Chapter 03 Test Bank KEY
1. Most of the variations in U.S. population growth have resulted from changes in
2. Compared to the basic work-leisure choice model, Becker’s model of time allocation
3. In Becker’s model of time allocation, the difference between “goods” and “commodities” is that commodities are
produced
4. If a worker’s wage rate rises,
5. A household will tend to substitute goods for time in the production of commodities if
6. Compared to a high-wage worker, a low-wage worker will tend to
7. Which of the following best exemplifies the Becker substitution effect? An increase in the market wage leads a
household to
8. Which of the following best exemplifies the Becker income effect? An increase in the market wage leads a
household to
9. In a particular family, both spouse A and spouse B could earn $20 per hour in market work. However, spouse A
has a comparative advantage in the production of home-produced goods. Becker’s model of time allocation predicts
that
10. Which of the following is a member of the potential labor force?
11. The labor force consists of all persons age 16 years and over who are
12. The labor force participation rate
13. If U represents the number of unemployed persons, E the number of employed persons, and N the number in the
potential labor force that are neither unemployed nor employed, the labor force participation rate can be found as
14. Given the following data, what is the labor force participation rate?
Population
300 million
Non-institutionalized population, age 16 and over
250 million
Persons employed or seeking employment
200 million
Unemployed persons
10 million
15. Given the following data, what is the labor force participation rate?
Population
100 million
Non-institutionalized population, age 16 and over
75 million
Persons employed or seeking employment
50 million
Unemployed persons
5 million
16. Consider the following data
Males in the labor force
Unemployed males
Non-institutionalized females, age 16 and over
Employed or unemployed females
Given the information in the table above, the male labor force participation rate _____ and the female labor force
participation rate _____.
17. The aggregate labor force participation rate in the U.S. is currently about
18. Since the mid-1980s, the labor force participation rate of women has _____ and the participation rate of men has
_____.
19. Compared to fifty years ago, the labor force participation rate of 25– to 54-year-old men has _____, the
participation rate of 55- to 64-year-old men has _____, and the participation rate of men age 65 and over has _____.
20. Which one of the following is not a plausible explanation of the observed change in the participation rate of
males age 65 and older since World War II?
21. Which one of the following gives rise to a retirement-inducing substitution effect? As workers approach
retirement age,
22. Which one of the following is not predicted to increase the labor force participation rate of married women?
23. Cross-sectional data suggest that, all else equal,
24. “For married women, the substitution effect of rising wage rates has apparently outweighed the income effect.”
Empirical evidence suggests this statement is
25. According to the textbook, each of the following factors may have contributed to increased female labor force
participation except
26. The secular decline in the birthrate
27. Fuchs? research suggests the most important reasons for the increased labor force participation rate of women
are
28. Compared to white females, the labor force participation rate of African-American females is _____. Compared
to white males the labor force participation rate of African–American males is _____.
29. In the mid 1950s, white males
30. Since 1950, the labor force participation rate of white women has
31. Until recently, the labor force participation rate of African-American women has _____ the rate of white
women. In recent years the labor force participation rate of African-American men has _____ the rate of white men.
32. A “supply side” explanation of the lower participation rate of African–American males compared to white males
is that
33. The relatively low labor force participation rate of African-American males may be partly explained by
34. Which one of the following will tend to increase the likelihood of participation in the labor force for a current
nonparticipant?
35. Which one of the following statements is correct?
36. The added-worker effect suggests that
37. Because of the _____, the unemployment rate as measured by the Bureau of Labor Statistics tends to understate
the extent of unemployment during a recession.
38. The discouraged-worker effect indicates that
39. Empirical evidence suggests that the
40. Since the end of World War II, the average weekly hours of work in manufacturing has
41. All else equal, rising real wages will
42. Research suggests that the widespread use of the birth control pill
43. Research by Hamermesh and Lee suggests that
Chapter 03 Test Bank Summary
Category
# of Quest
ions
AACSB: Analytic
3
AACSB: Reflective Thinking
40
Accessibility: Keyboard Navigation
40
Blooms: Apply
3
Blooms: Remember
35
Blooms: Understand
5
Difficulty: 1 Easy
35
Difficulty: 2 Medium
5
Difficulty: 3 Hard
3
Learning Objective: 03–01 Describe trends in the population and labor force.
1
Learning Objective: 03–02 Explain Becker’s model of the allocation of time.
8
Learning Objective: 03–03 Compute the labor force participation rate.
7
Learning Objective: 03–
04 Describe changes in labor force participation rates across demographic groups over the years and expl
ain why these changes have occurred.
19
Learning Objective: 03–05 Describe how the “added-worker effect” and the “discouraged–
worker effect” influence labor force participation rates over the business cycle.
5
Learning Objective: 03–
06 Cite the reasons for the workweek decline in the early twentieth century and the relative stability of th
e workweek since World War II.
3
Topic: Becker‘s Model: The Allocation of Time
8
Topic: Cyclic Changes in Participation Rates
5
Topic: Hours of Work: Two Trends
3
Topic: Population Rates: Defined and Measured
7
Topic: Secular Trend of Participation Rates
19
Topic: The Population Base
1