Chapter Quiz Chapter 15

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

B  frictional unemployment would fall.

C  the official unemployment rate would probably overstate true unemployment.

D  the official unemployment rate would probably understate true unemployment.

E  none of the above is true

A  unemployment due to minimum-wage laws

B  unemployment due to unions

C  frictional unemployment

D  unemployment due to efficiency wages

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

B  decreasing the demand for workers in the unionized sector.

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

D  increasing the demand for workers in the unionized sector.

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

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

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

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

A  raise the wage for insiders above the competitive equilibrium.

B  lower the wage of local outsiders.

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

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

D  of minimum-wage laws and unions.

E  of minimum-wage laws.

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

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

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

A  unemployment due to efficiency wages

B  structural unemployment

C  unemployment due to unions

D  frictional unemployment

A  establish worker training programs

B  establish employment agencies

C  establish right-to-work laws

D  reduce unemployment benefits

E  raise the minimum wage

A  young.

B  less educated.

C  in the food service and drinking place industry.

D  full-time.

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

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

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  structural unemployment

B  sectoral unemployment

C  frictional unemployment

D  cyclical unemployment

E  none of the above

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

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

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

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

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

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

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

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

E  Blacks have a lower unemployment rate than whites.

A  not in the adult population.

B  unemployed.

C  not in the labor force.

D  employed.

A  65.9 percent

B  70.2 percent

C  47.1 percent

D  50.2 percent

E  none of the above

A  3.2 percent

B  5.8 percent

C  Not enough information is available to answer this question

D  6.2 percent

E  5.7 percent

A  139.7 million

B  98.0 million

C  92.3 million

D  134.0 million

E  none of the above

A  employed.

B  a discouraged worker.

C  not in the labor force.

D  unemployed.

A  cyclical unemployment.

B  efficiency wage unemployment.

C  the natural rate of unemployment.

D  frictional unemployment.