Question : 13.3   Explaining Unemployment 1) An increase in unemployment insurance payments would, : 1244715

13.3   Explaining Unemployment

1) An increase in unemployment insurance payments would, in effect, ________ the amount of time spent searching for a job, which would increase ________ unemployment.

A) increase; cyclical

B) increase; frictional

C) decrease; cyclical

D) decrease; frictional

2) Which of the following would increase the unemployment rate?

A) a law making it illegal to work more than 35 hours per week

B) a cut in unemployment compensation

C) an increase in unemployment insurance payments

D) a decrease in the minimum wage

3) Which of the following would decrease the unemployment rate?

A) an increase in the minimum wage

B) an increase in the efficiency wage

C) an increase in labor union membership

D) government aid to retrain unemployed workers

4) Which of the following policies would reduce structural unemployment?

A) an increase in the minimum wage

B) a job retraining program

C) implementing an unemployment insurance policy

D) building an on-line job database that helps workers find jobs

5) Which of the following policies would reduce frictional unemployment?

A) a decrease in the minimum wage

B) a job retraining program

C) implementing an unemployment insurance policy

D) building an on-line job database that helps workers find jobs

6) An unemployment insurance program has which of the following effects?

A) It decreases the amount of personal income of the unemployed.

B) It contributes to the severity of a recession or economic downturn.

C) It increases the amount of time spent searching for a job.

D) It lowers the overall unemployment rate.

7) The United States has ________ social insurance programs, and generally has a ________ unemployment rate, as compared to Canada and Western Europe.

A) less generous; lower

B) less generous; greater

C) more generous; lower

D) more generous; greater

8) The increased generosity of unemployment insurance programs in Canada as compared to the United States should

A) decrease the duration of unemployment in Canada as compared to the United States.

B) increase the duration of unemployment in Canada as compared to the United States.

C) have no impact on the duration of unemployment in Canada.

D) raise the duration of unemployment in the United States.

9) If the minimum wage is set above the market wage,

A) the quantity of labor supplied will be below the quantity of labor demanded.

B) unemployment will rise.

C) highly-skilled workers will have a harder time finding jobs.

D) All of the above are correct.

10) Minimum wage laws cause unemployment because the legal minimum wage is set

A) below the market wage, causing labor demand to be greater than labor supply.

B) below the market wage, causing labor demand to be less than labor supply.

C) above the market wage, causing labor demand to be greater than labor supply.

D) above the market wage, causing labor demand to be less than labor supply.

E) too low.