quiz 10
When a union bargains successfully with employers, in that industry,
the quantity of labor supplied increases and the quantity of labor demanded decreases.
Who of the following is not included in the Bureau of Labor Statistics' "employed" category?
those waiting to be recalled to a job from which they had been laid off
The labor-force participation rate measures the percentage of the
total adult population that is in the labor force.
The natural rate of unemployment is the
amount of unemployment that the economy normally experiences.
Which of the following is an example of an efficiency wage?
an above-equilibrium wage offered by a firm to attract a more talented pool of job applicants
Unions
and firms paying wages above equilibrium to improve worker effort both create structural unemployment.
Minimum-wage laws
and firms paying wages above equilibrium to reduce worker turnover both create structural unemployment.
Sirius has just finished high school and started looking for his first job, but has not yet found one. Other things the same, the unemployment rate
and the labor-force participation rate both increase.
Refer to Table 28-8. If the state government imposed a minimum wage of $8, how many people would be unemployed?
0
The natural rate of unemployment
(iii) only
Refer to Figure 28-3. If the government imposes a minimum wage of $4, then employment will decrease by
0
Refer to Figure 28-4. If the government imposes a minimum wage of $4, how many workers will be unemployed?
0
Refer to Table 28-7. If the local government imposed a minimum wage of $4 in Productionville, how many people would be unemployed?
0
Refer to Table 28-1. How many in the sample are in the labor force?
10
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.
Refer to Table 28-2. The unemployment rate of Aridia in 2010 was
12.5%
Refer to Table 28-3. What was Baltivia's unemployment rate in 2009?
12.7%
In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was
154/234.9.
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?
28.5 million
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
A firm may pay efficiency wages in an attempt to
All of the above
A person who is counted as "unemployed" by the Bureau of Labor Statistics
All of the above
The Bureau of Labor Statistics produces data on
All of the above
Who would be included in the labor force?
Lisa
Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?
Miguel, who is on temporary layoff
Tatiana is waiting to be recalled to a job from which she was laid off. Ivan was fired but has not looked for work during the last two months. Who does the Bureau of Labor Statistics count as "unemployed"?
Tatiana but not Ivan
Which of the following is correct?
Unemployment Rate = number of unemployed (number of employed + number of unemployed) 100.
Adam is looking for a job in marketing. He has had some offers and his prospects are promising, but he has not yet accepted a job. Amanda lost her job working for Mercury Bicycles because many customers decided they prefer bicycles manufactured by Ultimate Bicycles instead. Who is frictionally unemployed?
both Adam and Amanda
Some persons are counted as out of the labor force because they have made no serious or recent effort to look for work. However, some of these individuals may want to work even though they are too discouraged to make a serious effort to look for work. If these individuals were counted as unemployed instead of out of the labor force, then
both the unemployment rate and labor-force participation rate would be higher.
Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labor force instead of as unemployed, then
both the unemployment rate and labor-force participation rate would be lower.
Policies that reduce the time it takes unemployed workers to find new jobs
can reduce both frictional unemployment and the natural rate of unemployment.
Which of the following is a source of frictional unemployment?
changes in the composition of demand among industries or regions
Duane owns his own real estate company. The Bureau of Labor Statistics counts Duane as
employed and in the labor force.
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.
People who are unemployed because they are in search of a job that suits their skills are included within
frictional unemployment.
Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings but has not yet been offered one that best suits her tastes and skills. Sandy is
frictionally unemployed. Frictional unemployment exists even in the long run
Sectoral shifts in demand for output
increase unemployment due to job search.
The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to
increase, reducing wages in industries that are not unionized.
Refer to Table 28-2. The unemployment rate of Aridia
increased from 2010 to 2011 but decreased from 2011 to 2012.
Which of the following is not an explanation for the existence of structural unemployment?
job search
Susan is a plant manager in charge of a factory in a relatively poor country. Even though market wages are low, she decides to raise the wages of her workers. Her decision
might increase profits if it means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive.
Michael decides to hire some additional workers for his roofing company. The equilibrium wage is $17 per hour. Efficiency wage theory suggests that it is reasonable for Michael to offer
more than $17 per hour in order to attract a better pool of applicants
The labor force equals the
number of people employed plus the number of people unemployed.
The introduction of a union into an industry
raises wages and lowers employment in that industry.
If the wage is kept above the equilibrium wage for any reason, the result is
structural unemployment
Unions contribute to
structural unemployment.
Which of the following is not an explanation for the existence of unemployment in the long run?
the business cycle
Unions contribute to
the natural rate of unemployment but not frictional unemployment
The Bureau of Labor Statistics places people in the "employed" category if they
work without pay in a family member's business.
Cyclical unemployment refers to
year-to-year fluctuations of unemployment around its natural rate.