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.E) None of the above
F) C) and D)

Question 2

Efficiency wages

Accepted Answer

A)   increase frictional unemployment by keeping wages above equilibrium.
B)   decrease frictional unemployment by keeping wages at equilibrium.
C)   increase structural unemployment by keeping wages above equilibrium.
D)   decrease structural unemployment by keeping wages at equilibrium.E) B) and C)
F) None of the above

Question 3

It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 4

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 5

An economy's natural rate of unemployment is the

Accepted Answer

A)   economy's long­run target level of unemployment.
B)   amount of unemployment that the economy normally experiences.
C)   lowest rate of unemployment the economy can achieve.
D)   All of the above are correct.E) A) and B)
F) B) and C)

Question 6

The Bureau of Labor Statistics counts discouraged workers as

Accepted Answer

A)   employed. Including them as employed makes the unemployment rate lower than otherwise.
B)   unemployed. Including them as unemployed makes the unemployment rate higher than otherwise.
C)   out of the labor force. If the were counted as unemployed the unemployment rate would be higher.
D)   None of the above is correct.E) None of the above
F) C) and D)

Question 7

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

Accepted Answer

A)   the natural rate of unemployment.
B)   cyclical unemployment.
C)   structural unemployment.
D)   frictional unemployment.E) All of the above
F) A) and B)

Question 8

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Accepted Answer

A)   minimum-wage laws
B)   unions
C)   efficiency wages
D)   All of the above are correct.E) A) and C)
F) A) and B)

Question 9

Efficiency wages

Accepted Answer

A)   increase productivity and reduce unemployment.
B)   increase productivity but increase unemployment.
C)   decrease productivity but reduce unemployment.
D)   decrease productivity and increase unemployment.E) B) and C)
F) All of the above

Question 10

Minimum-wage laws

Accepted Answer

A)   reduce unemployment.
B)   cause labor shortages, which further raise wages above equilibrium.
C)   affect highly-educated workers more than high school dropouts.
D)   None of the above is correct.E) B) and C)
F) All of the above

Question 11

Unions contribute to

Accepted Answer

A)   frictional unemployment but not the natural rate of unemployment.
B)   the natural rate of unemployment but not frictional unemployment.
C)   both frictional unemployment and the natural rate of unemployment.
D)   neither frictional unemployment nor the natural rate of unemployment.E) A) and B)
F) B) and D)

Question 12

Which of the following is not a commonly-cited explanation for the dramatically increasing labor-force participation rates for women from 1950 to the present?

Accepted Answer

A)   availability of reliable birth control
B)   invention of household labor-saving devices such as dishwashers and microwave ovens
C)   an increasing number of women who work to support their parents
D)   changing social attitudes about working mothersE) A) and B)
F) B) and D)

Question 13

Who of the following would necessarily be included in the Bureau of Labor Statistics' "unemployed" category?

Accepted Answer

A)   Huey, who did not work during the previous four weeks
B)   Dewey, who tried to find new employment during the previous four weeks
C)   Louie, who was an unpaid worker during the previous four weeks
D)   None of the above is correct.E) A) and B)
F) A) and D)

Question 14

Do economists believe that labor unions are good or bad for the U.S. economy?

Accepted Answer

Economists disagree. Critics argue that ...

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Wages in excess of their equilibrium level help explain

Accepted Answer

A)   frictional but not structural unemployment.
B)   structural but not frictional unemployment.
C)   both frictional and structural unemployment.
D)   neither frictional nor structural unemployment.E) A) and B)
F) A) and C)

Question 17

Data on the unemployment rate in the U.S. since 1960 show that the economy always has some unemployment and that the amount changes from year to year.

Accepted Answer

A) True 
 B)False

Question 18

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was

Accepted Answer

A)   154/234.9.
B)   141.6/234.9.
C)   141.6/154.
D)   None of the above is correct.E) None of the above
F) B) and D)

Question 19

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) None of the above
F) A) and B)

Exam 15: Unemployment

Minimum-wage laws

Correct Answer
verified

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

Correct Answer
verified

Unions contribute to

Correct Answer
verified

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was

Correct Answer
verified

Efficiency wages

Correct Answer
verified

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

Correct Answer
verified

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Correct Answer
verified

It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.

Correct Answer
verified

Which of the following is not a commonly-cited explanation for the dramatically increasing labor-force participation rates for women from 1950 to the present?

Correct Answer
verified

An economy's natural rate of unemployment is the

Correct Answer
verified

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

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 gradually decreased.

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

Wages in excess of their equilibrium level help explain

Correct Answer
verified

The Bureau of Labor Statistics counts discouraged workers as

Correct Answer
verified

Who of the following would necessarily be included in the Bureau of Labor Statistics' "unemployed" category?

Correct Answer
verified

Data on the unemployment rate in the U.S. since 1960 show that the economy always has some unemployment and that the amount changes from year to year.

Correct Answer
verified

Efficiency wages

Correct Answer
verified

Do economists believe that labor unions are good or bad for the U.S. economy?

Correct Answer
verified
Economists disagree. Critics argue that ...
View Answer

Exam 15: Unemployment

Minimum-wage laws

Correct AnswerverifiedShow Answer

Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category.

Correct AnswerverifiedShow Answer

Unions contribute to

Correct AnswerverifiedShow Answer

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was

Correct AnswerverifiedShow Answer

Efficiency wages

Correct AnswerverifiedShow Answer

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

Correct AnswerverifiedShow Answer

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Correct AnswerverifiedShow Answer

It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.

Correct AnswerverifiedShow Answer

Which of the following is not a commonly-cited explanation for the dramatically increasing labor-force participation rates for women from 1950 to the present?

Correct AnswerverifiedShow Answer

An economy's natural rate of unemployment is the

Correct AnswerverifiedShow Answer

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

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 gradually decreased.

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

Wages in excess of their equilibrium level help explain

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics counts discouraged workers as

Correct AnswerverifiedShow Answer

Who of the following would necessarily be included in the Bureau of Labor Statistics' "unemployed" category?

Correct AnswerverifiedShow Answer

Data on the unemployment rate in the U.S. since 1960 show that the economy always has some unemployment and that the amount changes from year to year.

Correct AnswerverifiedShow Answer

Efficiency wages

Correct AnswerverifiedShow Answer

Do economists believe that labor unions are good or bad for the U.S. economy?

Correct AnswerverifiedEconomists disagree. Critics argue that ...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Economists disagree. Critics argue that ...
View Answer