[QUESTION]
33. What will likely lower cyclical unemployment?
A. Workers move to the non-tradable sector.
B. The Fed sells bonds.
C. The economy expands.
D. Okun’s law changes.
34. What will likely lower structural unemployment?
A. People lower their reservation wages.
B. The labor force participation rate rises.
C. The Fed sells bonds.
D. The economy expands.
35. The wage a person requires before accepting a job is referred to as the_____ wage:
A. compensating
B. minimum
C. reservation
D. psychological
36. A reservation wage that is higher than the equilibrium wage creates:
A. structural unemployment
B. cyclical unemployment
C. target unemployment
D. potential unemployment
37. The target rate of unemployment can be affected by all of the following except the:
A. level of output.
B. population’s age structure.
C. social and institutional structure.
D. relationship between inflation and unemployment.
38. The target rate of unemployment:
A. remains always at 0 percent.
B. remains always at 2 percent.
C. remains always at 5 percent.
D. can change over time.
39. Which of the following institutional changes would tend to reduce the target rate of
unemployment?
A. Greater ease with which families may support unemployed family members
B. The aging of the population
C. The availability of unemployment insurance
D. The increased incidence of two-earner families
40. Globalization accompanied by large trade deficits most likely raises:
A utilized unemployment.
B. cyclical unemployment.
C. the target rate of unemployment.
D. frictional unemployment.
41. A decline in the number of immigrants into the United States would most likely reduce:
A. frictional unemployment
B. the number of discouraged workers
C. cyclical unemployment.
D. the target rate of unemployment.
42. Over the past several years, the target rate of unemployment has risen. Which of the
following would not be used to explain this?
A. Congress passed a bill that requires the target rate to rise along with rising government
deficits
B. the workforce is getting younger
C. more women have entered the workforce
D. government has expanded income support programs
43. The fact that more women have entered the labor force has:
A. raised the target rate of unemployment
B. lowered the target rate of unemployment
C. raised cyclical unemployment
D. lowered cyclical unemployment
44. Globalization has:
A. lowered the target rate of unemployment
B. raised the target rate of unemployment
C. lowered cyclical unemployment
D. raised cyclical unemployment
45. Globalization has tended to:
A. lower people’s reservation wage
B. raise people’s reservation wage
C. lower people’s expectational wage
D. raise people’s expectational wage
46. Why didn’t unemployment rise during the 2000s even though the economy faced more and
more globalization?
A. Globalization meant higher exports and lower imports, which created jobs
B. The government ran policies that created jobs in the non-tradable sector
C. Firms hired workers because they lowered their reservation wages
D. Limmigration policies meant immigrants took jobs Americans weren’t willing to take
47. Which of the following has been an effect of globalization and a large trade deficit?
A. Increased wages in the tradable sector
B. Increased employment in the tradable sector
C. Decreased employment in the tradable sector
D. Increased wages in the immigrant sector
48. Which of the following has not been an effect of globalization and a large trade deficit?
A. Lower wages in the tradable sector than there otherwise would have been.
B. Lower employment in the tradable sector than there otherwise would have been.
C. Significant decline in wages and unemployment in the non-tradable sector.
D. An increase in income disparities.
49. Immigration is
A. bad for all citizens in the United States.
B. good for all citizens in the United States.
C. both good and bad for the U.S. economy.
D. is neither good nor bad for citizens in the United States.
50. According to the individual responsibility framework, which of the following would be most
likely counted as unemployed?
A. A person graduates from a job-training program but cannot find a job.
B. A person has a lower reservation wage than the equilibrium wage, and cannot find a job.
C. A person has a higher reservation wage than the equilibrium wage and cannot find a job.
D. A person who has looked for a job for 24 months and can’t find one.
51. If a politician adheres to the individual responsibility framework, which of the following
would not be mentioned in their campaign manifesto?
A. The unemployed are not looking hard enough for a job
B. The unemployed are too picky in their job requirements
C. The unemployed lack the entrepreneurial spirit
D. The unemployed deserve jobs at respectable wages
52. With respect to the unemployment problem, individual responsibility framework supporters
generally take the position that:
A. government should guarantee each person a job.
B. government should eliminate structural and cyclical unemployment.
C. each person should have a job commensurate with their training or past job experience.
D. individuals should be responsible for finding their own jobs.
53. If a politician adheres to the social responsibility framework, which of the following would
not be mentioned in their campaign manifesto?
A. Unskilled workers should not have to accept jobs below a living wage
B. Part-time workers who would like to work full time cannot find it
C. People with enormous education and training cannot find a job that uses their skills
D. Individuals who are unemployed can create their own jobs
54. With respect to the unemployment problem, social responsibility framework economists
generally take the position that:
A. government should guarantee each person a satisfying and high-paying job.
B. government should eliminate only frictional unemployment.
C. each person should have a job commensurate with their training or past job experience.
D. individuals should be responsible for finding their own jobs.
55. The jobs program suggested by the author was put forward in order to:
A. argue against the individual responsibility framework.
B. argue against the social responsibility framework.
C. provide a middle ground approach to solving the unemployment problem.
D. sell a new book that he is publishing that deals with eliminating unemployment.
56. A jobs program that offers higher wages to those with higher education:
A. is better than a jobs program that offers equal wages to all.
B. is worse than a jobs program that offers equal wages to all.
C. raises the costs of the program.
D. lowers the cost of the program.
57. Which of the following groups would be eligible for the author’s job program?
A. Students
B. Immigrants
C. Non-students
D. Retirees
58. It can be argued that the minimum jobs proposal is preferable to a minimum wage law
because:
A. it provides more job opportunities to women.
B. it cannot be overturned by the federal government.
C. it puts a floor on the wage as well as on the nature of the job.
D. it applies to students and non-students.
59. Why would students be prevented from joining the minimum jobs program?
A. They would be considered overqualified.
B. They would be judged as unreliable.
C. They would overwhelm the system looking for summer work.
D. They possess too much intelligence to join this program.
60. Why does the minimum job pay a maximum of $10 an hour?
A. To limit the number of people who will participate.
B. To provide a living wage to all those who participate.
C. To provide an attractive alternative to dangerous jobs.
D. To compete with the Federal minimum wage of $7.25 per hour.
61. Why doesn’t the minimum job proposal provide output directly useful to the marketplace?
A. The monitoring costs of such a job would be too high.
B. If it did, it might be replacing jobs otherwise provided by the market.
C. It would provide training to participants better provided by other programs.
D. To compete with the Federal minimum wage of $7.25 per hour.
62. Why doesn’t the minimum job proposal offer jobs commensurate with people’s skills and
education?
A. The monitoring costs of such a job would be too high because people will claim to have high
skills when they really don’t.
B. These people can find such jobs in the marketplace because their skills are valued, making
them in high demand.
C. The proposal doesn’t believe these people provide more productive skills that other workers.
D. These people are holding out for a job in the marketplace. Providing them with jobs wouldn’t
be offering a minimum job, which is the program’s objective.