Macro Economics Chapter 28 – Flashcards
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Unions contribute to
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Structural unemployment
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Discouraged workers are included in:
A) The labor force
B) The number of unemployed
C) Frictional unemployment
D) None of the above is correct
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D) None of the above is correct
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The unemployment rate equals the percentage of the adult population that is unemployed.
A) True
B) False
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False.
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If the wage is kept above the equilibrium level for any reason, the result is unemployment.
A) True
B) False
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A) True
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An economys natural rate of unemployment is the
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Amount of unemployment that the economys normally experience.
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Studies have shown that the design of the unemployment insurance system reduces the job search efforts of the unemployed.
A) True
B) False
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A) True
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The natural unemployment rate includes
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Both frictional and structural unemployment.
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Which of the following is the correct formula for calculating the unemployment rate?
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Number employed
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labor force X 100
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If the government imposes a minimum wage of $8 then unemployment will decrease by
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2,000 workers
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Minimum wage laws ca keep wages
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Above equilibrium and cause a surplus of labor
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All else equal, which of the following would increase the unemployment rate?
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(ii) and (iii) only.
(ii): A prefence among older men to retire early.
(iii): An increase in the maximum number of weeks for which someone can receive government unemployment benefits.
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Unions:
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Raise the wages of unionized workers and raise unemployment.
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Frictional unemployment can be consequences of
A) Changes in the working consequences
B) One industry declining while another is growing
C) Changes in working conditions offered by competing firms
D) All of the above are correct
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D) All of the above are correct
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The amount of unemployment varies
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Substantially over time & across countries
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Public policy can reduce the economies natural rate of unemployment
A) True
B) False
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A) True
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Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power
A) True
B) False
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A) True
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The labor force equals the
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Number of people employed plus the number of people unemployed
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To maintain their standard of living, most people rely on
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Their labor earnings
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Measuring unemployment is the job of the
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Bureau of Labor Statistics
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Evidence from research studies by economists
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Shows that increased unemployment benefits decreases the job search efforts of the unemployed.
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Suppose that some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were unemployed?
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2.76 Million.
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Unions play a larger role in Europe than they do in the U.S.
A) True
B) False
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A) True
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A person who is counted as "unemployed" by the Bureau of Labor Statistics:
A) Is also in the Labor force
B) Must have recently looked for work or be on temporary layoff.
C) Must be at least 16 years of age
D) All of the above are correct
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D) All of the above are correct.
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Right-to-work laws
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Give workers in a unionized firm the right to choose whether to join the union.
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Economists at the Congressional Budget Office estimated that for 2012, the U.S. natural rate of unemployment was:
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5.5%
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Efficiency wages, minimum-wage laws, and unions all
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Keep wages above equilibrium level, causing a surplus of labor.
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Which type of unemployment results if the wage is kept above its equilibrium level for any reason?
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Structural
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Within the U.S. population, men and women have similar rates of unemployment.
A) True
B) False
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B) False
