole year. What percentage of the unemployment spells you encountered was short term, and what percentage of the unemployment you encountered in a given week was long term?

Accepted Answer

A)   52% was short term; 13.3% was long term
B)   52% was short term; 88.9% was long term
C)   86.7% was short term; 13.3 was long term
D)   86.7% was short term; 88.9 was long termE) A) and B)
F) B) and C)

Question 16

Table 28-4
2010 Labor Data for Adults ages 16 and older)  in Meditor
 
-Refer to Table 28-4. What is the adult labor-force participation rate in Meditor?

Accepted Answer

A)   37.5%
B)   62.5%
C)   66.7%
D)   95.8%E) A) and B)
F) A) and C)

Question 17

Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level?

Accepted Answer

A)   efficiency wages
B)   job search
C)   minimum-wage laws
D)   unionsE) A) and B)
F) A) and C)

Question 18

Advocates of government-run employment agencies and public training programs believe they make job search more efficient.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not correct?

Accepted Answer

A)   The unemployment rate is an imperfect measure of a nation's overall level of economic well­being.
B)   Most job search in the U.S. economy takes place without intervention by the government.
C)   Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being.
D)   Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.E) B) and C)
F) None of the above

Question 20

Gwen is an unpaid worker in her family's restaurant. The Bureau of Labor Statistics counts Gwen as

Accepted Answer

A)   unemployed and in the labor force.
B)   unemployed and not in the labor force.
C)   employed and in the labor force.
D)   employed and not in the labor force.E) A) and D)
F) A) and C)

Exam 20: Unemployment

Correct Answer
verified

Advocates of government-run employment agencies and public training programs believe they make job search more efficient.

Correct Answer
verified

An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?

Correct Answer
verified

Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level?

Correct Answer
verified

An important determinant of a country's standard of living is the amount of it typically experiences.

Correct Answer
verified

In one year, you meet 52 people who are each unemployed for one week and eight people who are each unemployed for the whole year. What percentage of the unemployment spells you encountered was short term, and what percentage of the unemployment you encountered in a given week was long term?

Correct Answer
verified

According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see an)

Correct Answer
verified

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

Correct Answer
verified

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

Correct Answer
verified

Three employers have justified their actions as follows. Whose logic is not consistent with the logic of efficiency wage theory?

Correct Answer
verified

One reason economies always experience some unemployment is job search.

Correct Answer
verified

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

Correct Answer
verified

To maintain their standard of living, most people rely on

Correct Answer
verified

Table 28-4 2010 Labor Data for Adults ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult labor-force participation rate in Meditor?

Correct Answer
verified

A typical American worker covered by unemployment insurance receives 50 percent of his former wages for 52 weeks.

Correct Answer
verified

When the wage is above the equilibrium level,

Correct Answer
verified

Suppose that because of the popularity of the low-carb diet, bakeries need fewer workers and steak houses need more workers. The unemployment created by this change is

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

Gwen is an unpaid worker in her family's restaurant. The Bureau of Labor Statistics counts Gwen as

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

Exam 20: Unemployment

Correct AnswerverifiedShow Answer

Advocates of government-run employment agencies and public training programs believe they make job search more efficient.

Correct AnswerverifiedShow Answer

An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?

Correct AnswerverifiedShow Answer

Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level?

Correct AnswerverifiedShow Answer

An important determinant of a country's standard of living is the amount of it typically experiences.

Correct AnswerverifiedShow Answer

In one year, you meet 52 people who are each unemployed for one week and eight people who are each unemployed for the whole year. What percentage of the unemployment spells you encountered was short term, and what percentage of the unemployment you encountered in a given week was long term?

Correct AnswerverifiedShow Answer

According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see an)

Correct AnswerverifiedShow Answer

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

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

Three employers have justified their actions as follows. Whose logic is not consistent with the logic of efficiency wage theory?

Correct AnswerverifiedShow Answer

One reason economies always experience some unemployment is job search.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

To maintain their standard of living, most people rely on

Correct AnswerverifiedShow Answer

Table 28-4 2010 Labor Data for Adults ages 16 and older) in Meditor -Refer to Table 28-4. What is the adult labor-force participation rate in Meditor?

Correct AnswerverifiedShow Answer

A typical American worker covered by unemployment insurance receives 50 percent of his former wages for 52 weeks.

Correct AnswerverifiedShow Answer

When the wage is above the equilibrium level,

Correct AnswerverifiedShow Answer

Suppose that because of the popularity of the low-carb diet, bakeries need fewer workers and steak houses need more workers. The unemployment created by this change is

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Gwen is an unpaid worker in her family's restaurant. The Bureau of Labor Statistics counts Gwen as

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified