Question 1

Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

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Question 2

In 1914, Henry Ford began paying his workers $5 per day, about twice the going wage. As a result, turnover and absenteeism fell and productivity and profits rose.

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This statement is true. Henry Ford did indeed begin paying his workers $5 per day in 1914, which was about twice the average wage at the time. The move was seen as revolutionary and had a significant impact on employee retention, productivity, and profitability.

Question 3

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

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Question 4

Almost half of all spells of unemployment end when the unemployed person .

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Question 5

Most spells of unemployment are short, and most unemployment observed at any given time is long term. How can this be?

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Question 6

Compare the 2012 unemployment rates and labor-force participation rates of whites, blacks, adults of prime working age ages 25-54), and teenagers ages 16-19).

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Question 7

Following the recession of 2001, there was a month in which employment and the unemployment rate both rose. Assuming the computations were correct, how is it possible for both to have increased?

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Question 8

How are discouraged workers counted in the unemployment rate?

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Question 9

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

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Question 10

An important determinant of a country's standard of living is the amount of it typically experiences.

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Question 11

Why might a favorable change in the economy, such as technological improvement or a decrease in the price of imported oil, be associated with an increase in frictional unemployment?

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Question 12

Discuss the labor-force participation trends for men and women since 1950.

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Question 13

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.

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Question 14

Since unemployment rates are consistently higher in Canada and some Western European countries than in the United States, it appears that the natural rate of unemployment is lower in the United States. What might explain this difference?

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Question 15

What problems arise in interpreting unemployment data?

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Question 16

Define the natural rate of unemployment and cyclical unemployment.

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Question 17

Some degree of unemployment is in a complex economy.

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Question 18

The table below uses data for the year 2003 provided by the Bureau of Labor Statistics and adjusted to be comparable to U.S. data. All values are in thousands. Fill in the blank entries in the table.

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Question 19

Why have labor-force participation rates for women in the United States increased since World War II while labor- force participation rates for men have decreased?

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Question 20

How does the government measure the economy's rate of unemployment?

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Quiz 20: Unemployment

Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?

In 1914, Henry Ford began paying his workers $5 per day, about twice the going wage. As a result, turnover and absenteeism fell and productivity and profits rose.

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

Almost half of all spells of unemployment end when the unemployed person .

Most spells of unemployment are short, and most unemployment observed at any given time is long term. How can this be?

Compare the 2012 unemployment rates and labor-force participation rates of whites, blacks, adults of prime working age ages 25-54), and teenagers ages 16-19).

Following the recession of 2001, there was a month in which employment and the unemployment rate both rose. Assuming the computations were correct, how is it possible for both to have increased?

How are discouraged workers counted in the unemployment rate?

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

An important determinant of a country's standard of living is the amount of it typically experiences.

Why might a favorable change in the economy, such as technological improvement or a decrease in the price of imported oil, be associated with an increase in frictional unemployment?

Discuss the labor-force participation trends for men and women since 1950.

Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.

Since unemployment rates are consistently higher in Canada and some Western European countries than in the United States, it appears that the natural rate of unemployment is lower in the United States. What might explain this difference?

What problems arise in interpreting unemployment data?

Define the natural rate of unemployment and cyclical unemployment.

Some degree of unemployment is in a complex economy.

The table below uses data for the year 2003 provided by the Bureau of Labor Statistics and adjusted to be comparable to U.S. data. All values are in thousands. Fill in the blank entries in the table.

Why have labor-force participation rates for women in the United States increased since World War II while labor- force participation rates for men have decreased?

How does the government measure the economy's rate of unemployment?