Question 1

Macroland produces dishes and glassware.Before trade,a set of dishes sells for $100 and a set of glasses sells for $50.When Macroland opens to trade,foreign demand for domestically produced china is strong,raising the price of a set of dishes to $125.But foreign competition reduces the demand for domestically produced glasses,so that they now sell for $25 a set.Assuming workers cannot move between industries,the wages of workers producing dishes will ______ and the wages of workers producing glasses will ____.

Accepted Answer

A)  increase;increase
B)  increase;not change
C)  increase;decrease
D)  decrease;increaseE) A) and D)
F) A) and C)

Question 2

Which of the following is an example of structural unemployment?

Accepted Answer

A)  Dora lost her job when the textile factory closed.She does not have skills to work in another industry and has been unemployed for over a year.
B)  Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel.She expects to get her job back when the economy picks up.
C)  Alan,a software engineer,lost his job when the internet startup he worked for went bankrupt.He interviewed with five companies in the area before taking a job with another firm in the industry.
D)  Jim had a job as an engineer,but quit when his wife was transferred to another state.He looked for a month before finding a new job that he liked.E) All of the above
F) A) and B)

Question 3

One trend in labor markets is:

Accepted Answer

A)  a decrease in average real wages in the United States and other industrial countries.
B)  decreasing wage inequality in the United States.
C)  weak rates of job creation in the United States since 1980.
D)  a slowdown in real wage growth in the United States since 1973.E) None of the above
F) B) and C)

Question 4

High Tech,Inc.produces plastic chairs that sell for $10 each.The following table provides information about how many plastic chairs can be produced per hour.   Number of Workers  Chairs Produced Per Hour 00110218324428530\begin{array} { | c | c | } \hline 	ext { Number of Workers } & 	ext { Chairs Produced Per Hour } \\hline 0 & 0 \\hline 1 & 10 \\hline 2 & 18 \\hline 3 & 24 \\hline 4 & 28 \\hline 5 & 30 \\hline\end{array} Number of Workers 012345​ Chairs Produced Per Hour 01018242830​​ 
For simplicity,assume that labor is the only input.How many workers will be hired if the hourly wage for workers is $120?

Accepted Answer

A)  0
B)  3
C)  5
D)  More than 5 E) All of the above
F) B) and D)

Question 5

In a country with 200 million people aged 16 years and older,120 million in the labor force,and 114 million employed,what is the participation rate?

Accepted Answer

A)  40 percent
B)  57 percent
C)  60 percent
D)  95 percentE) A) and B)
F) A) and C)

Question 6

Data for an economy shows that the unemployment rate is 6%,the participation rate 60 percent,and 200 million people 16 years or older are not in the labor force.How many people are unemployed this economy?

Accepted Answer

A)  12.0 million
B)  18.0 million
C)  28.8 million
D)  43.2 millionE) B) and C)
F) A) and B)

Question 7

Leaving the labor force or finding a job are two ways that:

Accepted Answer

A)  a person can become a discouraged worker.
B)  a person can become an involuntary part-time worker.
C)  an unemployment spell can begin.
D)  an unemployment spell can end.E) C) and D)
F) A) and D)

Question 8

A war destroys much of the capital stock in the country of Omega.As a result,holding other factors constant,the real wage in Omega will ______ and employment in Omega will ______.

Accepted Answer

A)  increase;increase
B)  increase;decrease
C)  increase;not change
D)  decrease;decreaseE) A) and B)
F) A) and C)

Question 9

Assume that the union wage already exceeds the market-clearing wage.If the union wage is increased,holding other factors constant,then the number unemployed ______ and the number employed _____.

Accepted Answer

A)  increase;increases
B)  increases;decreases
C)  increases;does not change
D)  decreases;increasesE) A) and C)
F) None of the above

Question 10

The towns of Jekyll and Hyde each have a labor force of 2,000 people.In Jekyll,500 people were unemployed for the entire year,while the rest of the labor force was employed continuously.In Hyde,every member of the labor force was unemployed for three months and was employed for nine months.The average duration of unemployment spells over the year was ______ months in Jekyll and ______ months in Hyde.

Accepted Answer

A)  3;3
B)  3;9
C)  12;3
D)  12;9E) A) and B)
F) All of the above

Question 11

Holding other factors constant,if a larger proportion of the population enters the labor force as a result of a growing social acceptance of women working,then the real wages of workers will ______ and employment of workers will _____.

Accepted Answer

A)  increase;increase
B)  increase;decrease
C)  decrease;not change
D)  decrease;increaseE) None of the above
F) C) and D)

Question 12

Who of the following would be considered a discouraged worker?

Accepted Answer

A)  Ray wants to work forty hours per week,but can only find work for twenty hours per week.
B)  Anna Marie has been looking for a job every day for the last month,but has not been hired.
C)  Frank would like to work,but has not looked for work because he believes no jobs are available.
D)  Melissa has a Ph.D.in physics,but is currently employed full time driving a taxi.E) A) and B)
F) A) and C)

Question 13

In recent decades,slower growth in the demand for labor accompanied by an accelerated growth in the supply of labor in the U.S.explains:

Accepted Answer

A)  slower real wage growth and double-digit rates of unemployment.
B)  slower real wage growth and increasing wage inequality.
C)  slower real wage growth and an increase in the number of people with jobs.
D)  increasing wage inequality and double-digit rates unemployment.E) B) and D)
F) A) and B)

Question 14

The demand for labor increases when the:

Accepted Answer

A)  real wage increases.
B)  real wage decreases.
C)  value of the marginal product of labor increases.
D)  value of the marginal product of labor decreases.E) B) and C)
F) B) and D)

Question 15

Production data for Joe's Pizza Parlor are as follows.For simplicity assume that labor is the only input.Each pizza sells for $5.   Number of Workers  Pizzas Baked Per Day 00110218324430532\begin{array} { | c | c | } \hline 	ext { Number of Workers } & 	ext { Pizzas Baked Per Day } \\hline 0 & 0 \\hline 1 & 10 \\hline 2 & 18 \\hline 3 & 24 \\hline 4 & 30 \\hline 5 & 32 \\hline\end{array} Number of Workers 012345​ Pizzas Baked Per Day 01018243032​​ 
How many workers will Joe hire if he must pay each one $45 a day?

Accepted Answer

A)  1
B)  2
C)  3
D)  4 E) None of the above
F) All of the above

Question 16

The marginal product of labor is the additional:

Accepted Answer

A)  wage paid for an additional hour of work.
B)  wage paid for an additional worker employed.
C)  labor employed to produce one more unit of output.
D)  output produced by one more worker.E) All of the above
F) A) and B)

Question 17

Real wages increased in industrialized countries in the twentieth century because the demand for labor:

Accepted Answer

A)  increased more rapidly than the supply of labor increased.
B)  increased more slowly than the supply of labor increased.
C)  increased,while the supply of labor decreased.
D)  decreased,while the supply of labor increased.E) All of the above
F) None of the above

Question 18

Technological change that affects the marginal products of high-skilled and low-skilled workers differently is called ______ technological change.

Accepted Answer

A)  capital-labor
B)  skill-biased
C)  marginal-productivity
D)  high-lowE) None of the above
F) All of the above

Question 19

Factors increasing the labor supply and thereby contributing to the slowdown in real-wage growth that began in the 1970s include ______ and _____.

Accepted Answer

A)  skill-biased technological change;globalization
B)  increased labor force participation by women;the coming-of-age of the baby-boom generation
C)  technological progress;diminishing returns to labor
D)  increasing wage inequality;globalizationE) A) and D)
F) A) and C)

Question 20

Assume the union contract wage exceeds the market-clearing wage.If there is an increase in the labor supply,then the number of unemployed workers will ______ and the number of employed workers will _______.

Accepted Answer

A)  increase;increase
B)  increase;decrease
C)  increase;not change
D)  decrease;increaseE) None of the above
F) A) and B)

Exam 17: Wages and Unemployment

Data for an economy shows that the unemployment rate is 6%,the participation rate 60 percent,and 200 million people 16 years or older are not in the labor force.How many people are unemployed this economy?

Correct Answer
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Correct Answer
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Real wages increased in industrialized countries in the twentieth century because the demand for labor:

Correct Answer
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Correct Answer
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Correct Answer
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Technological change that affects the marginal products of high-skilled and low-skilled workers differently is called ______ technological change.

Correct Answer
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The demand for labor increases when the:

Correct Answer
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The marginal product of labor is the additional:

Correct Answer
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Assume that the union wage already exceeds the market-clearing wage.If the union wage is increased,holding other factors constant,then the number unemployed __ and the number employed _.

Correct Answer
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One trend in labor markets is:

Correct Answer
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Which of the following is an example of structural unemployment?

Correct Answer
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A war destroys much of the capital stock in the country of Omega.As a result,holding other factors constant,the real wage in Omega will and employment in Omega will .

Correct Answer
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Assume the union contract wage exceeds the market-clearing wage.If there is an increase in the labor supply,then the number of unemployed workers will and the number of employed workers will _.

Correct Answer
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Who of the following would be considered a discouraged worker?

Correct Answer
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In recent decades,slower growth in the demand for labor accompanied by an accelerated growth in the supply of labor in the U.S.explains:

Correct Answer
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Factors increasing the labor supply and thereby contributing to the slowdown in real-wage growth that began in the 1970s include __ and _.

Correct Answer
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Holding other factors constant,if a larger proportion of the population enters the labor force as a result of a growing social acceptance of women working,then the real wages of workers will __ and employment of workers will _.

Correct Answer
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Correct Answer
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Leaving the labor force or finding a job are two ways that:

Correct Answer
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In a country with 200 million people aged 16 years and older,120 million in the labor force,and 114 million employed,what is the participation rate?

Correct Answer
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Exam 17: Wages and Unemployment

Data for an economy shows that the unemployment rate is 6%,the participation rate 60 percent,and 200 million people 16 years or older are not in the labor force.How many people are unemployed this economy?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Real wages increased in industrialized countries in the twentieth century because the demand for labor:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Technological change that affects the marginal products of high-skilled and low-skilled workers differently is called ______ technological change.

Correct AnswerverifiedShow Answer

The demand for labor increases when the:

Correct AnswerverifiedShow Answer

The marginal product of labor is the additional:

Correct AnswerverifiedShow Answer

Assume that the union wage already exceeds the market-clearing wage.If the union wage is increased,holding other factors constant,then the number unemployed ______ and the number employed _____.

Correct AnswerverifiedShow Answer

One trend in labor markets is:

Correct AnswerverifiedShow Answer

Which of the following is an example of structural unemployment?

Correct AnswerverifiedShow Answer

A war destroys much of the capital stock in the country of Omega.As a result,holding other factors constant,the real wage in Omega will ______ and employment in Omega will ______.

Correct AnswerverifiedShow Answer

Assume the union contract wage exceeds the market-clearing wage.If there is an increase in the labor supply,then the number of unemployed workers will ______ and the number of employed workers will _______.

Correct AnswerverifiedShow Answer

Who of the following would be considered a discouraged worker?

Correct AnswerverifiedShow Answer

In recent decades,slower growth in the demand for labor accompanied by an accelerated growth in the supply of labor in the U.S.explains:

Correct AnswerverifiedShow Answer

Factors increasing the labor supply and thereby contributing to the slowdown in real-wage growth that began in the 1970s include ______ and _____.

Correct AnswerverifiedShow Answer

Holding other factors constant,if a larger proportion of the population enters the labor force as a result of a growing social acceptance of women working,then the real wages of workers will ______ and employment of workers will _____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Leaving the labor force or finding a job are two ways that:

Correct AnswerverifiedShow Answer

In a country with 200 million people aged 16 years and older,120 million in the labor force,and 114 million employed,what is the participation rate?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Assume that the union wage already exceeds the market-clearing wage.If the union wage is increased,holding other factors constant,then the number unemployed __ and the number employed _.

Correct Answer
verified

Correct Answer
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Correct Answer
verified

A war destroys much of the capital stock in the country of Omega.As a result,holding other factors constant,the real wage in Omega will and employment in Omega will .

Correct Answer
verified

Assume the union contract wage exceeds the market-clearing wage.If there is an increase in the labor supply,then the number of unemployed workers will and the number of employed workers will _.

Correct Answer
verified

Correct Answer
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Correct Answer
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Factors increasing the labor supply and thereby contributing to the slowdown in real-wage growth that began in the 1970s include __ and _.

Correct Answer
verified

Holding other factors constant,if a larger proportion of the population enters the labor force as a result of a growing social acceptance of women working,then the real wages of workers will __ and employment of workers will _.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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