Question 1

Figure 28-5 
-Refer to Figure 28-5. If the minimum wage is set at $125, then

Accepted Answer

A)   the quantity of labor demanded will equal 20.
B)   the quantity of labor supplied will equal 35.
C)   the surplus of labor will equal 25.
D)   unemployment will equal 10.E) C) and D)
F) None of the above

Question 2

The Bureau of Labor Statistics reported in 2005 that there were 59.98 million people over age 25 whose highest level of education was a high school degree or equivalent, 36.40 million of whom were employed and 1.93 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)   60.7% and 3.2%
B)   60.7% and 5.0%
C)   63.9% and 3.2%
D)   63.9% and 5.0%E) All of the above
F) A) and B)

Question 3

Measuring unemployment is the job of the Bureau of Labor Statistics.

Accepted Answer

A) True 
 B)False

Question 4

Table 28-6 
-Refer to Table 28-6. What is the U-5 measure of labor underutilization?

Accepted Answer

A)   7.5%
B)   7.9%
C)   8.1%
D)   26%E) All of the above
F) None of the above

Question 5

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Accepted Answer

A) True 
 B)False

Question 6

When a union raises the wage above the equilibrium level, it

Accepted Answer

A)   reduces both the quantity of labor supplied and the quantity of labor demanded.
B)   reduces the quantity of labor supplied and raises the quantity of labor demanded.
C)   raises the quantity of labor supplied and reduces the quantity of labor demanded.
D)   raises both the quantity of labor supplied and the quantity of labor demanded.E) All of the above
F) B) and D)

Question 7

Unemployment insurance

Accepted Answer

A)   reduces search effort which raises unemployment.
B)   reduces search effort which lowers unemployment.
C)   increases search effort which raises unemployment.
D)   increases search effort which decreases unemployment.E) None of the above
F) A) and B)

Question 8

The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

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

Question 10

Figure 28-6 
-Refer to Figure 28-6. What type of unemployment is measured by the differences between lines A and B?

Accepted Answer

cyclical u...

Question 11

According to the theory of efficiency wages, it may be profitable for firms to keep wages high even in the presence of a surplus of labor.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Minimum-wage laws and unions are similar to each other but different from efficiency wages in that minimum-wage law and unions

Accepted Answer

A)   cause unemployment, but efficiency wages do not.
B)   cause the quantity of labor supplied to exceed the quantity of labor demanded, but efficiency wages do not.
C)   cause wages to be above the equilibrium level.
D)   prevent firms from lowering wages in the presence of a surplus of workers.E) B) and D)
F) None of the above

Question 14

Efficiency wages

Accepted Answer

A)   may increase productivity.
B)   will increase unemployment.
C)   may improve worker health.
D)   All of the above are correct.E) B) and C)
F) All of the above

Question 15

Efficiency wages create structural unemployment.

Accepted Answer

A) True 
 B)False

Question 16

Susan is a plant manager in charge of a factory in a relatively poor country. Even though market wages are low, she decides to raise the wages of her workers. 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 reduce the effort they expend at their jobs.
D)   All of the above are correct.E) B) and C)
F) C) and D)

Question 17

The adult population must equal the sum of the employed, the unemployed, and those not in the labor force.

Accepted Answer

A) True 
 B)False

Question 18

Table 28-11
2010 Labor Data for Tajnia 
-Refer to Table 28-11. The labor force of Tajnia in 2010 is 12,250.

Accepted Answer

A) True 
 B)False

Question 19

Noah is an unpaid stay-at-home father who is not currently searching for paid work. Pete is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)   only Noah
B)   only Pete
C)   both Noah and Pete
D)   neither Noah nor PeteE) B) and D)
F) None of the above

Question 20

Job search

Accepted Answer

A)   is one reason economies always experience some unemployment.
B)   is the process of matching workers with appropriate jobs.
C)   would not be a problem if all workers and all jobs were the same.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Exam 28: Unemployment

According to the theory of efficiency wages, it may be profitable for firms to keep wages high even in the presence of a surplus of labor.

Correct Answer
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Correct Answer
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The normal rate of unemployment around which the unemployment rate fluctuates is called cyclical unemployment.

Correct Answer
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Figure 28-5 -Refer to Figure 28-5. If the minimum wage is set at $125, then

Correct Answer
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The adult population must equal the sum of the employed, the unemployed, and those not in the labor force.

Correct Answer
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Figure 28-6 -Refer to Figure 28-6. What type of unemployment is measured by the differences between lines A and B?

Correct Answer
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cyclical u...
View Answer

Job search

Correct Answer
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When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Correct Answer
verified

Susan is a plant manager in charge of a factory in a relatively poor country. Even though market wages are low, she decides to raise the wages of her workers. Her decision

Correct Answer
verified

Efficiency wages create structural unemployment.

Correct Answer
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When a union raises the wage above the equilibrium level, it

Correct Answer
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Table 28-6 -Refer to Table 28-6. What is the U-5 measure of labor underutilization?

Correct Answer
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Unemployment insurance

Correct Answer
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The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

Correct Answer
verified

Noah is an unpaid stay-at-home father who is not currently searching for paid work. Pete is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?

Correct Answer
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Measuring unemployment is the job of the Bureau of Labor Statistics.

Correct Answer
verified

Efficiency wages

Correct Answer
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Minimum-wage laws and unions are similar to each other but different from efficiency wages in that minimum-wage law and unions

Correct Answer
verified

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

Correct Answer
verified

Table 28-11 2010 Labor Data for Tajnia -Refer to Table 28-11. The labor force of Tajnia in 2010 is 12,250.

Correct Answer
verified

Exam 28: Unemployment

According to the theory of efficiency wages, it may be profitable for firms to keep wages high even in the presence of a surplus of labor.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 28-5 -Refer to Figure 28-5. If the minimum wage is set at $125, then

Correct AnswerverifiedShow Answer

The adult population must equal the sum of the employed, the unemployed, and those not in the labor force.

Correct AnswerverifiedShow Answer

Figure 28-6 -Refer to Figure 28-6. What type of unemployment is measured by the differences between lines A and B?

Correct Answerverifiedcyclical u...View AnswerShow Answer

Job search

Correct AnswerverifiedShow Answer

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Correct AnswerverifiedShow Answer

Susan is a plant manager in charge of a factory in a relatively poor country. Even though market wages are low, she decides to raise the wages of her workers. Her decision

Correct AnswerverifiedShow Answer

Efficiency wages create structural unemployment.

Correct AnswerverifiedShow Answer

When a union raises the wage above the equilibrium level, it

Correct AnswerverifiedShow Answer

Table 28-6 -Refer to Table 28-6. What is the U-5 measure of labor underutilization?

Correct AnswerverifiedShow Answer

Unemployment insurance

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force.

Correct AnswerverifiedShow Answer

Noah is an unpaid stay-at-home father who is not currently searching for paid work. Pete is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?

Correct AnswerverifiedShow Answer

Measuring unemployment is the job of the Bureau of Labor Statistics.

Correct AnswerverifiedShow Answer

Efficiency wages

Correct AnswerverifiedShow Answer

Minimum-wage laws and unions are similar to each other but different from efficiency wages in that minimum-wage law and unions

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 28-11 2010 Labor Data for Tajnia -Refer to Table 28-11. The labor force of Tajnia in 2010 is 12,250.

Correct AnswerverifiedShow Answer

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cyclical u...
View Answer

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