Question 1

If you were told that someone you knew nothing else about had just become unemployed, your best guess would be

Accepted Answer

A)   that they would be unemployed for a long time, and that most of the unemployed they've joined have been unemployed for a long time.
B)   that they would be unemployed for a long time, even though most of the unemployed they've joined have been unemployed for a short time.
C)   that they would be unemployed for a short time, even though most of the unemployed they've joined have been unemployed for a long time.
D)   that they will be unemployed for a short time, and that most of the unemployed they've joined have been unemployed for a short time.

Question 2

If an unemployed person quits looking for work, then, eventually the unemployment rate

Accepted Answer

A)   decreases and the labor-force participation rate is unaffected.
B)   and the labor-force participation rate both decrease.
C)   is unaffected and the labor-force participation rate decreases.
D)   and the labor-force participation rate are both unaffected.

Question 3

More generous unemployment insurance would

Accepted Answer

A)   raise structural unemployment.
B)   raise frictional unemployment.
C)   lower structural unemployment.
D)   lower frictional unemployment.

Question 4

A firm might offer efficiency wages in order to attract a better pool of applicants.

Accepted Answer

A) True 
 B)False

Question 5

The Bureau of Labor Statistics' U-5 measure of joblessness is the official unemployment rate.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)   Chris, an unpaid homemaker not looking for other work
B)   Marcus, a full-time student not looking for work
C)   Gabe, who does not have a job, but is looking for work
D)   None of the above is correct.

Question 7

The Bureau of Labor Statistics reported in 2005 that there were 28.19 million people over age 25 who had no high school degree or its equivalent, 11.73 million of whom were employed and 1.04 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Accepted Answer

A)   45.3% and 3.7%
B)   45.3% and 8.1%
C)   41.6% and 3.7%
D)   41.6% and 8.1%

Question 8

Unemployment insurance

Accepted Answer

A)   may improve the ability of the economy to match workers with appropriate jobs.
B)   reduces the job search efforts of the unemployed.
C)   increases the amount of frictional unemployment in the economy.
D)   All of the above are correct.

Question 9

Bob is looking for work after school, but everywhere he fills out an application, the managers say they always have a lot more applications than open positions. Tom has a law degree. Several firms have made him offers, but he thinks he might be able to find a firm where his talents could be put to better use.

Accepted Answer

A)   Bob and Tom are both frictionally unemployed.
B)   Bob and Tom are both structurally unemployed.
C)   Bob is frictionally unemployed, and Tom is structurally unemployed.
D)   Bob is structurally unemployed, and Tom is frictionally unemployed.

Question 10

Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force participation rate is 70%. What is the unemployment rate?

Accepted Answer

A)   6.7%
B)   9.5%
C)   10.5%
D)   28%

Question 11

People who are unemployed because of job search are best classified as

Accepted Answer

A)   cyclically unemployed.
B)   structurally unemployed.
C)   frictionally unemployed.
D)   discouraged workers.

Question 12

The adult population must equal the sum of the employed, the unemployed, and those not in the labor force.

Accepted Answer

A) True 
 B)False

Question 13

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

Accepted Answer

A) True 
 B)False

Question 14

The Bureau of Labor Statistics computes labor-force participation rates for the entire adult population and for more narrowly defined groups.

Accepted Answer

A) True 
 B)False

Question 15

The theory of efficiency wages provides a possible explanation as to why

Accepted Answer

A)   workers form unions.
B)   firms should try to reduce surpluses of labor.
C)   firms may be inclined to keep their workers' wages above the equilibrium level.
D)   firms may be inclined to keep their workers' wages below the equilibrium level.

Question 16

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 17

According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see

Accepted Answer

A)   an increase in the number of job applicants and an increase in how long workers stay on the job
B)   an increase in the number of job applicants and a decrease in how long workers stay on the job
C)   a decrease in the number of job applicants and an increase in how long workers stay on the job
D)   a decrease in the number of job applicants and a decrease in how long workers stay on the job

Question 18

Caitlin is an unpaid worker in her family's bakery. The Bureau of Labor Statistics counts Caitlin as

Accepted Answer

A)   unemployed and in the labor force.
B)   unemployed and not in the labor force.
C)   employed and in the labor force.
D)   employed and not in the labor force.

Question 19

Table 10-4
 
-Refer to Table 10-4. What is the U-5 measure of labor underutilization?

Accepted Answer

A)   7.5 percent
B)   7.9 percent
C)   8.1 percent
D)   26 percent

Question 20

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 frictional unemployment.

Accepted Answer

A) True 
 B)False

Exam 10: Unemployment

People who are unemployed because of job search are best classified as

Correct Answer
verified

Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force participation rate is 70%. What is the unemployment rate?

Correct Answer
verified

The theory of efficiency wages provides a possible explanation as to why

Correct Answer
verified

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

Correct Answer
verified

The Bureau of Labor Statistics computes labor-force participation rates for the entire adult population and for more narrowly defined groups.

Correct Answer
verified

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 frictional unemployment.

Correct Answer
verified

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.

Correct Answer
verified

Correct Answer
verified

The Bureau of Labor Statistics' U-5 measure of joblessness is the official unemployment rate.

Correct Answer
verified

Caitlin is an unpaid worker in her family's bakery. The Bureau of Labor Statistics counts Caitlin as

Correct Answer
verified

Table 10-4 -Refer to Table 10-4. What is the U-5 measure of labor underutilization?

Correct Answer
verified

More generous unemployment insurance would

Correct Answer
verified

If an unemployed person quits looking for work, then, eventually the unemployment rate

Correct Answer
verified

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

Correct Answer
verified

A firm might offer efficiency wages in order to attract a better pool of applicants.

Correct Answer
verified

If you were told that someone you knew nothing else about had just become unemployed, your best guess would be

Correct Answer
verified

Unemployment insurance

Correct Answer
verified

Correct Answer
verified

According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see

Correct Answer
verified

The adult population must equal the sum of the employed, the unemployed, and those not in the labor force.

Correct Answer
verified

Exam 10: Unemployment

People who are unemployed because of job search are best classified as

Correct AnswerverifiedShow Answer

Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force participation rate is 70%. What is the unemployment rate?

Correct AnswerverifiedShow Answer

The theory of efficiency wages provides a possible explanation as to why

Correct AnswerverifiedShow Answer

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics computes labor-force participation rates for the entire adult population and for more narrowly defined groups.

Correct AnswerverifiedShow Answer

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 frictional unemployment.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' U-5 measure of joblessness is the official unemployment rate.

Correct AnswerverifiedShow Answer

Caitlin is an unpaid worker in her family's bakery. The Bureau of Labor Statistics counts Caitlin as

Correct AnswerverifiedShow Answer

Table 10-4 -Refer to Table 10-4. What is the U-5 measure of labor underutilization?

Correct AnswerverifiedShow Answer

More generous unemployment insurance would

Correct AnswerverifiedShow Answer

If an unemployed person quits looking for work, then, eventually the unemployment rate

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A firm might offer efficiency wages in order to attract a better pool of applicants.

Correct AnswerverifiedShow Answer

If you were told that someone you knew nothing else about had just become unemployed, your best guess would be

Correct AnswerverifiedShow Answer

Unemployment insurance

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see

Correct AnswerverifiedShow Answer

The adult population must equal the sum of the employed, the unemployed, and those not in the labor force.

Correct AnswerverifiedShow Answer

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