Question 1

Sonia has a BAin art history, and is currently working full-time as a waitress. The Bureau of Labor Statistics would count Sonia as:

Accepted Answer

A)   employed.
B)   underemployed.
C)   unemployed.
D)   a discouraged worker.E) C) and D)
F) B) and C)

Question 2

Unemployment insurance:

Accepted Answer

A)   is an explanation for why wages do not reach equilibrium.
B)   can affect how quickly people find jobs.
C)   will not affect the natural rate of unemployment.
D)   is a mandated federal policy all states must adhere to.E) A) and B)
F) B) and D)

Question 3

The labor force excludes those:

Accepted Answer

A)   younger than age 16 years old.
B)   who don't want to work.
C)   who are disabled and can't work.
D)   The labor force excludes all of these.E) None of the above
F) All of the above

Question 4

In the United States, the federal minimum wage in early 2016was:

Accepted Answer

A)   $7.25 per hour.
B)   $6.50 per hour.
C)   $8.00 per hour.
D)   $7.73 per hour.E) B) and C)
F) A) and D)

Question 5

If minimum wage legislation does not cause unemployment, then:

Accepted Answer

A)   those who work for minimum wage will benefit.
B)   firms will generally gain by earning higher profits.
C)   minimum wages may still be binding for many employees.
D)   most likely the government won't study how minimum wage legislation may affect employment.E) B) and C)
F) A) and C)

Question 6

The labor force does not include people in the working-age population who are:

Accepted Answer

A)   employed.
B)   not actively trying to find a job.
C)   retired, a full-time student, or stay-at-home parent.
D)   employed part time.E) B) and D)
F) A) and B)

Question 7

Structural unemployment is:

Accepted Answer

A)   a mismatch between the skills workers can offer and the skills that are in demand.
B)   unemployment caused by workers who are changing their location, job, or career.
C)   the effect of wages remaining persistently above the market-clearing level.
D)   when workers voluntarily quit their jobs.E) All of the above
F) B) and D)

Question 8

When the economy slows down:

Accepted Answer

A)   firms contract their operations.
B)   demand for workers decreases.
C)   GDP growth is slowing or negative.
D)   All of these are true.E) A) and C)
F) All of the above

Question 9

Frictional unemployment is:

Accepted Answer

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

Question 10

The role of unions is:

Accepted Answer

A)   unnecessary if the market does a good job of determining fair wages.
B)   to provide firms with a mechanism to more efficiently fire less productive workers.
C)   gaining power in the United States.
D)   All of these statements are true.E) C) and D)
F) A) and D)

Question 11

During times of recession, the labor force participation rate typically:

Accepted Answer

A)   rises, as more people need work.
B)   rises, as more incomes per household are needed to make ends meet.
C)   falls, as more people give up and stop looking for work.
D)   falls, as more people cannot find work, they stay in jobs that aren't a good fit.E) B) and D)
F) A) and C)

Question 12

In the 1950s, about _________ of U.S. workers were in unions.

Accepted Answer

A)   1/3
B)   1/2
C)   1/4
D)   3/4E) B) and C)
F) A) and C)

Question 13

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)   Sonia is not in the labor force..
D)   seasonally unemployed.E) A) and B)
F) All of the above

Question 14

Some economists argue that the minimum wage:

Accepted Answer

A)   drives some labor to occur "under the table."
B)   causes some employers to hire undocumented migrants driving up wages overall.
C)   leads some employers to pay workers cash and then report these payments to the government.
D)   All of these are true.E) A) and B)
F) All of the above

Question 15

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) B) and D)
F) None of the above

Exam 9: Unemployment and the Labor Market

Wages tend to be "sticky" because:

Correct Answer
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If minimum wage legislation does not cause unemployment, then:

Correct Answer
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Frictional unemployment is:

Correct Answer
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When the economy slows down:

Correct Answer
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The labor force excludes those:

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

During times of recession, the labor force participation rate typically:

Correct Answer
verified

Sonia has a BAin art history, and is currently working full-time as a waitress. The Bureau of Labor Statistics would count Sonia as:

Correct Answer
verified

Unemployment insurance:

Correct Answer
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In the 1950s, about _________ of U.S. workers were in unions.

Correct Answer
verified

The labor force does not include people in the working-age population who are:

Correct Answer
verified

Structural unemployment is:

Correct Answer
verified

Some economists argue that the minimum wage:

Correct Answer
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The role of unions is:

Correct Answer
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In the United States, the federal minimum wage in early 2016was:

Correct Answer
verified

Exam 9: Unemployment and the Labor Market

Wages tend to be "sticky" because:

Correct AnswerverifiedShow Answer

If minimum wage legislation does not cause unemployment, then:

Correct AnswerverifiedShow Answer

Frictional unemployment is:

Correct AnswerverifiedShow Answer

When the economy slows down:

Correct AnswerverifiedShow Answer

The labor force excludes those:

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

During times of recession, the labor force participation rate typically:

Correct AnswerverifiedShow Answer

Sonia has a BAin art history, and is currently working full-time as a waitress. The Bureau of Labor Statistics would count Sonia as:

Correct AnswerverifiedShow Answer

Unemployment insurance:

Correct AnswerverifiedShow Answer

In the 1950s, about _________ of U.S. workers were in unions.

Correct AnswerverifiedShow Answer

The labor force does not include people in the working-age population who are:

Correct AnswerverifiedShow Answer

Structural unemployment is:

Correct AnswerverifiedShow Answer

Some economists argue that the minimum wage:

Correct AnswerverifiedShow Answer

The role of unions is:

Correct AnswerverifiedShow Answer

In the United States, the federal minimum wage in early 2016was:

Correct AnswerverifiedShow Answer

Correct Answer
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