Economics - Chapter28

In the U.S. minimum-wage laws create significant unemployment for teenagers and workers such as experienced plumbers. neither teenagers nor workers such as experienced plumbers. workers such as experienced plumbers but not teenagers. teenagers but not workers such as experienced plumbers.

teenagers but not workers such as experienced plumbers.

Efficiency wages create frictional unemployment. True False

False

Which of the following is correct? Typically only about one-fourth of the unemployed are new entrants into the job market. Almost half of all unemployment spells end in employment. Most unemployment observed at any time is short term. Most spells of unemployment are short.

Most spells of unemployment are short.

Advocates of government-run employment agencies and public-training programs believe they make job search more efficient and that they reduce the inequities of changing job markets. True False

True

he unemployment that results from the process of matching workers and jobs is called frictional unemployment. True False

True

Which of the following is not correct? A union is a worker association that bargains with employers over wages, benefits, and working conditions. A union is a type of cartel. Union membership is very small in most European countries. Unions play a much smaller role in the U.S. labor market now than they did in the past.

Union membership is very small in most European countries.

Which of the following is not correct? Unions are subject to antitrust laws. The National Labor Relations Board is the U.S. government agency that enforces workers' right to unionize. Right-to-work laws allow workers in a unionized firm to choose not to join the union. The Wagner Act of 1935 prevents U.S. employers from interfering when workers try to organize unions.

Unions are subject to antitrust laws.

A wage above equilibrium helps explain structural unemployment and the natural rate of unemployment. does not help explain either structural unemployment or the natural rate of unemployment. helps explain the natural rate of unemployment but not structural unemployment. helps explain structural unemployment but not the natural rate of unemployment.

helps explain structural unemployment and the natural rate of unemployment.

The official government unemployment rate (U-3) fails to fully capture labor utilization because it does not capture discouraged workers. people who have retired. people who are too young to legally work. household survey responses.

discouraged workers.

Discouraged workers, as defined by the Bureau of Labor Statistics, are included in the number of unemployed and the labor force excluded from both the number of unemployed and the labor force. excluded from the number of unemployed but included in the labor force included in the number of unemployed but excluded from the labor force

excluded from the number of unemployed but included in the labor force

The theory of efficiency wages explains why setting wages at the equilibrium level may increase unemployment. it is efficient for firms to set wages at the equilibrium level. the most efficient way to pay workers is to pay them according to their skills and any risks they take. firms may increase productivity and profits by setting wages above the equilibrium level.

firms may increase productivity and profits by setting wages above the equilibrium level.

Mary manages a data entry center. Workers sometimes play games on the internet, check their personal email, or go slow. According to efficiency wage theory to reduce this shirking Mary could pay above equilibrium wages. This would raise unemployment. pay above equilibrium wages. This would reduce unemployment. pay below equilibrium wages. This would reduce unemployment. pay below equilibrium wages. This would raise unemployment.

pay above equilibrium wages. This would raise unemployment.

An argument for the presence of unions is that they ____ increase the happiness and productivity of workers. increase employment. keep wages low. reduce the productivity of workers.

reduce the productivity of workers.

Minimum wages create unemployment in markets where they create a shortage of labor. Most U.S. workers get paid more than the minimum wage. surplus of labor. Most U.S. workers get paid less than the minimum wage. surplus of labor. Most U.S. workers get paid more than the minimum wage. shortage of labor. Most U.S. workers get paid less than the minimum wage

surplus of labor. Most U.S. workers get paid more than the minimum wage.