Question 1

Classical unemployment can be caused by which of the following?

Accepted Answer

A)  Minimum wage laws
B)  Bargaining by unions
C)  Efficiency wages
D)  All of these create classical unemployment.E) A) and B)
F) A) and C)

Question 2

Efficiency wages are:

Accepted Answer

A)  wages deliberately set above the market rate in order to increase productivity.
B)  a cause of unemployment.
C)  an incentive for an employee to work hard to keep his job.
D)  All of these are true.E) A) and B)
F) A) and D)

Question 3

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

Accepted Answer

A)  one third
B)  one half
C)  one quarter
D)  three quartersE) B) and C)
F) A) and C)

Question 4

Does minimum wage cause unemployment?

Accepted Answer

A)  Theoretically,yes.
B)  Economists have found evidence that it does cause small amounts of unemployment in certain industries.
C)  Economists have found evidence that shows it does not impact unemployment levels in an industry like fast food.
D)  All of these are true.E) C) and D)
F) All of the above

Question 5

A minimum wage is:

Accepted Answer

A)  the lowest wage that a firm is legally allowed to pay its workers.
B)  the highest wage that a firm is legally obligated to pay its non-skilled labor.
C)  the wage every high school dropout will earn if they are employed.
D)  None of these is correct.E) A) and B)
F) A) and C)

Question 6

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 B)
F) None of the above

Question 7

The degree of wage stickiness in the real world:

Accepted Answer

A)  is controversial,even among economists.
B)  is agreed upon by economists,but not accepted by others,like policymakers.
C)  is agreed upon by economists as a concept,but controversial in how it's measured.
D)  has been estimated by economists.E) C) and D)
F) B) and D)

Question 8

Real-wage 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)  is also called cyclical unemployment.E) A) and D)
F) A) and C)

Question 9

In the United States,the working population does not include:

Accepted Answer

A)  anyone in the military.
B)  someone who is 16 and does not want to work.
C)  someone who is 65.
D)  The working population does not include any of these.E) All of the above
F) None of the above

Question 10

With what measure does cyclical unemployment tend to move?

Accepted Answer

A)  Per capita GDP growth rate
B)  Nominal GDP
C)  Inflation
D)  GDP deflatorE) A) and D)
F) B) and D)

Question 11

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

Accepted Answer

A)  provide information to unemployed people about which professions are experiencing rising demand for labor.
B)  subsidize retraining programs for unemployed workers to learn new skills.
C)  offer low-interest loans to unemployed workers to go back to school to learn new skills.
D)  All of these are ways the government can deal with structural unemployment.E) A) and C)
F) None of the above

Question 12

The unemployment rate:

Accepted Answer

A)  is measured by the number of people who are unemployed divided by the labor force.
B)  is never zero.
C)  measures what percentage of our population is currently looking for a job and can't find one.
D)  All of these are true.E) B) and C)
F) A) and D)

Question 13

We don't typically see wages __________ in response to an economic upswing because ____________.

Accepted Answer

A)  rise;they are "sticky," and are slow to respond to shifts in the economy
B)  rise;they cannot rise above the equilibrium in any circumstance
C)  fall;they are "sticky," and are slow to respond to shifts in the economy
D)  fall;they cannot fall below where they were previously set due to inflationE) A) and D)
F) B) and C)

Question 14

The economy goes through ups and downs over time:

Accepted Answer

A)  which are reflected by changes in GDP growth.
B)  and economists call this pattern the business cycle.
C)  which affect the demand for labor.
D)  All of these are true.E) A) and C)
F) A) and B)

Question 15

Giving people income through unemployment insurance:

Accepted Answer

A)  allows people to prolong their unemployment until they find a better match.
B)  reduces frictional employment because people find good matches,and change jobs less often.
C)  creates two opposite effects on unemployment.
D)  All of these are true.E) B) and D)
F) C) and D)

Question 16

Someone who is underemployed is someone who:

Accepted Answer

A)  is working part-time,but wants full-time employment.
B)  is working in a job for which they are overqualified.
C)  could be contributing more output to society by either working more,or working using more advanced skills they possess but don't currently use.
D)  All of these describe those who are underemployed.E) B) and C)
F) A) and D)

Question 17

The number of U.S.workers in unions today is:

Accepted Answer

A)  far lower than it was in the 1950s.
B)  about 12 percent of all wage and salary workers.
C)  just under 15 million Americans.
D)  All of these are true.E) A) and B)
F) None of the above

Question 18

Frictional 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)  is the most alarming cause of unemployment.E) B) and C)
F) C) and D)

Question 19

People with less education are:

Accepted Answer

A)  more likely to be unemployed than people with more education.
B)  less likely to be unemployed than people with more education.
C)  just as likely to be unemployed than people with more education.
D)  not comparable to people with more education.E) B) and C)
F) None of the above

Question 20

Real-wage unemployment can be caused by which of the following?

Accepted Answer

A)  Minimum wage laws
B)  Retraining programs
C)  Low-interest student loans
D)  None of these cause real-wage unemployment.E) All of the above
F) A) and B)

Exam 27: Unemployment and the Demand for Labor

People with less education are:

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Real-wage unemployment can be caused by which of the following?

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The degree of wage stickiness in the real world:

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A minimum wage is:

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Someone who is underemployed is someone who:

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Real-wage unemployment:

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With what measure does cyclical unemployment tend to move?

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We don't typically see wages __________ in response to an economic upswing because ____________.

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Does minimum wage cause unemployment?

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

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

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Giving people income through unemployment insurance:

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In the United States,the working population does not include:

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The economy goes through ups and downs over time:

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Frictional unemployment:

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When the economy slows down:

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Efficiency wages are:

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Classical unemployment can be caused by which of the following?

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The number of U.S.workers in unions today is:

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The unemployment rate:

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We don't typically see wages in response to an economic upswing because __.

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