Question 1

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about

Accepted Answer

A)   600 households.
B)   6,000 households.
C)   60,000 households.
D)   6,000,000 households.E) A) and D)
F) B) and C)

Question 2

The amount of unemployment that an economy normally experiences is called the

Accepted Answer

A)   average rate of unemployment.
B)   natural rate of unemployment.
C)   cyclical rate of unemployment.
D)   typical rate of unemployment.E) A) and B)
F) C) and D)

Question 3

Charlie is the owner of a firm that produces bottled water in Washington state.There are many other such firms in the area.Charlie 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)   The higher the wage,the more he will have to monitor his workers for shirking.E) A) and B)
F) B) and C)

Question 4

According to 2007 data on the U.S.population,which of the following groups of teenagers (ages 16-19) has the lowest labor-force participation rate?

Accepted Answer

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

Question 5

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

Accepted Answer

A)   those who worked as paid employees
B)   those who worked in their own business
C)   those who worked as unpaid workers in a family member's business
D)   those waiting to be recalled to a job from which they had been laid offE) A) and B)
F) All of the above

Question 6

Table 28-2
2009 Labor Data for Wrexington
 
-Refer to Table 28-2.How many people were not in Wrexington's labor force in 2009?

Accepted Answer

A)   4,400
B)   6,620
C)   7,400
D)   8,690E) B) and C)
F) A) and D)

Question 7

When unions raise wages in one part of the economy,the supply of labor increases in other parts of the economy,which reduces wages in industries that are not unionized.

Accepted Answer

A) True 
 B)False

Question 8

Four employers have justified their actions as follows.Whose logic is not consistent with the logic of efficiency wage theory?

Accepted Answer

A)   Jay develops a new assembly line technology that limits the amount of shirking workers can do,so he reduces what he pays his employees so as to make it closer to the equilibrium wage.
B)   Kay pays her workers less than the equilibrium wage so they won't have the time or money to look for work somewhere else.
C)   Ray pays his workers in a developing country more than the going wage hoping that they will get a better diet and so be more productive.
D)   None of the above is consistent with the logic of efficiency wage theory.E) None of the above
F) B) and C)

Question 9

Suppose some country had an adult population of about 50 million,a labor-force participation rate of 60 percent,and an unemployment rate of 5 percent.How many people were employed?

Accepted Answer

A)   1.5 million
B)   28.5 million
C)   30 million
D)   47.5 millionE) B) and C)
F) None of the above

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

Ellen decides to hire some additional workers for her vinyl siding factory.The equilibrium wage is $14 per hour.Efficiency wage theory suggests that it is reasonable for Ellen to offer

Accepted Answer

A)   $14 per hour.
B)   less than $14 per hour,since some people would be willing to work for less.
C)   less than $14 an hour to prevent shirking.
D)   more than $14 per hour,so as to attract a better pool of applicants.E) B) and C)
F) A) and D)

Question 12

Figure 28-1 
-Refer to Figure 28-1.If the government imposes a minimum wage of $8,then how many workers will be unemployed?

Accepted Answer

A)   0
B)   3000
C)   4000
D)   7000E) A) and B)
F) None of the above

Question 13

Table 28-1
Labor Data for Wrexington
 
-Refer to Table 28-1.The labor force of Wrexington

Accepted Answer

A)   increased from 2004 to 2005 and increased from 2005 to 2006.
B)   increased from 2004 to 2005 and decreased from 2005 to 2006.
C)   decreased from 2004 to 2005 and increased from 2005 to 2006.
D)   decreased from 2004 to 2005 and decreased from 2005 to 2006.E) B) and D)
F) A) and B)

Question 14

The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)   unemployment and wages increase.
B)   unemployment and wages decrease.
C)   unemployment decreases and wages increase.
D)   unemployment increases and wages decrease.E) B) and C)
F) A) and B)

Question 16

The natural rate of unemployment

Accepted Answer

A)   is a constant.
B)   is the desirable rate of unemployment.
C)   cannot be altered by economic policy.
D)   None of the above is correct.E) A) and D)
F) None of the above

Question 17

Which of the following is correct?

Accepted Answer

A)   Adults have higher labor-force participation rates and higher rates of unemployment compared to teenagers.
B)   Adults have higher labor-force participation rates and lower rates of unemployment compared to teenagers.
C)   Adults have lower labor-force participation rates and lower rates of unemployment compared to teenagers.
D)   Adults have lower labor-force participation rates and higher rates of unemployment compared to teenagers.E) A) and D)
F) A) and C)

Question 18

Discouraged workers

Accepted Answer

A)   are counted as out of the labor force but should be counted as unemployed.
B)   are counted as unemployed but should be counted as out of the labor force.
C)   are correctly counted as out of the labor force.
D)   are correctly counted as unemployed.E) A) and B)
F) A) and C)

Question 19

There is a clear consensus among economists that unions are

Accepted Answer

A)   good for the economy because they result in higher wages for most workers.
B)   good for the economy because they are a necessary antidote to the market power of employers.
C)   bad for the economy because they are cartels and therefore detrimental to an efficient allocation of resources.
D)   None of the above is correct;there is no clear consensus among economists about whether unions are good or bad for the economy.E) A) and B)
F) C) and D)

Question 20

Yves is an unpaid worker in his family's bakery.The Bureau of Labor Statistics counts Yves as

Accepted Answer

A)   unemployed and in the labor force.
B)   unemployed and not in the labor force.
C)   employed and in the labor force.
D)   employed and not in the labor force.E) C) and D)
F) None of the above

Exam 28: Unemployment

Figure 28-1 -Refer to Figure 28-1.If the government imposes a minimum wage of $8,then how many workers will be unemployed?

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Yves is an unpaid worker in his family's bakery.The Bureau of Labor Statistics counts Yves as

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The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about

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There is a clear consensus among economists that unions are

Correct AnswerverifiedShow Answer

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

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The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment.

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Charlie is the owner of a firm that produces bottled water in Washington state.There are many other such firms in the area.Charlie 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?

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

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Which of the following is correct?

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According to 2007 data on the U.S.population,which of the following groups of teenagers (ages 16-19) has the lowest labor-force participation rate?

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Table 28-1 Labor Data for Wrexington -Refer to Table 28-1.The labor force of Wrexington

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Discouraged workers

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When unions raise wages in one part of the economy,the supply of labor increases in other parts of the economy,which reduces wages in industries that are not unionized.

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The natural rate of unemployment

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The amount of unemployment that an economy normally experiences is called the

Correct AnswerverifiedShow Answer

Four employers have justified their actions as follows.Whose logic is not consistent with the logic of efficiency wage theory?

Correct AnswerverifiedShow Answer

Ellen decides to hire some additional workers for her vinyl siding factory.The equilibrium wage is $14 per hour.Efficiency wage theory suggests that it is reasonable for Ellen to offer

Correct AnswerverifiedShow Answer

Suppose some country had an adult population of about 50 million,a labor-force participation rate of 60 percent,and an unemployment rate of 5 percent.How many people were employed?

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Table 28-2 2009 Labor Data for Wrexington -Refer to Table 28-2.How many people were not in Wrexington's labor force in 2009?

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

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