chapter 10

Frictional unemployment is inevitable because Select one: a) sectoral shifts are always happening. b) there is a federal minimum-wage law in the U.S. c) some people do not want to be employed. d) unions are very popular in the U.S.

a

Frictional unemployment results from a) job searching. It is often thought to explain relatively short spells of unemployment. b) job searching. It is often thought to explain relatively long spells of unemployment c) a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment. d) a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment.

a

Jenna is searching for a job that suits her tastes about where to live. Mary is looking for a job that makes best use of her skills. Select one: a) Jenna and Mary are both frictionally unemployed. Correct Correct b) Jenna and Mary are both structurally unemployed. c) Jenna is frictionally unemployed, and Mary is structurally unemployed. d) Jenna is structurally unemployed, and Mary is frictionally unemployed.

a

The labor-force participation rate measures the percentage of the Select one: a) total adult population that is in the labor force. b) total adult population that is employed. c) labor force that is employed. d) labor force that is either employed or unemployed.

a

The Bureau of Labor Statistics reported in 2005 that there were 28.19 million people over age 25 who had no high school degree or its equivalent, 11.73 million of whom were employed and 1.04 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group? a) 45.3% and 3.7% b) 45.3% and 8.1% c) 41.6% and 3.7% d) 41.6% and 8.1%

b

Which of the following is not an explanation for the existence of structural unemployment? a) efficiency wages b) job search c) minimum-wage laws d) unions

b

5. Which of the following is not an explanation for the existence of unemployment in the long run? a) it takes time for workers to search for the jobs that are best suited for them b) minimum-wage laws c) the business cycle d) unions

c

6. John is a stockbroker. He has had several job offers, but he has turned them down because he thinks he can find a firm that better matches his tastes and skills. Curtis has looked for work as an accountant for some time. While the demand for accountants does not appear to be falling, there seems to be more people applying than jobs available. a) John and Curtis are both frictionally unemployed. b) John and Curtis are both structurally unemployed. c) John is frictionally unemployed, and Curtis is structurally unemployed. d) John is structurally unemployed, and Curtis is frictionally unemployed.

c

7. In the 1990's Ireland made unemployment benefits less generous. This change would likely have reduced a) both structural unemployment and the natural rate of unemployment. b) structural unemployment but not the natural rate of unemployment. c) both frictional unemployment and the natural rate of unemployment. d) frictional unemployment but not the natural rate of unemployment.

c

Jai Li just lost her job, and she has not yet started looking for a new one. The Bureau of Labor Statistics counts Jai Li as Select one: a) unemployed and in the labor force. b) unemployed but not in the labor force. c) in the labor force but not unemployed. d) neither in the labor force nor unemployed.

d

Unemployment insurance Select one: a) may improve the ability of the economy to match workers with appropriate jobs. b) reduces the job search efforts of the unemployed. c) increases the amount of frictional unemployment in the economy. d) All of the above are correct

d

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level? Select one: a) minimum-wage laws b) unions c) efficiency wages d) All of the above are correct.

d

cyclical unemployment is caused by a) frictional and structural unemployment b) frictional but not structural unemployment c) structural but not frictional unemployment d) neither frictional nor structural unemployment

d

discouraged workers are included in a) the number of unemployed b) the labor force c) frictional unemployment d) non of the above is correct

d