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Name: ________________________ Class: ___________________ Date: __________ ID: A 8 Test 2 Practice Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. In 2004, based on concepts similar to those used to estimate U.S. employment figures, the Italian adult non-institutionalized population was 45.020 million, the labor force was 24.065 million, and the number of people employed was 22.105 million. According to these numbers, the Italian labor-force participation rate and unemployment rate were about a. 45.1%, 8.1% b. 45.1%, 4.4% c. 53.5%, 8.1% d. 53.5%, 4.4% ____ 2. Suppose some country had an adult population of about 50 million, the labor-force participation rate was 60 percent, and the unemployment rate was 5 percent. What were the number of people employed and the number of people in the labor force? a. 27.5 million, 30 million b. 28.5 million, 30 million c. 30 million, 31.5 million d. 30 million, 32.5 million ____ 3. Among teenagers, which group has the highest unemployment rate? a. white males b. black females c. black males d. There are no significant differences in unemployment rates across these groups. ____ 4. Recent entrants into the labor force account for about a. 1/5 of those who are unemployed. b. 1/4 of those who are unemployed. c. 1/3 of those who are unemployed. d. 1/2 of those who are unemployed. ____ 5. Which of the following is correct? a. Short-term unemployment is a more serious problem than long-term unemployment. b. Most spells of unemployment are long term. c. Most of the currently unemployed have been unemployed a long time. d. None of the above is correct. ____ 6. Job search a. explains why firms pay less than the competitive equilibrium wage. b. is due simply to the failure of wages to balance labor supply and labor demand. c. is the process of matching workers with appropriate jobs. d. All of the above are correct. ____ 7. Wages in excess of their equilibrium level help explain a. frictional but not structural unemployment. b. structural but not frictional unemployment. c. frictional and structural unemployment. d. neither frictional or structural unemployment. Name: ________________________ ID: A 2 ____ 8. Suppose that butchers and bakers had no unions. Now suppose the butchers form a union. What does this do the labor supply of and wages of bakers? a. it increases the labor supply and wages of bakers. b. it increases the labor supply and decreases the wages of bakers. c. it decreases the labor supply and increases the wages of bakers. d. it decreases the labor supply and wages of bakers. ____ 9. Efficiency wages a. increase frictional unemployment by keeping wages above equilibrium.... View Full Document

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