Question 1

Tara,the CEO of a corporation operating in a relatively poor country where wages are low,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 means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive.
B)   will help eliminate the excess supply of labor.
C)   may cause her workers to increase shirking.
D)   All of the above are correct.

Question 2

Suppose that computer factory workers and cell phone factory workers have no unions.Now suppose that cell phone factory workers form unions.What does this do the labor supply of and wages of workers in computer factories?

Accepted Answer

A)   It increases the labor supply and wages of computer factory workers.
B)   It increases the labor supply and decreases the wages of computer factory workers.
C)   It decreases the labor supply and increases the wages of computer factory workers.
D)   It decreases the labor supply and wages of computer factory workers.

Question 3

Since 1960,the natural rate of unemployment in the U.S.has been between

Accepted Answer

A)   0.4 and 0.6 percent.
B)   4 and 6 percent.
C)   6 and 12 percent.
D)   12 and 24 percent.

Question 4

If the wage is kept above the equilibrium wage for any reason,the result is

Accepted Answer

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

Question 5

Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)   Chris,an unpaid homemaker not looking for other work
B)   Marcus,a full-time student not looking for work
C)   Gabe,who does not have a job,but is looking for work
D)   None of the above is correct.

Question 6

Wages in excess of their equilibrium level help explain

Accepted Answer

A)   structural unemployment but not the natural rate of unemployment.
B)   the natural rate of unemployment but not structural unemployment.
C)   both structural unemployment and the natural rate of unemployment.
D)   neither structural unemployment nor the natural rate of unemployment.

Question 7

The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.

Accepted Answer

A) True 
 B)False

Question 8

The reported unemployment rate should be viewed as

Accepted Answer

A)   a useful but imperfect measure of joblessness.
B)   clearly smaller than the true unemployment rate.
C)   clearly larger than the true unemployment rate.
D)   being very close to the true unemployment rate.

Question 9

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.

Question 10

The table below uses data for the year 2003 provided by the Bureau of Labor Statistics and adjusted to be comparable to U.S.data.All values are in thousands.Fill in the blank entries in the table.

Accepted Answer

The answer of The table below uses data for the...

Question 11

Providing training for unemployed individuals is primarily intended to reduce

Accepted Answer

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

Question 12

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Accepted Answer

A) True 
 B)False

Question 13

Unions are exempt from U.S.antitrust laws.

Accepted Answer

A) True 
 B)False

Question 14

Table 20-4
 
-Refer to Table 20-4.What is the U-1 measure of labor underutilization?

Accepted Answer

A)   1.6 percent
B)   3.1 percent
C)   6.2 percent
D)   7.0 percent

Question 15

Data on unemployment indicate that most people who become unemployed will soon find jobs.

Accepted Answer

A) True 
 B)False

Question 16

Evidence indicates that the typical person who becomes unemployed will

Accepted Answer

A)   soon find a job.
B)   find a job,but not before a year or more has gone by.
C)   leave the labor force and never return.
D)   retire soon after

Question 17

Today,the four industries with the largest employment in the United States are autos,aircraft,communications,and electrical components.

Accepted Answer

A) True 
 B)False

Question 18

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.

Question 19

For the Bureau of Labor Statistics to place someone in the "unemployed" category,that person must

Accepted Answer

A)   be available for work.
B)   have tried to find employment during the previous week.
C)   have previously been employed.
D)   All of the above are correct.

Question 20

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.

Accepted Answer

A) True 
 B)False

Exam 20: Unemployment

Evidence indicates that the typical person who becomes unemployed will

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The reported unemployment rate should be viewed as

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Unions are exempt from U.S.antitrust laws.

Correct AnswerverifiedShow Answer

Data on unemployment indicate that most people who become unemployed will soon find jobs.

Correct AnswerverifiedShow Answer

Since 1960,the natural rate of unemployment in the U.S.has been between

Correct AnswerverifiedShow Answer

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.

Correct AnswerverifiedShow Answer

The table below uses data for the year 2003 provided by the Bureau of Labor Statistics and adjusted to be comparable to U.S.data.All values are in thousands.Fill in the blank entries in the table.

Correct AnswerverifiedShow Answer

If the wage is kept above the equilibrium wage for any reason,the result is

Correct AnswerverifiedShow Answer

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Correct AnswerverifiedShow Answer

Today,the four industries with the largest employment in the United States are autos,aircraft,communications,and electrical components.

Correct AnswerverifiedShow Answer

Suppose that computer factory workers and cell phone factory workers have no unions.Now suppose that cell phone factory workers form unions.What does this do the labor supply of and wages of workers in computer factories?

Correct AnswerverifiedShow Answer

Tara,the CEO of a corporation operating in a relatively poor country where wages are low,decides to raise the wages of her workers even though she faces an excess supply of labor.Her decision

Correct AnswerverifiedShow Answer

For the Bureau of Labor Statistics to place someone in the "unemployed" category,that person must

Correct AnswerverifiedShow Answer

Who is included in the labor force by the Bureau of Labor Statistics?

Correct AnswerverifiedShow Answer

The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.

Correct AnswerverifiedShow Answer

Table 20-4 -Refer to Table 20-4.What is the U-1 measure of labor underutilization?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Providing training for unemployed individuals is primarily intended to reduce

Correct AnswerverifiedShow Answer

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

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Wages in excess of their equilibrium level help explain

Correct AnswerverifiedShow Answer

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