First exam - First exam Name: _ Date: _ Multiple choice...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
First exam Name: __________________________ Date: _____________ Multiple choice questions - circle the best answer - 2 pts each 1. In a steady state: A) no hiring or firings are occurring. B) the number of people finding jobs equals the number of people losing jobs. C) the number of people finding jobs exceeds the number of people losing jobs. D) the number of people losing jobs exceeds the number of people finding jobs. 2. If the fraction of employed workers who lose their jobs each month (the rate of job separation) is 0.01 and the fraction of the unemployed who find a job each month is 0.09 (the rate of job findings), then the natural rate of unemployment is: A) 1 percent. B) 9 percent. C) 10 percent. D) about 11 percent. 3. Which of the following is an example of frictional unemployment? A) Dave searches for a new job after voluntarily moving to San Diego. B) Elaine is willing to work for less than the minimum wage, but employers cannot hire her. C) Bill is qualified and would like to be an airline pilot, but airlines do not find it profitable to hire him at the wage established by the airline pilot's union. D) Joan is willing to work at the going wage, but there are no jobs available. 4. Unions contribute to structural unemployment when collective bargaining results in wages: A) above the equilibrium level. B) below the minimum wage. C) below the equilibrium level. D) above the level of unemployment compensation. 5. When Henry Ford paid his workers $5 per day when the prevailing wage was between $2 and $3 a day: A) it greatly increased his company's costs. B) workers reduced their work efforts because they felt they “had it made.” C) Ford proved the efficiency-wage theory was wrong. D) it raised the efficiency of his workers. Page 1 6. The recent reduced demand for unskilled workers relative to skilled workers has led to ______ for unskilled workers in Europe compared to ______ for unskilled workers in the United States. A) unemployment; lower wages
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

First exam - First exam Name: _ Date: _ Multiple choice...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online