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Quiz 5

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Question 1 (1.0 points)
Suppose the actual unemployment rate increases. This will cause:
  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
Question 2 (1.0 points)
For this question, assume that Y = N. Based on our understanding of the labor market model presented in Chapter 6, we know that an increase in the minimum wage will cause:
  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.
Question 3 (1.0 points)
Based on our understanding of the labor market model presented in Chapter 6, we know that an increase in the minimum wage will cause:
  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
Question 4 (1.0 points)
Efficiency wage theory suggests that:
  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.
Question 5 (1.0 points)
Which of the following groups had the lowest separation rate (quits plus layoffs) during the 1968-1986 period?
  1. 35-44 year old females
  2. 16-19 year old females
  3. 35-44 year old males
  4. 16-19 year old males
Question 6 (1.0 points)
In the wage setting relation W = P e F(u,z), the variable z would NOT include:
  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
Question 7 (1.0 points)
Which of the following represents labor productivity?
  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
Question 8 (1.0 points)
Assume the following to answer the question below:
The non-institutional civilian population is 200 million, of which 100 million are employed and 8 million are unemployed.
Based on the data above, the labor force participation rate is:
  1. 40%.
  2. 50%.
  3. 8%.
  4. 54%.
  5. none of the above
Question 9 (1.0 points)
The labor force represents which of the following?
  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
Question 10 (1.0 points)
The labor market is primarily responsible for determining which of the following variables?
  1. interest rates
  2. prices
  3. stock prices
  4. all of the above
  5. none of the above
Question 11 (1.0 points)
The participation rate is defined as:
  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.
Question 12 (1.0 points)
For this question, assume that Y = N. Based on our understanding of the labor market model presented in Chapter 6, we know that a reduction in the markup will cause:
  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.
Question 13 (1.0 points)
The reservation wage is:
  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.
Question 14 (1.0 points)
Suppose the actual unemployment rate decreases. This will cause:
  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
Question 15 (1.0 points)
Assume the following to answer the question below:
The non-institutional civilian population is 200 million, of which 100 million are employed and 8 million are unemployed.
Based on the data above, the non-employment rate is:
  1. 54%.
  2. 50%.
  3. 8%.
  4. 4%.
  5. none of the above
Question 16 (1.0 points)
As the unemployment rate rises:
  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
Question 17 (1.0 points)
Based on our understanding of the labor market model presented in Chapter 6, we know that a reduction in the markup will cause:
  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.
Question 18 (1.0 points)
The average amount of time people spend unemployed is approximately:
  1. 12 months.
  2. 1 month.
  3. 6 months.
  4. none of the above
Question 19 (1.0 points)
Suppose the aggregate production function is given by the following: Y = N. Given this information, we know that labor productivity is represented by the following:
  1. N/Y.
  2. 1.
  3. 1/N.
  4. N.
Question 20 (1.0 points)
With the real wage on the vertical axis and employment (N) on the horizontal axis, we know that:
  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.
Question 21 (1.0 points)
In the wage-setting relation, the nominal wage falls when:
  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
Question 22 (1.0 points)
Based on our understanding of the labor market model presented in Chapter 6, we know that an increase in the markup will cause:
  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
Question 23 (1.0 points)
Henry Ford's experiment with efficiency wages resulted in:
  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.
Question 24 (1.0 points)
In a graph with the real wage on the vertical axis, and the level of employment on the horizontal axis, the price-setting equation will appear as:
  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.
Question 25 (1.0 points)
Which of the following groups had the highest separation rate (quits plus layoffs) during the 1968-1986 period?
  1. 35-44 year old males
  2. 16-19 year old males
  3. 16-19 year old females
  4. 35-44 year old females
Copyright 2008, by the Contributing Authors. Cite/attribute Resource . admin. (2009, January 27). Quiz 5. Retrieved January 07, 2011, from Free Online Course Materials — USU OpenCourseWare Web site: http://ocw.usu.edu/economics/macroeconomics-for-managers/quiz5.htm. This work is licensed under a Creative Commons License Creative Commons License