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WorksheetsUnemployment
Total questions: 15
Worksheet time: 11mins
The natural rate of unemployment is the
unemployment rate that would prevail with zero inflation.
rate associated with the highest possible level of GDP.
difference between the long-run and short-run unemployment rates.
amount of unemployment that the economy normally experiences
Cyclical unemployment refers to
the relation between the probability of unemployment and a worker's changing level of experience.
how often a worker is likely to be employed during her lifetime.
year-to-year fluctuations of unemployment around its natural rate.
long-term trends in unemployment.
The natural rate of unemployment
is a constant.
is the desirable rate of unemployment.
cannot be altered by economic policy.
none of the above is correct.
Which of the following is correct?
Some degree of unemployment is inevitable.
Other things the same an increase in the number of people who are unemployed is associated with a decrease in real GDP.
Cyclical unemployment is inversely related to short-run economic fluctuations in GDP.
All of the above are correct.
The sum of which of the following would necessarily be equal to the adult population in the US statistics on labor?
employed, unemployed
discouraged workers, employed, unemployed
employed, unemployed, not in the labor force
discouraged workers, employed, not in the labor force
Jack is a full-time unpaid homemaker not currently searching for other work. Jill is a full-time student who is not looking for a job. Who does the BLS count in the labor force?
only Jack
only Jill
both Jack and Jill
neither Jack nor Jill
Who of the following would be counted as unemployed according to official statistics?
Mary, who is waiting for her new job to start
Karen, who worked only 35 hours last week
Shasta, who neither has a job nor is looking for one
one of the above would be counted as unemployed.
Who would not be included in the labor force?
Sally, who is on temporary layoff
Sue, who has retired and is not looking for work
Kylie, who does not have a job, but has applied for several in the last week
None of the above is included in the labor force.
Evidence from research studies by economists
show that increased unemployment benefits decrease the job-search efforts of the unemployed
show that increased unemployment benefits have virtually no effect on the job-search efforts of the unemployed.
show that increased unemployment benefits increases the job-search effort of the unemployed.
find no clear-cut evidence on what increased unemployment benefits do to job-search efforts.
Other things the same, an increase in wages above their equilibrium level
increases frictional unemployment but leaves the natural rate of unemployment unchanged.
increases frictional unemployment and increases the natural rate of unemployment.
increases structural unemployment but leaves the natural rate of unemployment unchanged.
increases structural unemployment and increases the natural rate of unemployment.
If the minimum wage were currently above the equilibrium wage, than a decrease in the minimum wage would
increase both the quantity demanded and the quantity supplied of labor.
decrease both the quantity demanded and the quantity supplied of labor.
increase the quantity of labor demanded and decrease the quantity supplied.
decrease the quantity of labor demanded and increase the quantity supplied.
Collective bargaining refers to
the process by which the government sets exemptions from the minimum wage law.
setting the same wage for all employees to prevent jealousy among workers.
firms colluding to set the wages of employees in order to keep them below equilibrium.
the process by which unions and firms agree on the terms of employment.
Which of the following is not correct?
A union is a form of cartel.
Union workers typically earn 25 to 33 percent more than similar nonunionized workers.
The power of a union comes from its ability to strike if its demands are not met.
Workers in unions reap the benefits of collective bargaining, while workers not in unions bear some of the cost.
The theory of efficiency wages explains why
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.
Rupert is a low-skilled worker who washes dishes in a local restaurant. A proposal to increase the minimum wage may worry him if he knows that price
floors tend to create shortages.
ceilings tend to create shortages.
floors tend to create surpluses.
ceilings tend to create surpluses
