ECON 110 HW 7 (al-hamdi)

If the number employed is 190 million, the working-age population is 230 million, and the number unemployed is 10 million, then the unemployment rate is A) 5%. B) 5.2% C) 8%. D) 10%.

A) 5%.

The United States has ________ social insurance programs, and generally has a ________ unemployment rate, as compared to Canada and Western Europe. A) less generous; lower B) less generous; greater C) more generous; lower D) more generous; greater

A) less generous; lower

Why might firms pay wages that are above the equilibrium wage in a market? A) to increase the productivity of their workers B) to reduce the unemployment rate C) to encourage workers to form labor unions D) to reduce profit

A) to increase the productivity of their workers

Why might firms pay wages that are above the equilibrium wage in a market? A) to increase the productivity of their workers B) to reduce the unemployment rate C) to encourage workers to form labor unions D) to reduce profit

A) to increase the productivity of their workers

Someone who is available for work but has not actively looked for work in the previous four weeks would be classified as A) employed. B) unemployed. C) not in the labor force. D) not in the working-age population.

C) not in the labor force.

During the month of May, 10 million workers moved from being classified as "unemployed" to being classified as "employed." As a result A) the unemployment rate rose. B) the labor force participation rate fell. C) the unemployment rate fell. D) the labor force participation rate rose.

C) the unemployment rate fell.

Refer to Figure above. Based on the graph of the labor market above, if a minimum wage is set at $5 per hour, which of the following will occur? A) The unemployment rate will rise. B) The unemployment rate will fall. C) The level of unemployment will rise, but the percentage of the labor force unemployed will not change. D) None of the above will occur.

D) None of the above will occur.

Which of the following explains the changes in the U.S. adult male labor force participation rate since 1948? A) More men are joining the military as compared to the past. B) More men are retiring later in life as compared to the past. C) Fewer men consider themselves discouraged workers as compared to the past. D) Younger men are remaining in school longer as compared to the past

D) Younger men are remaining in school longer as compared to the past

Minimum wage laws cause unemployment because the legal minimum wage is set A) below the market wage, causing labor demand to be greater than labor supply. B) below the market wage, causing labor demand to be less than labor supply. C) above the market wage, causing labor demand to be greater than labor supply. D) above the market wage, causing labor demand to be less than labor supply.

D) above the market wage, causing labor demand to be less than labor supply.

Full employment is not considered to be zero unemployment, because A) some cyclical unemployment always exists. B) some people do not want a job. C) there are not enough jobs for everyone who wants one. D) people do not find jobs instantaneously.

D) people do not find jobs instantaneously.

People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of persons who are suffering A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment.

B) structural unemployment.

The unemployment rate is an important economic statistic that can tell us about the health of the economy. If the unemployment rate turns out to be high or higher than anticipated, we would expect A) it is more likely that an incumbent president will be re-elected. B) that stock prices are more likely to fall. C) that jobs are less difficult to find. D) that investors will be more optimistic about the economy.

B) that stock prices are more likely to fall.

If the number of unemployed workers is 19 million, the number in the working-age population is 500 million, and the unemployment rate is 4%, how many workers are in the labor force? A) 1 million B) 20 million C) 475 million D) 481 million

C) 475 million

Labor unions cause unemployment because the union contract wage is set A) below the market wage, causing a shortage of labor. B) below the market wage, causing a surplus of labor. C) above the market wage, causing a surplus of labor. D) above the market wage, causing a shortage of labor.

C) above the market wage, causing a surplus of labor.

Which of the following would increase the unemployment rate? A) a law making it illegal to work more than 35 hours per week B) a cut in unemployment compensation C) an increase in unemployment insurance payments D) a decrease in the minimum wage

C) an increase in unemployment insurance payments

The labor force equals the number of people A) employed. B) unemployed. C) employed plus unemployed. D) in the working-age population.

C) employed plus unemployed.

Most economists believe that labor unions significantly increase the overall unemployment rate in the United States. True/False

False

Paying efficiency wages are a way for a company to cut costs and become more efficient, and are therefore lower than market wages. True/False

False

The natural rate of unemployment consists of frictional unemployment plus cyclical unemployment. True/False

False

The household survey asks adults about their employment status and is used to compile the monthly unemployment rate. True/False

True