Micro-economics self quiz #11

The goal of unemployment policy is to eliminate frictional unemployment.

False

Young females have a higher unemployment rate than young males

False

Efficiency wages are wages that are:

above equilibrium to encourage better performance.

An example of cyclical unemployment is a(n):

autoworker who is laid off from an automobile company due to a recession.

Eliminating the business cycle would eliminate ______ unemployment

cyclical

The National Bureau of Economic Research announced that the U.S. economy had been in a recession in 2008. As a result, the type of unemployment that is on the rise is known as:

cyclical unemployment.

The natural rate of unemployment is:

equal to the sum of frictional and structural unemployment.

Sam, who is 55 years old and has been a steel worker for 30 years, is unemployed because the steel plant in his town closed and moved to Mexico. Sam is experiencing:

structural unemployment.

If the actual unemployment rate is 7% and the cyclical unemployment rate is 2%, then the natural rate of unemployment is:

5%

Full employment, as defined by economists:

is the natural rate of unemployment.

A worker classified as frictionally unemployed is one who is:

voluntarily looking for work, somewhere a job exists that demands his or her skills.

In general, expansions are characterized by:

falling unemployment

Unemployment rates differ little by education, age, or ethnic group.

false

Firms pay efficiency wages because:

it reduces the risk of losing the best workers.

During the 1970s when handheld calculators became popular and replaced slide rules in performing computations, workers in the slide rule industry lost their jobs. What type of unemployment did these workers experience?`

structural unemployment

Frictional unemployment exists because of all of the following except:

the minimum wage.

The natural rate of employment is achieved when:

there is no cyclical unemployment.