Macro Ch 11 LP

If the adult population of a country is 200 million, 100 million are employed, and 10 million are unemployed, this country's labor force is a) unknown given the above information b) 100 million c) 110 million d) 200 million

c) 110 million

Females started entering the labor force, and particularly professional schools, in increasing numbers beginning around a) 1970 b) 1960 c) 1940 d) 1950

a) 1970

Which of the following is a concern among economists regarding the aging of the U.S. population? a) Since older people are less likely to work, an aging population will lead to a decreased labor force participation rate in the United States and lower tax revenues. b) Since older people typically consume different goods (more health care and prescription drugs, less pizza and beer), an aging population will lead to increased structural unemployment in certain areas of the economy (such as the pizza and beer industries). c) Since older people typically consume less, the aging of the population will lead to lower consumption and thus lower GDP. d) Since older people are more likely to favor increasing Medicare and prescription drug benefits, an aging population will alter political support for such programs.

a) Since older people are less likely to work, an aging population will lead to a decreased labor force participation rate in the United States and lower tax revenues.

Which of the following is true of the effects of employment protection laws? a) They create employment security for workers with a job. b) They make labor markets more flexible in adjusting for changes in market conditions. c) They reduce the unemployment rates among young and minority workers. d) They reduce the duration of unemployment.

a) They create employment security for workers with a job

Over the past few decades, the U.S. economy has switched from a primarily manufacturing economy to a service economy. Many individuals working in manufacturing positions lost their jobs, and many new jobs opened up in services. For those who lost jobs in manufacturing, this is an example of a) structural unemployment b) industry unemployment c) frictional unemployment d) cyclical unemployment

a) structural unemployment

The most basic U.S. employment law stipulating that an employee may quit and employer may fire at any time and for any reason is called a) the employment at will doctrine. b) the Equal Employment Opportunity Act. c) the employee privacy law. d) affirmative action.

a) the employment at will doctrine.

Which of the following is the best example of cyclical unemployment? a) Allison, a recent high school graduate with high aspirations, is seeking a job as the CEO of a Fortune 500 company. b) Peter, a highly skilled construction worker, lost his job when the recession began. He is looking for work, but demand in the construction industry is still low. c) John is a house painter in northern Michigan. During the winter months, John is unemployed. d) Heather recently graduated with her doctorate in economics. She is searching for a job that matches her skills.

b) Peter, a highly skilled construction worker, lost his job when the recession began. He is looking for work, but demand in the construction industry is still low.

All of the following are counted as employed persons EXCEPT a) a part-time worker. b) a discouraged worker. c) an employee working overtime every day. d) an underemployed person.

b) a discouraged worker

The most likely influence of the Internet on the rate of frictional unemployment has been to a) have no effect on it. b) lower it. c) It is impossible to tell. d) raise it.

b) lower it

Which of the following is an example of an active labor market policy? a) worker unions b) paying unemployed workers who find a job c) minimum wage laws d) extending unemployment benefits

b) paying unemployed workers who find a job

The phrase "persistent long-term unemployment" means a) that the unemployment problem has lasted for a long time. b) that a substantial fraction of the unemployed have been so for more than one year and that this problem has lasted for a long time. c) that a substantial fraction of the unemployed have been so for more than one year. d) that a small fraction of the unemployed have been so for more than one year but that this problem has not lasted for a long time.

b) that a substantial fraction of the unemployed have been so for more than one year and that this problem has lasted for a long time.

A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. How many people in this country are in the labor force? a) 15 million b) 25 million c) 20 million d) 30 million

c) 20 million

Which type of unemployment is an outcome of economist Joseph Shumpeter's creative destruction process within an industry? a) structural unemployment b) cyclical unemployment c) frictional unemployment d) seasonal unemployment

c) frictional unemployment

If minimum wages are higher relative to the median wage, then minimum wage will affect a) more people and create less unemployment. b) fewer people and create less unemployment. c) more people and create more unemployment. d) fewer people and create more unemployment.

c) more people and create more unemployment

The effect of better unemployment benefits is a ________ in the price of unemployment

decrease

Suppose that Congress decided to exempt seniors from paying income tax on labor income. What would happen to the labor force participation rate for seniors? a) It would remain the same. b) It would decrease. c) It is impossible to tell. d) It would increase.

d) It would increase

Long-lasting unemployment benefits tend to a) decrease the rate of structural unemployment. b) increase the rate of frictional unemployment. c) decrease the rate of frictional unemployment. d) increase the rate of structural unemployment.

d) increase the rate of structural unemployment

All of the following policies can reduce structural unemployment EXCEPT a) job retraining b) job search assistance c) work tests d) raising unemployment benefits

d) raising unemployment benefits