Question 1

The theory of efficiency wages explains why

Accepted Answer

A)  setting wages at the equilibrium level may increase unemployment.
B)  it may be in the best interest of firms to offer wages that are above the equilibrium level.
C)  the most efficient way to pay workers is to pay them according to their skills.
D)  it is efficient for firms to set wages at the equilibrium level.E) All of the above
F) B) and D)

Question 2

The BLS reported in 2005 that there were 28.19 million people over age 25 who had no high school degree or its equivalent.In this group 11.73 million were employed and 1.04 million were unemployed.About what were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)  41.6% and 3.7%
B)  41.6% and 3.%
C)  45.3% and 8.1%
D)  45.% and 8.%E) B) and C)
F) A) and D)

Question 3

Suppose that in some state the adult population is 4 million,the labor-force participation rate is 75%,and that .25 million people are unemployed.What is the unemployment rate to the nearest tenth?

Accepted Answer

A)  6.3%
B)  7.7%
C)  8.3%
D)  9.1%E) B) and C)
F) A) and B)

Question 4

Frictional unemployment is different from unemployment arising from minimum-wage laws,unions,and efficiency wages because in the former,workers are searching for the jobs that best suit them,while in the latter,workers are waiting for jobs to open up.

Accepted Answer

A) True 
 B)False

Question 5

More generous unemployment insurance would

Accepted Answer

A)  raise structural unemployment.
B)  raise frictional unemployment.
C)  lower structural unemployment.
D)  lower frictional unemployment.E) B) and D)
F) C) and D)

Question 6

Unions

Accepted Answer

A)  do not increase the natural rate of unemployment.
B)  do not raise the wages of workers in the union.
C)  raise the profits of firms they work for.
D)  cause wages of nonunionized workers to fall.E) C) and D)
F) None of the above

Question 7

Arnnie is the owner of a firm that produces bottled water in Washington state.There are many other such firms in the area.Arnnie decides that if he pays his workers a wage higher than the going market wage,his profits will increase.Which of the following is a likely explanation for his decision?

Accepted Answer

A)  The higher the wage, the less often his workers will choose to leave his firm.
B)  The higher the wage, the lower will be the cost of obtaining needed supplies.
C)  The higher the wage, the more he can charge for his water.
D)  All of the above are likely explanations for Arnnie's decision.E) None of the above
F) All of the above

Question 8

Data on unemployment is reported

Accepted Answer

A)  weekly.
B)  monthly.
C)  quarterly.
D)  yearly.E) B) and D)
F) B) and C)

Question 9

Use the graph below to answer the following questions.
Figure 28-2
 
-Refer to Figure 28-2.If the minimum wage rose from $5 to $7,unemployment would

Accepted Answer

A)  rise by 40.
B)  rise by 20.
C)  fall by 20.
D)  fall by 40.E) B) and C)
F) B) and D)

Question 10

Sam just lost his job,but isn't yet looking for a new one.Sam is

Accepted Answer

A)  counted as unemployed and part of the labor force.
B)  counted as unemployed, but not part of the labor force.
C)  not counted as unemployed, but counted as part of the labor force.
D)  not counted as unemployed or counted as part of the labor force.E) A) and B)
F) All of the above D

Question 11

Labor Stats
The Labor Market
This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Meditor.
 
-Refer to Labor Stats.What is the adult female unemployment rate in Meditor?

Accepted Answer

A)  4.76%
B)  7.14%
C)  7.69%
D)  14.29%E) A) and B)
F) B) and D)

Question 12

Latoya,an unpaid homemaker who works as a volunteer at the local Red Cross and is currently not looking for a paid job,is counted as

Accepted Answer

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

Question 13

Use the following table to answer the following questions.
Table 28-1
 
-Refer to Table 28-1.What is the U-5 measure of labor underutilization?

Accepted Answer

A)  7.0 percent
B)  7.95 percent
C)  8.1 percent
D)  9.2 percentE) C) and D)
F) B) and D)

Question 14

In Sweden and Denmark,the percentage of the workers who belong to unions is

Accepted Answer

A)  almost zero.
B)  about the same as in the United States.
C)  a bit greater than in the United States.
D)  much greater than in the United States.E) A) and B)
F) A) and C)

Question 15

The labor force

Accepted Answer

A)  equals the number of people employed.
B)  equals the number of people employed plus the number of people unemployed.
C)  equals the non-institutionalized adult population.
D)  equals the number of people employed plus the number of people cyclically unemployed.E) None of the above
F) C) and D) B

Question 16

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

Accepted Answer

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

Question 17

Following the recession of 2001 there was a month where employment and the unemployment rate rose.Assuming the computations were correct,how is it possible for both to have increased?

Accepted Answer

The rate of unemployment is measured as the number of people unemployed divided by the labor force.If the number of people in the labor force rises,but a significant portion of the rise in the labor force is people who are unemployed,then both employment and unemployment could rise.
(This likely happened because as the economy was improving,more people began seeking employment,but not all immediately found employment.)

Question 18

Why have labor-force participation rates for women in the United States increased since World War II while labor-force participation rates for men have decreased?

Accepted Answer

Labor-force participation rates for wome...

Question 19

Marginally attached workers are people who

Accepted Answer

A)  are looking for a better job than they currently have.
B)  are not working and are not looking for work, but would work if asked.
C)  are working part-time while they go to school or get training for a better job.
D)  are only a few years from retirement.E) None of the above
F) A) and B)

Question 20

In the United States,blacks and whites have similar labor force participation rates,but blacks have a higher unemployment rate.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment

The theory of efficiency wages explains why

Correct Answer
verified

The BLS reported in 2005 that there were 28.19 million people over age 25 who had no high school degree or its equivalent.In this group 11.73 million were employed and 1.04 million were unemployed.About what were the labor-force participation rate and the unemployment rate for this group?

Correct Answer
verified

Suppose that in some state the adult population is 4 million,the labor-force participation rate is 75%,and that .25 million people are unemployed.What is the unemployment rate to the nearest tenth?

Correct Answer
verified

Frictional unemployment is different from unemployment arising from minimum-wage laws,unions,and efficiency wages because in the former,workers are searching for the jobs that best suit them,while in the latter,workers are waiting for jobs to open up.

Correct Answer
verified

More generous unemployment insurance would

Correct Answer
verified

Unions

Correct Answer
verified

Arnnie is the owner of a firm that produces bottled water in Washington state.There are many other such firms in the area.Arnnie decides that if he pays his workers a wage higher than the going market wage,his profits will increase.Which of the following is a likely explanation for his decision?

Correct Answer
verified

Data on unemployment is reported

Correct Answer
verified

Use the graph below to answer the following questions. Figure 28-2 -Refer to Figure 28-2.If the minimum wage rose from $5 to $7,unemployment would

Correct Answer
verified

Sam just lost his job,but isn't yet looking for a new one.Sam is

Correct Answer
verified
D

Labor Stats The Labor Market This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Meditor. -Refer to Labor Stats.What is the adult female unemployment rate in Meditor?

Correct Answer
verified

Latoya,an unpaid homemaker who works as a volunteer at the local Red Cross and is currently not looking for a paid job,is counted as

Correct Answer
verified

Use the following table to answer the following questions. Table 28-1 -Refer to Table 28-1.What is the U-5 measure of labor underutilization?

Correct Answer
verified

In Sweden and Denmark,the percentage of the workers who belong to unions is

Correct Answer
verified

The labor force

Correct Answer
verified
B

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

Correct Answer
verified

Following the recession of 2001 there was a month where employment and the unemployment rate rose.Assuming the computations were correct,how is it possible for both to have increased?

Why have labor-force participation rates for women in the United States increased since World War II while labor-force participation rates for men have decreased?

Correct Answer
verified
Labor-force participation rates for wome...
View Answer

Marginally attached workers are people who

Correct Answer
verified

In the United States,blacks and whites have similar labor force participation rates,but blacks have a higher unemployment rate.

Correct Answer
verified

Exam 28: Unemployment

The theory of efficiency wages explains why

Correct AnswerverifiedShow Answer

The BLS reported in 2005 that there were 28.19 million people over age 25 who had no high school degree or its equivalent.In this group 11.73 million were employed and 1.04 million were unemployed.About what were the labor-force participation rate and the unemployment rate for this group?

Correct AnswerverifiedShow Answer

Suppose that in some state the adult population is 4 million,the labor-force participation rate is 75%,and that .25 million people are unemployed.What is the unemployment rate to the nearest tenth?

Correct AnswerverifiedShow Answer

Frictional unemployment is different from unemployment arising from minimum-wage laws,unions,and efficiency wages because in the former,workers are searching for the jobs that best suit them,while in the latter,workers are waiting for jobs to open up.

Correct AnswerverifiedShow Answer

More generous unemployment insurance would

Correct AnswerverifiedShow Answer

Unions

Correct AnswerverifiedShow Answer

Arnnie is the owner of a firm that produces bottled water in Washington state.There are many other such firms in the area.Arnnie decides that if he pays his workers a wage higher than the going market wage,his profits will increase.Which of the following is a likely explanation for his decision?

Correct AnswerverifiedShow Answer

Data on unemployment is reported

Correct AnswerverifiedShow Answer

Use the graph below to answer the following questions. Figure 28-2 -Refer to Figure 28-2.If the minimum wage rose from $5 to $7,unemployment would

Correct AnswerverifiedShow Answer

Sam just lost his job,but isn't yet looking for a new one.Sam is

Correct AnswerverifiedD

Labor Stats The Labor Market This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Meditor. -Refer to Labor Stats.What is the adult female unemployment rate in Meditor?

Correct AnswerverifiedShow Answer

Latoya,an unpaid homemaker who works as a volunteer at the local Red Cross and is currently not looking for a paid job,is counted as

Correct AnswerverifiedShow Answer

Use the following table to answer the following questions. Table 28-1 -Refer to Table 28-1.What is the U-5 measure of labor underutilization?

Correct AnswerverifiedShow Answer

In Sweden and Denmark,the percentage of the workers who belong to unions is

Correct AnswerverifiedShow Answer

The labor force

Correct AnswerverifiedB

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

Correct AnswerverifiedShow Answer

Following the recession of 2001 there was a month where employment and the unemployment rate rose.Assuming the computations were correct,how is it possible for both to have increased?

Why have labor-force participation rates for women in the United States increased since World War II while labor-force participation rates for men have decreased?

Correct AnswerverifiedLabor-force participation rates for wome...View AnswerShow Answer

Marginally attached workers are people who

Correct AnswerverifiedShow Answer

In the United States,blacks and whites have similar labor force participation rates,but blacks have a higher unemployment rate.

Correct AnswerverifiedShow Answer

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D

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B

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Labor-force participation rates for wome...
View Answer

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