Question 1

Which of the following is considered out of the labor force?

Accepted Answer

A)  the unemployed
B)  those temporarily laid off who will soon be recalled
C)  those who worked full time, but in a family business
D)  those individuals who have started searching for employment for the first time
E)   none of the aboveF) A) and B)
G) A) and C)

Question 2

Which of the following represents the participation rate?

Accepted Answer

A)  the ratio of the number employed to the size of the labor force
B)  the ratio of the number employed to the civilian noninstitutional population
C)  the ratio of the labor force to the civilian noninstitutional population
D)  the ratio of the labor force to the total number of employed and unemployed workersE) None of the above
F) A) and B)

Question 3

First,provide a brief explanation of what the unemployment rate measures.Second,explain how changes in each of the components of the unemployment rate can cause changes in the unemployment rate.

Accepted Answer

The unemployment rate measures the perce...

Question 4

Suppose that increased international trade makes product markets more competitive in the U.S.Given this information,we would expect to observe which of the following?

Accepted Answer

A)  an upward shift in the WS curve
B)  a downward shift in the WS curve
C)  an upward shift in the PS curve
D)  a downward shift in the PS curve
E)   none of the aboveF) A) and C)
G) B) and C)

Question 5

The Current Population Survey interviews approximately how many households each month?

Accepted Answer

A)  5,000
B)  10,000
C)  60,000
D)  100,000E) All of the above
F) A) and B)

Question 6

First,explain what the WS relation represents.Second,explain why it has its particular shape.

Accepted Answer

The WS relation illustrates the effect o...

Question 7

Suppose the aggregate production function is given by the following: Y = AN.Given this information,we know that labor productivity is represented by which of the following?

Accepted Answer

A)  1 / A
B)  A
C)  1 / N
D)  N / YE) A) and D)
F) B) and C)

Question 8

Suppose the actual unemployment rate decreases.This will cause

Accepted Answer

A)  an upward shift in the WS curve.
B)  a downward shift in the WS curve.
C)  an upward shift in the PS curve.
D)  a downward shift in the PS curve.
E)   none of the aboveF) C) and D)
G) C) and E)

Question 9

The average amount of time people spend unemployed is approximately

Accepted Answer

A)  1 month.
B)  6 months .
C)  12 months.
D)  none of the aboveE) B) and C)
F) A) and C)

Question 10

The two labor markets in the "dual labor market" are

Accepted Answer

A)  southern versus northern.
B)  western versus eastern.
C)  English speaking versus non-English speaking.
D)  domestic versus foreign.
E)   none of the aboveF) A) and C)
G) A) and D)

Question 11

Based on price setting behavior,we know that an increase in the unemployment rate will cause

Accepted Answer

A)  no change in the real wage.
B)  a reduction in the real wage.
C)  an increase in the real wage.
D)  an upward shift of the PS curve.E) C) and D)
F) B) and D)

Question 12

Suppose the aggregate production function is given by the following: Y = N.Given this information,we know that labor productivity is represented by which of the following?

Accepted Answer

A)  1 / N
B)  N
C)  N / Y
D)  1E) C) and D)
F) B) and C)

Question 13

An increase in the minimum wage will tend to cause which of the following?

Accepted Answer

A)  an upward shift in the WS curve
B)  a downward shift in the WS curve
C)  an upward shift in the PS curve
D)  a downward shift in the PS curve
E)   none of the aboveF) A) and B)
G) B) and C)

Question 14

The participation rate in the United States in 2010 was approximately equal to

Accepted Answer

A)  96%.
B)  90%.
C)  65%.
D)  26%.
E)   5%.F) B) and D)
G) C) and D)

Question 15

Suppose we wish to examine the determinants of the equilibrium real wage and equilibrium level of employment (N) .In a graph with the real wage on the vertical axis,and the level of employment on the horizontal axis,the price-setting relation will now be

Accepted Answer

A)  a vertical line.
B)  a horizontal line.
C)  an upward sloping line.
D)  a downward sloping line.
E)   kinked at the natural rate of unemployment.F) B) and E)
G) B) and D)

Question 16

Based on your understanding of the labor market model presented by Blanchard (i.e.,the WS and PS relations),explain what types of policies could be implemented to cause a reduction in the natural rate of unemployment.

Accepted Answer

The natural rate of unemployment will ch...

Question 17

When the Current Population Survey (CPS) was introduced in 1940,it was based on a survey of approximately 8,000 households.The CPS survey is now based on a survey of how many households?

Accepted Answer

A)  8,000
B)  10,000
C)  12,000
D)  20,000
E)   60,000F) B) and D)
G) A) and C)

Question 18

The price setting equation is represented by the following: P = (1 + m) W.When there is perfect competition,we know that m will equal

Accepted Answer

A)  W.
B)  P.
C)  1.
D)  W / P.
E)   none of the aboveF) B) and C)
G) B) and E)

Question 19

Based on our understanding of the labor market model presented in Chapter 6,we know that an increase in the markup will cause

Accepted Answer

A)  an increase in the equilibrium real wage.
B)  a reduction in the equilibrium real wage.
C)  a reduction in the natural rate of unemployment.
D)  both B and CE) A) and B)
F) C) and D)

Question 20

The natural level of employment (N) will increase when which of the following occurs?

Accepted Answer

A)  an increase in the markup of prices over costs
B)  a reduction in unemployment benefits
C)  an increase in the actual unemployment rate
D)  all of the above
E)   none of the aboveF) A) and B)
G) B) and E)

Exam 7: The Labor Market

Which of the following represents the participation rate?

Correct AnswerverifiedShow Answer

The Current Population Survey interviews approximately how many households each month?

Correct AnswerverifiedShow Answer

Suppose we wish to examine the determinants of the equilibrium real wage and equilibrium level of employment (N) .In a graph with the real wage on the vertical axis,and the level of employment on the horizontal axis,the price-setting relation will now be

Correct AnswerverifiedShow Answer

Which of the following is considered out of the labor force?

Correct AnswerverifiedShow Answer

Based on our understanding of the labor market model presented in Chapter 6,we know that an increase in the markup will cause

Correct AnswerverifiedShow Answer

When the Current Population Survey (CPS) was introduced in 1940,it was based on a survey of approximately 8,000 households.The CPS survey is now based on a survey of how many households?

Correct AnswerverifiedShow Answer

Suppose the aggregate production function is given by the following: Y = N.Given this information,we know that labor productivity is represented by which of the following?

Correct AnswerverifiedShow Answer

Suppose the actual unemployment rate decreases.This will cause

Correct AnswerverifiedShow Answer

First,explain what the WS relation represents.Second,explain why it has its particular shape.

Correct AnswerverifiedThe WS relation illustrates the effect o...View AnswerShow Answer

The price setting equation is represented by the following: P = (1 + m) W.When there is perfect competition,we know that m will equal

Correct AnswerverifiedShow Answer

The average amount of time people spend unemployed is approximately

Correct AnswerverifiedShow Answer

Suppose that increased international trade makes product markets more competitive in the U.S.Given this information,we would expect to observe which of the following?

Correct AnswerverifiedShow Answer

Suppose the aggregate production function is given by the following: Y = AN.Given this information,we know that labor productivity is represented by which of the following?

Correct AnswerverifiedShow Answer

The natural level of employment (N) will increase when which of the following occurs?

Correct AnswerverifiedShow Answer

Based on your understanding of the labor market model presented by Blanchard (i.e.,the WS and PS relations),explain what types of policies could be implemented to cause a reduction in the natural rate of unemployment.

Correct AnswerverifiedThe natural rate of unemployment will ch...View AnswerShow Answer

First,provide a brief explanation of what the unemployment rate measures.Second,explain how changes in each of the components of the unemployment rate can cause changes in the unemployment rate.

Correct AnswerverifiedThe unemployment rate measures the perce...View AnswerShow Answer

The two labor markets in the "dual labor market" are

Correct AnswerverifiedShow Answer

Based on price setting behavior,we know that an increase in the unemployment rate will cause

Correct AnswerverifiedShow Answer

The participation rate in the United States in 2010 was approximately equal to

Correct AnswerverifiedShow Answer

An increase in the minimum wage will tend to cause which of the following?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The WS relation illustrates the effect o...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The natural rate of unemployment will ch...
View Answer

Correct Answer
verified
The unemployment rate measures the perce...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified