Question 1

One explanation for long-run unemployment is that it takes time for workers to search for the jobs that are best suited for them.

Accepted Answer

A) True 
 B)False

Question 2

Almost nine-tenths of all spells of unemployment end when the unemployed person finds a job.

Accepted Answer

A) True 
 B)False

Question 3

Adam is looking for a job in marketing. He has had some offers and his prospects are promising, but he has 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)  both Adam and Amanda
D)  neither Amanda nor AdamE) B) and C)
F) A) and C)

Question 4

Table 28-11
2015 Labor Data for Tajnia 
-Refer to Table 28-11. The labor force of Tajnia in 2015 is 10,000.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is an example of an efficiency wage?

Accepted Answer

A)  a high wage paid to compensate for dangerous work such as coal mining
B)  an above-equilibrium wage offered by a firm to attract a more talented pool of job applicants
C)  a wage below the minimum wage but supplemented by customer tips
D)  a high wage paid to a college graduate for a high-skill job such as electrical engineeringE) B) and C)
F) C) and D)

Question 6

The demand for labor by a certain firm is independent of the demand for that firm's product.

Accepted Answer

A) True 
 B)False

Question 7

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

Accepted Answer

A) True 
 B)False

Question 8

Table 28-10
The table below lists the number of people by labor force classification for the country of Springfield. 
-Refer to Table 28-10. Calculate the U-4 unemployment rate.

Accepted Answer

The answer of Table 28-10
The table below lists the number...

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate.

Accepted Answer

A) True 
 B)False

Question 11

Most spells of unemployment are long, and most unemployment observed at any given time is long-term.

Accepted Answer

A) True 
 B)False

Question 12

The theory of efficiency wages provides a possible explanation as to why

Accepted Answer

A)  workers form unions.
B)  firms should try to reduce surpluses of labor.
C)  firms may be inclined to keep their workers' wages above the equilibrium level.
D)  firms may be inclined to keep their workers' wages below the equilibrium level.E) B) and D)
F) None of the above

Question 13

Frictional unemployment is inevitable because

Accepted Answer

A)  sectoral shifts are always happening.
B)  there is a federal minimum-wage law in the U.S.
C)  some people do not want to be employed.
D)  unions are very popular in the U.S.E) A) and B)
F) A) and C)

Question 14

When the wage is above the equilibrium level,

Accepted Answer

A)  the labor market is functioning more efficiently than it otherwise would function.
B)  there is a shortage of labor.
C)  the quantity of labor supplied exceeds the quantity of labor demanded.
D)  job search is the primary explanation for the unemployment that is observed.E) A) and B)
F) A) and C)

Question 15

Within the U.S. population, teenagers (ages 16-19) have similar rates of unemployment to adults of prime working age (ages 25-54), regardless of race or gender.

Accepted Answer

A) True 
 B)False

Question 16

Briefly describe how labor unions can affect wages in non-unionized industries.

Accepted Answer

If labor unions raise wages above the eq...

Question 17

In 2016 the Bureau of Labor Statistics reported that there were 57.1 million people over age 25 whose highest level of education was some college or an associate degree. Of these, 36.4 million were employed and 1.5 million were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)  66.4% and 2.6%
B)  66.4% and 4.0%
C)  63.7% and 2.6%
D)  63.7% and 4.0%E) B) and C)
F) A) and D)

Question 18

Minimum-wage laws

Accepted Answer

A)  create frictional unemployment, while firms paying wages above equilibrium to reduce worker turnover creates structural unemployment.
B)  create structural unemployment, while firms paying wages above equilibrium to reduce worker turnover creates frictional unemployment.
C)  and firms paying wages above equilibrium to reduce worker turnover both create structural unemployment.
D)  and firms paying wages above equilibrium to reduce worker turnover both create frictional unemployment.E) A) and B)
F) B) and D)

Question 19

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Accepted Answer

According to the theory of efficiency wa...

Question 20

The Wagner Act of 1935

Accepted Answer

A)  prevents unions from acting as cartels.
B)  allows workers joining a unionized firm to choose not to join the union.
C)  prevents employers from interfering when workers try to organize a union.
D)  prevents firms from hiring permanent replacements for workers who are on strike.E) None of the above
F) C) and D)

Exam 28: Unemployment and Its Natural Rate

Briefly describe how labor unions can affect wages in non-unionized industries.

Correct Answer
verified
If labor unions raise wages above the eq...
View Answer

Table 28-11 2015 Labor Data for Tajnia -Refer to Table 28-11. The labor force of Tajnia in 2015 is 10,000.

Correct Answer
verified

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Correct Answer
verified
According to the theory of efficiency wa...
View Answer

The demand for labor by a certain firm is independent of the demand for that firm's product.

Correct Answer
verified

The theory of efficiency wages provides a possible explanation as to why

Correct Answer
verified

Frictional unemployment is inevitable because

Correct Answer
verified

The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate.

Correct Answer
verified

Correct Answer
verified

Almost nine-tenths of all spells of unemployment end when the unemployed person finds a job.

Correct Answer
verified

Most spells of unemployment are long, and most unemployment observed at any given time is long-term.

Correct Answer
verified

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

Correct Answer
verified

The Wagner Act of 1935

Correct Answer
verified

Which of the following is an example of an efficiency wage?

Correct Answer
verified

Table 28-10 The table below lists the number of people by labor force classification for the country of Springfield. -Refer to Table 28-10. Calculate the U-4 unemployment rate.

Correct Answer
verified

Minimum-wage laws

Correct Answer
verified

One explanation for long-run unemployment is that it takes time for workers to search for the jobs that are best suited for them.

Correct Answer
verified

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

Correct Answer
verified

When the wage is above the equilibrium level,

Correct Answer
verified

Within the U.S. population, teenagers (ages 16-19) have similar rates of unemployment to adults of prime working age (ages 25-54), regardless of race or gender.

Correct Answer
verified

Correct Answer
verified

Exam 28: Unemployment and Its Natural Rate

Briefly describe how labor unions can affect wages in non-unionized industries.

Correct AnswerverifiedIf labor unions raise wages above the eq...View AnswerShow Answer

Table 28-11 2015 Labor Data for Tajnia -Refer to Table 28-11. The labor force of Tajnia in 2015 is 10,000.

Correct AnswerverifiedShow Answer

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Correct AnswerverifiedAccording to the theory of efficiency wa...View AnswerShow Answer

The demand for labor by a certain firm is independent of the demand for that firm's product.

Correct AnswerverifiedShow Answer

The theory of efficiency wages provides a possible explanation as to why

Correct AnswerverifiedShow Answer

Frictional unemployment is inevitable because

Correct AnswerverifiedShow Answer

The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Almost nine-tenths of all spells of unemployment end when the unemployed person finds a job.

Correct AnswerverifiedShow Answer

Most spells of unemployment are long, and most unemployment observed at any given time is long-term.

Correct AnswerverifiedShow Answer

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

Correct AnswerverifiedShow Answer

The Wagner Act of 1935

Correct AnswerverifiedShow Answer

Which of the following is an example of an efficiency wage?

Correct AnswerverifiedShow Answer

Table 28-10 The table below lists the number of people by labor force classification for the country of Springfield. -Refer to Table 28-10. Calculate the U-4 unemployment rate.

Correct AnswerverifiedShow Answer

Minimum-wage laws

Correct AnswerverifiedShow Answer

One explanation for long-run unemployment is that it takes time for workers to search for the jobs that are best suited for them.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When the wage is above the equilibrium level,

Correct AnswerverifiedShow Answer

Within the U.S. population, teenagers (ages 16-19) have similar rates of unemployment to adults of prime working age (ages 25-54), regardless of race or gender.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified
If labor unions raise wages above the eq...
View Answer

Correct Answer
verified

Correct Answer
verified
According to the theory of efficiency wa...
View Answer

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verified

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