Question 1

Suppose that medical technicians and nurses' aides are not unionized. If the nurses' aides unionize, then the wages of

Accepted Answer

A)   both medical technicians and nurses' aides will rise.
B)   both medical technicians and nurses' aides will fall.
C)   medical technicians will rise, and the wages of nurses' aides will fall.
D)   nurses' aides will rise, and the wages of medical technicians will fall.E) A) and B)
F) B) and C)

Question 2

Susan is a plant manager in charge of a factory in a relatively poor country. Even though market wages are low, she decides to raise the wages of her workers. Her decision

Accepted Answer

A)   might increase profits if it means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive.
B)   will help eliminate the excess supply of labor.
C)   may cause her workers to reduce the effort they expend at their jobs.
D)   All of the above are correct.E) B) and C)
F) A) and D)

Question 3

Table 28-6
 
-Refer to Table 28-6. What is the U-1 measure of labor underutilization?

Accepted Answer

A)   1.6%
B)   3.1%
C)   6.2%
D)   7.0%E) A) and C)
F) B) and C)

Question 4

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no

Accepted Answer

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

Question 5

Frictional unemployment is

Accepted Answer

A)   not inevitable; rather, it can be reduced to zero by well-designed public policies.
B)   not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance.
C)   inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms.
D)   inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium.E) C) and D)
F) B) and D)

Question 6

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

Accepted Answer

A)   decrease, raising wages in industries that are not unionized.
B)   decrease, reducing wages in industries that are not unionized.
C)   increase, raising wages in industries that are not unionized.
D)   increase, reducing wages in industries that are not unionized.E) A) and B)
F) None of the above

Question 7

Table 28-6
 
-Refer to Table 28-6. What is the U-4 measure of labor underutilization?

Accepted Answer

A)   6.5%
B)   6.9%
C)   7.0%
D)   17.9%E) A) and B)
F) None of the above

Question 8

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Accepted Answer

A) True 
 B)False

Question 9

Only paid workers are included in the Bureau of Labor Statistics' "employed" category.

Accepted Answer

A) True 
 B)False

Question 10

Who of the following is not included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)   those who worked in their own business
B)   those who worked as unpaid workers in a family member's business
C)   those waiting to be recalled to a job from which they had been laid off
D)   those who were temporarily absent from work because of vacation.E) C) and D)
F) B) and D)

Question 11

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 12

The Bureau of Labor Statistics' U­1 measure of joblessness includes only very long­term unemployed.

Accepted Answer

A) True 
 B)False

Question 13

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

Accepted Answer

A)   increases, and the labor-force participation rate decreases.
B)   and the labor-force participation rate both increase.
C)   increases, and the labor-force participation rate is unaffected.
D)   is unaffected, and the labor-force participation rate decreases.E) A) and D)
F) B) and C)

Question 14

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the

Accepted Answer

A)   number of people unemployed.
B)   number of jobs the economy has gained or lost.
C)   size of the labor force.
D)   number of people who own their own businesses.E) A) and D)
F) C) and D)

Question 15

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 D)
F) B) and D)

Question 16

Measuring unemployment is the job of the

Accepted Answer

A)   Congressional Budget Office.
B)   Department of Commerce.
C)   Council of Economic Advisers.
D)   Bureau of Labor Statistics.E) B) and D)
F) All of the above

Question 17

If the number of people unemployed rose but the number of people employed and the adult population stayed the same, then the labor force participation rate would rise.

Accepted Answer

A) True 
 B)False

Question 18

Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

Accepted Answer

A) True 
 B)False

Question 19

Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 10: Unemployment and Its Natural Rate

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.

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

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

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Only paid workers are included in the Bureau of Labor Statistics' "employed" category.

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Table 28-6 -Refer to Table 28-6. What is the U-4 measure of labor underutilization?

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Table 28-6 -Refer to Table 28-6. What is the U-1 measure of labor underutilization?

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If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no

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Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' U­1 measure of joblessness includes only very long­term unemployed.

Correct AnswerverifiedShow Answer

Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

Correct AnswerverifiedShow Answer

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

Correct AnswerverifiedShow Answer

Susan is a plant manager in charge of a factory in a relatively poor country. Even though market wages are low, she decides to raise the wages of her workers. Her decision

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Suppose that medical technicians and nurses' aides are not unionized. If the nurses' aides unionize, then the wages of

Correct AnswerverifiedShow Answer

Frictional unemployment is

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If the number of people unemployed rose but the number of people employed and the adult population stayed the same, then the labor force participation rate would rise.

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Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category.

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Who of the following is not included in the Bureau of Labor Statistics' "employed" category?

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Measuring unemployment is the job of the

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Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the

Correct AnswerverifiedShow Answer

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The Bureau of Labor Statistics' U1 measure of joblessness includes only very longterm unemployed.

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