Econ 202 - ch. 10

If an unemployed person quits looking for work, then, eventually the unemployment rate is unaffected, and the labor-force participation rate decreases. and the labor-force participation rate are both unaffected. decreases, and the labor-force participation rate is unaffected. and the labor-force participation rate both decrease.

and the labor-force participation rate both decrease.

Labor unions play a larger role in the current U.S. economy than in European countries such as Norway and Sweden. are similar to cartels. prefer to operate in states with right-to-work laws. attract a membership of about 25 percent of current U.S. workers.

are similar to cartels.

Suppose that an anti-smoking campaign in Moscow, Russia, is successful so that Muscovites smoke less and chew gum more. Tobacco companies lay off workers, while chewing gum manufacturers employ more workers. This is an example of structural unemployment created by efficiency wages. frictional unemployment created by efficiency wages. structural unemployment created by sectoral shifts. frictional unemployment created by sectoral shifts.

frictional unemployment created by sectoral shifts.

Unions contribute to structural but not frictional unemployment. frictional but not structural unemployment. neither frictional nor structural unemployment. both frictional and structural unemployment.

structural but not frictional unemployment.

Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household? not in the labor force employed unemployed underemployed

underemployed

An economy's natural rate of unemployment is the economy's long-run target level of unemployment. lowest rate of unemployment the economy can achieve. amount of unemployment that the economy normally experiences. All of the above are correct.

amount of unemployment that the economy normally experiences.

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, a labor force of 154 million and employment of 141.6 million. Based on these numbers the unemployment rate was 93.3/154. 12.4/234.9. 93.3/234.9. 12.4/154.

12.4/154.

Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force participation rate is 70%. What is the unemployment rate? 28% 6.7% 9.5% 10.5%

9.5%

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. John and Curtis are both frictionally unemployed. John and Curtis are both structurally unemployed. John is frictionally unemployed, and Curtis is structurally unemployed. John is structurally unemployed, and Curtis is frictionally unemployed.

John is frictionally unemployed, and Curtis is structurally unemployed.

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category? Marisa, who neither has a job nor is looking for one Miguel, who is on temporary layoff Reta, who worked only 15 hours last week None of the above is correct.

Miguel, who is on temporary layoff

When a minimum-wage law forces the wage to remain above the equilibrium level, the result is a surplus of labor and a shortage of jobs. both a shortage of labor and a shortage of jobs. both surplus of labor and a surplus of jobs. a shortage of labor and a surplus of jobs.

a surplus of labor and a shortage of jobs.

When a union raises the wage above the equilibrium level, both the quantity of labor supplied and unemployment rise. both the quantity of labor supplied and unemployment fall. the quantity of labor supplied rises and unemployment falls. the quantity of labor supplied falls and unemployment rises.

both the quantity of labor supplied and unemployment rise.

The deviation of unemployment from its natural rate is called structural unemployment. cyclical unemployment. frictional unemployment. the economic rate of unemployment

cyclical unemployment.

To be counted as "employed" in the U.S. labor force statistics, a person does not have to be working for pay if they are working for a family business and does not have to be working full time does not have to be working for pay if they are working for a family business but must be employed full time. must be working for pay but does not have to be working full time. must be working for pay and be working full time.

does not have to be working for pay if they are working for a family business and does not have to be working full time

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called the natural rate of unemployment cyclical unemployment. frictional unemployment. structural unemployment.

frictional unemployment.

Economists would predict that, other things the same, the more generous unemployment compensation a country has, the shorter the duration of each spell of unemployment and the higher the unemployment rate. longer the duration of each spell of unemployment and the higher the unemployment rate. shorter the duration of each spell of unemployment and the lower the unemployment rate. longer the duration of each spell of unemployment and the lower the unemployment rate.

longer the duration of each spell of unemployment and the higher the unemployment rate.

Cyclical unemployment is caused by neither frictional nor structural unemployment frictional and structural unemployment structural but not frictional unemployment frictional but not structural unemployment

neither frictional nor structural unemployment

Who in the adult population is counted as "employed" in U.S. labor statistics? neither people who are temporarily absent from their job nor people who work without pay in a family member's business people who are temporarily absent from their job and people who work without pay in a family member's business people who work without pay in a family member's business but not people who are temporarily absent from their job people who are temporarily absent from their job but not people who work without pay in a family member's business

people who are temporarily absent from their job and people who work without pay in a family member's business

If the minimum wage were currently above the equilibrium wage, then a decrease in the minimum wage that kept it above the equilibrium wage would reduce the shortage of labor, increase the shortage of labor. increase the surplus of labor. reduce the surplus of labor.

reduce the surplus of labor.

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

the business cycle