Question 1

Which of the following is correct?

Accepted Answer

A)  The Bureau of Labor Statistics uses data collected from those applying for unemployment insurance to compute the unemployment rate.
B)  The labor force includes all adults who are able to work.
C)  Unpaid homemakers are counted as "employed" by the Bureau of Labor Statistics.
D)  People working part time are counted as "employed" by the Bureau of Labor Statistics.

Question 2

The destruction of manufacturing jobs and workers leaving their jobs to find better ones both contribute to structural unemployment.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of households called the

Accepted Answer

A)  Census.
B)  Labor Survey.
C)  Survey of Economic Indicators.
D)  Current Population Survey.

Question 5

For 2015 the U.S. natural rate of unemployment was estimated to be about 4.9 percent, which was close to the actual unemployment rate in 2015.

Accepted Answer

A) True 
 B)False

Question 6

In terms of duration, how does cyclical unemployment differ from structural unemployment?

Accepted Answer

Cyclical unemploymen...

Question 7

Some of a firm's workers are made worse off by the introduction of a union.

Accepted Answer

A) True 
 B)False

Question 8

The introduction of a union into an industry creates a

Accepted Answer

A)  surplus of labor and so raises unemployment.
B)  surplus of labor and so reduces unemployment.
C)  shortage of labor and so raises unemployment.
D)  shortage of labor and so reduces unemployment.

Question 9

List the main employment characteristics over which a labor union negotiates for its workers.

Accepted Answer

higher wages, better...

Question 10

Unemployment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  4.2%
B)  6.25%
C)  6.7%
D)  10%

Question 12

The Bureau of Labor Statistics' U-5 measure of joblessness includes marginally attached workers.

Accepted Answer

A) True 
 B)False

Question 13

Sheamous loses his job and decides to sit on the beach rather than look for work during the next few months. Other things the same, the unemployment rate

Accepted Answer

A)  increases, and the labor-force participation rate decreases.
B)  increases, and the labor-force participation rate is unaffected.
C)  is unaffected, and the labor-force participation rate decreases.
D)  and the labor-force participation rate are both unaffected.

Question 14

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.

Question 15

Cyclical unemployment is closely associated with

Accepted Answer

A)  long-term economic growth.
B)  short-run ups and downs of the economy.
C)  fluctuations in the natural rate of unemployment.
D)  changes in the minimum wage.

Question 16

Unions

Accepted Answer

A)  raise the wages of unionized workers and raise unemployment.
B)  raise the wages of unionized workers and reduce unemployment.
C)  reduce the wages of unionized workers and raise unemployment.
D)  reduce the wages of unionized workers and reduce unemployment.

Question 17

Unemployment insurance

Accepted Answer

A)  may improve the ability of the economy to match workers with appropriate jobs.
B)  reduces the job search efforts of the unemployed.
C)  increases the amount of frictional unemployment in the economy.
D)  All of the above are correct.

Question 18

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

Accepted Answer

A)  Juan Carlos, a full-time student who is not looking for work
B)  Kevin, who is on temporary layoff
C)  Andrea, who has retired and is not looking for work
D)  All of the above are correct.

Question 19

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.

Question 20

Who is not included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)  Anita, who is on temporary layoff
B)  Lauren, who has retired and is not looking for work
C)  Raymond, who does not have a job but has applied for several in the last week
D)  None of the above is correct.

Exam 28: Unemployment and Its Natural Rate

The introduction of a union into an industry creates a

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

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Unemployment insurance

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Unions

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Which of the following is not correct?

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Cyclical unemployment is closely associated with

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For 2015 the U.S. natural rate of unemployment was estimated to be about 4.9 percent, which was close to the actual unemployment rate in 2015.

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

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Unemployment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

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Which of the following is correct?

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In terms of duration, how does cyclical unemployment differ from structural unemployment?

Correct AnswerverifiedCyclical unemploymen...View AnswerShow Answer

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

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Some of a firm's workers are made worse off by the introduction of a union.

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The Bureau of Labor Statistics' U-5 measure of joblessness includes marginally attached workers.

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of households called the

Correct AnswerverifiedShow Answer

The destruction of manufacturing jobs and workers leaving their jobs to find better ones both contribute to structural unemployment.

Correct AnswerverifiedShow Answer

List the main employment characteristics over which a labor union negotiates for its workers.

Correct Answerverifiedhigher wages, better...View AnswerShow Answer

Which of the following is not correct?

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Sheamous loses his job and decides to sit on the beach rather than look for work during the next few months. Other things the same, the unemployment rate

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Who is not included in the labor force by the Bureau of Labor Statistics?

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Cyclical unemploymen...
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higher wages, better...
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