Question 1

Public policy

Accepted Answer

A)  can reduce both frictional unemployment and the natural rate of unemployment.
B)  can reduce frictional unemployment, but it cannot reduce the natural rate of unemployment.
C)  cannot reduce frictional unemployment, but it can reduce the natural rate of unemployment.
D)  cannot reduce either frictional unemployment or the natural rate of unemployment.

Question 2

Table 28-3
​
​
   Civilian labor force 100 million  Persons unemployed 15 weeks or longer 1.6 million  Job losers and persons who have completed temporary jobs (excludes job leavers)  3.1 million  Total unemployed 6.2 million  Total unemployed plus discouraged workers 7.0 million  Total unemployed plus all marginally attached workers 8.1 million  Total unemployed plus all marginally attached workers plus total employed part-time 9.2 million  for economic reasons \begin{array} { | l | l | } \hline 	ext { Civilian labor force } & 100 	ext { million } \\hline 	ext { Persons unemployed } 15 	ext { weeks or longer } & 1.6 	ext { million } \\hline 	ext { Job losers and persons who have completed temporary jobs (excludes job leavers)  } & 3.1 	ext { million } \\hline 	ext { Total unemployed } & 6.2 	ext { million } \\hline 	ext { Total unemployed plus discouraged workers } & 7.0 	ext { million } \\hline 	ext { Total unemployed plus all marginally attached workers } & 8.1 	ext { million } \\hline 	ext { Total unemployed plus all marginally attached workers plus total employed part-time } & 9.2 	ext { million } \	ext { for economic reasons } & \\hline\end{array} Civilian labor force  Persons unemployed 15 weeks or longer  Job losers and persons who have completed temporary jobs (excludes job leavers)   Total unemployed  Total unemployed plus discouraged workers  Total unemployed plus all marginally attached workers  Total unemployed plus all marginally attached workers plus total employed part-time  for economic reasons ​100 million 1.6 million 3.1 million 6.2 million 7.0 million 8.1 million 9.2 million ​​ 
-Refer to Table 28-3. What is the U-4 measure of labor underutilization?

Accepted Answer

A)  6.5%
B)  6.9%
C)  7.0%
D)  17.9%

Question 3

The natural rate of unemployment

Accepted Answer

A)  varies less than the measured unemployment rate.
B)  varies little over time and across countries.
C)  is closely associated with the ups and downs in economic activity.
D)  is set by the Federal Reserve.

Question 4

When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than if many of its workers were idle.

Accepted Answer

A) True 
 B)False

Question 5

Public policy can reduce the economy's natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Critics of unions argue that unions cause the allocation of labor to be inefficient and inequitable.

Accepted Answer

A) True 
 B)False

Question 8

Public policy, without intending to do so, can increase frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 9

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate sometimes is close to zero.

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

In 1914, Henry Ford began paying his workers $5 per day, about twice the going wage. As a result, turnover and absenteeism fell and productivity and profits rose.

Accepted Answer

A) True 
 B)False

Question 12

The Bureau of Labor Statistics produces data on unemployment, types of employment, length of the average workweek, and the duration of unemployment.

Accepted Answer

A) True 
 B)False

Question 13

Violett quit her job because she was unhappy at work. Alexandra was laid off from her landscaping job because her company was downsizing. Who is eligible for unemployment insurance benefits?

Accepted Answer

A)  Both Violett and Alexandra
B)  Violett but not Alexandra
C)  Alexandra but not Violett
D)  Neither Violett nor Alexandra

Question 14

Briefly summarize the advantages and disadvantages of unemployment insurance.

Accepted Answer

The main advantage is that unemployment ...

Question 15

Evidence from research studies by economists

Accepted Answer

A)  shows that increased unemployment benefits decrease the job search efforts of the unemployed.
B)  shows that increased unemployment benefits have virtually no effect on the job search efforts of the unemployed.
C)  shows that increased unemployment benefits increase the job search efforts of the unemployed.
D)  is unclear regarding what increased unemployment benefits do to the job search efforts of the unemployed.

Question 16

If the natural rate of unemployment is 4.7 percent and the actual rate of unemployment is 5.5 percent, then by definition there is

Accepted Answer

A)  cyclical unemployment amounting to 0.8 percent of the labor force.
B)  frictional unemployment amounting to 0.8 percent of the labor force.
C)  structural unemployment amounting to 0.8 percent of the labor force.
D)  search unemployment amounting to 0.8 percent of the labor force.

Question 17

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 18

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 600 households, called the Current Population Survey.

Accepted Answer

A) True 
 B)False

Question 19

Minimum wage laws, labor unions, and efficiency wages all generate unemployment by what common mechanism?

Accepted Answer

Wages bein...

Question 20

Define the natural rate of unemployment and cyclical unemployment.

Accepted Answer

The natural rate of unemployment refers ...

Exam 28: Unemployment and Its Natural Rate

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 600 households, called the Current Population Survey.

Correct Answer
verified

Correct Answer
verified

Critics of unions argue that unions cause the allocation of labor to be inefficient and inequitable.

Correct Answer
verified

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate sometimes is close to zero.

Correct Answer
verified

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

Correct Answer
verified

Briefly summarize the advantages and disadvantages of unemployment insurance.

Correct Answer
verified
The main advantage is that unemployment ...
View Answer

The Bureau of Labor Statistics produces data on unemployment, types of employment, length of the average workweek, and the duration of unemployment.

Correct Answer
verified

The natural rate of unemployment

Correct Answer
verified

Evidence from research studies by economists

Correct Answer
verified

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

Correct Answer
verified

When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than if many of its workers were idle.

Correct Answer
verified

In 1914, Henry Ford began paying his workers $5 per day, about twice the going wage. As a result, turnover and absenteeism fell and productivity and profits rose.

Correct Answer
verified

Minimum wage laws, labor unions, and efficiency wages all generate unemployment by what common mechanism?

Correct Answer
verified
Wages bein...
View Answer

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

Correct Answer
verified

If the natural rate of unemployment is 4.7 percent and the actual rate of unemployment is 5.5 percent, then by definition there is

Correct Answer
verified

Public policy can reduce the economy's natural rate of unemployment.

Correct Answer
verified

Public policy, without intending to do so, can increase frictional unemployment.

Correct Answer
verified

Violett quit her job because she was unhappy at work. Alexandra was laid off from her landscaping job because her company was downsizing. Who is eligible for unemployment insurance benefits?

Correct Answer
verified

Define the natural rate of unemployment and cyclical unemployment.

Correct Answer
verified
The natural rate of unemployment refers ...
View Answer

Public policy

Correct Answer
verified

Exam 28: Unemployment and Its Natural Rate

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 600 households, called the Current Population Survey.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Critics of unions argue that unions cause the allocation of labor to be inefficient and inequitable.

Correct AnswerverifiedShow Answer

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate sometimes is close to zero.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Briefly summarize the advantages and disadvantages of unemployment insurance.

Correct AnswerverifiedThe main advantage is that unemployment ...View AnswerShow Answer

The Bureau of Labor Statistics produces data on unemployment, types of employment, length of the average workweek, and the duration of unemployment.

Correct AnswerverifiedShow Answer

The natural rate of unemployment

Correct AnswerverifiedShow Answer

Evidence from research studies by economists

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than if many of its workers were idle.

Correct AnswerverifiedShow Answer

In 1914, Henry Ford began paying his workers $5 per day, about twice the going wage. As a result, turnover and absenteeism fell and productivity and profits rose.

Correct AnswerverifiedShow Answer

Minimum wage laws, labor unions, and efficiency wages all generate unemployment by what common mechanism?

Correct AnswerverifiedWages bein...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

If the natural rate of unemployment is 4.7 percent and the actual rate of unemployment is 5.5 percent, then by definition there is

Correct AnswerverifiedShow Answer

Public policy can reduce the economy's natural rate of unemployment.

Correct AnswerverifiedShow Answer

Public policy, without intending to do so, can increase frictional unemployment.

Correct AnswerverifiedShow Answer

Violett quit her job because she was unhappy at work. Alexandra was laid off from her landscaping job because her company was downsizing. Who is eligible for unemployment insurance benefits?

Correct AnswerverifiedShow Answer

Define the natural rate of unemployment and cyclical unemployment.

Correct AnswerverifiedThe natural rate of unemployment refers ...View AnswerShow Answer

Public policy

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The main advantage is that unemployment ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Wages bein...
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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The natural rate of unemployment refers ...
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Correct Answer
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