Question 1

Since unemployment rates are consistently higher in Canada and some Western European countries than in the United States, it appears that the natural rate of unemployment is lower in the United States. What might explain this difference?

Accepted Answer

The text offers two explanations for the...

Question 2

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 3

Jenna is searching for a job that suits her tastes about where to live. Mary is looking for a job that makes best use of her skills.

Accepted Answer

A)  Jenna and Mary are both frictionally unemployed.
B)  Jenna and Mary are both structurally unemployed.
C)  Jenna is frictionally unemployed, and Mary is structurally unemployed.
D)  Jenna is structurally unemployed, and Mary is frictionally unemployed.E) A) and C)
F) B) and D)

Question 4

Suppose that a country becomes relatively better than other countries at producing wind generators, in this country

Accepted Answer

A)  structural unemployment and so the natural rate of unemployment will increase.
B)  structural unemployment and so cyclical unemployment will increase.
C)  frictional unemployment and so the natural rate of unemployment will increase.
D)  frictional unemployment and the cyclical rate of unemployment will increase.E) A) and D)
F) A) and C)

Question 5

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)  Miguel, who is on temporary layoff
B)  Reta, who worked only 15 hours last week
C)  Marisa, who neither has a job nor is looking for one
D)  None of the above is correct.E) C) and D)
F) B) and D)

Question 7

Sirius has just finished high school and started looking for his first job, but has not yet found one. Other things the same, the unemployment rate

Accepted Answer

A)  and the labor-force participation rate both increase.
B)  increases, and the labor-force participation rate is unaffected.
C)  is unaffected, and the labor-force participation rate increases.
D)  and the labor-force participation rate are both unaffected.E) C) and D)
F) None of the above

Question 8

Critics of unions argue that unions cause the allocation of labor to be inefficient and inequitable.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  both the quantity of labor supplied and the quantity of labor demanded increase.
B)  both the quantity of labor supplied and the quantity of labor demanded decrease.
C)  the quantity of labor supplied increases and the quantity of labor demanded decreases.
D)  the quantity of labor demanded increases and the quantity of labor supplied decreases.E) B) and C)
F) A) and B)

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Frictional unemployment is often thought to explain relatively long spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 12

The Bureau of Labor Statistics defines discouraged workers as marginally attached workers who have given a job-market related reason for not currently looking for a job.

Accepted Answer

A) True 
 B)False

Question 13

The Bureau of Labor Statistics' U-1 measure of joblessness is larger than its U-6 measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 14

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 D)
F) A) and C)

Question 15

Unemployment insurance __________ the amount of unemployment.

Accepted Answer

The answer of Unemployment insurance __________ the amount of unemployment....

Question 16

Suppose that dental hygienists are unionized in the eastern region of the country but not in the western region. If the unionized workers in the eastern region abolished their unions, employment

Accepted Answer

A)  and wages of dental hygienists in the eastern region would rise.
B)  of dental hygienists in the eastern region would rise, but wages of dental hygienists in the eastern region would fall.
C)  and wages of dental hygienists in the eastern region would fall.
D)  of dental hygienists in the eastern region would fall, but wages of dental hygienists in the eastern region would rise.E) B) and D)
F) A) and B)

Question 17

Minimum-wage laws are most likely to affect the wages paid to

Accepted Answer

A)  teenagers.
B)  people with advanced technical training.
C)  people who are self-employed.
D)  union members.E) A) and B)
F) None of the above

Question 18

Who among the following would be counted as "unemployed"?

Accepted Answer

A)  Shasta, who is waiting to be recalled to a job from which she has been laid off.
B)  Karen, who neither has a job nor is looking for one.
C)  Mary, who worked only 35 hours last week.
D)  None of the above is correct.E) C) and D)
F) A) and D)

Question 19

According to 2014 data on the U.S. population, which of the following groups of teenagers (ages 16-19)  had the highest labor-force participation rate?

Accepted Answer

A)  white males
B)  white females
C)  black males
D)  black femalesE) A) and B)
F) C) and D)

Question 20

The adult population must equal the sum of the employed and the unemployed.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment and Its Natural Rate

Suppose that a country becomes relatively better than other countries at producing wind generators, in this country

Correct AnswerverifiedShow Answer

The adult population must equal the sum of the employed and the unemployed.

Correct AnswerverifiedShow Answer

Frictional unemployment is often thought to explain relatively long spells of unemployment.

Correct AnswerverifiedShow Answer

According to 2014 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the highest labor-force participation rate?

Correct AnswerverifiedShow Answer

Minimum-wage laws are most likely to affect the wages paid to

Correct AnswerverifiedShow Answer

Who among the following would be counted as "unemployed"?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the number of jobs the economy has gained or lost.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics defines discouraged workers as marginally attached workers who have given a job-market related reason for not currently looking for a job.

Correct AnswerverifiedShow Answer

Sirius has just finished high school and started looking for his first job, but has not yet found one. Other things the same, the unemployment rate

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Since unemployment rates are consistently higher in Canada and some Western European countries than in the United States, it appears that the natural rate of unemployment is lower in the United States. What might explain this difference?

Correct AnswerverifiedThe text offers two explanations for the...View AnswerShow Answer

Suppose that dental hygienists are unionized in the eastern region of the country but not in the western region. If the unionized workers in the eastern region abolished their unions, employment

Correct AnswerverifiedShow Answer

Jenna is searching for a job that suits her tastes about where to live. Mary is looking for a job that makes best use of her skills.

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

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

Critics of unions argue that unions cause the allocation of labor to be inefficient and inequitable.

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' U-1 measure of joblessness is larger than its U-6 measure of joblessness.

Correct AnswerverifiedShow Answer

Unemployment insurance __________ the amount of unemployment.

Correct AnswerverifiedShow Answer

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The text offers two explanations for the...
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