Question 1

According to the theory of efficiency wages,firms operate more efficiently if they can pay wages that are below the equilibrium level.

Accepted Answer

A) True 
 B)False

Question 2

An efficient wage

Accepted Answer

A)  requires increased turnover.
B)  may decrease the costs of production.
C)  helps to reduce the level of unemployment.
D)  All of the above are correct.E) A) and B)
F) A) and D)

Question 3

Suppose that there is an excess supply of economics professors.Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Accepted Answer

Standard economic theory suggests that i...

Question 4

Sectoral changes

Accepted Answer

A)  create frictional unemployment.Firms paying wages above equilibrium to attract a better pool of candidates create structural unemployment.
B)  create structural unemployment.Firms paying wages above equilibrium to attract a better pool of candidates create frictional unemployment.
C)  and firms paying wages above equilibrium to attract a better pool of candidates both create structural unemployment.
D)  and firms paying wages above equilibrium to attract a better pool of candidates both create frictional unemployment.E) B) and C)
F) B) and D)

Question 5

Full-time students,retirees,and unpaid stay-at-home fathers are counted as unemployed.

Accepted Answer

A) True 
 B)False

Question 6

Which list contains two periods when the unemployment rate was below the natural rate of unemployment?

Accepted Answer

A)  1965-1968, 1981-1984
B)  1965-1968, 1997-2000
C)  1981-1984, 1991-1994
D)  1991-1994, 1997-2000E) C) and D)
F) All of the above

Question 7

Figure 28-1
 
-Refer to Figure 28-1.If there were a minimum wage of $4 and then the government instituted a minimum wage of $5,in this market,unemployment would

Accepted Answer

A)  be unchanged.
B)  drop by 10.
C)  rise by 10.
D)  rise by 20.E) A) and C)
F) All of the above

Question 8

Use the following table to answer the following questions.
Table 28-1
 
-Refer to Table 28-1.What is the U-4 measure of labor underutilization?

Accepted Answer

A)  6.2 percent
B)  6.9 percent
C)  7.0 percent
D)  8.1 percentE) B) and D)
F) A) and C)

Question 9

Which of the following is correct?

Accepted Answer

A)  All economists believe that unions are bad for the economy as a whole.
B)  Unions raise wages above the competitive equilibrium level.
C)  Unions increase the level of employment in unionized firms.
D)  Unions decrease the level of employment in nonunionized firms.E) B) and C)
F) A) and B)

Question 10

Labor Stats
The Labor Market
This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Meditor.
 
-Refer to Labor Stats.What is the adult female population in Meditor?

Accepted Answer

A)  35 million
B)  40 million
C)  70 million
D)  105 millionE) B) and D)
F) B) and C)

Question 11

Which of the following correctly ranks categories from smallest to largest according to recent U.S.statistics?

Accepted Answer

A)  unemployed, employed, not in labor force
B)  unemployed, not in labor force, employed
C)  not in labor force, employed, unemployed
D)  not in labor force, unemployed, employedE) B) and D)
F) A) and C)

Question 12

Use the following table to answer the following questions.
Table 28-1
 
-Refer to Table 28-1.What is the U-3 measure of labor underutilization?

Accepted Answer

A)  4.7 percent
B)  6.2 percent
C)  7.0 percent
D)  8.1 percentE) C) and D)
F) B) and C)

Question 13

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 a long time and that most of the unemployed they've joined have been unemployed 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.E) None of the above
F) B) and D)

Question 14

In 2004,based on concepts similar to those used to estimate U.S.employment figures,the Canadian adult non-institutionalized population was 25.022 million,the labor force was 16.956 million,and the number of people employed was 15.864 million.According to these numbers,the Canadian labor-force participation rate and unemployment rate were about

Accepted Answer

A)  67.8% and 6.4%
B)  67.8% and 4.4%
C)  63.4% and 6.4%
D)  63.4% and 4.4%E) B) and D)
F) B) and C)

Question 15

Providing training for unemployed individuals is primarily intended to reduce

Accepted Answer

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

Question 16

If the minimum wage were currently above the equilibrium wage,than a decrease in the minimum wage would

Accepted Answer

A)  increase both the quantity demanded and the quantity supplied of labor.
B)  decrease both the quantity demanded and the quantity supplied of labor.
C)  increase the quantity of labor demanded and decrease the quantity supplied.
D)  decrease the quantity of labor demanded and increase the quantity supplied.E) All of the above
F) A) and C)

Question 17

If the market for day care workers is in equilibrium at $5.00 per hour as shown in this diagram,a minimum wage of $8.00 per hour will

Accepted Answer

A)  increase unemployment by 300 workers.
B)  increase unemployment by 500 workers.
C)  increase unemployment by 600 workers.
D)  None of the above is correct.E) A) and C)
F) B) and D)

Question 18

In 2004,based on concepts similar to those used to estimate U.S.employment figures,the Swedish adult non-institutionalized population was 6.712 million,the labor force was 4.576 million,and the number of people employed was 4.276 million.According to these numbers,the Swedish labor-force participation rate and unemployment rate were about

Accepted Answer

A)  59.5%, 4.5%
B)  59.5%, 6.6%
C)  68.2%, 4.5%
D)  68.2%, 6.6%E) C) and D)
F) A) and C)

Question 19

Labor Stats
The Labor Market
This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Meditor.
 
-Refer to Labor Stats.What is the adult male labor force in Meditor?

Accepted Answer

A)  85 million
B)  90 million
C)  120 million
D)  135 millionE) A) and D)
F) B) and C)

Question 20

Among teenagers,which group has the highest unemployment rate?

Accepted Answer

A)  white males
B)  black females
C)  black males
D)  There are no significant differences in unemployment rates across these groups.E) B) and C)
F) A) and B)

Exam 28: Unemployment

If the market for day care workers is in equilibrium at $5.00 per hour as shown in this diagram,a minimum wage of $8.00 per hour will

Correct Answer
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Correct Answer
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Full-time students,retirees,and unpaid stay-at-home fathers are counted as unemployed.

Correct Answer
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Use the following table to answer the following questions. Table 28-1 -Refer to Table 28-1.What is the U-3 measure of labor underutilization?

Correct Answer
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Which of the following is correct?

Correct Answer
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Providing training for unemployed individuals is primarily intended to reduce

Correct Answer
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Labor Stats The Labor Market This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Meditor. -Refer to Labor Stats.What is the adult female population in Meditor?

Correct Answer
verified

If the minimum wage were currently above the equilibrium wage,than a decrease in the minimum wage would

Correct Answer
verified

Use the following table to answer the following questions. Table 28-1 -Refer to Table 28-1.What is the U-4 measure of labor underutilization?

Correct Answer
verified

An efficient wage

Correct Answer
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Figure 28-1 -Refer to Figure 28-1.If there were a minimum wage of $4 and then the government instituted a minimum wage of $5,in this market,unemployment would

Correct Answer
verified

Which list contains two periods when the unemployment rate was below the natural rate of unemployment?

Correct Answer
verified

Among teenagers,which group has the highest unemployment rate?

Correct Answer
verified

Labor Stats The Labor Market This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Meditor. -Refer to Labor Stats.What is the adult male labor force in Meditor?

Correct Answer
verified

Correct Answer
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Suppose that there is an excess supply of economics professors.Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Correct Answer
verified
Standard economic theory suggests that i...
View Answer

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

Correct Answer
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According to the theory of efficiency wages,firms operate more efficiently if they can pay wages that are below the equilibrium level.

Correct Answer
verified

Sectoral changes

Correct Answer
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Which of the following correctly ranks categories from smallest to largest according to recent U.S.statistics?

Correct Answer
verified

Exam 28: Unemployment

If the market for day care workers is in equilibrium at $5.00 per hour as shown in this diagram,a minimum wage of $8.00 per hour will

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Full-time students,retirees,and unpaid stay-at-home fathers are counted as unemployed.

Correct AnswerverifiedShow Answer

Use the following table to answer the following questions. Table 28-1 -Refer to Table 28-1.What is the U-3 measure of labor underutilization?

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Providing training for unemployed individuals is primarily intended to reduce

Correct AnswerverifiedShow Answer

Labor Stats The Labor Market This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Meditor. -Refer to Labor Stats.What is the adult female population in Meditor?

Correct AnswerverifiedShow Answer

If the minimum wage were currently above the equilibrium wage,than a decrease in the minimum wage would

Correct AnswerverifiedShow Answer

Use the following table to answer the following questions. Table 28-1 -Refer to Table 28-1.What is the U-4 measure of labor underutilization?

Correct AnswerverifiedShow Answer

An efficient wage

Correct AnswerverifiedShow Answer

Figure 28-1 -Refer to Figure 28-1.If there were a minimum wage of $4 and then the government instituted a minimum wage of $5,in this market,unemployment would

Correct AnswerverifiedShow Answer

Which list contains two periods when the unemployment rate was below the natural rate of unemployment?

Correct AnswerverifiedShow Answer

Among teenagers,which group has the highest unemployment rate?

Correct AnswerverifiedShow Answer

Labor Stats The Labor Market This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Meditor. -Refer to Labor Stats.What is the adult male labor force in Meditor?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suppose that there is an excess supply of economics professors.Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

Correct AnswerverifiedStandard economic theory suggests that i...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

According to the theory of efficiency wages,firms operate more efficiently if they can pay wages that are below the equilibrium level.

Correct AnswerverifiedShow Answer

Sectoral changes

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Which of the following correctly ranks categories from smallest to largest according to recent U.S.statistics?

Correct AnswerverifiedShow Answer

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Standard economic theory suggests that i...
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