Question 1

Table 28-5
2015 Labor Data for Tajnia
 $$\begin{array} { | l | l | } 
\hline \text { Number of adults employed } & 10,000 \
\hline \text { Number of adults unemployed } & 2,250 \
\hline \text { Number of adults not in the labor force } & 17,750 \
\hline
\end{array}$$
-Refer to Table 28-5. The unemployment rate in Tajnia in 2015 is about 7.5 percent.

Accepted Answer

A) True 
 B)False

Question 2

Most spells of unemployment are short, and most unemployment observed at any given time is short-term.

Accepted Answer

A) True 
 B)False

Question 3

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Accepted Answer

A) True 
 B)False

Question 4

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Accepted Answer

A) True 
 B)False

Question 5

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 6

One reason economies always experience some unemployment is job search.

Accepted Answer

A) True 
 B)False

Question 7

The labor force equals the

Accepted Answer

A)  number of people employed.
B)  number of people employed plus the number of people unemployed.
C)  number of people employed plus the number of people unemployed plus teenagers between ages 14 and 16 who work at least 10 hours a week.
D)  adult population.E) None of the above
F) B) and C)

Question 8

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Accepted Answer

According to the theory of efficiency wa...

Question 9

The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?

Accepted Answer

A)  (Total unemployed + Marginally attached workers) /Adult population
B)  (Total unemployed + Marginally attached workers + Part-time employed for economic reasons) /Adult population
C)  (Total unemployed + Marginally attached workers) /(Labor force + Marginally attached workers) 
D)  (Total unemployed + Marginally attached workers + Part-time employed for economic reasons) /(Labor force + Marginally attached workers) E) C) and D)
F) A) and C)

Question 10

Teenagers have more frequent unemployment spells and 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 teenagers, the natural rate of unemployment would be higher.
B)  higher unemployment rate.The portion of the adult population that is teenagers does not affect the natural rate of unemployment.
C)  lower unemployment rate.If a larger portion of the adult population were teenagers, the natural rate of unemployment would be lower.
D)  lower unemployment rate.The portion of the adult population that is teenagers does not affect the natural rate of unemployment.E) B) and C)
F) B) and D)

Question 11

An important determinant of a country's standard of living is the amount of __________ it typically experiences.

Accepted Answer

The answer of An important determinant of a country's standard...

Question 12

The theory of efficiency wages explains why

Accepted Answer

A)  setting wages at the equilibrium level may increase unemployment.
B)  it may be in the best interest of firms to offer wages that are above the equilibrium level.
C)  the most efficient way to pay workers is to pay them according to their skills.
D)  it is efficient for firms to set wages at the equilibrium level.E) A) and B)
F) B) and D)

Question 13

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 14

Suppose that some country had an adult population of about 47 million, a labor-force participation rate of 123.4 percent, and an unemployment rate of 31.0 percent. How many people were unemployed?

Accepted Answer

A)  40 million
B)  18 million
C)  58 million
D)  81.0 millionE) A) and B)
F) B) and C)

Question 15

The Bureau of Labor Statistics' "employed" category includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member's business.

Accepted Answer

A) True 
 B)False

Question 16

Even though the difference in labor-force participation rates of U.S. males and females has narrowed, the labor-force participation rate of males remains higher than that of females.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is an example of an efficiency wage?

Accepted Answer

A)  A higher wage paid to a more experienced worker
B)  A below-equilibrium wage paid by a small business exempt from minimum-wage laws
C)  An above-equilibrium wage paid by a firm to reduce turnover costs
D)  A wage tied to participation in a government-sponsored job training programE) B) and C)
F) A) and D)

Question 18

Public policy can reduce frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 19

The rate of unemployment in a country is unrelated to its level of GDP.

Accepted Answer

A) True 
 B)False

Question 20

Unemployment insurance increases frictional unemployment.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment and Its Natural Rate

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

Correct Answer
verified

Unemployment insurance increases frictional unemployment.

Correct Answer
verified

Most spells of unemployment are short, and most unemployment observed at any given time is short-term.

Correct Answer
verified

The labor force equals the

Correct Answer
verified

Even though the difference in labor-force participation rates of U.S. males and females has narrowed, the labor-force participation rate of males remains higher than that of females.

Correct Answer
verified

An important determinant of a country's standard of living is the amount of __________ it typically experiences.

Correct Answer
verified

One reason economies always experience some unemployment is job search.

Correct Answer
verified

Correct Answer
verified

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Correct Answer
verified
According to the theory of efficiency wa...
View Answer

Teenagers have more frequent unemployment spells and spend more time searching for jobs. Other thing the same, this means that teenagers have a

Correct Answer
verified

The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?

Correct Answer
verified

Which of the following is an example of an efficiency wage?

Correct Answer
verified

The Bureau of Labor Statistics' "employed" category includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member's business.

Correct Answer
verified

Public policy can reduce frictional unemployment.

Correct Answer
verified

The theory of efficiency wages explains why

Correct Answer
verified

Suppose that some country had an adult population of about 47 million, a labor-force participation rate of 123.4 percent, and an unemployment rate of 31.0 percent. How many people were unemployed?

Correct Answer
verified

The rate of unemployment in a country is unrelated to its level of GDP.

Correct Answer
verified

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

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

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Correct Answer
verified

Exam 28: Unemployment and Its Natural Rate

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

Correct AnswerverifiedShow Answer

Unemployment insurance increases frictional unemployment.

Correct AnswerverifiedShow Answer

Most spells of unemployment are short, and most unemployment observed at any given time is short-term.

Correct AnswerverifiedShow Answer

The labor force equals the

Correct AnswerverifiedShow Answer

Even though the difference in labor-force participation rates of U.S. males and females has narrowed, the labor-force participation rate of males remains higher than that of females.

Correct AnswerverifiedShow Answer

An important determinant of a country's standard of living is the amount of __________ it typically experiences.

Correct AnswerverifiedShow Answer

One reason economies always experience some unemployment is job search.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Correct AnswerverifiedAccording to the theory of efficiency wa...View AnswerShow Answer

Teenagers have more frequent unemployment spells and spend more time searching for jobs. Other thing the same, this means that teenagers have a

Correct AnswerverifiedShow Answer

The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?

Correct AnswerverifiedShow Answer

Which of the following is an example of an efficiency wage?

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' "employed" category includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member's business.

Correct AnswerverifiedShow Answer

Public policy can reduce frictional unemployment.

Correct AnswerverifiedShow Answer

The theory of efficiency wages explains why

Correct AnswerverifiedShow Answer

Suppose that some country had an adult population of about 47 million, a labor-force participation rate of 123.4 percent, and an unemployment rate of 31.0 percent. How many people were unemployed?

Correct AnswerverifiedShow Answer

The rate of unemployment in a country is unrelated to its level of GDP.

Correct AnswerverifiedShow Answer

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

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

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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verified
According to the theory of efficiency wa...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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