Question : 11) Suppose that the labor movement has a revival in : 1244716

11) Suppose that the labor movement has a revival in the United States and the majority of workers join labor unions. As a result we would expect

A) the labor force participation rate to fall.

B) the unemployment rate to fall.

C) the unemployment rate to rise.

D) no change in the unemployment rate or labor force participation rate.

12) If firms pay what are called “efficiency wages,” they pay wages that

A) motivate workers to increase their productivity.

B) are lower than average to ensure maximum profit.

C) will eventually lower the unemployment rate.

D) are mandated by the government.

13) Efficiency wages cause unemployment because

A) firms pay wages that are below the market wage, causing the quantity of labor demanded to be greater than the quantity of labor supplied.

B) firms pay wages that are below the market wage, causing the quantity of labor demanded to be less than the quantity of labor supplied.

C) firms pay wages that are above the market wage, causing the quantity of labor demanded to be greater than the quantity of labor supplied.

D) firms pay wages that are above the market wage, causing the quantity of labor demanded to be less than the quantity of labor supplied.

14) The U.S. unemployment insurance program

A) increases the amount of time the unemployed spend searching for a job.

B) decreases the level of frictional unemployment.

C) pays the unemployed a benefit equal to twice the average wage.

D) eliminates structural unemployment.

15) By offering training to workers whose firms laid them off because of competition from foreign firms, the federal government is attempting to reduce

A) frictional unemployment.

B) structural unemployment.

C) cyclical unemployment.

D) seasonal unemployment.

E) unnatural unemployment.

16) Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower

A) frictional unemployment.

B) structural unemployment.

C) cyclical unemployment.

D) seasonal unemployment.

E) unnatural unemployment.

17) Which of the following explains why many European countries have unemployment rates that are higher than in the United States?

A) Technological change occurs at a faster rate in Europe, so structural unemployment is higher in Europe.

B) European countries offer higher unemployment benefits than the United States.

C) Firms in European countries offer employees higher wages and higher benefits than do firms in the United States.

D) The minimum wage in Europe is lower than it is in the United States.

18) With the exception of during recessions, workers in Canada are eligible for unemployment benefits for about twice as long a period of time as workers in the United States. As a result,

A) the average duration of unemployment is longer in the United States than in Canada.

B) the unemployment rate in Canada is usually higher than in the United States.

C) the opportunity cost of job search in Canada is lower than in the United States.

D) frictional unemployment is higher, on average, in the United States than in Canada.

19) Which of the following has a tendency to raise the unemployment rate?

A) implementing a minimum wage in an economy

B) reducing unemployment insurance in an economy

C) offering wages at the market-clearing rate

D) reducing labor unions membership in an economy

20) An efficiency wage

A) is higher than the market wage and tends to increase productivity.

B) is lower than the market wage and tends to increase productivity.

C) is higher than the market wage and tends to decrease productivity.

D) is lower than the market wage and tends to decrease productivity.