Lec 6: Unemployment

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

• Efficiency wage unemployment.

• Frictional unemployment.

• Cyclical unemployment.

• The natural rate of unemployment.

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

• Unemployed.

• Employed.

•  Not in the labor force.

• A discouraged worker.

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

• Employed.

• Unemployed.

• Not in the labor force.

• Not in the adult population.

Which of the following statements is true?

• Women ages 20 and older tend to have somewhat lower unemployment rates

  compared to men.

  
  

• The labor-force participation rate of men is rising.

• Blacks have a lower unemployment rate than whites.

• Most spells of unemployment are long term, but most unemployment observed

  at any given time is short term.

  
  

A minimum-wage law tends to

• Create more unemployment in high-skill job markets than in low-skill job

  markets.

  
  

• Create more unemployment in low-skill job markets than in high-skill job

  markets.

  
  

•  Have no impact on unemployment as long as it is set above the competitive

  equilibrium wage.

  
  

• Help all teenagers because they receive a higher wage than they would

  otherwise.

  
  

Which one of the following types of unemployment results from the wage being

held above the competitive equilibrium wage?

• structural unemployment

• cyclical unemployment

• frictional unemployment

•  sect oral unemployment

  
  

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

• unions will likely strike and the wage will fall to equilibrium.

•  the quality of workers in the applicant pool will tend to fall.

  
  

• the quantity of labor supplied will exceed the quantity of labor demanded and

  there will be unemployment.

  
  

• the quantity of labor demanded will exceed the quantity of labor supplied and

  there will be a labor shortage

  
  

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

• young

• less educated

• full-time

• in the food service and drinking place industry

Which of the following government policies would fail to lower the

unemployment rate?

• reduce unemployment benefits

• establish employment agencies

•  establish worker training programs

• raise the minimum wage

• establish right-to-work laws

Sectoral shifts tend to raise which type of unemployment?

• frictional unemployment

• structural unemployment

• unemployment due to unions

•  unemployment due to efficiency wages