Question 1

The reported unemployment rate should be viewed as

Accepted Answer

A)   a useful but imperfect measure of joblessness.
B)   clearly smaller than the true unemployment rate.
C)   clearly larger than the true unemployment rate.
D)   being very close to the true unemployment rate.E) A) and B)
F) A) and C)

Question 2

A century ago, the four industries with the largest employment in the United States were cotton goods, woolen goods, men's clothing, and lumber.

Accepted Answer

A) True 
 B)False

Question 3

Unemployment insurance increases frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 4

John is a stockbroker. He has had several job offers, but he has turned them down because he thinks he can find a firm that better matches his tastes and skills. Curtis has looked for work as an accountant for some time. While the demand for accountants does not appear to be falling, there seems to be more people applying than jobs available.

Accepted Answer

A)   John and Curtis are both frictionally unemployed.
B)   John and Curtis are both structurally unemployed.
C)   John is frictionally unemployed, and Curtis is structurally unemployed.
D)   John is structurally unemployed, and Curtis is frictionally unemployed.E) A) and D)
F) None of the above

Question 5

The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)   a high wage paid to compensate for dangerous work such as coal mining
B)   an above-equilibrium wage offered by a firm to attract a more talented pool of job applicants
C)   a wage below the minimum wage but supplemented by customer tips
D)   a high wage paid to a college graduate for a high-skill job such as electrical engineeringE) A) and B)
F) C) and D)

Question 7

If the wage is kept above the equilibrium wage for any reason, the result is

Accepted Answer

A)   cyclical unemployment.
B)   frictional unemployment.
C)   seasonal unemployment.
D)   structural unemployment.E) A) and B)
F) A) and D)

Question 8

Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Sheila 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.E) None of the above
F) C) and D)

Question 9

Unemployment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

Accepted Answer

A) True 
 B)False

Question 10

The Bureau of Labor Statistics' U­5 measure of joblessness includes marginally attached workers.

Accepted Answer

A) True 
 B)False

Question 11

Amy is working part-time. Tavaris is on temporary layoff. Who is included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)   only Amy
B)   only Tavaris
C)   both Amy and Tavaris
D)   neither Amy nor TavarisE) A) and B)
F) B) and C)

Question 12

Compare the 2012 unemployment rates and labor-force participation rates of whites, blacks, adults of prime working age (ages 25-54), and teenagers (ages 16-19).

Accepted Answer

For adults:
Adult white men have the hig...

Question 13

Unemployment data is collected

Accepted Answer

A)   through a monthly survey of about 20,000 firms.
B)   through a monthly survey of about 60,000 households.
C)   from unemployment insurance claims.
D)   All of the above are correct.E) A) and B)
F) B) and D)

Question 14

The Bureau of Labor Statistics' U­2 measure of joblessness includes job losers and job leavers.

Accepted Answer

A) True 
 B)False

Question 15

Policies that reduce the time it takes unemployed workers to find new jobs

Accepted Answer

A)   can reduce both frictional unemployment and the natural rate of unemployment.
B)   can reduce frictional unemployment, but they cannot reduce the natural rate of unemployment.
C)   cannot reduce frictional unemployment, but they can reduce the natural rate of unemployment.
D)   cannot reduce either frictional unemployment or the natural rate of unemployment.E) B) and D)
F) None of the above

Question 16

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor.

Accepted Answer

A) True 
 B)False

Question 17

When the wage is above the equilibrium level,

Accepted Answer

A)   the labor market is functioning more efficiently than it otherwise would function.
B)   there is a shortage of labor.
C)   the quantity of labor supplied exceeds the quantity of labor demanded.
D)   job search is the primary explanation for the unemployment that is observed.E) A) and C)
F) A) and D)

Question 18

A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job is

Accepted Answer

A)   counted as out of the labor force but should be counted as unemployed.
B)   counted as unemployed but should be counted as out of the labor force.
C)   correctly counted as out of the labor force.
D)   correctly counted as unemployed.E) A) and D)
F) B) and C)

Question 19

In terms of duration, how does cyclical unemployment differ from structural unemployment?

Accepted Answer

Cyclical unemploymen...

Question 20

The unemployment rate never falls to zero.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment

Amy is working part-time. Tavaris is on temporary layoff. Who is included in the Bureau of Labor Statistics' "employed" category?

Correct Answer
verified

The unemployment rate never falls to zero.

Correct Answer
verified

The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting unemployment insurance.

Correct Answer
verified

Unemployment insurance increases frictional unemployment.

Correct Answer
verified

Unemployment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

Correct Answer
verified

When the wage is above the equilibrium level,

Correct Answer
verified

If the wage is kept above the equilibrium wage for any reason, the result is

Correct Answer
verified

A century ago, the four industries with the largest employment in the United States were cotton goods, woolen goods, men's clothing, and lumber.

Correct Answer
verified

Correct Answer
verified

Unemployment data is collected

Correct Answer
verified

The Bureau of Labor Statistics' U2 measure of joblessness includes job losers and job leavers.

Correct Answer
verified

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

Correct Answer
verified

Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Sheila as

Correct Answer
verified

The reported unemployment rate should be viewed as

Correct Answer
verified

A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job is

Correct Answer
verified

Compare the 2012 unemployment rates and labor-force participation rates of whites, blacks, adults of prime working age (ages 25-54), and teenagers (ages 16-19).

Correct Answer
verified
For adults:
Adult white men have the hig...
View Answer

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor.

Correct Answer
verified

The Bureau of Labor Statistics' U5 measure of joblessness includes marginally attached workers.

Correct Answer
verified

Policies that reduce the time it takes unemployed workers to find new jobs

Correct Answer
verified

In terms of duration, how does cyclical unemployment differ from structural unemployment?

Correct Answer
verified
Cyclical unemploymen...
View Answer

Exam 28: Unemployment

Amy is working part-time. Tavaris is on temporary layoff. Who is included in the Bureau of Labor Statistics' "employed" category?

Correct AnswerverifiedShow Answer

The unemployment rate never falls to zero.

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting unemployment insurance.

Correct AnswerverifiedShow Answer

Unemployment insurance increases frictional unemployment.

Correct AnswerverifiedShow Answer

Unemployment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

Correct AnswerverifiedShow Answer

When the wage is above the equilibrium level,

Correct AnswerverifiedShow Answer

If the wage is kept above the equilibrium wage for any reason, the result is

Correct AnswerverifiedShow Answer

A century ago, the four industries with the largest employment in the United States were cotton goods, woolen goods, men's clothing, and lumber.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Unemployment data is collected

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' U­2 measure of joblessness includes job losers and job leavers.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Sheila as

Correct AnswerverifiedShow Answer

The reported unemployment rate should be viewed as

Correct AnswerverifiedShow Answer

A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job is

Correct AnswerverifiedShow Answer

Compare the 2012 unemployment rates and labor-force participation rates of whites, blacks, adults of prime working age (ages 25-54), and teenagers (ages 16-19).

Correct AnswerverifiedFor adults:Adult white men have the hig...View AnswerShow Answer

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor.

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' U­5 measure of joblessness includes marginally attached workers.

Correct AnswerverifiedShow Answer

Policies that reduce the time it takes unemployed workers to find new jobs

Correct AnswerverifiedShow Answer

In terms of duration, how does cyclical unemployment differ from structural unemployment?

Correct AnswerverifiedCyclical unemploymen...View AnswerShow 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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Correct Answer
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The Bureau of Labor Statistics' U2 measure of joblessness includes job losers and job leavers.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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For adults:
Adult white men have the hig...
View Answer

Correct Answer
verified

The Bureau of Labor Statistics' U5 measure of joblessness includes marginally attached workers.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Cyclical unemploymen...
View Answer