ECON CH 15

Efficiency wages

may increase productivity. will increase unemployment. may improve worker health. All of the above are correct.

In the absence of right-to-work laws, workers

might be required to join the union if they worked for a unionized firm.

Figure 28-4 ​ Refer to Figure 28-4. If 12,000 workers are unemployed, then the minimum wage must be

$16.

Figure 28-3 ​ Refer to Figure 28-3. If unemployment is 2,000 workers, then the minimum wage must be

$7.

Karena was laid off, but she is expecting to be recalled. She has not looked for work since being laid off. Nathan is not employed, nor was he laid off. Who is counted as "unemployed" in the U.S. labor force statistics?

1) Karena and 2) Nathan, if Nathan has looked for work during the previous four weeks

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

12.4/154

Below is data about the labor market in the city of Productionville.Refer to Table 28-7. If the local government imposed a minimum wage of $7 in Productionville, how many people would be unemployed?

5,000

In 2014, the Italian adult non-institutionalized population was 38.8 million, the labor force was 25.4 million, and the number of people employed was 22 million. According to these numbers, the Italian labor-force participation rate and unemployment rate were about

65.5% and 13.4%

Table 28-4 2010 Labor Data for Adults (ages 16 and older) in MeditorRefer to Table 28-4. What is the adult female labor-force participation rate in Meditor?

66.7%

In which of the following situations should a firm pay efficiency wages?

A hiring manager cannot easily judge the quality of applicants, and after workers have worked for the firm a while, they tend to look for other jobs.

According to 2014 data on the U.S. population, which of the following was correct for the adult population of prime working age, ages 25-54?

Black males had lower labor-force participation rates and higher unemployment rates compared to white males.

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?

Kevin, who is on temporary layoff

Which of the following is not correct?

Minimum wages are the predominant reason for unemployment in the U.S. economy.

Buddy is the owner of a firm that bottles beer in St. Louis, Missouri. There are many other such firms in the area. Buddy decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

The higher the wage, the less often his workers will choose to leave his firm.

Which of the following is correct?

Union membership in the United States peaked in the 1940s and 1950s.

Unions contribute to

both structural unemployment and the natural rate of unemployment.

Suppose there are a large number of men who used to work or seek work who now no longer do either. Other things the same, this makes

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

When a union raises the wage above the equilibrium level,

both the quantity of labor supplied and unemployment rise

Which of the following is a source of frictional unemployment?

changes in the composition of demand among industries or regions

Suppose that consumers decide to walk to work more frequently and drive cars less. Companies that make walking shoes hire workers, while automobile companies lay off workers. This is an example of

frictional unemployment created by sectoral shifts.

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no

frictional unemployment.

Providing training for unemployed individuals is primarily intended to reduce

frictional unemployment.

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has

gradually decreased.

The labor-force participation rate tells us the fraction of the population that

has chosen to participate in the labor market.

Efficiency-wage theory suggests that paying

high wages might be profitable because they raise the efficiency of a firm's workers.

The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

higher production costs and lower profits.

A firm may pay efficiency wages in an attempt to

improve productivity by reducing turnover

Sectoral shifts in demand for output

increase unemployment due to job search.

Sheamous loses his job and decides to sit on the beach rather than look for work during the next few months. Other things the same, the unemployment rate

increases, and the labor-force participation rate decreases.

Job search

is one reason economies always experience some unemployment. is the process of matching workers with appropriate jobs. would not be a problem if all workers and all jobs were the same. All of the above are correct

Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level?

job search

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision

might increase profits if it attracts a better pool of workers to apply for jobs at his restaurant.

The labor force equals the

number of people employed plus the number of people unemployed.

Workers waiting for jobs to open up is most closely associated with

structural unemployment.

Efficiency wages create a labor

surplus and so increase unemployment.

The introduction of a union into an industry creates a

surplus of labor and so raises unemployment.

Minimum wages create unemployment in markets where they create a

surplus of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S.

Which of the following does not help reduce frictional unemployment?

unemployment insurance

According to 2014 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the highest labor-force participation rate?

white females

Which of the following is not a cause of the decline in the U.S. men's labor-force participation rate over the past several decades?

with more women employed, there are fewer jobs now available to men

Daniel goes on vacation for four weeks. When he returns the company puts him on layoff for four weeks during which he waits to be recalled. In which weeks is Daniel counted as unemployed, if any?

​the second four weeks but not the first four weeks