Econ Exam 2 Chapters 15

A minimum-wage law tends to

create more unemployment in low-skill job markets than in high-skill job markets

Use the following table to answer question. Numbers are in millions. The unemployment rate is

5.8 percent

Use the following table to answer question. Numbers are in millions. The labor-force participation rate is

70.2 percent

Use the following table to answer question. Numbers are in millions. The labor force is

98.0 million

Which of the following is an example of a reason why firms might pay efficiency wages?

All of the above are true

Which of the following statements about efficiency wage theory is true?

Paying above the competitive equilibrium wage may improve worker health, lower worker turnover, improve worker quality, and increase worker effort.

Which of the following statements is true?

Prime-age men and women tend to have similar unemployment rates

Sectoral shifts tend to raise which type of unemployment?

frictional unemployment

Which of the following types of unemployment will exist even if the wage is at the competitive equilibrium?

frictional unemployment

Which of the following is not a characteristic of minimum-wage workers? They tend to be

full-time

Unions tend to increase the disparity in pay between insiders and outsiders by

increasing the wage in the unionized sector, which may create an increase in the supply of workers in the nonunionized sector

According to the Bureau of Labor Statistics, a husband who chooses to stay home and take care of the household is

not in the labor force

An accountant with a CPA designation who has been unable to find work for so long that she has stopped looking for work is considered to be

not in the labor force.

Unions might increase efficiency in the case where they

offset the market power of a large firm in a "company town."

Which of the following government policies would fail to lower the unemployment rate?

raise the minimum wage

Which one of the following types of unemployment results from the wage being held above the competitive equilibrium wage?

structural unemployment

The amount of unemployment that the economy normally experiences is known as

the natural rate of unemployment

If unemployment insurance were so generous that it paid laid-off workers 95 percent of their regular salary,

the official unemployment rate would probably overstate true unemployment

If, for any reason, the wage is held above the competitive equilibrium wage,

the quantity of labor supplied will exceed the quantity of labor demanded and there will be unemployment

Some frictional unemployment is inevitable because

there are changes in the demand for labor among different firms