Toàn bộ những gì bạn cần để qua môn kinh tế học, tài liệu này tập hợp những câu hỏi trắc nghiệm mới nhất của kinh tế vi mô năm 2018. Về nội dung tài liệu, với các khái niệm phổ biến và khái quát nhất về kinh tế vi mô cũng như những giải thích về các cơ chế hoạt động của nền kinh tế, bộ giáo trình bao gồm 23 phần cung cấp cho người đọc các kiến thức khá toàn diện và chuyên sâu về các nguyên lý kinh tế học như các lý thuyết cổ điển, các lý thuyết về phát triển: nền kinh tế trong dài hạn, các lý thuyết về vòng tròn kinh tế: nền kinh tế trong ngắn hạn, các yếu tố vi mô ẩn sau kinh tế vĩ mô, các tranh luận về chính sách vĩ mô… Tất cả đều được giải thích và đánh giá bởi một vị giáo sư kinh tế hàng đầu trên thế giới. Các khái niệm trong sách được định nghĩa rất rõ ràng, dễ nắm bắt, dễ hiểu, có tóm tắt các chương tạo điều kiện tốt nhất cho việc ôn tập
80 ❖ Chapter 28/Unemployment Chapter 28 Unemployment TRUE/FALSE Most people rely on income other than their labor earnings to maintain their standard of living ANS: F DIF: REF: 28-0 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Income | Standard of living MSC: Definitional The amount of unemployment that a country typically experiences is a determinant of that country's standard of living ANS: T DIF: REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment | Standard of living MSC: Definitional Some degree of unemployment is inevitable in a complex economy ANS: T DIF: REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: MSC: Definitional Unemployment The amount of unemployment varies little over time and across countries ANS: F DIF: REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment MSC: Definitional When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than it would if it left many of its workers standing idle ANS: T DIF: REF: 28-0 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Employment | GDP MSC: Definitional An economy’s natural rate of unemployment refers to the amount of unemployment that the economy normally experiences ANS: T DIF: REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Definitional Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate ANS: T DIF: REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Cyclical unemployment MSC: Definitional The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity ANS: F DIF: REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Definitional The natural rate of unemployment is the desirable rate of unemployment for an economy ANS: F DIF: REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Definitional 10 The natural rate of unemployment is constant over time ANS: F DIF: REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Definitional 81 ❖ Chapter 28/Unemployment 11 The natural rate of unemployment is impervious to economic policy ANS: F DIF: REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Definitional 12 Government policy can nothing about the natural rate of unemployment ANS: F DIF: REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Interpretive 13 The natural rate of unemployment is a type of unemployment that does not go away on its own even in the long run ANS: T DIF: REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Definitional 14 Long-run unemployment arises from a single problem that has a single solution ANS: F DIF: REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Definitional 15 There is no easy way for policymakers to reduce the economy’s natural rate of unemployment ANS: T DIF: REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Definitional 16 Measuring unemployment is the job of the Bureau of Labor Statistics ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: MSC: Definitional Bureau of Labor Statistics 17 Measuring unemployment is the job of the Bureau of Labor Statistics, which is part of the U.S Department of Commerce ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics MSC: Definitional 18 Every week, the Bureau of Labor Statistics produces data on unemployment ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics MSC: Definitional 19 The Bureau of Labor Statistics produces data on unemployment, types of employment, length of the average workweek, and the duration of unemployment ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics MSC: Definitional 20 The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 600 households, called the Current Population Survey ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics MSC: Definitional 21 The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 60,000 households, called the Current Population Survey ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics MSC: Definitional Chapter 28/Unemployment ❖ 82 22 The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about 60,000 households, called the Census ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics MSC: Definitional 23 The Bureau of Labor Statistics places each adult (aged 16 and older) of each surveyed household into one of three categories: employed, unemployed, and not in the labor force ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics MSC: Definitional 24 The Bureau of Labor Statistics places each adult (aged 16 and older) of each surveyed household into one of four categories: employed, underemployed, unemployed, and not in the labor force ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics MSC: Definitional 25 The Bureau of Labor Statistics’ “employed” category includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member’s business ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Bureau of Labor Statistics | Employment MSC: Definitional 26 Only paid workers are included in the Bureau of Labor Statistics’ “employed” category ANS: F DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Bureau of Labor Statistics | Employment MSC: Interpretive 27 Both full-time and part-time workers are included in the Bureau of Labor Statistics’ “employed” category ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Bureau of Labor Statistics | Employment MSC: Definitional 28 Some adults who were not working are included in the Bureau of Labor Statistics’ “employed” category ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Bureau of Labor Statistics | Employment MSC: Interpretive 29 Adults who were not working but who had jobs from which they were temporarily absent are included in the Bureau of Labor Statistics’ “employed” category ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Bureau of Labor Statistics | Employment MSC: Definitional 30 Adults who were waiting to be recalled to a job from which they had been laid off are included in the Bureau of Labor Statistics’ “employed” category ANS: F DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Bureau of Labor Statistics | Employment MSC: Interpretive 31 The Bureau of Labor Statistics’ “unemployed” category includes those who were not employed, were available for work, and had tried to find employment during the previous weeks ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics | Unemployment MSC: Definitional 83 ❖ Chapter 28/Unemployment 32 Every adult who was not employed during the previous weeks is included in the Bureau of Labor Statistics’ “unemployed” category ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics | Unemployment MSC: Interpretive 33 Someone who is without work but is not looking for work is included in the Bureau of Labor Statistics’ “unemployed” category ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics | Unemployment MSC: Interpretive 34 Full-time students and homemakers are included in the Bureau of Labor Statistics’ “unemployed” category ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics | Unemployment MSC: Interpretive 35 Stay-at-home fathers are included in the Bureau of Labor Statistics’ “unemployed” category ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics | Unemployment MSC: Interpretive 36 Adults who were waiting to be recalled to a job from which they had been laid off are included in the Bureau of Labor Statistics’ “unemployed” category ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics | Unemployment MSC: Definitional 37 Retirees are included in the Bureau of Labor Statistics’ “not in the labor force” category ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Bureau of Labor Statistics | Labor force MSC: Definitional 38 The adult population must equal the sum of the employed, the unemployed, and those not in the labor force ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Adult population MSC: Interpretive 39 The adult population must equal the sum of the employed and the unemployed ANS: F DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Adult population MSC: Interpretive 40 The Bureau of Labor Statistics defines the labor force as the sum of the employed and the unemployed ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Bureau of Labor Statistics | Labor force MSC: Definitional 41 The labor force minus the number of employed equals the number of unemployed ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment MSC: Interpretive 42 The Bureau of Labor Statistics defines the unemployment rate as the percentage of the adult population that is unemployed ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics | Unemployment rate MSC: Definitional Chapter 28/Unemployment ❖ 84 43 The Bureau of Labor Statistics defines the unemployment rate as the percentage of the labor force that is unemployed ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics | Unemployment rate MSC: Definitional 44 The Bureau of Labor Statistics computes unemployment rates for the entire adult population and for more narrowly defined groups ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics | Unemployment rate MSC: Definitional 45 The Bureau of Labor Statistics defines the labor-force participation rate as the percentage of the labor force that is employed ANS: F DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Bureau of Labor Statistics | Labor-force participation rate MSC: Definitional 46 The Bureau of Labor Statistics defines the labor-force participation rate as the percentage of the total adult population that is in the labor force ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Bureau of Labor Statistics | Labor-force participation rate MSC: Definitional 47 The labor-force participation rate is the percentage of the adult population that is either employed or unemployed ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor-force participation rate MSC: Interpretive 48 The labor-force participation rate tells us the fraction of the population that is able to participate in the labor market ANS: F DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor-force participation rate MSC: Definitional 49 The labor-force participation rate tells us the fraction of the population that has chosen to participate in the labor market ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor-force participation rate MSC: Definitional 50 The Bureau of Labor Statistics computes labor-force participation rates for the entire adult population and for more narrowly defined groups ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Bureau of Labor Statistics | Labor-force participation rate MSC: Definitional Table 28-5 2010 Labor Data for Wrexington Number of adults employed Number of adults unemployed Number of adults not in the labor force 10,000 2,250 17,750 51 Refer to Table 28-5 The total adult population of Wrexington in 2010 is 30,000 ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Adult population MSC: Applicative 85 ❖ Chapter 28/Unemployment 52 Refer to Table 28-5 The total adult population of Wrexington in 2010 is 12,250 ANS: F DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Adult population MSC: Applicative 53 Refer to Table 28-5 The labor force of Wrexington in 2010 is 12,250 ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor force MSC: Applicative 54 Refer to Table 28-5 The labor force of Wrexington in 2010 is 10,000 ANS: F DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor force MSC: Applicative 55 Refer to Table 28-5 The unemployment rate of Wrexington in 2010 is about 18.4 percent ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rate MSC: Applicative 56 Refer to Table 28-5 The unemployment rate of Wrexington in 2010 is about 7.5 percent ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rate MSC: Applicative 57 Refer to Table 28-5 The labor-force participation rate of Wrexington in 2010 is about 40.8 percent ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor-force participation rate MSC: Applicative 58 Refer to Table 28-5 The labor-force participation rate of Wrexington in 2010 is about 33.3 percent ANS: F DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor-force participation rate MSC: Applicative 59 Within the U.S population, women ages 20 and older have lower rates of labor-force participation than men ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor-force participation rate MSC: Definitional 60 Within the U.S population, women ages 20 and older have similar rates of labor-force participation as men ANS: F DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor-force participation rate MSC: Definitional 61 Within the U.S population, men and women have similar rates of unemployment ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rate MSC: Definitional 62 Within the U.S population, women have higher rates of unemployment than men ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rate MSC: Definitional 63 Within the U.S population, blacks ages 20 and older have similar rates of labor-force participation as whites ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor-force participation rate MSC: Definitional Chapter 28/Unemployment ❖ 86 64 Within the U.S population, blacks ages 20 and older have lower rates of labor-force participation than whites ANS: F DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor-force participation rate MSC: Definitional 65 Within the U.S population, blacks have higher rates of unemployment than whites ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rate MSC: Definitional 66 Within the U.S population, blacks and whites have similar rates of unemployment ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rate MSC: Definitional 67 Within the U.S population, teenagers have lower rates of labor-force participation than older workers ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor-force participation rate MSC: Definitional 68 Within the U.S population, teenagers have similar rates of labor-force participation as older workers ANS: F DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor-force participation rate MSC: Definitional 69 Within the U.S population, teenagers have higher rates of unemployment than older workers ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rate MSC: Definitional 70 Within the U.S population, teenagers have similar rates of unemployment as older workers ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rate MSC: Definitional 71 Data on the unemployment rate in the U.S since 1960 show that the economy always has some unemployment and that the amount changes from year to year ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rate MSC: Definitional 72 Data on the unemployment rate in the U.S since 1960 show that the unemployment rate sometimes is zero ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rate MSC: Interpretive 73 The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Definitional 74 The normal rate of unemployment around which the unemployment rate fluctuates is called cyclical unemployment ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Definitional 87 ❖ Chapter 28/Unemployment 75 The deviation of unemployment from its natural rate is called cyclical unemployment ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Cyclical unemployment MSC: Definitional 76 Economists at the Congressional Budget Office estimated that for 2007, the U.S natural rate of unemployment was 4.8 percent ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Definitional 77 In 2007, the U.S natural rate of unemployment was estimated to be 4.8 percent, which was close to the actual rate of unemployment of 4.6 percent ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Definitional 78 Causes of the changing role of women in American society over the past several decades include new technologies that have reduced the amount of time required to complete routine household tasks, improved birth control, and changing political and social attitudes ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Role of women MSC: Interpretive 79 Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S has gradually decreased ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor-force participation rate MSC: Definitional 80 Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S has gradually increased ANS: F DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor-force participation rate MSC: Definitional 81 Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had decreased ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor-force participation rate MSC: Definitional 82 Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had remained steady ANS: F DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor-force participation rate MSC: Definitional 83 Causes of the decline in the U.S men’s labor-force participation rate over the past several decades include young men now staying in school longer than their fathers and grandfathers did, older men now retiring earlier and living longer, and more fathers now staying at home to raise their children ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor-force participation rate MSC: Interpretive 84 Even though the difference in labor-force participation rates of U.S males and females has narrowed, the labor-force participation rate of males remains higher than that of females ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Labor-force participation rate MSC: Interpretive Chapter 28/Unemployment ❖ 88 85 Measuring the amount of unemployment in the economy is a straightforward task ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment MSC: Definitional 86 More than one-third of the unemployed are recent entrants into the labor force ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment MSC: Definitional 87 More than three-fourths of the unemployed are recent entrants into the labor force ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment MSC: Definitional 88 Not all unemployment ends with the job seeker finding a job ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation MSC: Definitional TOP: Unemployment 89 Almost half of all spells of unemployment end when the unemployed person leaves the labor force ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment MSC: Definitional 90 Almost nine-tenths of all spells of unemployment end when the unemployed person leaves the labor force ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment MSC: Definitional 91 Because people move into and out of the labor force so often, statistics on unemployment are difficult to interpret ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment MSC: Definitional 92 People who report being unemployed but who, in fact, are not trying hard to find a job are really not in the labor force and therefore cause the reported unemployment rate to be higher than it would otherwise be ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rate MSC: Interpretive 93 Rupert is collecting unemployment insurance benefits To continue to receive his benefits, he must be looking for work Because he’d like to continue collecting benefits rather than take a job, he applies at places that are unlikely to hire him People like Rupert make the reported unemployment rate less than it would otherwise be ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rate MSC: Interpretive 94 People who report being unemployed but who, in fact, are working for “under the table” pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rate MSC: Interpretive 89 ❖ Chapter 28/Unemployment 95 People who report being not in the labor force but who, in fact, want to work but have given up trying to find a job after an unsuccessful search are really unemployed and therefore cause the reported unemployment rate to be lower than it would otherwise be ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rate MSC: Interpretive 96 Discouraged workers are people who want to work but have given up trying to find a job after an unsuccessful search ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Discouraged workers MSC: Definitional 97 It is best to view the official unemployment rate as a useful but imperfect measure of joblessness ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rate MSC: Definitional 98 The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rate MSC: Interpretive 99 The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Bureau of Labor Statistics | Marginally attached workers MSC: Definitional 100 The Bureau of Labor Statistics defines discouraged workers as marginally attached workers who have given a job-market related reason for not currently looking for a job ANS: T DIF: REF: 28-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Bureau of Labor Statistics | Discouraged workers MSC: Definitional 101 The Bureau of Labor Statistics’ U-1 measure of joblessness is smaller than its U-6 measure of joblessness ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics | U-1 | U-6 MSC: Interpretive 102 The Bureau of Labor Statistics’ U-1 measure of joblessness is larger than its U-6 measure of joblessness ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics | U-1 | U-6 MSC: Interpretive 103 The Bureau of Labor Statistics’ U-1 measure of joblessness includes only very long-term unemployed ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics | U-1 MSC: Interpretive 104 The Bureau of Labor Statistics’ U-2 measure of joblessness includes job losers and job leavers ANS: F DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics | U-2 MSC: Interpretive 105 The Bureau of Labor Statistics’ U-3 measure of joblessness is the official unemployment rate ANS: T DIF: REF: 28-1 NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics | U-3 MSC: Interpretive 145 ❖ Chapter 28/Unemployment 30 U.S Department of Labor data show that minimum-wage workers tend to be a more likely to be working part time and in the communication industry b more likely to be working part time and in the leisure and hospitality industry c more likely to be working full time and in the communication industry d more likely to be working full time and in the leisure and hospitality industry ANS: B NAT: Analytic MSC: Definitional DIF: REF: 28-3 LOC: Unemployment and inflation TOP: Minimum wage Sec04 - Unemployment - Unions and Collective Bargaining MULTIPLE CHOICE Which of the following is not correct? a A union is a worker association that bargains with employers over wages, benefits, and working conditions b Unions play a much larger role in the U.S labor market now than they did in the past c Unions play a large role in many European countries d A union is a type of cartel ANS: B NAT: Analytic MSC: Interpretive Unions DIF: REF: LOC: Labor markets TOP: Unions 28-4 DIF: REF: LOC: Labor markets 28-4 TOP: Unions Which of the following is not correct? a When a union is present in a labor market, wages are not determined by the equilibrium of supply and demand b Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power c The process by which unions and firms agree on the terms of employment is called a strike d Most workers in the U.S economy are not members of a union ANS: C NAT: Analytic MSC: Interpretive TOP: In Belgium, Norway, and Sweden, the percentage of workers who belong to unions is a almost zero b less than it is in the United States c about the same as it is in the United States d greater than it is in the United States ANS: D NAT: Analytic MSC: Interpretive 28-4 Between the 1940s and today, union membership in the U.S a rose from about one-eighth to one-third of the labor force b rose from about one-third to one-half of the labor force c fell from about one-half to one-third of the labor force d fell from about one-third to one-eighth of the labor force ANS: D NAT: Analytic MSC: Interpretive DIF: REF: LOC: Labor markets DIF: REF: LOC: Labor markets 28-4 TOP: Unions Collective bargaining refers to a the process by which the government sets exemptions from the minimum wage law b setting the same wage for all employees to prevent conflict among workers c firms colluding to set the wages of employees in order to keep them below equilibrium d the process by which unions and firms agree on the terms of employment Chapter 28/Unemployment ❖ 146 ANS: D DIF: REF: 28-4 NAT: Analytic LOC: Labor markets TOP: Unions | Collective bargaining MSC: Definitional Which of the following is not correct? a An organized withdrawal of labor from a firm by a union is called a strike b The power of a union comes from its ability to strike if the union and the firm not agree on the terms of employment c Economists who study the effects of unions typically find that union workers earn about 25 to 35 percent more than similar workers who not belong to unions d Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost ANS: C NAT: Analytic MSC: Interpretive Unions | Strikes | Economists DIF: REF: LOC: Labor markets 28-4 TOP: Economists | Unions | Wages DIF: REF: LOC: Labor markets 28-4 TOP: Unions | Unemployment When a union bargains successfully with employers, in that industry, a both the quantity of labor supplied and the quantity of labor demanded increase b both the quantity of labor supplied and the quantity of labor demanded decrease c the quantity of labor supplied increases and the quantity of labor demanded decreases d the quantity of labor demanded increases and the quantity of labor supplied decreases ANS: C NAT: Analytic MSC: Interpretive 10 TOP: When a union raises the wage above the equilibrium level, it a reduces both the quantity of labor supplied and the quantity of labor demanded, resulting in unemployment b reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment c raises the quantity of labor supplied and reduces the quantity of labor demanded, resulting in unemployment d raises both the quantity of labor supplied and the quantity of labor demanded, resulting in unemployment ANS: C NAT: Analytic MSC: Definitional 28-4 Economists have found that union workers earn what percent more than similar nonunion workers? a to b to 10 c 10 to 20 d 20 to 30 ANS: C NAT: Analytic MSC: Definitional DIF: REF: LOC: Labor markets DIF: REF: LOC: Labor markets 28-4 TOP: When a union bargains successfully with employers, in that industry, a unemployment and wages increase b unemployment and wages decrease c unemployment decreases and wages increase d unemployment increases and wages decrease ANS: A DIF: REF: 28-4 NAT: Analytic LOC: Labor markets TOP: Unions | Unemployment | Wages MSC: Interpretive Unions 147 ❖ Chapter 28/Unemployment 11 The introduction of a union into an industry a raises wages and employment in that industry b lowers wages and employment in that industry c lowers wages and raises employment in that industry d raises wages and lowers employment in that industry ANS: D DIF: REF: 28-4 NAT: Analytic LOC: Labor markets TOP: Unions | Wages | Employment MSC: Interpretive 12 Unions not cause which of the following? a frictional unemployment b the wage to rise above the equilibrium level c conflict between insiders who benefit from high union wages and outsiders who not get the union jobs d reduced wages in nonunionized industries ANS: A DIF: REF: 28-4 NAT: Analytic LOC: Labor markets TOP: Unions | Structural unemployment MSC: Interpretive 13 Unions contribute to a cyclical unemployment b frictional unemployment c seasonal unemployment d structural unemployment ANS: D DIF: REF: 28-4 NAT: Analytic LOC: Unemployment and inflation TOP: Unions | Structural unemployment MSC: Interpretive 14 Unions contribute to a frictional but not structural unemployment b structural but not frictional unemployment c both frictional and structural unemployment d neither frictional nor structural unemployment ANS: NAT: TOP: MSC: 15 Unions contribute to a structural unemployment but not the natural rate of unemployment b the natural rate of unemployment but not structural unemployment c both structural unemployment and the natural rate of unemployment d neither structural unemployment nor the natural rate of unemployment ANS: NAT: TOP: MSC: 16 B DIF: REF: 28-4 Analytic LOC: Unemployment and inflation Unions | Structural unemployment | Frictional unemployment Interpretive C DIF: REF: 28-4 Analytic LOC: Unemployment and inflation Unions | Structural unemployment | Natural rate of unemployment Interpretive Unions a not affect the natural rate of unemployment b lower the wages of unionized workers c raise the profits of unionized firms d lower the wages of nonunionized workers ANS: D NAT: Analytic MSC: Interpretive DIF: REF: LOC: Labor markets 28-4 TOP: Unions | Wages Chapter 28/Unemployment ❖ 148 17 When unions raise wages in some sectors of the economy, the supply of labor in other sectors of the economy a decreases, raising wages in industries that are not unionized b decreases, reducing wages in industries that are not unionized c increases, raising wages in industries that are not unionized d increases, reducing wages in industries that are not unionized ANS: D NAT: Analytic MSC: Interpretive 18 DIF: REF: LOC: Labor markets 28-4 TOP: Unions | Wages DIF: REF: LOC: Labor markets 28-4 TOP: Unions | Wages DIF: REF: LOC: Labor markets 28-4 TOP: Unions | Wages Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate All workers are equally able to either job Initially, both labor markets are perfectly competitive If a union organizes workers in one of the markets, then the wage rates will tend to a rise in both markets b fall in both markets c rise for the union jobs, but remain unchanged for the nonunion jobs d rise for the union jobs and fall for the nonunion jobs ANS: D NAT: Analytic MSC: Interpretive 22 Unions | Wages Suppose that butchers and bakers have no unions Now suppose the butchers form a union What does this the labor supply of and wages of bakers? a It increases the labor supply and wages of bakers b It increases the labor supply and decreases the wages of bakers c It decreases the labor supply and increases the wages of bakers d It decreases the labor supply and wages of bakers ANS: B NAT: Analytic MSC: Interpretive 21 TOP: Suppose that neither textile workers nor shoemakers are unionized If textile workers unionize, then the supply of shoemakers will a rise and their wages will rise b rise and their wages will fall c fall and their wages will fall d fall and their wages will rise ANS: B NAT: Analytic MSC: Interpretive 20 28-4 Suppose that telemarketers are not unionized If they unionize, then the supply of labor in other sectors of the economy will a decrease, raising wages in industries that are not unionized b decrease, reducing wages in industries that are not unionized c increase, raising wages in industries that are not unionized d increase, reducing wages in industries that are not unionized ANS: D NAT: Analytic MSC: Interpretive 19 DIF: REF: LOC: Labor markets DIF: REF: LOC: Labor markets 28-4 TOP: Unions | Wages Suppose that grocery clerks and nurses are not unionized If the nurses unionize, then a the wages of both grocery clerks and nurses will rise b the wages of both grocery clerks and nurses will fall c the wages of grocery clerks will rise and the wages of nurses will fall d the wages of nurses will rise and the wages of grocery clerks will fall ANS: D NAT: Analytic MSC: Interpretive DIF: REF: LOC: Labor markets 28-4 TOP: Unions | Wages 149 ❖ Chapter 28/Unemployment 23 Which of the following is not correct? a Unions are exempt from U.S antitrust laws b The Wagner Act of 1935 prevents U.S employers from interfering when workers try to organize unions c The National Labor Relations Board is the U.S government agency that enforces workers’ right to unionize d Right-to-work laws prevent firms from hiring permanent replacements for workers who are on strike ANS: D NAT: Analytic MSC: Interpretive 24 28-4 TOP: Unions | Right-to-work laws The Wagner Act of 1935 a prevents unions from acting as cartels b allows workers joining a unionized firm to choose not to join the union c prevents employers from interfering when workers try to organize a union d prevents firms from hiring permanent replacements for workers who are on strike ANS: C NAT: Analytic MSC: Definitional 25 DIF: REF: LOC: Labor markets DIF: REF: LOC: Labor markets 28-4 TOP: Wagner Act The National Labor Relations Board a enforces antitrust laws against unions b enforces workers' rights to unionize c acts as a union's representative in collective bargaining d is required to approve all collective bargaining agreements before they can be enforced ANS: B DIF: REF: 28-4 NAT: Analytic LOC: Labor markets TOP: National Labor Relations Board MSC: Definitional 26 Right-to-work laws a guarantee workers the right to form unions b give workers in a unionized firm the right to choose whether to join the union c prevent employers from hiring permanent replacements for workers who are on strike d prevent workers from being fired because of increases in wages brought about by collective bargaining ANS: B NAT: Analytic MSC: Definitional 27 28-4 TOP: Right-to-work laws In the absence of right-to-work laws, workers a that went on strike could be permanently replaced b might be required to join the union if they worked for a unionized firm c would not be able to unionize d would not be able to strike ANS: B NAT: Analytic MSC: Interpretive 28 DIF: REF: LOC: Labor markets DIF: REF: LOC: Labor markets 28-4 TOP: Right-to-work laws Which of the following is correct? a There is consensus among economists that unions are good for the economy b There is consensus among economists that unions are bad for the economy c There is consensus among economists that, on net, unions have almost no impact on macroeconomic variables d There is no consensus among economists about whether unions are good or bad for the economy ANS: D NAT: Analytic MSC: Interpretive DIF: REF: LOC: Labor markets 28-4 TOP: Economists | Unions Chapter 28/Unemployment ❖ 150 29 There is a clear consensus among economists that unions are a good for the economy because they result in higher wages for most workers b good for the economy because they are a necessary antidote to the market power of employers c bad for the economy because they are cartels and therefore detrimental to an efficient allocation of resources d None of the above is correct; there is no clear consensus among economists about whether unions are good or bad for the economy ANS: D NAT: Analytic MSC: Interpretive 30 Economists | Unions DIF: REF: LOC: Labor markets 28-4 TOP: Unions Which of the following is not a contention of advocates of unions? a Unions are a necessary antidote to the market power of the firms that hire workers b In the case of a “company town,” a union may balance the firm’s market power and protect the workers from being at the mercy of the firm’s owners c The introduction of a union benefits all workers in a firm d Unions are important for helping firms respond efficiently to workers’ concerns ANS: C NAT: Analytic MSC: Interpretive 32 TOP: Which of the following is not correct? a Unions raise the wages above the level that would prevail in competitive markets b Unions reduce the quantity of labor demanded, cause some workers to be unemployed, and reduce the wages in the rest of the economy c Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable d All of the above are correct ANS: D NAT: Analytic MSC: Interpretive 31 DIF: REF: 28-4 LOC: Unemployment and inflation DIF: REF: LOC: Labor markets 28-4 TOP: Unions Which of the following is correct? a Nearly all economists believe that unions are bad for the economy as a whole b Unions raise wages above the competitive equilibrium level c Unions increase the level of employment in unionized firms d Unions decrease the level of employment in nonunionized firms ANS: B NAT: Analytic MSC: Interpretive DIF: REF: LOC: Labor markets 28-4 TOP: Unions Sec05 - Unemployment - The Theory of Efficiency Wages MULTIPLE CHOICE Which of the following is not a reason economies always experience some unemployment? a job search b unions c scarcity of resources d efficiency wages ANS: C NAT: Analytic MSC: Interpretive DIF: REF: 28-5 LOC: Unemployment and inflation TOP: Unemployment Which of the following is not a reason economies experience structural unemployment? a job search b unions c minimum-wage laws d efficiency wages 151 ❖ Chapter 28/Unemployment ANS: A NAT: Analytic MSC: Interpretive DIF: REF: 28-5 LOC: Unemployment and inflation DIF: REF: 28-5 LOC: Unemployment and inflation DIF: REF: 28-5 LOC: Unemployment and inflation Structural unemployment TOP: Structural unemployment TOP: Structural unemployment Minimum-wage laws, unions, and efficiency wages contribute to a both structural unemployment and the natural rate of unemployment b neither structural unemployment nor the natural rate of unemployment c structural unemployment, but not the natural rate of unemployment d the natural rate of unemployment, but not structural unemployment ANS: A DIF: REF: 28-5 NAT: Analytic LOC: Unemployment and inflation TOP: Structural unemployment | Natural rate of unemployment TOP: If minimum-wage laws, unions, efficiency wages, and all other factors that could prevent wages from reaching equilibrium were eliminated, then there would be no a cyclical unemployment b frictional unemployment c structural unemployment d natural rate of unemployment ANS: C NAT: Analytic MSC: Interpretive Structural unemployment Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level? a efficiency wages b job search c minimum-wage laws d unions ANS: B NAT: Analytic MSC: Interpretive TOP: Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level? a minimum-wage laws b unions c efficiency wages d All of the above are correct ANS: D NAT: Analytic MSC: Interpretive DIF: REF: 28-5 LOC: Unemployment and inflation MSC: Interpretive Suppose that efficiency wages become more common in the economy Economists would predict that this would a increase the quantity demanded and decrease the quantity supplied of labor, thereby decreasing the natural rate of unemployment b decrease the quantity demanded and increase the quantity supplied of labor, thereby increasing the natural rate of unemployment c increase the quantity demanded and decrease the quantity supplied of labor, thereby increasing the natural rate of unemployment d decrease the quantity demanded and increase the quantity supplied of labor, thereby decreasing the natural rate of unemployment ANS: B DIF: REF: 28-5 NAT: Analytic LOC: Unemployment and inflation TOP: Efficiency wages | Natural rate of unemployment MSC: Interpretive Chapter 28/Unemployment ❖ 152 Efficiency wages a increase frictional unemployment by keeping wages above equilibrium b decrease frictional unemployment by keeping wages at equilibrium c increase structural unemployment by keeping wages above equilibrium d decrease structural unemployment by keeping wages at equilibrium ANS: C DIF: REF: 28-5 NAT: Analytic LOC: Unemployment and inflation TOP: Efficiency wages | Structural unemployment MSC: Sectoral changes a create frictional unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates structural unemployment b create structural unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates frictional unemployment c and firms paying wages above equilibrium to attract a better pool of candidates both create structural unemployment d and firms paying wages above equilibrium to attract a better pool of candidates both create frictional unemployment ANS: NAT: TOP: MSC: 10 A DIF: REF: 28-5 Analytic LOC: Unemployment and inflation Efficiency wages | Sectoral shifts | Frictional unemployment | Structural unemployment Interpretive Job search a and firms paying wages above equilibrium to improve worker health both create frictional unemployment b creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment c creates structural unemployment, while firms paying wages above equilibrium to improve worker health creates frictional unemployment d and firms paying wages above equilibrium to improve worker health both create structural unemployment ANS: NAT: TOP: MSC: 11 Interpretive B DIF: REF: 28-5 Analytic LOC: Unemployment and inflation Efficiency wages | Job search | Frictional unemployment | Structural unemployment Interpretive Minimum-wage laws a create frictional unemployment, while firms paying wages above equilibrium to reduce worker turnover creates structural unemployment b create structural unemployment, while firms paying wages above equilibrium to reduce worker turnover creates frictional unemployment c and firms paying wages above equilibrium to reduce worker turnover both create structural unemployment d and firms paying wages above equilibrium to reduce worker turnover both create frictional unemployment ANS: NAT: TOP: MSC: C DIF: REF: 28-5 Analytic LOC: Unemployment and inflation Efficiency wages | Minimum wage | Frictional unemployment | Structural unemployment Interpretive 153 ❖ Chapter 28/Unemployment 12 Unions a and firms paying wages above equilibrium to improve worker effort both create frictional unemployment b creates frictional unemployment, while firms paying wages above equilibrium to improve worker effort creates structural unemployment c creates structural unemployment, while firms paying wages above equilibrium to improve worker effort creates frictional unemployment d and firms paying wages above equilibrium to improve worker effort both create structural unemployment ANS: NAT: TOP: MSC: 13 D DIF: REF: 28-5 Analytic LOC: Unemployment and inflation Efficiency wages | Unions | Frictional unemployment | Structural unemployment Interpretive The theory of efficiency wages explains why a setting wages at the equilibrium level may increase unemployment b it may be in the best interest of firms to offer wages that are above the equilibrium level c the most efficient way to pay workers is to pay them according to their skills d it is efficient for firms to set wages at the equilibrium level ANS: B NAT: Analytic MSC: Interpretive 14 DIF: REF: LOC: Labor markets Efficiency wages 28-5 TOP: Efficiency wages 28-5 MSC: Interpretive Minimum-wage laws and unions are similar to each other but different from efficiency wages in that minimum-wage law and unions a cause unemployment, but efficiency wages not b cause the quantity of labor supplied to exceed the quantity of labor demanded, but efficiency wages not c cause wages to be above the equilibrium level d prevent firms from lowering wages in the presence of a surplus of workers ANS: D DIF: REF: NAT: Analytic LOC: Labor markets TOP: Minimum wage | Unions | Efficiency wages 17 TOP: Efficiency wages, minimum-wage laws, and unions all a keep wages below the equilibrium level, causing a shortage of labor b keep wages below the equilibrium level, causing a surplus of labor c keep wages above the equilibrium level, causing a shortage of labor d keep wages above the equilibrium level, causing a surplus of labor ANS: D DIF: REF: NAT: Analytic LOC: Labor markets TOP: Minimum wage | Unions | Efficiency wages 16 28-5 The theory of efficiency wages provides a possible explanation as to why a workers form unions b firms should try to reduce surpluses of labor c firms may be inclined to keep their workers’ wages above the equilibrium level d firms may be inclined to keep their workers’ wages below the equilibrium level ANS: C NAT: Analytic MSC: Interpretive 15 DIF: REF: LOC: Labor markets 28-5 MSC: Interpretive Efficiency-wage theory suggests that paying a low wages might be profitable because they raise the efficiency of a firm’s workers b low wages might be profitable because they lower the efficiency of a firm’s workers c high wages might be profitable because they raise the efficiency of a firm’s workers d high wages might be profitable because they lower the efficiency of a firm’s workers Chapter 28/Unemployment ❖ 154 ANS: C NAT: Analytic MSC: Interpretive 18 DIF: REF: LOC: Labor markets 28-5 TOP: Efficiency wages Quinn, the CEO of a corporation operating in a relatively poor country where wages are low, decides to raise the wages of her workers even though she faces an excess supply of labor Her decision a might increase profits if it means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive b will help eliminate the excess supply of labor c may cause her workers to increase shirking d All of the above are correct ANS: A DIF: REF: 28-5 NAT: Analytic LOC: Labor markets TOP: Efficiency wages | Worker health MSC: Applicative 19 The efficiency-wage theory of worker health is a more relevant for explaining unemployment in less developed countries than in rich countries b more relevant for explaining unemployment in rich countries than in less developed countries c equally relevant for explaining unemployment in less developed countries and in rich countries d not relevant for explaining unemployment ANS: A DIF: REF: 28-5 NAT: Analytic LOC: Labor markets TOP: Efficiency wages | Worker health MSC: Interpretive 20 Charlie is the owner of a firm that produces bottled water in Washington state There are many other such firms in the area Charlie decides that if he pays his workers a wage higher than the going market wage, his profits will increase Which of the following is a likely explanation for his decision? a The higher the wage, the less often his workers will choose to leave his firm b The higher the wage, the lower will be the cost of obtaining needed supplies c The higher the wage, the more he can charge for his water d The higher the wage, the more he will have to monitor his workers for shirking ANS: A DIF: REF: NAT: Analytic LOC: Labor markets TOP: Efficiency wages | Worker turnover 21 MSC: Applicative The efficiency-wage theory of worker turnover suggests that firms with a higher turnover will have higher production costs and higher profits b higher turnover will have higher production costs and lower profits c higher turnover will have lower production costs and higher profits d higher turnover will have lower production costs and lower profits ANS: B DIF: REF: NAT: Analytic LOC: Labor markets TOP: Efficiency wages | Worker turnover 22 28-5 28-5 MSC: Interpretive Maxine, the owner of a furniture company, decides to raise the wages of her workers even though she faces an excess supply of labor Her decision a might increase profits if it attracts a better pool of workers to apply for her firm’s jobs b will increase the excess supply of labor c may increase the quality of her work force d All of the above are correct ANS: D DIF: REF: 28-5 NAT: Analytic LOC: Labor markets TOP: Efficiency wages | Worker quality MSC: Applicative 155 ❖ Chapter 28/Unemployment 23 Ellen decides to hire some additional workers for her vinyl siding factory The equilibrium wage is $14 per hour Efficiency wage theory suggests that it is reasonable for Ellen to offer a $14 per hour b less than $14 per hour, since some people would be willing to work for less c less than $14 an hour to prevent shirking d more than $14 per hour, so as to attract a better pool of applicants ANS: D DIF: REF: 28-5 NAT: Analytic LOC: Labor markets TOP: Efficiency wages | Worker quality MSC: Applicative 24 The efficiency-wage theory of worker quality suggests that if firms respond to a surplus of labor by reducing the wage, then a the most competent applicants will likely apply for that firm’s jobs b the most competent applicants will likely not apply for that firm’s jobs c unemployment will increase d the quality of the firm’s work force will increase ANS: B DIF: REF: 28-5 NAT: Analytic LOC: Labor markets TOP: Efficiency wages | Worker quality MSC: Interpretive 25 Daisy is the newly appointed CEO of a company that manufactures CD drives on an assembly line Her staff has told her that the output the firm produces, given the number of workers employed, indicates that some workers may be shirking According to efficiency wage theory, what should she do? a pay all workers more than the equilibrium wage rate b pay all workers below the equilibrium wage rate to make up for the loss from shirking c make sure that workers are getting paid exactly the equilibrium wage rate d pay bonuses to workers who report the shirking of other workers ANS: A DIF: REF: 28-5 NAT: Analytic LOC: Labor markets TOP: Efficiency wages | Worker effort MSC: Applicative 26 A firm may pay efficiency wages in an attempt to a reduce incentives to shirk b reduce turnover c attract a well-qualified pool of applicants d All of the above are correct ANS: D NAT: Analytic MSC: Interpretive 27 28-5 TOP: Efficiency wages Which of the following is not a reason that paying efficiency wages may increase a firm's profit? a Efficiency wages increase worker health and therefore increase worker productivity b Efficiency wages decrease worker turnover and therefore decrease hiring and training costs c Efficiency wages decrease worker shirking and therefore increase worker productivity d Efficiency wages decrease a country's natural rate of unemployment and therefore increase its standard of living ANS: D NAT: Analytic MSC: Interpretive 28 DIF: REF: LOC: Labor markets DIF: REF: LOC: Labor markets 28-5 TOP: Efficiency wages Pollee is the CEO of a corporation that hires nonunion labor According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, then a the profits of her firm might increase b the higher wages will induce her workers to shirk c the turnover of her workers may increase d she will face a shortage of labor ANS: A NAT: Analytic MSC: Applicative DIF: REF: LOC: Labor markets 28-5 TOP: Efficiency wages Chapter 28/Unemployment ❖ 156 29 Four employers have justified their actions as follows Whose logic is not consistent with the logic of efficiency wage theory? a Jay develops a new assembly line technology that limits the amount of shirking workers can do, so he reduces what he pays his employees so as to make it closer to the equilibrium wage b Kay pays her workers less than the equilibrium wage so they won't have the time or money to look for work somewhere else c Ray pays his workers in a developing country more than the going wage hoping that they will get a better diet and so be more productive d None of the above is consistent with the logic of efficiency wage theory ANS: B NAT: Analytic MSC: Applicative 30 DIF: REF: LOC: Labor markets 28-5 TOP: Efficiency wages In the early 1900s, Henry Ford introduced a a high-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory b a high-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory c a low-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory d a low-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory ANS: A NAT: Analytic MSC: Interpretive DIF: REF: LOC: Labor markets 28-5 TOP: Efficiency wages ... Number of employed Number of unemployed 50 DIF: REF: 28-1 LOC: The study of economics and definitions of economics MSC: Applicative DIF: REF: 28-1 LOC: The study of economics and definitions of economics. .. force 69 DIF: REF: 28-1 LOC: The study of economics and definitions of economics MSC: Applicative DIF: REF: 28-1 LOC: The study of economics and definitions of economics MSC: Applicative Refer to... LOC: The study of economics and definitions of economics TOP: Bureau of Labor Statistics | Discouraged workers MSC: Definitional 101 The Bureau of Labor Statistics’ U-1 measure of joblessness