Question 1

The Bureau of Labor Statistics' U-2 measure of joblessness includes job losers and job leavers.

Accepted Answer

A) True 
 B)False

Question 2

Suppose that some people are counted as unemployed when,to maintain unemployment compensation,they search for work only at places where they are unlikely to be hired.If these individuals were counted as out of the labor force instead of as unemployed,then

Accepted Answer

A)   both the unemployment rate and labor-force participation rate would be higher.
B)   both the unemployment rate and labor-force participation rate would be lower.
C)   the unemployment rate would be lower and the labor-force participation rate would be higher.
D)   the unemployment rate would be higher and the participation rate would be lower.E) All of the above
F) A) and B)

Question 3

Brian is the owner of a firm that produces bottled water in Washington state.There are many other such firms in the area.Brian 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) None of the above
F) A) and D)

Question 4

Collective bargaining refers to

Accepted Answer

A)   the process by which the government sets exemptions from the minimum wage law.
B)   setting the same wage for all employees to prevent conflict among workers.
C)   firms colluding to set the wages of employees below equilibrium.
D)   the process by which unions and firms agree on the terms of employment.E) A) and B)
F) All of the above

Question 5

In 2009,based on concepts similar to those used to estimate U.S.employment figures,the Swedish adult non-institutionalized population was 7.568 million,the labor force was 4.888 million,and the number of people employed was 4.486 million.According to these numbers,the Swedish labor-force participation rate and unemployment rate were about

Accepted Answer

A)   64.6% and 8.2%.
B)   64.6% and 5.3%.
C)   59.3% and 8.2%.
D)   59.3% and 5.3%.E) All of the above
F) C) and D)

Question 6

Most economists believe unions are bad for the economy as a whole.

Accepted Answer

A) True 
 B)False

Question 7

Suppose people in the adult population in a small country are classified based on their age.
 
-Refer to Labor Force Statistics by Age.Suppose that the natural rate of unemployment is 5% for those under 55 and 3% for those 55 and older.The cyclical unemployment rate for those under 55 is

Accepted Answer

A)   .88% which is greater than the cyclical unemployment rate for those 55 and older.
B)   .88% which is less than the cyclical unemployment rate for those 55 and older.
C)   -.83% which is greater than the cyclical unemployment rate for those 55 and older.
D)   -.83% which is less than the cyclical unemployment rate for those 55 and older.E) B) and C)
F) C) and D)

Question 8

The Bureau of Labor Statistics is part of the U.S.Department of

Accepted Answer

A)   the Treasury.
B)   Commerce.
C)   Labor.
D)   the Interior.E) All of the above
F) None of the above

Question 9

If you were told that someone you knew nothing else about had just become unemployed,your best guess would be

Accepted Answer

A)   that they would be unemployed for a long time,and that most of the unemployed they've joined have been unemployed for a long time.
B)   that they would be unemployed for a long time,even though most of the unemployed they've joined have been unemployed for a short time.
C)   that they would be unemployed for a short time,even though most of the unemployed they've joined have been unemployed for a long time.
D)   that they will be unemployed for a short time,and that most of the unemployed they've joined have been unemployed for a short time.E) A) and B)
F) A) and C)

Question 10

Sectoral shifts in demand for output

Accepted Answer

A)   create structural unemployment.
B)   immediately reduce unemployment.
C)   increase unemployment due to job search.
D)   do not affect demand for labor.E) A) and B)
F) A) and C)

Question 11

The labor force equals the sum of the employed and the unemployed.

Accepted Answer

A) True 
 B)False

Question 12

Within the U.S.,blacks have higher rates of unemployment than whites.

Accepted Answer

A) True 
 B)False

Question 13

Table 20-5
2010 Labor Data for Tajnia
 
-Refer to Table 20-5.The labor force of Tajnia in 2010 is 10,000.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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

Question 15

Frictional unemployment is

Accepted Answer

A)   not inevitable; rather,it can be reduced to zero by well-designed public policies.
B)   not inevitable; rather,it could be reduced to zero if by the elimination of unemployment insurance.
C)   inevitable,because at any given time,jobs are being created in some firms and destroyed in other firms.
D)   inevitable,because in some industries,wages are always set above the level that brings supply and demand into equilibrium.E) A) and B)
F) A) and C)

Question 16

An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

Accepted Answer

A) True 
 B)False

Question 17

Table 20-1
Labor Data for Aridia
 
-Refer to Table 20-1.The number of adults not in the labor force of Aridia

Accepted Answer

A)   increased from 2010 to 2011 and increased from 2011 to 2012.
B)   increased from 2010 to 2011 and decreased from 2011 to 2012.
C)   decreased from 2010 to 2011 and increased from 2011 to 2012.
D)   decreased from 2010 to 2011 and decreased from 2011 to 2012.E) A) and D)
F) None of the above

Question 18

Changes in the composition of demand among industries or regions are called sectoral shifts.

Accepted Answer

A) True 
 B)False

Question 19

Economists at the Congressional Budget Office estimated that for 2009,the U.S.natural rate of unemployment was

Accepted Answer

A)   2.5 percent.
B)   3.0 percent.
C)   5.0 percent.
D)   6.5 percent.E) All of the above
F) C) and D)

Question 20

Critics of government-run employment agencies and public training programs argue that the private market is better at matching workers and jobs than the government is.

Accepted Answer

A) True 
 B)False

Exam 20: Unemployment

If you were told that someone you knew nothing else about had just become unemployed,your best guess would be

Correct Answer
verified

Economists at the Congressional Budget Office estimated that for 2009,the U.S.natural rate of unemployment was

Correct Answer
verified

Most economists believe unions are bad for the economy as a whole.

Correct Answer
verified

Frictional unemployment is

Correct Answer
verified

The Bureau of Labor Statistics' U-2 measure of joblessness includes job losers and job leavers.

Correct Answer
verified

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

Correct Answer
verified

Within the U.S.,blacks have higher rates of unemployment than whites.

Correct Answer
verified

The labor force equals the sum of the employed and the unemployed.

Correct Answer
verified

Changes in the composition of demand among industries or regions are called sectoral shifts.

Correct Answer
verified

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

Table 20-5 2010 Labor Data for Tajnia -Refer to Table 20-5.The labor force of Tajnia in 2010 is 10,000.

Correct Answer
verified

An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

Correct Answer
verified

Correct Answer
verified

The Bureau of Labor Statistics is part of the U.S.Department of

Correct Answer
verified

Suppose people in the adult population in a small country are classified based on their age. -Refer to Labor Force Statistics by Age.Suppose that the natural rate of unemployment is 5% for those under 55 and 3% for those 55 and older.The cyclical unemployment rate for those under 55 is

Correct Answer
verified

Sectoral shifts in demand for output

Correct Answer
verified

Critics of government-run employment agencies and public training programs argue that the private market is better at matching workers and jobs than the government is.

Correct Answer
verified

Collective bargaining refers to

Correct Answer
verified

Suppose that some people are counted as unemployed when,to maintain unemployment compensation,they search for work only at places where they are unlikely to be hired.If these individuals were counted as out of the labor force instead of as unemployed,then

Correct Answer
verified

Table 20-1 Labor Data for Aridia -Refer to Table 20-1.The number of adults not in the labor force of Aridia

Correct Answer
verified

Exam 20: Unemployment

If you were told that someone you knew nothing else about had just become unemployed,your best guess would be

Correct AnswerverifiedShow Answer

Economists at the Congressional Budget Office estimated that for 2009,the U.S.natural rate of unemployment was

Correct AnswerverifiedShow Answer

Most economists believe unions are bad for the economy as a whole.

Correct AnswerverifiedShow Answer

Frictional unemployment is

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' U-2 measure of joblessness includes job losers and job leavers.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Within the U.S.,blacks have higher rates of unemployment than whites.

Correct AnswerverifiedShow Answer

The labor force equals the sum of the employed and the unemployed.

Correct AnswerverifiedShow Answer

Changes in the composition of demand among industries or regions are called sectoral shifts.

Correct AnswerverifiedShow Answer

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

Table 20-5 2010 Labor Data for Tajnia -Refer to Table 20-5.The labor force of Tajnia in 2010 is 10,000.

Correct AnswerverifiedShow Answer

An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics is part of the U.S.Department of

Correct AnswerverifiedShow Answer

Suppose people in the adult population in a small country are classified based on their age. -Refer to Labor Force Statistics by Age.Suppose that the natural rate of unemployment is 5% for those under 55 and 3% for those 55 and older.The cyclical unemployment rate for those under 55 is

Correct AnswerverifiedShow Answer

Sectoral shifts in demand for output

Correct AnswerverifiedShow Answer

Critics of government-run employment agencies and public training programs argue that the private market is better at matching workers and jobs than the government is.

Correct AnswerverifiedShow Answer

Collective bargaining refers to

Correct AnswerverifiedShow Answer

Suppose that some people are counted as unemployed when,to maintain unemployment compensation,they search for work only at places where they are unlikely to be hired.If these individuals were counted as out of the labor force instead of as unemployed,then

Correct AnswerverifiedShow Answer

Table 20-1 Labor Data for Aridia -Refer to Table 20-1.The number of adults not in the labor force of Aridia

Correct AnswerverifiedShow Answer

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