Chapter Quiz Chapter 15

A  there would be no impact on the official unemployment rate.

B  the official unemployment rate would probably overstate true unemployment.

C  the official unemployment rate would probably understate true unemployment.

D  frictional unemployment would fall.

E  none of the above is true

A  unemployment due to minimum-wage laws

B  frictional unemployment

C  unemployment due to unions

D  unemployment due to efficiency wages

A  decreasing the demand for workers in the unionized sector.

B  increasing the demand for workers in the unionized sector.

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

D  increasing the wage in the unionized sector, which may create a decrease in the supply of workers in the nonunionized sector.

A  Paying the lowest possible wage is always the most efficient (profitable).

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

C  Firms do not have a choice about whether they pay efficiency wages or not because these wages are determined by law.

D  Paying above the competitive equilibrium wage tends to cause workers to shirk their responsibilities.

A  threaten a strike but don’t actually follow through, so there are no lost hours of work.

B  lower the wage of local outsiders.

C  raise the wage for insiders above the competitive equilibrium.

D  offset the market power of a large firm in a “company town.”

A  efficiency wages may hold the wage above the equilibrium wage.

B  of unions.

C  of minimum-wage laws and unions.

D  of minimum-wage laws.

E  there are changes in the demand for labor among different firms.

A  At equilibrium wages, workers often quit to find better jobs, workers sleep when the boss is not looking because workers are not deeply concerned about being fired, workers cannot afford a healthy diet so they fall asleep at work due to a lack of energy, and only minimally qualified workers apply for the job

B  At equilibrium wages, only minimally qualified workers apply for the job.

C  At equilibrium wages, workers sleep when the boss is not looking because workers are not deeply concerned about being fired.

D  d. At equilibrium wages, workers cannot afford a healthy diet so they fall asleep at work due to a lack of energy.

E  At equilibrium wages, workers often quit to find better jobs.

A  structural unemployment

B  unemployment due to unions

C  frictional unemployment

D  unemployment due to efficiency wages

A  raise the minimum wage

B  reduce unemployment benefits

C  establish worker training programs

D  establish employment agencies

E  establish right-to-work laws

A  full-time.

B  young.

C  less educated.

D  in the food service and drinking place industry.

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

B  the quantity of labor demanded will exceed the quantity of labor supplied and there will be a labor shortage.

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

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

A  sectoral unemployment

B  cyclical unemployment

C  structural unemployment

D  frictional unemployment

E  none of the above

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

B  help all teenagers because they receive a higher wage than they would otherwise.

C  have no impact on unemployment as long as it is set above the competitive equilibrium wage.

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

A  The labor-force participation rate of men is rising and blacks have a lower unemployment rate than whites.

B  Most spells of unemployment are long term, but most unemployment observed at any given time is short term.

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

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

E  Blacks have a lower unemployment rate than whites.

A  employed.

B  unemployed.

C  not in the labor force.

D  not in the adult population.

A  50.2 percent

B  65.9 percent

C  70.2 percent

D  47.1 percent

E  none of the above

A  3.2 percent

B  5.8 percent

C  5.7 percent

D  Not enough information is available to answer this question

E  6.2 percent

A  134.0 million

B  92.3 million

C  98.0 million

D  139.7 million

E  none of the above

A  unemployed.

B  a discouraged worker.

C  not in the labor force.

D  employed.

A  the natural rate of unemployment.

B  efficiency wage unemployment.

C  cyclical unemployment.

D  frictional unemployment.