Question 1

Discouraged workers are people who have:

Accepted Answer

A)  looked for work in the past year but have given up looking because of the condition of the labor market.
B)  not looked for work in the past year but would take a job if one was offered to them.
C)  looked for work in the past year but have decided to leave the labor market to go back to school,retire,or be a stay-at-home parent.
D)  not looked for work in over a year because of the condition of the labor market.E) C) and D)
F) A) and D)

Question 2

In general,the unemployment rate varies greatly by:

Accepted Answer

A)  educational status.
B)  gender.
C)  age.
D)  All of these are true.E) None of the above
F) B) and D)

Question 3

An economic slow-down predicts the new equilibrium wage would be:

Accepted Answer

A)  lower because the labor demand curve shifts left.
B)  higher because the labor demand curve shifts left.
C)  lower because the labor demand curve shifts right.
D)  higher because the labor demand curve shifts right.E) C) and D)
F) A) and C)

Question 4

Unemployment is a:

Accepted Answer

A)  leading indicator,because the business cycle follows it.
B)  lagging indicator,because the business cycle follows it.
C)  leading indicator,because it follows the business cycle.
D)  lagging indicator,because it follows the business cycle.E) All of the above
F) A) and B)

Question 5

If you hear that unemployment decreased by 2 percentage points to 6 percent in the past year,while the labor force participation rate remained constant,it means:

Accepted Answer

A)  2 out of every 10 people lost their job in the last year.
B)  20 out of every 1,000 unemployed persons found a job in the last year.
C)  2 out of every 100 people lost their job in the past year.
D)  2 out of every 100 unemployed persons found a job in the last year.E) B) and D)
F) B) and C)

Question 6

Structural unemployment:

Accepted Answer

A)  is unemployment that results from a mismatch between the skills workers can offer and the skills that are in demand.
B)  is unemployment caused by workers who are changing their location,job,or career.
C)  is the effect of wages remaining persistently above the market-clearing level.
D)  typically causes the shortest stints of unemployment.E) A) and B)
F) A) and C)

Question 7

The natural rate of unemployment:

Accepted Answer

A)  is typically zero.
B)  is the normal level of unemployment that persists in an economy in the long run.
C)  is constant over time.
D)  None of these is true.E) A) and D)
F) A) and C)

Question 8

Those who oppose minimum wage legislation argue that:

Accepted Answer

A)  setting a wage above the market-clearing equilibrium creates unemployment.
B)  it should be set below the market-clearing equilibrium.
C)  workers deserve a basic standard of living.
D)  All of these are true.E) A) and B)
F) C) and D)

Question 9

Wages tend to be "sticky" because:

Accepted Answer

A)  contracts are often negotiated for long terms and cannot be easily changed.
B)  workers are less likely to work as hard if their pay may be cut due to market performance and not their performance.
C)  constantly changing wages creates uncertainty and costs the employer a lot of time and energy to change wage rates.
D)  All of these are possible reasons why wages might be sticky.E) C) and D)
F) A) and D)

Question 10

The result of wage stickiness in an economic downturn is that:

Accepted Answer

A)  actual wages are temporarily above the market-clearing level.
B)  it causes cyclical unemployment.
C)  it causes a surplus of labor.
D)  All of these are true.E) C) and D)
F) B) and C)

Question 11

The labor demand curve:

Accepted Answer

A)  shows the relationship between the total quantity of labor demanded by all the firms in the economy and the wage rate.
B)  shows that,all things being equal,firms will want to hire more labor when wages are lower and less labor when wages are higher.
C)  has a negative slope.
D)  All of these are true.E) C) and D)
F) A) and C)

Question 12

Sonia was a great bookkeeper 20 years ago,then left the workforce to stay home and raise her children.Now that they're in college,Sonia looks for another bookkeeping job,but they all require computer skills that she doesn't have.Sonia would be considered:

Accepted Answer

A)  frictionally unemployed.
B)  structurally unemployed.
C)  real-wage unemployed.
D)  seasonally unemployed.E) All of the above
F) B) and D)

Question 13

Fred was working as a sales rep for a firm,and just completed an MBA by taking courses at night.Fred quits his job to pursue a management position.Fred would be considered:

Accepted Answer

A)  underemployed.
B)  frictionally unemployed.
C)  structurally unemployed.
D)  classically unemployed.E) All of the above
F) A) and C)

Question 14

The government office in charge of collecting official employment statistics is the:

Accepted Answer

A)  Bureau of Labor Statistics.
B)  Bureau of Economic Analysis.
C)  Bureau of Industry and Security.
D)  Bureau of the Census.E) B) and C)
F) A) and D)

Question 15

The trade-offs in the effect of unemployment insurance are:

Accepted Answer

A)  it prolongs the job search,but reduces the number of job searches a person has to make.
B)  it shortens the job search,but lengthens the number of times a person will switch careers.
C)  it is free money and makes people lazy,but without it people would starve.
D)  it reduces incentive to accept a job,but reduces the number of job offers typically made.E) All of the above
F) C) and D)

Question 16

On average,younger people have:

Accepted Answer

A)  higher unemployment rates than older people.
B)  lower unemployment rates than older people.
C)  similar unemployment rates than older people.
D)  uncorrelated unemployment rates compared to those of older people.E) A) and C)
F) All of the above

Question 17

When governments subsidize retraining programs for unemployed workers to learn new skills,they are trying to minimize the effects of which kind of unemployment?

Accepted Answer

A)  Frictional
B)  Structural
C)  Seasonal
D)  Real-wageE) All of the above
F) B) and C)

Question 18

If GDP growth were to increase,it would cause the:

Accepted Answer

A)  labor demand curve to shift left.
B)  labor demand curve to shift right.
C)  labor supply curve to shift left.
D)  labor supply curve to shift right.E) None of the above
F) A) and B)

Exam 27: Unemployment and the Demand for Labor

The government office in charge of collecting official employment statistics is the:

Correct Answer
verified

Wages tend to be "sticky" because:

Correct Answer
verified

Sonia was a great bookkeeper 20 years ago,then left the workforce to stay home and raise her children.Now that they're in college,Sonia looks for another bookkeeping job,but they all require computer skills that she doesn't have.Sonia would be considered:

Correct Answer
verified

Those who oppose minimum wage legislation argue that:

Correct Answer
verified

When governments subsidize retraining programs for unemployed workers to learn new skills,they are trying to minimize the effects of which kind of unemployment?

Correct Answer
verified

In general,the unemployment rate varies greatly by:

Correct Answer
verified

Structural unemployment:

Correct Answer
verified

If GDP growth were to increase,it would cause the:

Correct Answer
verified

The labor demand curve:

Correct Answer
verified

Fred was working as a sales rep for a firm,and just completed an MBA by taking courses at night.Fred quits his job to pursue a management position.Fred would be considered:

Correct Answer
verified

The trade-offs in the effect of unemployment insurance are:

Correct Answer
verified

On average,younger people have:

Correct Answer
verified

Discouraged workers are people who have:

Correct Answer
verified

An economic slow-down predicts the new equilibrium wage would be:

Correct Answer
verified

If you hear that unemployment decreased by 2 percentage points to 6 percent in the past year,while the labor force participation rate remained constant,it means:

Correct Answer
verified

The natural rate of unemployment:

Correct Answer
verified

The result of wage stickiness in an economic downturn is that:

Correct Answer
verified

Unemployment is a:

Correct Answer
verified

Exam 27: Unemployment and the Demand for Labor

The government office in charge of collecting official employment statistics is the:

Correct AnswerverifiedShow Answer

Wages tend to be "sticky" because:

Correct AnswerverifiedShow Answer

Sonia was a great bookkeeper 20 years ago,then left the workforce to stay home and raise her children.Now that they're in college,Sonia looks for another bookkeeping job,but they all require computer skills that she doesn't have.Sonia would be considered:

Correct AnswerverifiedShow Answer

Those who oppose minimum wage legislation argue that:

Correct AnswerverifiedShow Answer

When governments subsidize retraining programs for unemployed workers to learn new skills,they are trying to minimize the effects of which kind of unemployment?

Correct AnswerverifiedShow Answer

In general,the unemployment rate varies greatly by:

Correct AnswerverifiedShow Answer

Structural unemployment:

Correct AnswerverifiedShow Answer

If GDP growth were to increase,it would cause the:

Correct AnswerverifiedShow Answer

The labor demand curve:

Correct AnswerverifiedShow Answer

Fred was working as a sales rep for a firm,and just completed an MBA by taking courses at night.Fred quits his job to pursue a management position.Fred would be considered:

Correct AnswerverifiedShow Answer

The trade-offs in the effect of unemployment insurance are:

Correct AnswerverifiedShow Answer

On average,younger people have:

Correct AnswerverifiedShow Answer

Discouraged workers are people who have:

Correct AnswerverifiedShow Answer

An economic slow-down predicts the new equilibrium wage would be:

Correct AnswerverifiedShow Answer

If you hear that unemployment decreased by 2 percentage points to 6 percent in the past year,while the labor force participation rate remained constant,it means:

Correct AnswerverifiedShow Answer

The natural rate of unemployment:

Correct AnswerverifiedShow Answer

The result of wage stickiness in an economic downturn is that:

Correct AnswerverifiedShow Answer

Unemployment is a:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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