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Unemployment 7033
130.
The Bureau of Labor Statistics’ household survey and establishment survey both yield the same
results about total employment.
a.
True
b.
False
131.
The Bureau of Labor Statistics’ household survey and establishment survey both yield
information about unemployment.
a.
True
b.
False
132.
One reason economies always experience some unemployment is job search.
a.
True
b.
False
133.
Job search is the process of matching workers with appropriate jobs.
a.
True
b.
False
134.
If all workers and all jobs were the same such that all workers were equally well suited for all
jobs, then job search
would not be a problem.
a.
True
b.
False
135.
If all workers and all jobs were the same such that all workers were equally well suited for all
jobs, then there
would be no frictional unemployment.
a.
True
b.
False
136.
Frictional unemployment is often the result of changes in the demand for labor among different
firms.
a.
True
b.
False
137.
Frictional unemployment is inevitable because the economy is always changing.
a.
True
b.
False
138.
The demand for labor by a certain firm fluctuates as the demand for that firm’s product
fluctuates.
a.
True
b.
False
139.
The demand for labor by a certain firm is independent of the demand for that firm’s product.
a.
True
b.
False
140.
Employment can rise in one region of the country while it falls in another.
a.
True
b.
False
141.
Changes in the composition of demand among industries or regions are called sectoral shifts.
a.
True
b.
False
142.
Sectoral shifts temporarily cause unemployment.
a.
True
b.
False
143.
Sectoral shifts contribute to frictional unemployment.
a.
True
b.
False
144.
Sectoral shifts contribute to structural unemployment.
a.
True
b.
False
145.
A century ago, the four industries with the largest employment in the United States were cotton
goods, woolen goods, men’s clothing, and lumber.
a.
True
b.
False
146.
Today, the four industries with the largest employment in the United States are autos, aircraft,
communications, and
electrical components.
a.
True
b.
False
147.
Someone who loses his job at a truck factory because the demand for trucks has fallen and the
demand for cars
has risen, is structurally unemployed.
a.
True
b.
False
148.
Data show that at least 10 percent of U.S. manufacturing jobs are destroyed every year.
a.
True
b.
False
149.
Data show that at least 20 percent of U.S. manufacturing jobs are destroyed every year.
a.
True
b.
False
150.
More than 3 percent of U.S. workers leave their jobs in a typical month.
a.
True
b.
False
151.
More than 30 percent of U.S. workers leave their jobs in a typical month.
a.
True
b.
False
152.
The destruction of manufacturing jobs and workers leaving their jobs to find better ones both
contribute to frictional
unemployment.
a.
True
b.
False
153.
The destruction of manufacturing jobs and workers leaving their jobs to find better ones both
contribute to structural
unemployment.
a.
True
b.
False
154.
Public policy can reduce the economy’s natural rate of unemployment.
a.
True
b.
False
155.
Public policy can reduce frictional unemployment.
a.
True
b.
False
156.
Policies that reduce the time it takes unemployed workers to find new jobs can reduce the
economy’s natural rate of unemployment.
a.
True
b.
False
157.
Government-run employment agencies and public training programs both seek to reduce
frictional unemployment.
a.
True
b.
False
158.
Advocates of government-run employment agencies and public training programs believe they
make job search
more efficient.
a.
True
b.
False
159.
Critics of government-run employment agencies and public training programs argue that the
private market is better
at matching workers and jobs than the government is.
a.
True
b.
False
160.
Most job search in the U.S. economy takes place without intervention by the government.
a.
True
b.
False
161.
Most job search in the U.S. economy takes place with the help of the government.
a.
True
b.
False
162.
Public policy, without intending to do so, can increase frictional unemployment.
a.
True
b.
False
163.
An American worker who becomes unemployed typically receives 100% of her former salary
during the first six
months she is unemployed.
a.
True
b.
False
164.
Unemployment insurance increases frictional unemployment.
a.
True
b.
False
165.
Unemployment insurance reduces hardships of unemployment but also increases the amount of
structural
unemployment.
a.
True
b.
False
166.
Unemployment insurance is designed to offer workers full protection against job loss.
a.
True
b.
False
167.
The unemployed who quit their jobs, were fired for cause, or just entered the labor force are not
eligible for
unemployment insurance.
a.
True
b.
False
168.
The unemployed who quit their jobs, were fired for cause, or just entered the labor force are
eligible for
unemployment insurance.
a.
True
b.
False
169.
A typical American worker covered by unemployment insurance receives 50 percent of his
former wages for 52
weeks.
a.
True
b.
False
170.
Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.
a.
True
b.
False
171.
Unemployment insurance causes workers to be less likely to seek guarantees of job security
when they negotiate
with employers over the terms of employment.
a.
True
b.
False
172.
Studies have shown that the design of the unemployment insurance system reduces the job
search effort of the
unemployed.
a.
True
b.
False
173.
Some economists have argued that unemployment insurance improves the ability of the economy
to match each
worker with the most appropriate job.
a.
True
b.
False
174.
Most economists agree that eliminating unemployment insurance would increase the amount of
unemployment in
the economy.
a.
True
b.
False
175.
Most economists agree that eliminating unemployment insurance would increase the nation’s
overall level of well-being.
a.
True
b.
False
176.
Other things the same, countries that offer more generous and longer-lasting unemployment
insurance benefits are
likely to have higher unemployment rates.
a.
True
b.
False
177.
Structural unemployment results when the number of jobs is insufficient for the number of
workers.
a.
True
b.
False
178.
Minimum wages are the predominant reason for unemployment in the U.S. economy.
a.
True
b.
False
179.
When a minimum-wage law forces the wage to remain above the level that balances supply and
demand, the
quantity of labor supplied is higher and the quantity demanded of labor is lower than
at the equilibrium wage.
a.
True
b.
False
180.
When a minimum-wage law forces the wage to remain above the level that balances supply and
demand, the
quantity of labor supplied is lower and the quantity of labor demand is higher than at
the equilibrium wage.
a.
True
b.
False
181.
When a minimum-wage law forces the wage to remain above the level that balances supply and
demand, the result
is a surplus of labor.
a.
True
b.
False
182.
When a minimum-wage law forces the wage to remain above the level that balances supply and
demand, the result
is a shortage of labor.
a.
True
b.
False
183.
When a minimum-wage law forces the wage to remain above the level that balances supply and
demand, there are
more workers willing to work than there are jobs, so some workers are
unemployed.
a.
True
b.
False
184.
A minimum wage that is below the equilibrium wage rate does not raise unemployment.
a.
True
b.
False
185.
Minimum wage laws help explain the natural rate of unemployment if they create a surplus in
any labor market.
a.
True
b.
False
186.
Minimum-wage laws are one reason there is always some unemployment in the U.S. economy.
a.
True
b.
False
187.
Minimum-wage laws affect all workers.
a.
True
b.
False
188.
Most U.S. workers have wages well above the legal minimum, so minimum-wage laws do not
prevent the wage
from adjusting to balance supply and demand.
a.
True
b.
False
189.
Minimum-wage laws matter most for the least skilled and least experienced members of the
labor force, such as
teenagers.
a.
True
b.
False
