A) number of individuals employed divided by the number of the unemployed B) labor force divided by the population C) proportion of the civilian working-age population that is employed D) number of individuals employed divided by the size of the labor force
The unemployment rate in the U.S. is equal to
A) the size of the U.S. population divided by the number of individuals unemployed B) the number of individuals unemployed divided by the U.S.labor force C) the size of the U.S. labor force divided by the number of individuals unemployed D) the number of individuals unemployed in the U.S. divided by the U.S. population
If the marginal product of labor exceeds that cost of hiring an additional worker, the firm should
A) raise the wage rate. B) fire some workers. C) add more workers. D) lower the wage rate.
The upward-sloping character of the labor supply schedule assumes that the
A) the substitution effect is larger than the income effect. B) the ratio of real wages to the marginal product of labor is equal to the equilibrium nominal wage. C) the substitution effect is smaller than the income effect. D) the substitution effect is equal to the income effect.
Suppose the marginal product of labor (MPL) is greater than the real wage. If the real wage remains constant, then we should expect
A) an increase in the supply of labor and decrease in the MPL B) an increase in the supply of labor and no change in the MPL C) an increase in employment and decrease in the MPL D) an increase in leisure and no change in the MPL
An increase in outout due to either a positive supply or demand shock to production will lead to
A) a decrease in the demand for labor and lower real wages. B) a decrease in the demand for labor and higher real wages. C) an increase in the demand for labor and higher real wages. D) an increase in the demand for labor and lower real wages.
An increase in labor supply will cause, other things the same
A) real wages and employment to rise. B) real wages and employment to fall. C) real wages to rise and employment to fall. D) real wages to fall and employment to rise.
Among the causes of an increase in labor demand is
A) an improvement in worker productivity B) a relaxation of restrictions on child labor C) a contraction of economic activity D) an increase in enrollment at colleges
Which of these is not a good example of skill-biased technical change?
A) self-service check out scanners B) web-enabled virtual classrooms C) use of robots in automobile assembly D) GPS navigation equipment in delivery trucks
Those who just stop looking for employment are known as
A) cyclically unemployed. B) discouraged workers. C) chronically unemployed D) frictionally unemployed.
Net entrants to the labor force is likely to be highest when the economy
A) is entering a recession B) has passed the peak of an expansion C) begins to recover from a recession D) nears the peak of an expansion
The principal cause of falling unemployment is
A) an increase in the number of new jobs created B) a decrease in net entrants to the labor force C) an increase in net entrants to the labor force D) a decrease in the number of jobs lost
The employment ratio is always ________ than labor force participation, because only the latter
A) larger; includes people looking for work B) smaller; omits people too young to work C) smaller; includes the unemployed D) larger; omits discouraged workers
The label ʺdiscouraged workerʺ refers to a change of status from
A) unemployed to not in the labor force B) unemployed to employed C) employed to actively seeking employment D) not in the labor force to unemployed
For most of the unemployed, unemployment spells are________.
A) longer than a year. B) permanent. C) longer than 10 years. D) shorter than three months.
Unemployment related to job search is known as
A) tertiary unemployment. B) frictional unemployment. C) cyclical unemployment. D) structural unemployment.
Empirical evidence strongly supports the view that unemployment insurance
A) has little effect on employment. B) increases unemployment. C) decreases unemployment. D) has little effect on unemployment.
Unemployment that arises from a lack of skills is known as
A) discouraged unemployment. B) structural unemployment. C) seasonal unemployment. D) cyclical unemployment.
Unemployment that emerges during sectoral shifts in the economy is known as
A) structural unemployment. B) discouraged unemployment. C) frictional unemployment. D) cyclical unemployment.
One source of structural unemployment is
A) high search costs. B) the seasonal character of production in some industries, e.g. agriculture in Alaska during winter months. C) wage rigidity. D) falling sales in an economic downturn.
Efficiency wages are
A) equal to the real wage rate minus the nominal wage rate. B) wages that are above the market-clearing level. C) equal to the nominal wage rate divided by some measure of the general price level. D) market clearing wages.
The process of bargaining for a large group of workers at one time rather than individually is known as
A) tertiary negotiations. B) autarky. C) collective bargaining. D) ornamental horticulture.
The actual unemployment rate is equal to
A) the natural rate of unemployment divided by the cyclical rate. B) the natural rate of unemployment minus the cyclical rate. C) the natural rate of unemployment plus the cyclical rate. D) the natural rate of unemployment times the cyclical rate.
Which of the following does not influence the natural rate of unemployment in the U.S.?
A) demographics. B) surprises in productivity growth. C) the composition of the labor force. D) the natural rate in Europe and Japan.