Macro Chapter 15

Refer to Table 28-2. In the proper order, which age group has the highest unemployment rate and which has the highest labor-force participation rate? a. 55 and older, under 55 b. Under 55, under 55 c. Under 55, 55 and older d. 55 and older, 55 and older

a. 55 and older, under 55

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

a. a surplus of labor and a shortage of jobs.

When a union bargains successfully with employers, in that industry, a. both wages and unemployment increase. b. both wages and unemployment decrease. c. wages increase and unemployment decreases. d. wages decrease and unemployment increases

a. both wages and unemployment increase.

Cyclical unemployment refers to a. short-run fluctuations around the natural rate of unemployment. b. the portion of unemployment created by wages set above the equilibrium level. c. changes in unemployment due to changes in the natural rate of unemployment. d. the portion of unemployment created by job search

a. short-run fluctuations around the natural rate of unemployment.

Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Sheila as a. unemployed and in the labor force. b. employed and in the labor force. c. employed and not in the labor force. d. unemployed and not in the labor force.

a. unemployed and in the labor force.

Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were employed? a. 47.5 million b. 28.5 million c. 1.5 million d. 30 million

b. 28.5 million

Which of the following is an example of an efficiency wage? a. A below-equilibrium wage paid by a small business exempt from minimum-wage laws b. An above-equilibrium wage paid by a firm to reduce turnover costs c. A higher wage paid to a more experienced worker d. A wage tied to participation in a government-sponsored job training program

b. An above-equilibrium wage paid by a firm to reduce turnover costs

Wanda quit her job because she was unhappy at work. Arnold was laid off from his landscaping job because his company was downsizing. Who is eligible for unemployment insurance benefits? a. Both Wanda and Arnold b. Arnold but not Wanda c. Wanda but not Arnold d. Neither Wanda nor Arnold

b. Arnold but not Wanda

Suppose that a large number of people who used to work or seek work no longer do either. Other things the same, this makes a. the number of people unemployed rise but makes the labor force fall. b. both the number of people unemployed and in the labor force fall. c. the number of people unemployed rise but does not change the labor force. d. the number of people unemployed fall but does not change the labor force.

b. both the number of people unemployed and in the labor force fall.

Public policy a. cannot reduce either frictional unemployment or the natural rate of unemployment. b. can reduce both frictional unemployment and the natural rate of unemployment. c. cannot reduce frictional unemployment, but it can reduce the natural rate of unemployment. d. can reduce frictional unemployment, but it cannot reduce the natural rate of unemployment

b. can reduce both frictional unemployment and the natural rate of unemployment.

The labor force equals the a. number of people employed plus the number of people unemployed plus teenagers between ages 14 and 16 who work at least 10 hours a week. b. number of people employed plus the number of people unemployed. c. adult population. d. number of people employed

b. number of people employed plus the number of people unemployed.

Minimum-wage laws are most likely to affect the wages paid to a. people with advanced technical training. b. teenagers. c. union members. d. people who are self-employed.

b. teenagers.

Refer to Table 28-4. If the local government imposed a minimum wage of $4 in Productionville, how many people would be unemployed? a. 2,000 b. 10,000 c. 0 d. 3,000

c. 0

Refer to Table 28-4. If the local government imposed a minimum wage of $7 in Productionville, how many people would be unemployed? a. 10,000 b. 0 c. 5,000 d. 2,000

c. 5,000

The natural rate of unemployment includes a. structural but not frictional unemployment. b. neither frictional nor structural unemployment. c. both frictional and structural unemployment. d. frictional but not structural unemployment.

c. both frictional and structural unemployment.

In 2018 the Bureau of Labor Statistics reported that there were 57.4 million people over age 25 whose highest level of education was some college or an associate degree. Of these, 36.3 million were employed and 1.2 million were unemployed. What were the labor-force participation rate and the unemployment rate for this group? a. 63.2% and 2.1% b. 65.3% and 2.1% c. 63.2% and 3.2% d. 65.3% and 3.2%

d. 65.3% and 3.2%

An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment? a. Only the changes in unemployment insurance b. Neither the changes in information technology nor the changes in unemployment insurance c. Only the changes in information technology d. Both the changes in information technology and unemployment insurance

d. Both the changes in information technology and unemployment insurance

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

d. and the labor-force participation rate both decrease.

Frictional unemployment is thought to explain relatively a. long spells of unemployment, as is structural unemployment. b. short spells of unemployment, as is structural unemployment. c. long spells of unemployment, while structural unemployment is thought to explain relatively short spells of unemployment. d. short spells of unemployment, while structural unemployment is thought to explain relatively long spells of unemployment.

d. short spells of unemployment, while structural unemployment is thought to explain relatively long spells of unemployment.

Evidence from research studies by economists a. shows that increased unemployment benefits have virtually no effect on the job search efforts of the unemployed. b. shows that increased unemployment benefits increase the job search efforts of the unemployed. c. is unclear regarding what increased unemployment benefits do to the job search efforts of the unemployed. d. shows that increased unemployment benefits decrease the job search efforts of the unemployed

d. shows that increased unemployment benefits decrease the job search efforts of the unemployed