1、Name: _ Date: _1. The macroeconomic problem that affects individuals most directly and severely is:A) inflation.B) unemployment.C) low savings.D) low investment.2. The unemployment rate in the United States since 1952 has:A) never been close to zero.B) gravitated toward a steady-state rate of zero.C
2、) remained constant from year to year.D) equaled the natural rate of unemployment in every year.3. The natural rate of unemployment in the United States since 1950 has averaged between _ and _ percent.A) 0; 1B) 1; 3C) 5; 6D) 10; 154. The natural rate of unemployment is:A) the average rate of unemplo
3、yment around which the economy fluctuates.B) about 10 percent of the labor force.C) a rate that never changes.D) the transition of individuals between employment and unemployment.5. If the number of employed workers equals 200 million and the number of unemployed workers equals 20 million, the unemp
4、loyment rate equals _ percent (rounded to the nearest percent).A) 0B) 9C) 10D) 206. In a steady state:A) no hiring or firings are occurring.B) the number of people finding jobs equals the number of people losing jobs.C) the number of people finding jobs exceeds the number of people losing jobs.D) th
5、e number of people losing jobs exceeds the number of people finding jobs.7. In the model of the steady-state unemployment rate with a fixed labor force, the rate of job finding equals the percentage of the _ who find a job each month, while the rate of job separation equals the percentage of the _ w
6、ho lose their job each month.A) labor force; labor forceB) labor force; unemployedC) employed; labor forceD) unemployed; employed8. A policy that increases the job-finding rate _ the natural rate of unemployment.A) will increaseB) will decreaseC) will not changeD) could either increase or decrease9.
7、 A policy that decreases the job separation rate _ the natural rate of unemployment.A) will increaseB) will decreaseC) will not changeD) could either increase or decrease10. If s is the rate of job separation, f is the rate of job finding, and both rates are constant, then the unemployment rate is a
8、pproximately:A) f/(f + s).B) (f + s)/f.C) s/(s + f).D) (s + f)/s.11. If the fraction of employed workers who lose their jobs each month (the rate of job separations) is 0.01 and the fraction of the unemployed who find a job each month is 0.09 (the rate of job findings), then the natural rate of unem
9、ployment is:A) 1 percent.B) 9 percent.C) 10 percent.D) about 11 percent.12. If the steady-state rate of unemployment equals 0.10 and the fraction of employed workers who lose their jobs each month (the rate of job separations) is 0.02, then the fraction of unemployed workers who find jobs each month
10、 (the rate of job findings) must be:A) 0.02.B) 0.08.C) 0.10.D) 0.18.13. If the steady-state rate of unemployment equals 0.125 and the fraction of unemployed workers who find jobs each month (the rate of job findings) is 0.56, then the fraction of employed workers who lose their jobs each month (the
11、rate of job separations) must be:A) 0.08.B) 0.125.C) 0.22.D) 0.435.14. Any policy aimed at lowering the natural rate of unemployment must either _ the rate of job separation or _ the rate of job finding.A) reduce; reduceB) increase; increaseC) reduce; increaseD) increase; reduce15. One reason for un
12、employment is that:A) it takes time to match workers and jobs.B) all jobs are identical.C) the labor market is always in equilibrium.D) a laid-off worker can immediately find a new job at the market wage.16. All of the following are reasons for frictional unemployment except:A) workers have differen
13、t preferences and abilities.B) unemployed workers accept the first job offer that they receive.C) the flow of information is imperfect.D) geographic mobility takes time.17. Frictional unemployment is unemployment caused by:A) wage rigidity.B) minimum-wage legislation.C) the time it takes workers to
14、search for a job.D) clashes between the motives of insiders and outsiders.18. Unemployment caused by the time it takes workers to search for a job is called _ unemployment.A) frictionalB) structuralC) efficiencyD) insider19. Which of the following is an example of frictional unemployment?A) Dave sea
15、rches for a new job after voluntarily moving to San Diego.B) Elaine is willing to work for less than the minimum wage, but employers cannot hire her.C) Bill is qualified and would like to be an airline pilot, but airlines do not find it profitable to hire him at the wage established by the airline p
16、ilots union.D) Joan is willing to work at the going wage, but there are no jobs available.20. Sectoral shifts:A) lead to wage rigidity.B) explain the payment of efficiency wages.C) depend on the level of the minimum wage.D) make frictional employment inevitable.21. Economists call the changes in the
17、 composition of demand among industries and regions:A) insider-outsider conflicts.B) sectoral shifts.C) moral hazard.D) adverse selection.22. Frictional unemployment is inevitable because:A) different sectors do not shift.B) the economy needs to be lubricated.C) workers never quit their jobs to chan
18、ge careers.D) the demand for different goods always fluctuates.23. In past non-recessionary periods, a typical worker in the United States who is covered by unemployment insurance receives _ percent of his or her former wages for _ weeks.A) 50; 26B) 50; 52C) 67; 26D) 67; 5224. Unemployment insurance
19、 increases the amount of frictional unemployment by:A) making workers more frantic in their search for new jobs.B) inducing workers to accept the first job offer that they receive.C) making employers more reluctant to lay off workers.D) softening the economic hardship of unemployment.25. All of the
20、following policies were adopted by the government in an attempt to reduce the natural rate of unemployment except:A) unemployment insurance.B) government employment agencies.C) public retraining programs.D) the Illinois bonus program for unemployment insurance claimants who found jobs quickly.26. Th
21、e unemployment insurance system may be desirable because unemployment insurance:A) raises the natural rate of unemployment.B) reduces the rate of job finding.C) increases workers uncertainty about their incomes.D) induces workers to reject unattractive job offers.27. Firms currently have incentives
22、to temporarily lay off workers because firms typically are charged for _ of workers unemployment benefits.A) allB) only a partC) noneD) twice the cost28. Most current unemployment-insurance programs are:A) paid for fully by state governments.B) paid for fully by the federal government.C) 100 percent
23、 experience rated.D) partially experience rated.29. Government policies directed at reducing frictional unemployment include:A) abolishing minimum-wage laws.B) making unemployment insurance 100 percent experience rated.C) increasing the earned income credit.D) making government part of the union-fir
24、m wage bargaining process.30. Public policy to increase the job finding rate include _ and public policy to decrease the job separation rate include _.A) government employment agencies; higher unemployment insurance benefitsB) job training programs; 100 percent experience rated unemployment insuranc
25、eC) higher minimum wage laws; payment of unemployment benefits for longer periodsD) higher efficiency wages; partially experience rated unemployment insurance31. According to studies of individual unemployed workers, these workers are most likely to find a job:A) about three months before their unem
26、ployment insurance runs out.B) within a few weeks of their unemployment insurance running out.C) about three months after their unemployment insurance runs out.D) at a time not influenced by the remaining number of weeks of unemployment insurance.32. The unemployment resulting when real wages are he
27、ld above equilibrium is called _ unemployment, while the unemployment that occurs as workers search for a job that best suits their skills is called _ unemployment.A) efficiency; inefficiencyB) efficiency; structuralC) frictional; efficiencyD) structural; frictional33. When there is structural unemp
28、loyment, the real wage is:A) rigid at a level below the market-clearing level.B) rigid at the market-clearing level.C) rigid at a level above the market-clearing level.D) flexible.34. Wage rigidity:A) forces labor demand to equal labor supply.B) is caused by sectoral shifts.C) prevents labor demand
29、and labor supply from reaching the equilibrium level.D) increases the rate of job finding.35. The unemployment resulting from wage rigidity and job rationing is called _ unemployment.A) frictionalB) structuralC) minimum-wageD) insider36. When the real wage is above the level that equilibrates supply
30、 and demand:A) the quantity of labor supplied exceeds the quantity demanded.B) the quantity of labor demanded exceeds the quantity supplied.C) there is no unemployment.D) the labor market clears.37. Workers unemployed as a result of wage rigidity are:A) actively searching for a job to match their sk
31、ills.B) not eligible to receive unemployment insurance benefits.C) waiting for a job to become available.D) relocating to another part of the country as a result of sectoral shifts.38. Which of the following is the best example of structural unemployment?A) Tim is looking for a job with flexible hou
32、rs but has not been offered one yet.B) Vickie lost her job as a graphic artist at a movie studio because she did not have training in computer-generated animation.C) Kirby is seeking a job as an airline pilot, but the high union wages in the industry have limited the number of jobs available.D) Fati
33、ma lost her job at a packing plant but has not looked very intensively for a new job because she still has 2 months of unemployment insurance benefits left.39. All of the following are causes of structural unemployment except:A) minimum-wage laws.B) the monopoly power of unions.C) unemployment insur
34、ance.D) efficiency wages.40. If wage rigidity holds the real wage above the equilibrium level, an increase in the supply of labor will _ the number unemployed.A) increaseB) decreaseC) not changeD) possibly increase, decrease, or leave unchanged41. If wage rigidity holds the real wage above the equil
35、ibrium level, an increase in the demand for labor will _ the number unemployed.A) increaseB) decreaseC) not changeD) possibly increase, decrease, or leave unchanged42. The minimum wage:A) is usually about 75 percent of the average wage earned in manufacturing.B) raises the wages of highly skilled wo
36、rkers.C) encourages master workers to take on apprentices.D) has its greatest impact on teenage unemployment.43. Economists who have studied minimum-wage laws in the United States find that a 10 percent increase in the minimum wage increases teenage unemployment by about:A) 10 to 30 percent.B) 5 per
37、cent.C) 1 to 3 percent.D) 0 percent.44. Permitting a lower minimum wage for teenagers would likely:A) raise teenage unemployment.B) raise teenage wages overall.C) prevent teenagers from getting job experience.D) raise unemployment among unskilled adults.45. The earned income tax credit:A) increases
38、the governments tax revenue.B) reduces the incomes of poor working families.C) does not raise labor costs.D) is not an alternative to raising the minimum wage.46. All of the following statements about minimum-wage workers in the United States are correct except:A) minimum-wage workers are more likel
39、y to be male.B) minimum-wage workers are more likely to work part time.C) minimum-wage workers are more likely to be less educated.D) minimum-wage workers are more likely to be young.47. The percentage of workers who belong to unions in the United States is approximately:A) 13 percent.B) 23 percent.
40、C) 33 percent.D) 53 percent.48. Unions contribute to structural unemployment when collective bargaining results in wages:A) above the equilibrium level.B) below the minimum wage.C) below the equilibrium level.D) above the level of unemployment compensation.49. In the case of unions, the conflict of
41、interest between different groups of workers results in insiders wanting _, while outsiders want _.A) more hirings; high wagesB) high wages; more hiringsC) high wages; fewer hiringsD) fewer hirings; high wages50. When insiders have a much greater impact on the wage-bargaining process than do outside
42、rs, the negotiated wage is likely to be _ the equilibrium wage.A) much greater thanB) much less thanC) almost equal toD) about one-half of51. When outsiders have a greater role than do insiders in the wage-bargaining process, the negotiated wage is likely to be _ the equilibrium wage.A) much greater thanB) much less thanC) much closer toD) about twice
