Question 1

Which of the following is not a reason economies experience structural unemployment?

Accepted Answer

A)   job search
B)   unions
C)   minimum-wage laws
D)   efficiency wagesE) A) and D)
F) A) and C)

Question 2

Data show that at least 10 percent of U.S. manufacturing jobs are destroyed every year.

Accepted Answer

A) True 
 B)False

Question 3

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.

Accepted Answer

People who are experienced and educated ...

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Scenario 28-1
Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment.
-Refer to Scenario 28-1. What is the total labor force?

Accepted Answer

A)   25 million
B)   28 million
C)   29 million
D)   30 millionE) B) and C)
F) A) and D)

Question 6

The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

Accepted Answer

A)   higher production costs and higher profits.
B)   higher production costs and lower profits.
C)   lower production costs and higher profits.
D)   lower production costs and lower profits.E) A) and C)
F) C) and D)

Question 7

The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.

Accepted Answer

A) True 
 B)False

Question 8

Just after World War II, the labor-force participation rate of men was

Accepted Answer

A)   about 33 percent, and in 2012, it was about 50 percent.
B)   about 50 percent, and in 2012, it was about 60 percent.
C)   about 60 percent, and in 2012, it was about 60 percent.
D)   about 90 percent, and in 2012, it was about 70 percent.E) None of the above
F) B) and D)

Question 9

The introduction of a union into an industry

Accepted Answer

A)   raises wages and employment in that industry.
B)   lowers wages and employment in that industry.
C)   lowers wages and raises employment in that industry.
D)   raises wages and lowers employment in that industry.E) B) and C)
F) None of the above

Question 10

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has

Accepted Answer

A)   gradually increased.
B)   remained constant.
C)   gradually decreased.
D)   been eliminated.E) All of the above
F) None of the above

Question 11

The efficiency-wage theory of worker health is

Accepted Answer

A)   more relevant for explaining unemployment in less developed countries than in rich countries.
B)   more relevant for explaining unemployment in rich countries than in less developed countries.
C)   equally relevant for explaining unemployment in less developed countries and in rich countries.
D)   not relevant for explaining unemployment.E) A) and D)
F) A) and C)

Question 12

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are not eligible for unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 13

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

Accepted Answer

A) True 
 B)False

Question 14

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

Accepted Answer

A)   14 years old.
B)   16 years old.
C)   18 years old.
D)   21 years old.E) A) and B)
F) A) and C)

Question 15

Teenagers have more frequent unemployment spells so, on average, they spend more time searching for jobs. Other thing the same, this means that teenagers have a

Accepted Answer

A)   higher unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be higher.
B)   higher unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment.
C)   lower unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be lower.
D)   lower unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment.E) B) and D)
F) B) and C)

Question 16

A typical American worker covered by unemployment insurance receives

Accepted Answer

A)   50 percent of his former wages for 26 weeks.
B)   50 percent of his former wages for 52 weeks.
C)   100 percent of his former wages for 26 weeks.
D)   100 percent of his former wages for 52 weeks.E) A) and B)
F) C) and D)

Question 17

Labor unions

Accepted Answer

A)   raise wages in unionized industries.
B)   create labor shortages in non-unionized industries.
C)   play a larger role in the current U.S. economy than in European countries such as Norway and Sweden.
D)   prefer to operate in states with right-to-work laws.E) All of the above
F) A) and D)

Question 18

Explain the effect of right-to-work laws on the collective bargaining power of labor unions.

Accepted Answer

Right-to-work laws decrease th...

Question 19

The amount of unemployment that a country typically experiences is a determinant of its standard of living.

Accepted Answer

A) True 
 B)False

Question 20

A firm may pay efficiency wages in an attempt to

Accepted Answer

A)   entice workers to work the night shift rather than the day shift.
B)   improve productivity by reducing turnover.
C)   reduce costs by attracting the least-skilled workers to apply for job vacancies.
D)   All of the above are correct.E) All of the above
F) C) and D)

Exam 28: Unemployment

Correct Answer
verified

Teenagers have more frequent unemployment spells so, on average, they spend more time searching for jobs. Other thing the same, this means that teenagers have a

Correct Answer
verified

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

Correct Answer
verified

Just after World War II, the labor-force participation rate of men was

Correct Answer
verified

The amount of unemployment that a country typically experiences is a determinant of its standard of living.

Correct Answer
verified

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has

Correct Answer
verified

Data show that at least 10 percent of U.S. manufacturing jobs are destroyed every year.

Correct Answer
verified

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

Correct Answer
verified

A typical American worker covered by unemployment insurance receives

Correct Answer
verified

The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

Correct Answer
verified

The introduction of a union into an industry

Correct Answer
verified

The efficiency-wage theory of worker health is

Correct Answer
verified

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are not eligible for unemployment insurance.

Correct Answer
verified

Which of the following is not a reason economies experience structural unemployment?

Correct Answer
verified

The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.

Correct Answer
verified

Labor unions

Correct Answer
verified

Explain the effect of right-to-work laws on the collective bargaining power of labor unions.

Correct Answer
verified
Right-to-work laws decrease th...
View Answer

A firm may pay efficiency wages in an attempt to

Correct Answer
verified

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

Correct Answer
verified

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.

Correct Answer
verified
People who are experienced and educated ...
View Answer

Exam 28: Unemployment

Correct AnswerverifiedShow Answer

Teenagers have more frequent unemployment spells so, on average, they spend more time searching for jobs. Other thing the same, this means that teenagers have a

Correct AnswerverifiedShow Answer

If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

Correct AnswerverifiedShow Answer

Just after World War II, the labor-force participation rate of men was

Correct AnswerverifiedShow Answer

The amount of unemployment that a country typically experiences is a determinant of its standard of living.

Correct AnswerverifiedShow Answer

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has

Correct AnswerverifiedShow Answer

Data show that at least 10 percent of U.S. manufacturing jobs are destroyed every year.

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

Correct AnswerverifiedShow Answer

A typical American worker covered by unemployment insurance receives

Correct AnswerverifiedShow Answer

The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

Correct AnswerverifiedShow Answer

The introduction of a union into an industry

Correct AnswerverifiedShow Answer

The efficiency-wage theory of worker health is

Correct AnswerverifiedShow Answer

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are not eligible for unemployment insurance.

Correct AnswerverifiedShow Answer

Which of the following is not a reason economies experience structural unemployment?

Correct AnswerverifiedShow Answer

The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.

Correct AnswerverifiedShow Answer

Labor unions

Correct AnswerverifiedShow Answer

Explain the effect of right-to-work laws on the collective bargaining power of labor unions.

Correct AnswerverifiedRight-to-work laws decrease th...View AnswerShow Answer

A firm may pay efficiency wages in an attempt to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.

Correct AnswerverifiedPeople who are experienced and educated ...View AnswerShow Answer

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verified
Right-to-work laws decrease th...
View Answer

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verified

Correct Answer
verified

Correct Answer
verified
People who are experienced and educated ...
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