ch 20 survey of econ @ vsu

An increase in the minimum wage Question 4 options: increases both the quantity demanded and the quantity supplied of labor. decreases both the quantity demanded and the quantity supplied of labor. increases the quantity of labor demanded but decreases the quantity of labor supplied. decreases the quantity of labor demanded but increases the quantity of labor supplied.

(I got it wrong... it is NOT increases the quantity of labor demanded but decreases the quantity of labor supplied.)

Suppose some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were unemployed? Question 10 options: 0.846 million 0.9 million 1.5 million 6 million

0.9 million

Table 28-2 2009 Labor Data for Baltivia Number of adults 20,000 Number of adults who are paid employees 8,000 Number of adults who work in their own businesses 1,600 Number of adults who are unpaid workers in a family member's business 1,000 Number of adults who were temporarily absent from their jobs because of an earthquake 400 Number of adults who were waiting to be recalled to a job from which they had been laid off 200 Number of adults who do not have a job, are available for work, and have tried to find a job within the past four weeks 1,400 Number of adults who do not have a job, are available for work, but have not tried to find a job within the past four weeks 780 Number of adults who are full-time students 3,000 Number of adults who are homemakers or retirees 3,620 Refer to Table 28-2. How many people were employed in Baltivia in 2009? a. 11,200 b. 11,000 c. 10,600

11,000

Suppose some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were employed? Question 1 options: 0.9 million 14.1 million 15 million 23.5 million

14.1 million

Table 28-2 2009 Labor Data for Baltivia Number of adults 20,000 Number of adults who are paid employees 8,000 Number of adults who work in their own businesses 1,600 Number of adults who are unpaid workers in a family member's business 1,000 Number of adults who were temporarily absent from their jobs because of an earthquake 400 Number of adults who were waiting to be recalled to a job from which they had been laid off 200 Number of adults who do not have a job, are available for work, and have tried to find a job within the past four weeks 1,400 Number of adults who do not have a job, are available for work, but have not tried to find a job within the past four weeks 780 Number of adults who are full-time students 3,000 Number of adults who are homemakers or retirees 3,620 What was Baltivia's labor-force participation rate in 2009? 55 percent 63 percent 66.9 percent 87.3 percent

63 percent

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category? Question 8 options: Cambry, a full-time student who is not looking for work Eric, who is on temporary layoff Carson, who has retired and is not looking for work All of the above are correct.

Eric, who is on temporary layoff

Four employers have justified their actions as follows. Whose logic is not consistent with the logic of efficiency wage theory? Question 3 options: Jay develops a new assembly line technology that limits the amount of shirking workers can do, so he reduces what he pays his employees so as to make it closer to the equilibrium wage. Kay pays her workers less than the equilibrium wage so they won't have the time or money to look for work somewhere else. Ray pays his workers in a developing country more than the going wage hoping that they will get a better diet and so be more productive. None of the above is consistent with the logic of efficiency wage theory.

Kay pays her workers less than the equilibrium wage so they won't have the time or money to look for work somewhere else.

Tom was laid off and is expecting to be recalled. He has not looked for work since being laid off. Bill is not employed and not laid off. Who is counted as unemployed in the U.S. labor force statistics? Question 7 options: Tom and Bill even if he has not looked for work during the previous 4 weeks. Tom and Bill if he has looked for work during the previous 4 weeks. Not Tom. Bill even if he has not looked for work during the previous 4 weeks. Not Tom. Bill if he has looked for work during the previous 4 weeks.

Tom and Bill if he has looked for work during the previous 4 weeks.

Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. Other things the same, the unemployment rate increases and the labor-force participation rate decreases. and the labor-force participation rate both increase. increases and the labor-force participation rate is unaffected. and the labor-force participation rate are both unaffected.

and the labor-force participation rate are both unaffected.

If an unemployed person quits looking for work, then, eventually the unemployment rate Question 2 options: decreases and the labor-force participation rate is unaffected. and the labor-force participation rate both decrease. is unaffected and the labor-force participation rate decreases. and the labor-force participation rate are both unaffected.

and the labor-force participation rate both decrease.

Consider two people who are currently out of work. Tim is not looking for work because there have been many job cuts where he lives and he doesn't think it likely that he will find work. Bev is not currently looking for work, but she would like a job and she has looked for work in the past. The Bureau of Labor Statistics considers Question 14 options: both Tim and Bev to be marginally attached workers. neither Tim nor Bev to be marginally attached workers. only Tim to be a marginally attached worker. only Bev to be a marginally attached worker.

both Tim and Bev to be marginally attached workers.

Sectoral changes in demand Question 6 options: create frictional unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates structural unemployment. create structural unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates frictional unemployment. and firms paying wages above equilibrium to attract a better pool of candidates both create structural unemployment. and firms paying wages above equilibrium to attract a better pool of candidates both create frictional unemployment.

create frictional unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates structural unemployment.

Job search Question 12 options: and firms paying wages above equilibrium to improve worker health both create frictional unemployment. creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment. creates structural unemployment, while firms paying wages above equilibrium to improve worker health creates frictional unemployment. and firms paying wages above equilibrium to improve worker health both create structural unemployment.

creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment.

Suppose the demand for construction workers increased and the demands for textile and steel workers diminished. This is an example of Question 2 options: frictional unemployment created by efficiency wages. structural unemployment created by efficiency wages. frictional unemployment created by sectoral shifts. structural unemployment created by sectoral shifts.

frictional unemployment created by sectoral shifts.

Workers searching for jobs that best suit them is most closely associated with Question 7 options: cyclical unemployment. frictional unemployment. seasonal unemployment. structural unemployment.

frictional unemployment.

Efficiency wages Question 8 options: increase frictional unemployment by keeping wages above equilibrium. decrease frictional unemployment by keeping wages at equilibrium. increase structural unemployment by keeping wages above equilibrium. decrease structural unemployment by keeping wages at equilibrium.

increase structural unemployment by keeping wages above equilibrium.

The theory of efficiency wages explains why Question 11 options: setting wages at the equilibrium level may increase unemployment. it may be in the best interest of firms to offer wages that are above the equilibrium level. the most efficient way to pay workers is to pay them according to their skills. it is efficient for firms to set wages at the equilibrium level.

it may be in the best interest of firms to offer wages that are above the equilibrium level.

The theory of efficiency wages explains why Question 5 options: setting wages at the equilibrium level may increase unemployment. it may be in the best interest of firms to offer wages that are above the equilibrium level. the most efficient way to pay workers is to pay them according to their skills. it is efficient for firms to set wages at the equilibrium level.

it may be in the best interest of firms to offer wages that are above the equilibrium level.

Which of the following is not an explanation for the existence of structural unemployment? Question 15 options: efficiency wages job search minimum-wage laws unions

job search

Frictional unemployment results from Question 6 options: job searching. It is often thought to explain relatively short spells of unemployment. job searching. It is often thought to explain relatively long spells of unemployment a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment. a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment.

job searching. It is often thought to explain relatively short spells of unemployment.

Efficiency wages, minimum-wage laws, and unions all Question 1 options: keep wages below the equilibrium level, causing a shortage of labor. keep wages below the equilibrium level, causing a surplus of labor. keep wages above the equilibrium level, causing a shortage of labor. keep wages above the equilibrium level, causing a surplus of labor.

keep wages above the equilibrium level, causing a surplus of labor.

Juanita decides to hire some additional workers for her vinyl siding factory. The equilibrium wage is $14 per hour. Efficiency wage theory suggests that it is reasonable for Juanita to offer Question 4 options: $14 per hour. less than $14 per hour, since some people would be willing to work for less. less than $14 an hour to prevent shirking. more than $14 per hour, so as to attract a better pool of applicants.

more than $14 per hour, so as to attract a better pool of applicants.

Efficiency wages contribute to Question 5 options: frictional unemployment and the natural rate of unemployment. frictional unemployment but not the natural rate of unemployment. structural unemployment and the natural rate of unemployment. structural unemployment but not the natural rate of unemployment.

structural unemployment and the natural rate of unemployment.

If there were no factors keeping wages from reaching equilibrium then there would be no Question 3 options: cyclical unemployment. frictional unemployment. structural unemployment. natural rate of unemployment.

structural unemployment.

People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as Question 9 options: cyclically unemployed. structurally unemployed. frictionally unemployed. discouraged workers.

structurally unemployed

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a Question 11 options: shortage of labor and a shortage of jobs. shortage of labor and a surplus of jobs. surplus of labor and a shortage of jobs. surplus of labor and a surplus of jobs.

surplus of labor and a shortage of jobs.

Minimum wages create unemployment in markets where they create a Question 10 options: shortage of labor. Unemployment of this type is called frictional. shortage of labor. Unemployment of this type is called structural. surplus of labor. Unemployment of this type is called frictional. surplus of labor. Unemployment of this type is called structural.

surplus of labor. Unemployment of this type is called structural.

When a union raises the wage above the equilibrium level, Question 13 options: the quantity of labor supplied and unemployment both rise. the quantity of labor supplied and unemployment both fall. the quantity of labor supplied rises and unemployment falls. the quantity of labor supplied falls and unemployment rises.

the quantity of labor supplied and unemployment both rise.

Who of the following is not included in the Bureau of Labor Statistics' "employed" category? Question 9 options: those who worked in their own business those who worked as unpaid workers in a family member's business those waiting to be recalled to a job from which they had been laid off those who were temporarily absent from work because of vacation.

those waiting to be recalled to a job from which they had been laid off

Ava owns her own business. The Bureau of Labor Statistics counts Ava as Question 13 options: unemployed and in the labor force. unemployed and not in the labor force. employed and in the labor force. employed and not in the labor force.

unemployed and not in the labor force.