Question 1

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) A) and B)
F) A) and C)

Question 2

The survey the Bureau of Labor Statistics uses to collect unemployment data is called the:

Accepted Answer

A)   current population survey.
B)   census population survey.
C)   census employment survey.
D)   current employment survey.E) C) and D)
F) A) and D)

Question 3

Unemployment is a lagging indicator because:

Accepted Answer

A)   employers wait to see how bad a recession looks before making the difficult decision to lay off workers.
B)   employers wait to see how solid a recovery looks before committing to take on new employees.
C)   firms may first try to decrease or increase the hours of existing employees before changing levels of employment.
D)   All of these are reasons that make unemployment a lagging indicator.E) A) and B)
F) B) and D)

Question 4

For economic purposes in the United States, the working-age population does include people:

Accepted Answer

A)   in prison.
B)   in the military.
C)   less than 16 years old.
D)   over the age of 16.E) B) and C)
F) A) and D)

Question 5

Unemployment insurance:

Accepted Answer

A)   varies widely across countries.
B)   has a set minimum in the US.
C)   is typically 32 weeks in the US, except for times of unusually high unemployment.
D)   All of these are true.E) B) and C)
F) A) and D)

Question 6

Policies that make it more difficult to fire an employee likely lead to:

Accepted Answer

A)   greater unemployment, because employers will be more hesitant to hire someone.
B)   greater unemployment, because employees will quit more often.
C)   less unemployment, because everyone will value their job more.
D)   less unemployment, because employers will not be able to fire as many people.E) A) and B)
F) B) and C)

Question 7

Matt is a college graduate who majored in creative writing and currently works at a local bookstore as a sales clerk. The best way to describe Matt is to say he is:

Accepted Answer

A)   unemployed.
B)   a discouraged worker.
C)   underemployed.
D)   overemployed.E) All of the above
F) None of the above

Question 8

Which of the following is not an example of an economic policy that affects the level of unemployment?

Accepted Answer

A)   Minimum wage law.
B)   Efficiency wages.
C)   At-will employment policies.
D)   Title IX.E) None of the above
F) A) and B)

Question 9

One way for governments to try and minimize the effects of structural unemployment is to:

Accepted Answer

A)   subsidize retraining programs.
B)   increase unemployment benefits.
C)   mandate employers cannot fire anyone.
D)   All of these are ways that would minimize the effects of structural unemployment.E) B) and C)
F) B) and D)

Question 10

The Bureau of Labor Statistics counts underemployed persons as those who are currently working:

Accepted Answer

A)   less than they would like to be.
B)   in a job for which they are overqualified for.
C)   less hours than their employer requires full-time workers to work.
D)   in a field that doesn't add a lot to overall GDP.E) All of the above
F) A) and B)

Question 11

Unemployment rates tend to be highest during periods of:

Accepted Answer

A)   recession.
B)   economic boom.
C)   recovery.
D)   static movement.E) B) and C)
F) A) and D)

Question 12

Sasha has a master's degree in writing, and currently works full-time as a 2nd grade classroom helper. She submits articles for the local paper on occasion, and gets paid only when the editor agrees to publish a submission. Sasha would love to be a full-time reporter. The best way to describe Sasha is to say she is ________________; the Bureau of Labor Statistics would count Sasha as ____________.

Accepted Answer

A)   underemployed; employed
B)   employed; employed
C)   discouraged; underemployed
D)   underemployed; underemployedE) B) and C)
F) A) and C)

Question 13

The unemployment rate may:

Accepted Answer

A)   understate the effect of a recession on employment because some leave the labor force.
B)   understate the effect of a recession on employment because many enter the labor force.
C)   overstate the effect of a recession on employment because some leave the labor force.
D)   overstate the effect of a recession on employment because many enter the labor force.E) All of the above
F) A) and D)

Question 14

If you hear that unemployment increased by 2 percentage points to 4 %in the past year, while the labor force participation rate and the population remained constant, it means:

Accepted Answer

A)   unemployment doubled in the past year.
B)   there was a 100 percent increase in unemployment.
C)   twice as many people are without work than was the case a year ago.
D)   All of these are true.E) None of the above
F) A) and C)

Question 15

Jen has a PhD in economics and has been working for 3 years part-time as an instructor; she has always hoped to be hired as a full-time faculty member. The best way to describe Jen is to say she is:

Accepted Answer

A)   a discouraged worker.
B)   unemployed.
C)   underemployed.
D)   overemployed.E) All of the above
F) C) and D)

Question 16

It is generally more profitable for a firm to pay workers more than the going wage rate:

Accepted Answer

A)   in sectors where skills are scarce.
B)   in industries in which worker motivation doesn't really matter.
C)   in areas in which turnover is not very costly.
D)   All of these are true.E) B) and D)
F) A) and B)

Question 17

Economists report changes in unemployment in:

Accepted Answer

A)   percentage points, not percentages.
B)   percentages, not percentage points.
C)   percentage points or percentages, interchangeably.
D)   nominal figures; they rarely use percentages or percentage point changes.E) All of the above
F) B) and C)

Question 18

The labor force participation rate:

Accepted Answer

A)   is measured by the labor force divided by the total population.
B)   tells us what fraction of the working-age population wants to be working.
C)   typically rises during periods of recession.
D)   is measured by those employed divided by the working-age population.E) A) and D)
F) A) and C)

Question 19

The normal level of unemployment that persists in an economy in the long run is:

Accepted Answer

A)   called the natural rate of unemployment.
B)   also called the equilibrium rate of underemployment.
C)   zero when the market is equilibrium.
D)   always achieved in the real world.E) B) and D)
F) A) and D)

Question 20

In general, the unemployment rate does not vary greatly by:

Accepted Answer

A)   educational status.
B)   gender.
C)   age.
D)   heightE) B) and C)
F) A) and D)

Exam 9: Unemployment and the Labor Market

If you hear that unemployment increased by 2 percentage points to 4 %in the past year, while the labor force participation rate and the population remained constant, it means:

Correct Answer
verified

Unemployment rates tend to be highest during periods of:

Correct Answer
verified

In general, the unemployment rate does not vary greatly by:

Correct Answer
verified

One way for governments to try and minimize the effects of structural unemployment is to:

Correct Answer
verified

It is generally more profitable for a firm to pay workers more than the going wage rate:

Correct Answer
verified

Matt is a college graduate who majored in creative writing and currently works at a local bookstore as a sales clerk. The best way to describe Matt is to say he is:

Correct Answer
verified

Unemployment is a lagging indicator because:

Correct Answer
verified

Economists report changes in unemployment in:

Correct Answer
verified

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

Correct Answer
verified

For economic purposes in the United States, the working-age population does include people:

Correct Answer
verified

Policies that make it more difficult to fire an employee likely lead to:

Correct Answer
verified

The labor force participation rate:

Correct Answer
verified

Correct Answer
verified

The survey the Bureau of Labor Statistics uses to collect unemployment data is called the:

Correct Answer
verified

The normal level of unemployment that persists in an economy in the long run is:

Correct Answer
verified

Unemployment insurance:

Correct Answer
verified

Which of the following is not an example of an economic policy that affects the level of unemployment?

Correct Answer
verified

Jen has a PhD in economics and has been working for 3 years part-time as an instructor; she has always hoped to be hired as a full-time faculty member. The best way to describe Jen is to say she is:

Correct Answer
verified

The Bureau of Labor Statistics counts underemployed persons as those who are currently working:

Correct Answer
verified

The unemployment rate may:

Correct Answer
verified

Exam 9: Unemployment and the Labor Market

If you hear that unemployment increased by 2 percentage points to 4 %in the past year, while the labor force participation rate and the population remained constant, it means:

Correct AnswerverifiedShow Answer

Unemployment rates tend to be highest during periods of:

Correct AnswerverifiedShow Answer

In general, the unemployment rate does not vary greatly by:

Correct AnswerverifiedShow Answer

One way for governments to try and minimize the effects of structural unemployment is to:

Correct AnswerverifiedShow Answer

It is generally more profitable for a firm to pay workers more than the going wage rate:

Correct AnswerverifiedShow Answer

Matt is a college graduate who majored in creative writing and currently works at a local bookstore as a sales clerk. The best way to describe Matt is to say he is:

Correct AnswerverifiedShow Answer

Unemployment is a lagging indicator because:

Correct AnswerverifiedShow Answer

Economists report changes in unemployment in:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

For economic purposes in the United States, the working-age population does include people:

Correct AnswerverifiedShow Answer

Policies that make it more difficult to fire an employee likely lead to:

Correct AnswerverifiedShow Answer

The labor force participation rate:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The survey the Bureau of Labor Statistics uses to collect unemployment data is called the:

Correct AnswerverifiedShow Answer

The normal level of unemployment that persists in an economy in the long run is:

Correct AnswerverifiedShow Answer

Unemployment insurance:

Correct AnswerverifiedShow Answer

Which of the following is not an example of an economic policy that affects the level of unemployment?

Correct AnswerverifiedShow Answer

Jen has a PhD in economics and has been working for 3 years part-time as an instructor; she has always hoped to be hired as a full-time faculty member. The best way to describe Jen is to say she is:

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics counts underemployed persons as those who are currently working:

Correct AnswerverifiedShow Answer

The unemployment rate may:

Correct AnswerverifiedShow Answer

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