Question 1

Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A)   Dia, an unpaid homemaker not looking for other work
B)   Kevin, a full-time student not looking for work
C)   Sarah, who does not have a job but is looking for work
D)   None of the above is correct.

Question 2

The destruction of manufacturing jobs and workers leaving their jobs to find better ones both contribute to structural unemployment.

Accepted Answer

A) True 
 B)False

Question 3

A firm might offer efficiency wages in order to reduce shirking.

Accepted Answer

A) True 
 B)False

Question 4

Efficiency wages create a

Accepted Answer

A)   shortage of labor and so reduce unemployment.
B)   shortage of labor and so raise unemployment.
C)   surplus of labor and so reduce unemployment.
D)   surplus of labor and so raise unemployment.

Question 5

Suppose that efficiency wages become more common in the economy. Imposing efficiency wages

Accepted Answer

A)   increases the quantity demanded and decreases the quantity supplied of labor.
B)   decreases the quantity demanded and increases the quantity supplied of labor.
C)   increases the quantity demanded and decreases the quantity supplied of labor.
D)   decreases the quantity demanded and increases the quantity supplied of labor.

Question 6

Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

Accepted Answer

A) True 
 B)False

Question 7

Some degree of unemployment is inevitable in a complex economy.

Accepted Answer

A) True 
 B)False

Question 8

In Belgium, Norway, and Sweden, the percentage of workers who belong to unions is

Accepted Answer

A)   almost zero.
B)   less than it is in the United States.
C)   about the same as it is in the United States.
D)   greater than it is in the United States.

Question 9

Table 28-1
Sample Population 
-Refer to Table 28-1. How many in the sample are unemployed?

Accepted Answer

A)   5
B)   4
C)   3
D)   2

Question 10

Wages set above the equilibrium wage by

Accepted Answer

A)   firms to increase morale are called collective bargaining wages.
B)   lawmakers to decrease cyclical unemployment are called minimum wages laws.
C)   firms to increase productivity are called efficiency wages.
D)   lawmakers to decrease the length of a job search are called efficiency wages.

Question 11

The Bureau of Labor Statistics' U­4 measure of joblessness includes discouraged workers.

Accepted Answer

A) True 
 B)False

Question 12

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

Question 13

An increase in the minimum wage

Accepted Answer

A)   reduces structural unemployment.
B)   reduces frictional unemployment,
C)   increases structural unemployment.
D)   increases frictional unemployment.

Question 14

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous four weeks.

Accepted Answer

A) True 
 B)False

Question 15

Esmerelda worked part­time for her mother's business without pay. Tabitha was absent from work because she had strep throat. Who is counted as "employed" by the Bureau of Labor Statistics?

Accepted Answer

A)   Esmerelda but not Tabitha
B)   Tabitha but not Esmerelda
C)   both Esmerelda and Tabitha
D)   neither Esmerelda nor Tabitha

Question 16

Public policy can reduce frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 17

Providing training for unemployed individuals is primarily intended to reduce

Accepted Answer

A)   frictional unemployment.
B)   seasonal unemployment.
C)   structural unemployment.
D)   cyclical unemployment.

Question 18

More than 3 percent of U.S. workers leave their jobs in a typical month.

Accepted Answer

A) True 
 B)False

Question 19

Cyclical unemployment is caused by

Accepted Answer

A)   frictional and structural unemployment
B)   frictional but not structural unemployment
C)   structural but not frictional unemployment
D)   neither frictional nor structural unemployment

Question 20

Since unemployment rates are consistently higher in Canada and some Western European countries than in the United States, it appears that the natural rate of unemployment is lower in the United States. What might explain this difference?

Accepted Answer

The text offers two explanations for the...

Exam 28: Unemployment

The destruction of manufacturing jobs and workers leaving their jobs to find better ones both contribute to structural unemployment.

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An increase in the minimum wage

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Who is included in the labor force by the Bureau of Labor Statistics?

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The Bureau of Labor Statistics' U­4 measure of joblessness includes discouraged workers.

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Efficiency wages create a

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A firm might offer efficiency wages in order to reduce shirking.

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

Table 28-1 Sample Population -Refer to Table 28-1. How many in the sample are unemployed?

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Public policy can reduce frictional unemployment.

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Providing training for unemployed individuals is primarily intended to reduce

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The Bureau of Labor Statistics' "unemployed" category includes those who were not employed, were available for work, and had tried to find employment during the previous four weeks.

Correct AnswerverifiedShow Answer

In Belgium, Norway, and Sweden, the percentage of workers who belong to unions is

Correct AnswerverifiedShow Answer

Suppose that efficiency wages become more common in the economy. Imposing efficiency wages

Correct AnswerverifiedShow Answer

Cyclical unemployment is caused by

Correct AnswerverifiedShow Answer

More than 3 percent of U.S. workers leave their jobs in a typical month.

Correct AnswerverifiedShow Answer

Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

Correct AnswerverifiedShow Answer

Wages set above the equilibrium wage by

Correct AnswerverifiedShow Answer

Since unemployment rates are consistently higher in Canada and some Western European countries than in the United States, it appears that the natural rate of unemployment is lower in the United States. What might explain this difference?

Correct AnswerverifiedThe text offers two explanations for the...View AnswerShow Answer

Some degree of unemployment is inevitable in a complex economy.

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Esmerelda worked part­time for her mother's business without pay. Tabitha was absent from work because she had strep throat. Who is counted as "employed" by the Bureau of Labor Statistics?

Correct AnswerverifiedShow Answer

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The Bureau of Labor Statistics' U4 measure of joblessness includes discouraged workers.

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The text offers two explanations for the...
View Answer

Correct Answer
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Esmerelda worked parttime for her mother's business without pay. Tabitha was absent from work because she had strep throat. Who is counted as "employed" by the Bureau of Labor Statistics?

Correct Answer
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