Quiz 5

1. an upward shift in the PS curve.
2. a downward shift in the WS curve.
3. a downward shift in the PS curve.
4. an upward shift in the WS curve.
5. none of the above

1. an increase in the natural level of output.
2. an increase in the natural level of employment.
3. a reduction in the natural level of output.
4. no change in the natural level of output.

1. a reduction in the equilibrium real wage.
2. a reduction in the natural rate of unemployment.
3. an increase in the equilibrium real wage.
4. both B and C

1. unskilled workers will have a lower turnover rate than skilled workers.
2. firms will be more resistant to wage increases as the labor market tightens.
3. the government can only set tax rates so high before people will prefer not to work.
4. workers will be paid more than their reservation wage.
5. productivity might drop if the wage rate is too high.

1. 35-44 year old females
2. 16-19 year old females
3. 35-44 year old males
4. 16-19 year old males

1. unemployment benefits.
2. the expected price level.
3. the amount of structural change in the economy.
4. the minimum wage.
5. all of the above

1. workers per unit of capital
2. the reservation wage
3. the ratio of output to employment
4. wages per hour
5. capital per worker

1. 40%.
2. 50%.
3. 8%.
4. 54%.
5. none of the above

1. the total number of employed, unemployed and discouraged individuals
2. employed plus unemployed
3. the total number of working age individuals in the population
4. the total number employed

1. interest rates
2. prices
3. stock prices
4. all of the above
5. none of the above

1. the ratio of the labor force to the civilian noninstitutional population.
2. the ratio of the number employed to the size of the labor force.
3. the ratio of the number employed to the civilian noninstitutional population.
4. the ratio of the labor force to the total number of employed and unemployed workers.

1. an increase in the natural level of output.
2. a reduction in the natural level of employment.
3. a reduction in the natural level of output.
4. no change in the natural level of output.

1. the wage that ensures a laid-off individual will wait for re-hire, rather than find another job.
2. the wage offer that will end a labor-strike.
3. the wage that an employer must pay workers to reduce turnover to a reasonable level.
4. the wage that would make an individual indifferent between working or not working.
5. the bribe that must be paid to a maitre d' when you want a table but did not call in advance.

1. an upward shift in the WS curve.
2. an upward shift in the PS curve.
3. a downward shift in the WS curve.
4. none of the above

1. 54%.
2. 50%.
3. 8%.
4. 4%.
5. none of the above

1. the proportion of the unemployed finding a job decreases.
2. the separation rate decreases.
3. the young and unskilled experience larger-than-average increases in unemployment.
4. both A and C
5. all of the above

1. a reduction in the natural rate of unemployment and no change in the real wage.
2. an increase in the equilibrium real wage.
3. a reduction in the equilibrium real wage.
4. an increase in the natural rate of unemployment.

1. 12 months.
2. 1 month.
3. 6 months.
4. none of the above

1. N/Y.
2. 1.
3. 1/N.
4. N.

1. the WS curve is upward sloping.
2. the PS curve is upward sloping.
3. the WS curve is downward sloping.
4. the PS curve is downward sloping.

1. the unemployment rate falls.
2. the minimum wage increases.
3. unemployment benefits increase.
4. the expected price level falls.
5. all of the above

1. a reduction in the equilibrium real wage.
2. an increase in the equilibrium real wage.
3. a reduction in the natural rate of unemployment.
4. both B and C

1. no noticeable effects.
2. a dramatic drop in productivity.
3. new problems with the work force, like drunkenness and reckless driving.
4. a rise in the layoff rate.
5. a dramatic drop in the turnover rate.

1. a vertical line.
2. an upward sloping line.
3. a curve that first slopes upward, then downward.
4. a downward sloping line.
5. a horizontal line.

1. 35-44 year old males
2. 16-19 year old males
3. 16-19 year old females
4. 35-44 year old females