Chapter Quiz Chapter 15

A  frictional unemployment would fall.

B  the official unemployment rate would probably understate true unemployment.

C  the official unemployment rate would probably overstate true unemployment.

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

E  none of the above is true

A  unemployment due to unions

B  unemployment due to efficiency wages

C  unemployment due to minimum-wage laws

D  frictional unemployment

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

B  decreasing the demand for workers in the unionized sector.

C  increasing the demand for workers in the unionized sector.

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

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

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

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

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

A  raise the wage for insiders above the competitive equilibrium.

B  lower the wage of local outsiders.

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

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

A  of minimum-wage laws and unions.

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

C  of unions.

D  of minimum-wage laws.

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

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

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

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

D  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

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

A  frictional unemployment

B  unemployment due to unions

C  structural unemployment

D  unemployment due to efficiency wages

A  establish right-to-work laws

B  establish employment agencies

C  establish worker training programs

D  reduce unemployment benefits

E  raise the minimum wage

A  in the food service and drinking place industry.

B  young.

C  less educated.

D  full-time.

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

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

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

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

A  sectoral unemployment

B  structural unemployment

C  frictional unemployment

D  cyclical unemployment

E  none of the above

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

B  create more unemployment in low-skill job markets than in high-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  Most spells of unemployment are long term, but most unemployment observed at any given time is short term.

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

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  not in the adult population.

B  not in the labor force.

C  unemployed.

D  employed.

A  70.2 percent

B  65.9 percent

C  47.1 percent

D  50.2 percent

E  none of the above

A  3.2 percent

B  6.2 percent

C  Not enough information is available to answer this question

D  5.7 percent

E  5.8 percent

A  92.3 million

B  139.7 million

C  98.0 million

D  134.0 million

E  none of the above

A  unemployed.

B  not in the labor force.

C  a discouraged worker.

D  employed.

A  cyclical unemployment.

B  efficiency wage unemployment.

C  frictional unemployment.

D  the natural rate of unemployment.