Question 

11
Question text
Table 28-4
The following data is about the labor market in the city of Productionville.

Wage Quantity Demanded Quantity Supplied

(Dollars per hour) (Units) (Units)
8 6,000 16,000

7 9,000 14,000

6 12,000 12,000

5 15,000 10,000

4 18,000 8,000

Refer to Table 28-4. If the local government imposed a minimum wage of $7 in Productionville, how
many people would be unemployed?

a.

b.

2,000

c.

5,000

d.

10,000

Feedback

The correct answer is: 5,000

Question 12
Question text
Suppose that the Bureau of Labor Statistics reported that there were 62 million people over age 25
whose highest level of education was some college or an associate degree. Of these, 45.3 million were
employed and 3.6 million were unemployed. What were the labor-force participation rate and the
unemployment rate for this group?

a.

78.9% and 126.8%

b.

78.9% and 7.4%

c.

126.8% and 7.4%

d.

7.4% and 78.9%

Feedback

The correct answer is: 78.9% and 7.4%

Question 13
Question text
The Bureau of Labor Statistics divides the adult population into three categories: employed,
unemployed, and not in the labor force.

Select one:

True 

False

Feedback

The correct answer is ‘True’.

Question 14
Question text
The demand for labor by a certain firm is independent of the demand for that firm's product.

Select one:

True 

False

Feedback

The correct answer is ‘False’.

Question 15
Question text
The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-
6?

a.

(Total unemployed + Marginally attached workers)/Adult population

b.

(Total unemployed + Marginally attached workers + Part-time employed for economic reasons)/Adult
population

c.

(Total unemployed + Marginally attached workers + Part-time employed for economic reasons)/(Labor
force + Marginally attached workers)

d.

(Total unemployed + Marginally attached workers)/(Labor force + Marginally attached workers)

Feedback

The correct answer is: (Total unemployed + Marginally attached workers + Part-time
employed for economic reasons)/(Labor force + Marginally attached workers)