Question 1

In the US an increase in the world price of oil would likely

Accepted Answer

A)  decrease unemployment, and the decrease would be greater the more generous unemployment insurance benefits were.
B)  decrease unemployment, but the decrease would be smaller the more generous unemployment insurance benefits were.
C)  increase unemployment, and the increase would be greater the more generous unemployment insurance benefits were.
D)  increase unemployment, but the increase would be smaller the more generous unemployment insurance benefits were.E) A) and C)
F) All of the above

Question 2

Which of the following is not correct?

Accepted Answer

A)  A union is a form of cartel.
B)  Union workers typically earn 25 to 33 percent more than similar nonunionized workers.
C)  The power of a union comes from its ability to strike if its demands are not met.
D)  Workers in unions reap the benefits of collective bargaining, while workers not in unions bear some of the cost.E) All of the above
F) A) and D)

Question 3

Even though the difference in labor force participation rates of males and females has narrowed,the participation rate of males remains higher.

Accepted Answer

A) True 
 B)False

Question 4

Ted is working part time.Alice is on temporary layoff.Who is counted as employed by the BLS?

Accepted Answer

A)  only Ted
B)  only Alice
C)  both Ted and Alice
D)  neither Ted nor AliceE) A) and B)
F) A) and C)

Question 5

Spells of unemployment end about

Accepted Answer

A)  1/5 of the time with the person leaving the labor force.
B)  1/4 of the time with the person leaving the labor force.
C)  1/3 of the time with the person leaving the labor force.
D)  1/2 of the time with the person leaving the labor force.E) None of the above
F) All of the above

Question 6

Job search

Accepted Answer

A)  explains why firms pay less than the competitive equilibrium wage.
B)  is due simply to the failure of wages to balance labor supply and labor demand.
C)  is the process of matching workers with appropriate jobs.
D)  All of the above are correct.E) B) and C)
F) A) and D)

Question 7

When a union bargains successfully with an employer,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) All of the above
F) A) and D)

Question 8

Unemployment insurance

Accepted Answer

A)  and unions both create structural unemployment.
B)  and unions both create frictional unemployment.
C)  creates frictional unemployment and unions create structural unemployment.
D)  creates structural unemployment and unions create frictional unemployment.E) A) and B)
F) B) and D)

Question 9

Which of the following would be associated with the type of unemployment created by minimum wages?

Accepted Answer

A)  Greg quits his job as a grocery cashier because he prefers to work at the library.
B)  Mia searches for a low-wage job, but finds that there seem to be more people looking than positions open.
C)  In hopes of earning higher income Bruce goes back to trade school to get further training.
D)  Liz pays the workers for her plumbing and heating company more than the equilibrium wage because she believes it will make them work harder.E) B) and C)
F) C) and D)

Question 10

Frictional unemployment exists because of the time it takes for workers to search for the jobs that best suit their tastes and skills.

Accepted Answer

A) True 
 B)False

Question 11

Labor Stats
The Labor Market
This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Meditor.
 
-Refer to Labor Stats.What is the adult unemployment rate in Meditor?

Accepted Answer

A)  4.12%
B)  6.25%
C)  11.11%
D)  12.50%E) A) and D)
F) A) and C)

Question 12

Most spells of unemployment are short,and most unemployment observed at any given time is long term.How can this be?

Accepted Answer

Most unemployed people in the economy ar...

Question 13

Which of the following is correct?

Accepted Answer

A)  Short-term unemployment is a more serious problem than long-term unemployment.
B)  Most spells of unemployment are long term.
C)  Most of the currently unemployed have been unemployed a long time.
D)  None of the above is correct.E) All of the above
F) C) and D)

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Which group has the highest labor-force participation rate?

Accepted Answer

A)  black females
B)  white females
C)  white males
D)  There are no significant differences in participation rates across these groups.E) All of the above
F) C) and D)

Question 16

Who would be included in the labor force?

Accepted Answer

A)  Homer, who is waiting for his new job to start
B)  Michelle, who has become discouraged looking for a job and has quit looking for awhile
C)  Derrick, an unpaid homemaker
D)  None of the above would be included in the labor force.E) A) and D)
F) A) and C)

Question 17

Other things the same,an increase in wages above their equilibrium level

Accepted Answer

A)  increases frictional unemployment but leaves the natural rate of unemployment unchanged.
B)  increases frictional unemployment and increases the natural rate of unemployment.
C)  increases structural unemployment but leaves the natural rate of unemployment unchanged.
D)  increases structural unemployment and increases the natural rate of unemployment.E) All of the above
F) A) and B)

Question 18

The natural rate of unemployment is the

Accepted Answer

A)  unemployment rate that would prevail with zero inflation.
B)  rate associated with the highest possible level of GDP.
C)  difference between the long-run and short-run unemployment rates.
D)  amount of unemployment that the economy normally experiences.E) None of the above
F) A) and C)

Question 19

Labor Stats
The Labor Market
This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Meditor.
 
-Refer to Labor Stats.What is the adult female labor force in Meditor?

Accepted Answer

A)  35 million
B)  40 million
C)  70 million
D)  105 millionE) A) and B)
F) A) and C)

Question 20

Suppose that telemarketers are not unionized.If they unionize,then the supply of labor in other sectors of the economy

Accepted Answer

A)  decreases, raising wages in industries that are not unionized.
B)  decreases, reducing wages in industries that are not unionized.
C)  increases, raising wages in industries that are not unionized.
D)  increases, reducing wages in industries that are not unionized.E) A) and D)
F) A) and C)

Exam 28: Unemployment

When a union bargains successfully with an employer,in that industry

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In the US an increase in the world price of oil would likely

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Other things the same,an increase in wages above their equilibrium level

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Job search

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Suppose that telemarketers are not unionized.If they unionize,then the supply of labor in other sectors of the economy

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Who would be included in the labor force?

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

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Frictional unemployment exists because of the time it takes for workers to search for the jobs that best suit their tastes and skills.

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Most spells of unemployment are short,and most unemployment observed at any given time is long term.How can this be?

Correct AnswerverifiedMost unemployed people in the economy ar...View AnswerShow Answer

Ted is working part time.Alice is on temporary layoff.Who is counted as employed by the BLS?

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Unemployment insurance

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Labor Stats The Labor Market This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Meditor. -Refer to Labor Stats.What is the adult unemployment rate in Meditor?

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Labor Stats The Labor Market This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Meditor. -Refer to Labor Stats.What is the adult female labor force in Meditor?

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Which of the following would be associated with the type of unemployment created by minimum wages?

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The natural rate of unemployment is the

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Spells of unemployment end about

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Which of the following is correct?

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Which of the following is not correct?

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Even though the difference in labor force participation rates of males and females has narrowed,the participation rate of males remains higher.

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Which group has the highest labor-force participation rate?

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Most unemployed people in the economy ar...
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