Question 1

Table 28-2
Labor Data for Aridia 
-Refer to Table 28-2. The number of adults not in the labor force of Aridia in 2011 was

Accepted Answer

A)  600.
B)  1,100.
C)  1,700.
D)  2,400.

Question 2

Scenario 28-1
Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment.
-Refer to Scenario 28-1. How many people are unemployed?

Accepted Answer

A)  1 million
B)  3 million
C)  4 million
D)  5 million

Question 3

Who would be included in the labor force?

Accepted Answer

A)  Maggie, who plans to work at the newspaper next year when she turns 16 years old.
B)  Lisa, who is unhappy with her current job.
C)  Bart, who is a full-time student and uninterested in finding employment.
D)  None of the above is correct.

Question 4

Most job search in the U.S. economy takes place with the help of the government.

Accepted Answer

A) True 
 B)False

Question 5

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.

Question 6

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

Accepted Answer

A)  might increase profits if it attracts a better pool of workers to apply for jobs at his restaurant.
B)  will reduce the excess supply of labor.
C)  is an example of the benefits of a minimum-wage law.
D)  All of the above are correct.

Question 7

People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as

Accepted Answer

A)  cyclically unemployed.
B)  structurally unemployed.
C)  frictionally unemployed.
D)  discouraged workers.

Question 8

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.

Question 9

Unions contribute to

Accepted Answer

A)  cyclical unemployment.
B)  frictional unemployment.
C)  seasonal unemployment.
D)  structural unemployment.

Question 10

Minimum wages are the predominant reason for unemployment in the U.S. economy.

Accepted Answer

A) True 
 B)False

Question 11

The natural rate of unemployment
(i) is the economy's desirable level of unemployment.
(ii) cannot be affected by economic policy.
(iii) is typically constant over time.

Accepted Answer

A)  (i)  and (ii)  only
B)  (iii)  only
C)  (i) , (ii) , and (iii) 
D)  None of the above is correct.

Question 12

A survey showed that in each of the past 12 months there was one person who was unemployed who worked in all other months. There were also two people who were unemployed for all 12 months. What percentage of the unemployment spells during the year was short term, and what percentage of the unemployment in a given month was long term?

Accepted Answer

A)  75% was short term; 33.3% was long term
B)  75% was short term; 66.7% was long term
C)  85.7% was short term; 33.3% was long term
D)  85.7% was short term; 66.7% was long term

Question 13

Figure 28-3 
-Refer to Figure 28-3. At the equilibrium wage, how many workers are employed?

Accepted Answer

A)  0
B)  1,000
C)  5,000
D)  9,000

Question 14

Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force participation rate is 70%. What is the unemployment rate?

Accepted Answer

A)  6.7%
B)  9.5%
C)  10.5%
D)  28%

Question 15

Table 28-10
The table below lists the number of people by labor force classification for the country of Springfield. 
-Refer to Table 28-10. Calculate the number in the labor force, and the unemployment rate.

Accepted Answer

The labor force is 9...

Question 16

Almost half of all spells of unemployment end when the unemployed person __________.

Accepted Answer

leaves the...

Question 17

If the number of people employed rises by 180,000 and the number of people unemployed falls by 200,000 while the adult population stays the same, then the labor force participation rate rises.

Accepted Answer

A) True 
 B)False

Question 18

Caroline is the owner of a hair-styling salon and spa. She 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 jobs at her salon.
B)  will increase the excess supply of labor.
C)  may increase the quality of her work force.
D)  All of the above are correct.

Question 19

Some degree of unemployment is __________ in a complex economy.

Accepted Answer

The answer of Some degree of unemployment is __________ in...

Question 20

Which of the following is correct?

Accepted Answer

A)  Nearly all economists believe that unions are bad for the economy as a whole.
B)  Unionized firms pay wages above the competitive equilibrium level.
C)  Unions increase the level of employment in unionized firms.
D)  Unions decrease the level of employment in firms without unions.

Exam 28: Unemployment and Its Natural Rate

Figure 28-3 -Refer to Figure 28-3. At the equilibrium wage, how many workers are employed?

Correct Answer
verified

People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as

Correct Answer
verified

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The number of adults not in the labor force of Aridia in 2011 was

Correct Answer
verified

Who would be included in the labor force?

Correct Answer
verified

If the number of people employed rises by 180,000 and the number of people unemployed falls by 200,000 while the adult population stays the same, then the labor force participation rate rises.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
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Unions contribute to

Correct Answer
verified

Caroline is the owner of a hair-styling salon and spa. She decides to raise the wages of her workers even though she faces an excess supply of labor. Her decision

Correct Answer
verified

Unions contribute to

Correct Answer
verified

The natural rate of unemployment (i) is the economy's desirable level of unemployment. (ii) cannot be affected by economic policy. (iii) is typically constant over time.

Correct Answer
verified

Most job search in the U.S. economy takes place with the help of the government.

Correct Answer
verified

Minimum wages are the predominant reason for unemployment in the U.S. economy.

Correct Answer
verified

Some degree of unemployment is __________ in a complex economy.

Correct Answer
verified

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

Correct Answer
verified

Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force participation rate is 70%. What is the unemployment rate?

Correct Answer
verified

Table 28-10 The table below lists the number of people by labor force classification for the country of Springfield. -Refer to Table 28-10. Calculate the number in the labor force, and the unemployment rate.

Correct Answer
verified
The labor force is 9...
View Answer

Almost half of all spells of unemployment end when the unemployed person __________.

Correct Answer
verified
leaves the...
View Answer

Exam 28: Unemployment and Its Natural Rate

Figure 28-3 -Refer to Figure 28-3. At the equilibrium wage, how many workers are employed?

Correct AnswerverifiedShow Answer

People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as

Correct AnswerverifiedShow Answer

Table 28-2 Labor Data for Aridia -Refer to Table 28-2. The number of adults not in the labor force of Aridia in 2011 was

Correct AnswerverifiedShow Answer

Who would be included in the labor force?

Correct AnswerverifiedShow Answer

If the number of people employed rises by 180,000 and the number of people unemployed falls by 200,000 while the adult population stays the same, then the labor force participation rate rises.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Unions contribute to

Correct AnswerverifiedShow Answer

Caroline is the owner of a hair-styling salon and spa. She decides to raise the wages of her workers even though she faces an excess supply of labor. Her decision

Correct AnswerverifiedShow Answer

Unions contribute to

Correct AnswerverifiedShow Answer

The natural rate of unemployment (i) is the economy's desirable level of unemployment. (ii) cannot be affected by economic policy. (iii) is typically constant over time.

Correct AnswerverifiedShow Answer

Most job search in the U.S. economy takes place with the help of the government.

Correct AnswerverifiedShow Answer

Minimum wages are the predominant reason for unemployment in the U.S. economy.

Correct AnswerverifiedShow Answer

Some degree of unemployment is __________ in a complex economy.

Correct AnswerverifiedShow Answer

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force participation rate is 70%. What is the unemployment rate?

Correct AnswerverifiedShow Answer

Table 28-10 The table below lists the number of people by labor force classification for the country of Springfield. -Refer to Table 28-10. Calculate the number in the labor force, and the unemployment rate.

Correct AnswerverifiedThe labor force is 9...View AnswerShow Answer

Almost half of all spells of unemployment end when the unemployed person __________.

Correct Answerverifiedleaves the...View AnswerShow Answer

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The labor force is 9...
View Answer

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leaves the...
View Answer