Question 1

Who from among the following would be classified as out of the labor force?

Accepted Answer

A)   Brenda Smith, an 18 year old college student employed part-time at a fast food restaurant.
B)   Mario Faubert, a NHL hockey player at home sick with the flu.
C)   Jack Little, a 21 year old new college graduate actively looking for his first job.
D)   Amanda Pie, a full-time homemaker.E) None of the above
F) B) and C)

Question 2

Labor unions contribute to structural unemployment by:

Accepted Answer

A)   keeping wages above the market-clearing level.
B)   keeping wages below the market-clearing level.
C)   allowing unemployed workers to search longer or less intensively for jobs.
D)   forcing unemployed workers to take the first job offered to them.E) B) and C)
F) A) and C)

Question 3

Following the 1960 and 1973 period, average real earnings of workers grew more ______ from 1973 to 1996 and then ______ from 1996 to 2004.

Accepted Answer

A)   slowly; grew more rapidly
B)   slowly; slowed even more
C)   slowly; grew at about the same rate
D)   rapidly; slowedE) A) and B)
F) None of the above

Question 4

Assume that the union wage already exceeds the market-clearing wage. If the union wage is increased, holding other factors constant, then the number unemployed ______ and the number employed _____.

Accepted Answer

A)   increase; increases
B)   increases; decreases
C)   increases; does not change
D)   decreases; increasesE) A) and C)
F) B) and C)

Question 5

An increase in the demand for workers producing computers for export versus producing agricultural products that can be imported more cheaply from abroad is an example of how increasing wage inequality can result from:

Accepted Answer

A)   the diminishing marginal product of labor.
B)   the diminishing marginal product of capital.
C)   increasing reservation prices.
D)   globalization.E) A) and D)
F) All of the above

Question 6

Frictional unemployment may be economically beneficial if:

Accepted Answer

A)   its psychological costs are borne only by the unemployed worker.
B)   losses in economic output are small.
C)   it leads to a better match between worker and job.
D)   the social costs are limited to smaller tax revenues collected.E) C) and D)
F) A) and B)

Question 7

Who from among the following is counted as employed?

Accepted Answer

A)   Ray wants to work forty hours per week, but can only find work for twenty hours per week.
B)   Anna Marie spends all of her time taking care of her children at home.
C)   Frank would like to work, but has not looked for work because he believes no jobs are available.
D)   Martin has been offered several jobs in the past four weeks, but has chosen not to accept any of the offers.E) A) and B)
F) All of the above

Question 8

In a country with 200 million people aged 16 years and older, 120 million in the labor force, and 114 million employed, what is the participation rate?

Accepted Answer

A)   40 percent
B)   57 percent
C)   60 percent
D)   95 percentE) A) and D)
F) B) and C)

Question 9

Globalization and skill-biased technological change have contributed to:

Accepted Answer

A)   the long-term growth in real wages.
B)   the slowdown in productivity since 1973.
C)   increasing wage inequality.
D)   high rates of employment in Western Europe.E) C) and D)
F) None of the above

Question 10

Macroland produces dishes and glassware. Before trade, a set of dishes sells for $100 and a set of glasses sells for $50. When Macroland opens to trade, foreign demand for domestically produced china is strong, raising the price of a set of dishes to $125. But foreign competition reduces the demand for domestically produced glasses, so that they now sell for $25 a set. Assuming workers cannot move between industries, the wages of workers producing dishes will ______ and the wages of workers producing glasses will ____.

Accepted Answer

A)   increase; increase
B)   increase; not change
C)   increase; decrease
D)   decrease; increaseE) A) and B)
F) C) and D)

Question 11

In a small town of 100 people, there are 10 children under 16, 10 retired people, 60 people with full-time jobs, 3 people with part-time jobs, 3 full-time students over 16, and 4 full-time homemakers. The remaining people did not have jobs, but wanted jobs. All but one of these had actively looked for a job in the previous four weeks. What is the unemployment rate in this town?

Accepted Answer

A)   10.0%
B)   11.0%
C)   12.5 %
D)   14.3%E) None of the above
F) C) and D)

Question 12

As a result of a war in the country of Omega, refugees flee to the country of Alpha to seek employment. Holding other factors constant, the influx of refugees will ______ the real wage in Alpha and ______ employment in Alpha.

Accepted Answer

A)   increase; increase
B)   increase; decrease
C)   decrease; decrease
D)   decrease; increaseE) A) and B)
F) A) and C)

Question 13

Depression and lost self-esteem are examples of the ______ costs of unemployment, while the lost income and tax revenue are examples of the ______ costs of unemployment.

Accepted Answer

A)   social; psychological
B)   economic; social
C)   economic; psychological
D)   psychological; economicE) A) and B)
F) B) and D)

Question 14

Increasing wage inequality results when international trade leads to ______ wages for workers in exporting industries and ______ wages for workers in importing industries.

Accepted Answer

A)   higher; higher
B)   higher; lower
C)   lower; no change in
D)   lower; higherE) A) and C)
F) A) and B)

Question 15

In the United Sates, the average annual rate of growth of real wages was fastest in the period:

Accepted Answer

A)   1960-1973.
B)   1960-1996.
C)   1960-2001.
D)   1973-1996.E) A) and B)
F) A) and C)

Question 16

In the market for labor, the price of labor is the:

Accepted Answer

A)   same as price of the product produced by the labor.
B)   real wage.
C)   marginal product of labor.
D)   number of hours employed per year.E) B) and C)
F) A) and C)

Question 17

Workers whose spells of unemployment are broken up by brief periods of employment or withdrawal from the labor force are referred to as ______ workers

Accepted Answer

A)   short-term unemployed
B)   discouraged
C)   long-term unemployed
D)   chronically unemployedE) A) and D)
F) A) and C)

Question 18

Who from among the following would be classified as employed?

Accepted Answer

A)   Brenda Smith, an 18 year old full-time college student.
B)   Mario Faubert, a NHL hockey player at home sick with the flu.
C)   Jack Little, a 21 year old new college graduate actively looking for his first job.
D)   Sarah Lopez, a retired public school teacher.E) C) and D)
F) B) and C)

Question 19

From an economic perspective, the best response to increased wage inequality is to:

Accepted Answer

A)   block future technological change.
B)   stop all international trade.
C)   provide transition aid to disadvantaged workers.
D)   make skill-biased technological change illegal.E) None of the above
F) A) and B)

Question 20

In a small town of 100 people, there are 10 children under 16, 10 retired people, 60 people with full-time jobs, 3 people with part-time jobs, 3 full-time students over 16, and 4 full-time homemakers. The remaining people did not have jobs, but wanted them. All but one of these had actively looked for a job in the previous four weeks. What is the participation rate in this town?

Accepted Answer

A)   63.0%
B)   72.0%
C)   80.0%
D)   87.5%E) A) and B)
F) All of the above

Exam 6: Measuring the Price Level and Inflation

Globalization and skill-biased technological change have contributed to:

Correct Answer
verified

In the United Sates, the average annual rate of growth of real wages was fastest in the period:

Correct Answer
verified

Increasing wage inequality results when international trade leads to wages for workers in exporting industries and wages for workers in importing industries.

Correct Answer
verified

Who from among the following would be classified as out of the labor force?

Correct Answer
verified

Who from among the following would be classified as employed?

Correct Answer
verified

From an economic perspective, the best response to increased wage inequality is to:

Correct Answer
verified

Frictional unemployment may be economically beneficial if:

Correct Answer
verified

Following the 1960 and 1973 period, average real earnings of workers grew more from 1973 to 1996 and then from 1996 to 2004.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

As a result of a war in the country of Omega, refugees flee to the country of Alpha to seek employment. Holding other factors constant, the influx of refugees will the real wage in Alpha and employment in Alpha.

Correct Answer
verified

An increase in the demand for workers producing computers for export versus producing agricultural products that can be imported more cheaply from abroad is an example of how increasing wage inequality can result from:

Correct Answer
verified

In a country with 200 million people aged 16 years and older, 120 million in the labor force, and 114 million employed, what is the participation rate?

Correct Answer
verified

Depression and lost self-esteem are examples of the costs of unemployment, while the lost income and tax revenue are examples of the costs of unemployment.

Correct Answer
verified

Correct Answer
verified

In the market for labor, the price of labor is the:

Correct Answer
verified

Labor unions contribute to structural unemployment by:

Correct Answer
verified

Who from among the following is counted as employed?

Correct Answer
verified

Assume that the union wage already exceeds the market-clearing wage. If the union wage is increased, holding other factors constant, then the number unemployed __ and the number employed _.

Correct Answer
verified

Workers whose spells of unemployment are broken up by brief periods of employment or withdrawal from the labor force are referred to as ______ workers

Correct Answer
verified

Exam 6: Measuring the Price Level and Inflation

Globalization and skill-biased technological change have contributed to:

Correct AnswerverifiedShow Answer

In the United Sates, the average annual rate of growth of real wages was fastest in the period:

Correct AnswerverifiedShow Answer

Increasing wage inequality results when international trade leads to ______ wages for workers in exporting industries and ______ wages for workers in importing industries.

Correct AnswerverifiedShow Answer

Who from among the following would be classified as out of the labor force?

Correct AnswerverifiedShow Answer

Who from among the following would be classified as employed?

Correct AnswerverifiedShow Answer

From an economic perspective, the best response to increased wage inequality is to:

Correct AnswerverifiedShow Answer

Frictional unemployment may be economically beneficial if:

Correct AnswerverifiedShow Answer

Following the 1960 and 1973 period, average real earnings of workers grew more ______ from 1973 to 1996 and then ______ from 1996 to 2004.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

As a result of a war in the country of Omega, refugees flee to the country of Alpha to seek employment. Holding other factors constant, the influx of refugees will ______ the real wage in Alpha and ______ employment in Alpha.

Correct AnswerverifiedShow Answer

An increase in the demand for workers producing computers for export versus producing agricultural products that can be imported more cheaply from abroad is an example of how increasing wage inequality can result from:

Correct AnswerverifiedShow Answer

In a country with 200 million people aged 16 years and older, 120 million in the labor force, and 114 million employed, what is the participation rate?

Correct AnswerverifiedShow Answer

Depression and lost self-esteem are examples of the ______ costs of unemployment, while the lost income and tax revenue are examples of the ______ costs of unemployment.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the market for labor, the price of labor is the:

Correct AnswerverifiedShow Answer

Labor unions contribute to structural unemployment by:

Correct AnswerverifiedShow Answer

Who from among the following is counted as employed?

Correct AnswerverifiedShow Answer

Assume that the union wage already exceeds the market-clearing wage. If the union wage is increased, holding other factors constant, then the number unemployed ______ and the number employed _____.

Correct AnswerverifiedShow Answer

Workers whose spells of unemployment are broken up by brief periods of employment or withdrawal from the labor force are referred to as ______ workers

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Increasing wage inequality results when international trade leads to wages for workers in exporting industries and wages for workers in importing industries.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Following the 1960 and 1973 period, average real earnings of workers grew more from 1973 to 1996 and then from 1996 to 2004.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

As a result of a war in the country of Omega, refugees flee to the country of Alpha to seek employment. Holding other factors constant, the influx of refugees will the real wage in Alpha and employment in Alpha.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Depression and lost self-esteem are examples of the costs of unemployment, while the lost income and tax revenue are examples of the costs of unemployment.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Assume that the union wage already exceeds the market-clearing wage. If the union wage is increased, holding other factors constant, then the number unemployed __ and the number employed _.

Correct Answer
verified

Correct Answer
verified