Question 1

Which of the following does the theory of efficiency wages explain?

Accepted Answer

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

Question 2

Which of the following laws is most likely to reduce the natural rate of unemployment?

Accepted Answer

A)  a law that makes all provinces repeal right-to-work laws
B)  a law that makes it harder to find out about job candidates' past job history
C)  a law that abolishes the minimum wage
D)  a law that increases the minimum wageE) All of the above
F) B) and C)

Question 3

Consider two people who are currently out of work. Bernie is not looking for work because there have been many job cuts where he lives and he doesn't think it likely that he will find work. Bev is not currently looking for work, but she would like a job. While she hasn't looked for work for some time, she has looked for work in the past. How does Statistics Canada consider Bernie and Bev?

Accepted Answer

A)  Statistics Canada considers both Bernie and Bev to be marginally attached workers.
B)  Statistics Canada considers neither Bernie nor Bev to be marginally attached workers.
C)  Statistics Canada considers only Bernie to be a marginally attached worker.
D)  Statistics Canada considers only Bev to be a marginally attached worker.E) A) and B)
F) None of the above

Question 4

Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Accepted Answer

Standard economic theory suggests that i...

Question 5

Rick loses his job and immediately begins looking for another. Other things equal, what happens to the unemployment rate?

Accepted Answer

A)  The unemployment rate decreases.
B)  The unemployment rate increases.
C)  The unemployment rate is unaffected.
D)  There is insufficient information to answer the question.E) A) and C)
F) A) and B)

Question 6

Suppose that in some country, neither textile workers nor shoemakers are unionized. If textile workers unionize and so are able to raise their wages, which of the following will most likely happen to shoemakers?

Accepted Answer

A)  The demand for shoemakers will rise, and their wages will rise.
B)  The demand for shoemakers will fall, and their wages will fall.
C)  The supply of shoemakers will rise, and their wages will fall.
D)  The supply of shoemakers will fall, and their wages will rise.E) A) and B)
F) A) and C)

Question 7

Since World War II, which of the following has happened to the labour-force participation rate?

Accepted Answer

A)  It has increased for both men and women.
B)  It increased for women and decreased for men.
C)  It has decreased for both men and women.
D)  It decreased for women and increased for men.E) All of the above
F) A) and B)

Question 8

Nancy is searching for a job that suits her tastes about where to live and the people she works with. Laura is looking for a job that makes best use of her skills. Contrast Nancy and Laura's natures of unemployment.

Accepted Answer

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

Question 9

What was the labour-force participation rate of men just after World War II?

Accepted Answer

A)  about 84% and about 73%
B)  about 75%
C)  about 70%
D)  about 63%E) A) and B)
F) A) and C)

Question 10

Figure 28-2 
-Refer to Figure 28-2. If the minimum wage fell from $7 to $5, what would happen to unemployment?

Accepted Answer

A)  It would fall by 20.
B)  It would fall by 40.
C)  It would be unchanged.
D)  It would rise by 20.E) B) and C)
F) A) and D)

Question 11

How are discouraged workers counted in unemployment statistics?

Accepted Answer

A)  They are not counted either as part of the adult population or as part of the labour force.
B)  They are counted as part of the adult population, but not as part of the labour force.
C)  They are counted as part of the adult population and as unemployed.
D)  They are counted as unemployed, but not part of labour force.E) All of the above
F) A) and C)

Question 12

Samantha, the CEO of a corporation operating in Uganda, decides to raise the wages of her workers, even though she faces an excess supply of labour. Which of the following is an expected result from her decision?

Accepted Answer

A)  It will increase productivity, according to the efficiency wage theory.
B)  It will help eliminate the excess supply of labour if she raises it sufficiently.
C)  It will cause unemployment to fall.
D)  It will decrease profits, according to the efficiency wage theory.E) B) and C)
F) C) and D)

Question 13

Cyclical unemployment is closely associated with which of the following?

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)  seasonal fluctuations in spendingE) A) and B)
F) None of the above

Question 14

In Canada in recent years, how does the unemployment rate among those aged 15 to 24 compare with that of older adults?

Accepted Answer

A)  less than that of older adults
B)  about the same as that of older adults
C)  much higher than that of older adults
D)  approximately half that of older adultsE) A) and C)
F) A) and D)

Question 15

Which of the following industries in the Canadian economy have the highest percentage of unionized workers?

Accepted Answer

A)  agriculture
B)  the public sector industries
C)  oil and gas industries
D)  the food and accommodation industriesE) A) and C)
F) A) and B)

Question 16

Consider the following labour data compiled by Statistics Canada.
  
a.Between July 2009 and July 2010, employment has increased by 393 700 workers, but the labour force increased by only 309 100 workers. Explain the difference in these numbers. Is it possible that the increase in labour force be greater than the increase in employment?
b.During the same period, employment increased by 393 700 workers, but unemployment decreased by only 84 600. Are these data plausible? How this difference could be explained?

Accepted Answer

a.Change in labour force = change in emp...

Question 17

Which of the following would be associated with the type of unemployment created by the minimum wage law?

Accepted Answer

A)  Greg quits his job as a grocery cashier because he would rather work at the library.
B)  Fred decides to close his Thai restaurant because he cannot afford to pay workers the going wage.
C)  In hopes of earning a higher income, Bruce goes back to trade school to get further training.
D)  Liz pays the workers for her plumbing and heating company more than the equilibrium wage because she believes it will make them work harder.E) A) and B)
F) A) and C)

Question 18

Table 28-1. This table shows the 2007 data for males and females aged 15 and over in the country of Dan.
 
-Refer to Table 28-1. What is the adult male unemployment rate in Dan?

Accepted Answer

A)  3.70 percent
B)  4.00 percent
C)  5.56 percent
D)  5.88 percentE) All of the above
F) None of the above

Question 19

Which of the following best explains the purpose of Canada's Public Service Staff Relations Act of 1967?

Accepted Answer

A)  to enforce antitrust laws against unions in federal institutions
B)  to allow federal public service employees the right to representation and collective bargaining
C)  to allow federal and provincial public service employees the right to representation and collective bargaining
D)  to require that all collective bargaining agreements be approved by the federal government before they can be enforcedE) A) and B)
F) A) and C)

Question 20

Which of the following led to the decrease in labour-force participation rates among Canadian men since World War II?

Accepted Answer

A)  longer schooling, an increase in stay-at-home dads, earlier retirement, and longer lives
B)  longer lives, laws that prevent mandatory retirement, and an increase in stay-at-home dads
C)  better unemployment insurance and laws that prevent mandatory retirement and age discrimination in hiring
D)  easier job searches, better training, and laws that prevent mandatory retirement and age discrimination in hiringE) A) and C)
F) A) and B)

Exam 9: Unemployment and Its Natural Rate

Which of the following laws is most likely to reduce the natural rate of unemployment?

Correct Answer
verified

Cyclical unemployment is closely associated with which of the following?

Correct Answer
verified

Table 28-1. This table shows the 2007 data for males and females aged 15 and over in the country of Dan. -Refer to Table 28-1. What is the adult male unemployment rate in Dan?

Correct Answer
verified

Which of the following best explains the purpose of Canada's Public Service Staff Relations Act of 1967?

Correct Answer
verified

In Canada in recent years, how does the unemployment rate among those aged 15 to 24 compare with that of older adults?

Correct Answer
verified

Correct Answer
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Figure 28-2 -Refer to Figure 28-2. If the minimum wage fell from $7 to $5, what would happen to unemployment?

Correct Answer
verified

Samantha, the CEO of a corporation operating in Uganda, decides to raise the wages of her workers, even though she faces an excess supply of labour. Which of the following is an expected result from her decision?

Correct Answer
verified

Which of the following industries in the Canadian economy have the highest percentage of unionized workers?

Correct Answer
verified

Correct Answer
verified
a.Change in labour force = change in emp...
View Answer

Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Correct Answer
verified
Standard economic theory suggests that i...
View Answer

Rick loses his job and immediately begins looking for another. Other things equal, what happens to the unemployment rate?

Correct Answer
verified

Which of the following led to the decrease in labour-force participation rates among Canadian men since World War II?

Correct Answer
verified

Nancy is searching for a job that suits her tastes about where to live and the people she works with. Laura is looking for a job that makes best use of her skills. Contrast Nancy and Laura's natures of unemployment.

Correct Answer
verified

Since World War II, which of the following has happened to the labour-force participation rate?

Correct Answer
verified

Which of the following would be associated with the type of unemployment created by the minimum wage law?

Correct Answer
verified

Which of the following does the theory of efficiency wages explain?

Correct Answer
verified

Suppose that in some country, neither textile workers nor shoemakers are unionized. If textile workers unionize and so are able to raise their wages, which of the following will most likely happen to shoemakers?

Correct Answer
verified

What was the labour-force participation rate of men just after World War II?

Correct Answer
verified

How are discouraged workers counted in unemployment statistics?

Correct Answer
verified

Exam 9: Unemployment and Its Natural Rate

Which of the following laws is most likely to reduce the natural rate of unemployment?

Correct AnswerverifiedShow Answer

Cyclical unemployment is closely associated with which of the following?

Correct AnswerverifiedShow Answer

Table 28-1. This table shows the 2007 data for males and females aged 15 and over in the country of Dan. -Refer to Table 28-1. What is the adult male unemployment rate in Dan?

Correct AnswerverifiedShow Answer

Which of the following best explains the purpose of Canada's Public Service Staff Relations Act of 1967?

Correct AnswerverifiedShow Answer

In Canada in recent years, how does the unemployment rate among those aged 15 to 24 compare with that of older adults?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 28-2 -Refer to Figure 28-2. If the minimum wage fell from $7 to $5, what would happen to unemployment?

Correct AnswerverifiedShow Answer

Samantha, the CEO of a corporation operating in Uganda, decides to raise the wages of her workers, even though she faces an excess supply of labour. Which of the following is an expected result from her decision?

Correct AnswerverifiedShow Answer

Which of the following industries in the Canadian economy have the highest percentage of unionized workers?

Correct AnswerverifiedShow Answer

Correct Answerverifieda.Change in labour force = change in emp...View AnswerShow Answer

Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Correct AnswerverifiedStandard economic theory suggests that i...View AnswerShow Answer

Rick loses his job and immediately begins looking for another. Other things equal, what happens to the unemployment rate?

Correct AnswerverifiedShow Answer

Which of the following led to the decrease in labour-force participation rates among Canadian men since World War II?

Correct AnswerverifiedShow Answer

Nancy is searching for a job that suits her tastes about where to live and the people she works with. Laura is looking for a job that makes best use of her skills. Contrast Nancy and Laura's natures of unemployment.

Correct AnswerverifiedShow Answer

Since World War II, which of the following has happened to the labour-force participation rate?

Correct AnswerverifiedShow Answer

Which of the following would be associated with the type of unemployment created by the minimum wage law?

Correct AnswerverifiedShow Answer

Which of the following does the theory of efficiency wages explain?

Correct AnswerverifiedShow Answer

Suppose that in some country, neither textile workers nor shoemakers are unionized. If textile workers unionize and so are able to raise their wages, which of the following will most likely happen to shoemakers?

Correct AnswerverifiedShow Answer

What was the labour-force participation rate of men just after World War II?

Correct AnswerverifiedShow Answer

How are discouraged workers counted in unemployment statistics?

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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a.Change in labour force = change in emp...
View Answer

Correct Answer
verified
Standard economic theory suggests that i...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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