Question 1

Workers who suffer disability are likely to suffer higher ________.

Accepted Answer

Disability can lead to a mismatch between the skills and abilities of the worker and the requirements of available jobs, leading to structural unemployment.

Question 2

Which of the following does not influence the natural rate of unemployment in the U.S.?

Accepted Answer

The natural rate of unemployment in Europe and Japan may affect the level of unemployment in those regions, but it does not directly impact the natural rate of unemployment in the U.S. The other choices - demographics, composition of the labor force, and surprises in productivity growth - are all factors that can influence the natural rate of unemployment in the U.S.

Question 3

The natural rate of unemployment ________.

Accepted Answer

The natural rate of unemployment varies across time and countries and is not a constant. It refers to the level of unemployment that exists when the economy is at its potential output or full employment level. This is determined by structural factors such as the skills of the workforce, efficiency of the labor market, and demographic characteristics. It is different from the cyclical rate of unemployment which fluctuates with the business cycle.

Question 4

Many economists view ________ as explaining most of the increase in the natural rate of unemployment in the U.S.from 1960 to 1980.

Accepted Answer

Many economists argue that the increase in the percentage of young workers in the labor force during the 1960s and 1970s contributed to an increase in the natural rate of unemployment, as young workers tend to have higher rates of unemployment due to their lack of experience and skills.

Question 5

Referring to the graph above,assume that,at first,the labor market is in equilibrium at point 4.Then,demand shifts to pass through point 3,and the real wage adjusts to the new equilibrium.________ is ________ at the new equilibrium,compared to the original equilibrium.

Accepted Answer

The answer of Referring to the graph above,assume that,at first,the...

Question 6

The setting of minimum wages in the U.S.began with the ________.

Accepted Answer

The Fair Labor Standards Act of 1938 established the first federal minimum wage in the United States.

Question 7

Referring to the graph above,assume that,at first,the labor market is in equilibrium at point 4.In which scenario does unemployment rise,with no change in the quantity of employment?

Accepted Answer

The answer of Referring to the graph above,assume that,at first,the...

Question 8

Katz and Krueger found that minimum wage laws had a negligible impact on teenage unemployment in the fast-food industry.Describe the characteristics of labor demand and supply that might produce such a result.

Accepted Answer

The answer of Katz and Krueger found that minimum wage...

Question 9

Since 1980,the share of temporary workers in total U.S.employment has ________.

Accepted Answer

The share of temporary workers in total U.S. employment has increased since 1980. This trend is supported by data from the Bureau of Labor Statistics, which shows that the percentage of contingent workers (including temporary workers) in the labor force increased from 10.1% in 1995 to 15.8% in 2015.

Question 10

Which of the following is not an aspect of the composition of the labor force?

Accepted Answer

The natural rate of unemployment is not an aspect of the composition of the labor force, but is instead a macroeconomic concept that refers to the level of unemployment that exists when the economy is in a state of equilibrium and is consistent with inflation staying constant. The other options (A, B, and C) are all aspects of the composition of the labor force.

Question 11

An increase in the prison population would tend to cause,other things the same,a decrease in ________.

Accepted Answer

An increase in the prison population means more people are incarcerated, which would decrease the natural rate of unemployment. This is because people who are in prison are not able to participate in the labor market, so there are fewer people available to work. The other choices are not directly related to changes in the prison population.

Question 12

The actual unemployment rate is equal to ________.

Accepted Answer

The actual unemployment rate is equal to the natural rate of unemployment (which includes frictional and structural unemployment) plus the cyclical unemployment rate, which fluctuates with the business cycle.

Question 13

Which of the following is likely to cause a decrease in the natural rate of unemployment?

Accepted Answer

The answer of Which of the following is likely to...

Question 14

Suppose researchers discover that a government program to match job seekers and employers has caused an increase in the unemployment rate.Does this mean that the program has failed?

Accepted Answer

The answer of Suppose researchers discover that a government program...

Question 15

Efficiency wages are ________.

Accepted Answer

Efficiency wages are wages that are intentionally set above the market-clearing level to motivate workers to be more productive and turnover to be reduced.

Question 16

Typically,employers compete with each other in the labor market to get and to retain the best possible workers.Explain how such competition might prevent the unemployment rate from ever being close to zero.

Accepted Answer

The answer of Typically,employers compete with each other in the...

Question 17

In the wake of Henry Ford's payment of efficiency wages in 1914 ________.

Accepted Answer

Henry Ford's payment of efficiency wages led to a decrease in absenteeism because employees were motivated to come to work and be productive in order to earn the higher wages. This, in turn, led to an increase in productivity as workers were more focused and engaged on the job.

Question 18

People who end up in prison are particularly subject to ________.

Accepted Answer

People who end up in prison are often labeled as ex-convicts, which creates a significant barrier to finding jobs. This barrier contributes to higher structural unemployment, which refers to long-term unemployment caused by a mismatch between the skills of the workforce and the available job opportunities.

Question 19

The process of bargaining for a large group of workers at one time rather than individually is known as ________.

Accepted Answer

Collective bargaining refers to the process of negotiation between an employer and a group of employees, typically represented by a labor union, in which the terms and conditions of employment are agreed upon for a specified period of time. Autarky refers to a self-sufficient economy that operates without external trade. Tertiary negotiations and ornamental horticulture are not related to labor negotiations.

Question 20

A classic early example of efficiency wages came in ________.

Accepted Answer

The classic early example of efficiency wages came in 1914 at the Ford Motor Company when Henry Ford decided to double the wages of his workers. This move increased productivity, reduced turnover, and helped create a stable and productive workforce.

Quiz 20: The Labor Market, employment, and Unemployment