Econ Chapter 8 Unemployment

Which of the following most accurately describes how to calculate the unemployment rate?

(Unemployed / labor force) × 100

If the U.S. dollar were replaced with a "new dollar" at an exchange rate of 1 new dollar for 4 old dollars, then an hourly wage of $10 would become an hourly wage of _____ new dollars.

2.50

A survey reveals that on a small island 1,000 people have jobs, 250 people are unemployed and looking for jobs, and 450 people are neither working nor looking for work. The unemployment rate on the island is:

20%

If a country has a working-age population of 200 million, 120 million people with jobs, and 30 million people unemployed and seeking employment, then its unemployment rate is:

20%.

Generous unemployment benefits are likely to cause:

an increase in the unemployment rate.

Discouraged workers are not working, want to work, but are not actively looking for a job.

True

Efficiency wages are:

above equilibrium to encourage better performance.

To be counted as unemployed, one must:

be out of work and be actively looking for a job during the past four weeks.

It is generally accepted that a binding minimum wage does all of the following EXCEPT:

decrease the amount of labor supplied.

The natural rate of unemployment is:

equal to the sum of frictional and structural unemployment.

Suppose that Allison has an accounting degree, but she lost her job two months ago when her company merged with another firm. Allison hasn't been able to find another accounting job, so she has taken a part-time job as a sales clerk at a clothing store. As a result the official unemployment rate will:

increase temporarily, then fall back to its original level.

Menu costs are the:

real costs of changing listed prices.

A survey reveals that on a small island initially 1,000 people have jobs, 250 people are not working but are looking for jobs, and 450 people are neither working nor looking for work. Suppose that 150 of the 450 people who weren't looking for work now begin looking for work. There are now 400 people looking for work and 1,000 people working. The unemployment rate:

rises to 28.6%.

Annie's credit union charges a fee for transferring funds from her money market account to her checking account. The rate of inflation has been 12% lately, so Annie has transferred funds from her money market account to her checking account more often than usual. This cost is an example of the _____ cost of high inflation.

shoe-leather

Suppose that immigration laws are relaxed and many workers from other nations enter the U.S. labor force. The _____ for labor will _____.

supply; increase

Which of the following situations is likely to increase the natural rate of unemployment?

the entrance of many new people into the labor force

According to historical economic data for the United States from 1949 to 2014, the unemployment rate is most likely to rise:

whenever the economy grows at a rate below 3.25%.