11) The natural unemployment rate is higher if
A) unemployment benefits become more generous.
B) there is a decrease in the working-age population.
C) there are fewer two-income households.
D) many of the new jobs created require skills possessed by the available labor.
E) efficiency wages are lower.
12) The lower the amount of unemployment benefits citizens receive, the
A) higher the opportunity cost of job search.
B) lower the opportunity cost of job search.
C) the higher the natural unemployment rate.
D) the longer people search for jobs.
E) higher the wage people must be offered before they accept a job.
13) The length of time people spend in search of a job increases if
A) the population ages.
B) unemployment benefits increase.
C) the criteria necessary to qualify for unemployment benefits increases.
D) there is a sudden change in technology.
E) the minimum wage is decreased.
14) France offers its citizens generous unemployment benefits for up to 24 months. The United States offers its citizens less generous unemployment benefits, typically for up to 6 months. From this information, it is likely that the natural unemployment rate is
A) greater in France than in the United States.
B) less in France than in the United States.
C) equal in France and the United States.
D) near zero in France, and much greater than zero in the United States.
E) unaffected by unemployment benefits in the both France and the United States.
15) France is considering implementing policies that will reduce the duration of job search. A possible option is for France to
A) increase the minimum wage.
B) help negotiate higher union benefits for employed workers.
C) reduce unemployment benefits.
D) require all residents between the ages of 19 and 26 to obtain a part-time or full-time job.
E) Both answers A and B are correct.
16) Data indicate that the natural unemployment rate in Canada is typically 3 percentage points higher than the U.S. natural unemployment rate. This difference is most likely the result of differences in
A) natural climate.
B) population.
C) the value of the currency.
D) unemployment benefits.
E) more structural change in the United States.
17) If we compare the Canadian natural unemployment rate to the U.S. natural unemployment rate, we find that for most years since 1980
A) they are essentially the same because we have a lot in common.
B) the Canadian rate is higher, possibly the result of higher unemployment benefits in Canada.
C) the U.S. rate is higher, possibly the result of greater job search within a larger country.
D) the Canadian rate is higher, possibly the result of higher unemployment benefits in the United States.
E) The U.S. rate is higher, possibly the result of more structural change occurring in the United States.
18) Structural change influences the unemployment rate and such structural change is created by changes in
A) real GDP.
B) the seasons.
C) technology.
D) population.
E) the minimum wage.
19) Job rationing occurs when the real wage rate is
A) below the equilibrium wage rate so there is an excess supply of labor.
B) above the equilibrium wage rate so there is a shortage of labor.
C) equal to the equilibrium wage rate so there is no excess supply of labor.
D) above the equilibrium wage rate so there is an excess supply of labor.
E) Both answers A and D are correct because whenever the real wage rate is above or below the equilibrium wage rate, there is an excess supply of labor.
20) Which of the following creates job rationing?
A) The real wage rate is below the equilibrium level.
B) The real wage rate is above the equilibrium level.
C) The real wage rate is equal to the equilibrium level.
D) Job search decreases.
E) An increase in unemployment benefits.
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