Question 1

Which of the following is a cause of the changing role of women in American society over the past several decades?

Accepted Answer

A)   new technologies that have reduced the amount of time required to complete routine household tasks
B)   improved birth control
C)   changing political and social attitudes
D)   All of the above are correct.

Question 2

Which of the following helps to reduce frictional unemployment?

Accepted Answer

A)   government-run employment agencies
B)   public training programs
C)   the Internet
D)   All of the above are correct.

Question 3

Which of the following does not help reduce frictional unemployment?

Accepted Answer

A)   government-run employment agencies
B)   public training programs
C)   unemployment insurance
D)   All of the above help reduce frictional unemployment.

Question 4

Government policy can do nothing about the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 5

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 6

The natural rate of unemployment is the

Accepted Answer

A)   unemployment rate that would prevail with zero inflation.
B)   rate associated with the highest possible level of GDP.
C)   difference between the long-run and short-run unemployment rates.
D)   amount of unemployment that the economy normally experiences.

Question 7

Suppose that neither food-service workers nor retail salespeople are unionized. If food-service workers unionize, then the supply of retail salespeople will

Accepted Answer

A)   rise, as will the wages of retail salespeople.
B)   rise, and the wages of retail salespeople will fall.
C)   fall, as will the wages of retail salespeople.
D)   fall, and the wages of retail salespeople will rise.

Question 8

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

Accepted Answer

A)   might increase profits if it attracts a better pool of workers to apply for jobs at his restaurant.
B)   will reduce the excess supply of labor.
C)   is an example of the benefits of a minimum-wage law.
D)   All of the above are correct.

Question 9

The unemployment rate equals the percentage of the labor force that is unemployed.

Accepted Answer

A) True 
 B)False

Question 10

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 unemployment rate?

Accepted Answer

A)   3.3%
B)   6.7%
C)   10.7%
D)   12%

Question 11

Which of the following is not a cause of the decline in the U.S. men's labor­force participation rate over the past several decades?

Accepted Answer

A)   young men now stay in school longer than their fathers and grandfathers did
B)   older men now retire earlier and live longer
C)   with more women employed, there are fewer jobs now available to men
D)   more fathers now stay at home to raise their children

Question 12

Within the U.S. population, women of prime working age (ages 25-54) have lower rates of labor-force participation than men of prime working age (ages 25-54), regardless of race.

Accepted Answer

A) True 
 B)False

Question 13

Suppose that some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were unemployed?

Accepted Answer

A)   0.846 million
B)   0.9 million
C)   1.5 million
D)   6 million

Question 14

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.

Question 15

In the 1940s and 1950s, about one-third of U.S. workers belonged to unions, but today, only about one-fifth of U.S. workers belong to unions.

Accepted Answer

A) True 
 B)False

Question 16

Today, unions play a larger role in Europe than they do in the U.S.

Accepted Answer

A) True 
 B)False

Question 17

All else equal, which of the following would increase the unemployment rate?

Accepted Answer

A)   (i)  and (ii)  only
B)   (iii)  only
C)   (ii)  and (iii)  only
D)   (ii) , (iii) , and (iv)  only

Question 18

Over the past several decades in the United States, the labor-force participation rate of women has

Accepted Answer

A)   increased, and the labor-force participation rate of men has increased.
B)   increased, and the labor-force participation rate of men has decreased.
C)   decreased, and the labor-force participation rate of men has increased.
D)   decreased, and the labor-force participation rate of men has decreased.

Question 19

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

Accepted Answer

A) True 
 B)False

Question 20

To maintain their standard of living, most people rely on

Accepted Answer

A)   government assistance.
B)   their personal savings.
C)   their labor earnings.
D)   rental income.

Exam 28: Unemployment

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

Correct Answer
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Correct Answer
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Within the U.S. population, women of prime working age (ages 25-54) have lower rates of labor-force participation than men of prime working age (ages 25-54), regardless of race.

Correct Answer
verified

Today, unions play a larger role in Europe than they do in the U.S.

Correct Answer
verified

Suppose that some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were unemployed?

Correct Answer
verified

The unemployment rate equals the percentage of the labor force that is unemployed.

Correct Answer
verified

Government policy can do nothing about the natural rate of unemployment.

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

Which of the following is not a cause of the decline in the U.S. men's laborforce participation rate over the past several decades?

Correct Answer
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Efficiency wages

Correct Answer
verified

Suppose that neither food-service workers nor retail salespeople are unionized. If food-service workers unionize, then the supply of retail salespeople will

Correct Answer
verified

Which of the following helps to reduce frictional unemployment?

Correct Answer
verified

In the 1940s and 1950s, about one-third of U.S. workers belonged to unions, but today, only about one-fifth of U.S. workers belong to unions.

Correct Answer
verified

To maintain their standard of living, most people rely on

Correct Answer
verified

The natural rate of unemployment is the

Correct Answer
verified

Which of the following is a cause of the changing role of women in American society over the past several decades?

Correct Answer
verified

All else equal, which of the following would increase the unemployment rate?

Correct Answer
verified

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

Correct Answer
verified

Over the past several decades in the United States, the labor-force participation rate of women has

Correct Answer
verified

Which of the following does not help reduce frictional unemployment?

Correct Answer
verified

Exam 28: Unemployment

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Within the U.S. population, women of prime working age (ages 25-54) have lower rates of labor-force participation than men of prime working age (ages 25-54), regardless of race.

Correct AnswerverifiedShow Answer

Today, unions play a larger role in Europe than they do in the U.S.

Correct AnswerverifiedShow Answer

Suppose that some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were unemployed?

Correct AnswerverifiedShow Answer

The unemployment rate equals the percentage of the labor force that is unemployed.

Correct AnswerverifiedShow Answer

Government policy can do nothing about the natural rate of unemployment.

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

Which of the following is not a cause of the decline in the U.S. men's labor­force participation rate over the past several decades?

Correct AnswerverifiedShow Answer

Efficiency wages

Correct AnswerverifiedShow Answer

Suppose that neither food-service workers nor retail salespeople are unionized. If food-service workers unionize, then the supply of retail salespeople will

Correct AnswerverifiedShow Answer

Which of the following helps to reduce frictional unemployment?

Correct AnswerverifiedShow Answer

In the 1940s and 1950s, about one-third of U.S. workers belonged to unions, but today, only about one-fifth of U.S. workers belong to unions.

Correct AnswerverifiedShow Answer

To maintain their standard of living, most people rely on

Correct AnswerverifiedShow Answer

The natural rate of unemployment is the

Correct AnswerverifiedShow Answer

Which of the following is a cause of the changing role of women in American society over the past several decades?

Correct AnswerverifiedShow Answer

All else equal, which of the following would increase the unemployment rate?

Correct AnswerverifiedShow Answer

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

Correct AnswerverifiedShow Answer

Over the past several decades in the United States, the labor-force participation rate of women has

Correct AnswerverifiedShow Answer

Which of the following does not help reduce frictional unemployment?

Correct AnswerverifiedShow Answer

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Which of the following is not a cause of the decline in the U.S. men's laborforce participation rate over the past several decades?

Correct Answer
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