Question 1

Within the U.S., teenagers have similar rates of labor-force participation as older workers.

Accepted Answer

A) True 
 B)False

Question 2

The labor force minus the number of employed equals the number of unemployed.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is an explanation for the existence of frictional unemployment?

Accepted Answer

A)   efficiency wages
B)   minimum-wage laws
C)   unions
D)   job searchE) None of the above
F) All of the above

Question 4

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

Accepted Answer

A)   cyclical unemployment.
B)   frictional unemployment.
C)   seasonal unemployment.
D)   structural unemployment.E) C) and D)
F) B) and C)

Question 5

Data show that at least 20 percent of U.S. manufacturing jobs are destroyed every year.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is correct?

Accepted Answer

A)   In the U.S. the natural rate of unemployment is frequently near 2%.
B)   The natural rate of unemployment fluctuates more than the cyclical rate of unemployment.
C)   The cyclical rate of unemployment is sometimes below the natural rate of unemployment.
D)   None of the above is correct.E) A) and B)
F) B) and C)

Question 7

Right-to-work laws allow striking union members to be permanently replaced.

Accepted Answer

A) True 
 B)False

Question 8

Adam is looking for a job in marketing. He has had some offers and his prospects are promising but he's not yet accepted a job. Amanda lost her job working for Mercury Bicycles because many customers decided they prefer bicycles manufactured by Ultimate Bicycles instead. Who is frictionally unemployed?

Accepted Answer

A)   Adam but not Amanda
B)   Amanda but not Adam
C)   Adam and Amanda
D)   neither Amanda nor AdamE) A) and B)
F) B) and C)

Question 9

When a union is present in a labor market, wages are not determined by the equilibrium of supply and demand.

Accepted Answer

A) True 
 B)False

Question 10

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) A) and B)
F) None of the above

Question 11

Danielle did not work last week because flooding forced an evacuation of her workplace. The Bureau of Labor Statistics counts Danielle 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) None of the above
F) A) and D)

Question 12

Unemployment numbers reported by the Bureau of Labor Statistics are reported based on a

Accepted Answer

A)   monthly survey of about 60,000 households
B)   monthly survey of about 6,000 households
C)   weekly survey of about 60,000 households
D)   weekly survey of about 6,000 householdsE) B) and C)
F) A) and D)

Question 13

Which of the following is not correct?

Accepted Answer

A)   Frictional unemployment is inevitable in a dynamic economy.
B)   Although the unemployment created by sectoral shifts is unfortunate, in the long run such changes lead to higher productivity and higher living standards.
C)   At least 10 percent of U.S. manufacturing jobs are destroyed every year.
D)   More than 13 percent of U.S. workers leave their jobs in a typical month.E) B) and D)
F) B) and C)

Question 14

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 15

U.S. Department of Labor data show that minimum-wage workers tend to be

Accepted Answer

A)   more likely to be working part time and in the communication industry.
B)   more likely to be working part time and in the leisure and hospitality industry.
C)   more likely to be working full time and in the communication industry.
D)   more likely to be working full time and in the leisure and hospitality industry.E) A) and C)
F) A) and B)

Question 16

The Bureau of Labor Statistics' household survey and establishment survey both yield information about unemployment.

Accepted Answer

A) True 
 B)False

Question 17

The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.

Accepted Answer

A) True 
 B)False

Question 18

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.

Accepted Answer

A) True 
 B)False

Question 19

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) B) and D)
F) None of the above

Question 20

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, there are more workers willing to work than there are jobs, so some workers are unemployed.

Accepted Answer

A) True 
 B)False

Exam 10: Unemployment

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

Correct Answer
verified

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.

Correct Answer
verified

U.S. Department of Labor data show that minimum-wage workers tend to be

Correct Answer
verified

Data show that at least 20 percent of U.S. manufacturing jobs are destroyed every year.

Correct Answer
verified

The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.

Correct Answer
verified

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

Correct Answer
verified

The labor force minus the number of employed equals the number of unemployed.

Correct Answer
verified

Danielle did not work last week because flooding forced an evacuation of her workplace. The Bureau of Labor Statistics counts Danielle as

Correct Answer
verified

When a union is present in a labor market, wages are not determined by the equilibrium of supply and demand.

Correct Answer
verified

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

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

The Bureau of Labor Statistics' household survey and establishment survey both yield information about unemployment.

Correct Answer
verified

Unemployment numbers reported by the Bureau of Labor Statistics are reported based on a

Correct Answer
verified

Right-to-work laws allow striking union members to be permanently replaced.

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

Within the U.S., teenagers have similar rates of labor-force participation as older workers.

Correct Answer
verified

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 Answer
verified

Which of the following is an explanation for the existence of frictional unemployment?

Correct Answer
verified

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, there are more workers willing to work than there are jobs, so some workers are unemployed.

Correct Answer
verified

Exam 10: Unemployment

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

Correct AnswerverifiedShow Answer

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.

Correct AnswerverifiedShow Answer

U.S. Department of Labor data show that minimum-wage workers tend to be

Correct AnswerverifiedShow Answer

Data show that at least 20 percent of U.S. manufacturing jobs are destroyed every year.

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.

Correct AnswerverifiedShow Answer

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

Correct AnswerverifiedShow Answer

The labor force minus the number of employed equals the number of unemployed.

Correct AnswerverifiedShow Answer

Danielle did not work last week because flooding forced an evacuation of her workplace. The Bureau of Labor Statistics counts Danielle as

Correct AnswerverifiedShow Answer

When a union is present in a labor market, wages are not determined by the equilibrium of supply and demand.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' household survey and establishment survey both yield information about unemployment.

Correct AnswerverifiedShow Answer

Unemployment numbers reported by the Bureau of Labor Statistics are reported based on a

Correct AnswerverifiedShow Answer

Right-to-work laws allow striking union members to be permanently replaced.

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Within the U.S., teenagers have similar rates of labor-force participation as older workers.

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

Which of the following is an explanation for the existence of frictional unemployment?

Correct AnswerverifiedShow Answer

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, there are more workers willing to work than there are jobs, so some workers are unemployed.

Correct AnswerverifiedShow Answer

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