Principles of Macroeconomics A Streamlined Approach By Robert Frank 3rd Edition- Test Bank

Principles of Macroeconomics A Streamlined Approach By Robert Frank 3rd Edition- Test Bank

File: Chapter 015 The Labor Market: Workers, Wages, and Unemployment

Multiple Choice

1. In the twentieth century, average real wages have risen substantially:
A. only in the United States.
B. in industrial countries excluding the United States.
C. in industrial countries including the United States.
D. in neither the United States nor other industrial countries.
Answer: C
Difficulty: 01 Easy
Topic: Five Important Labor Market Trends
AACSB: Reflective Thinking
Blooms: Remember
Learning Objective: 15-01
Feedback: The United States and most industrial countries around the world have seen substantial increases in average real wages over the past 100 years.

2. The real purchasing power of the average worker’s yearly earnings in the United States in 2014 was ____ as in 1960.
A. five times as large
B. more than twice as large
C. about the same
D. about half as much
Answer: B
Difficulty: 01 Easy
Topic: Five Important Labor Market Trends
AACSB: Reflective Thinking
Blooms: Remember
Learning Objective: 15-01
Feedback: In the United States in 2014, the average worker’s yearly earnings could command more than twice as many goods and services as in 1960.

3. The real purchasing power of the average worker’s yearly earnings in the United States in 2014 was ____ as in 1929.
A. five times as large
B. more than twice as large
C. about the same
D. about half as much
Answer: A
Difficulty: 01 Easy
Topic: Five Important Labor Market Trends
AACSB: Reflective Thinking
Blooms: Remember
Learning Objective: 15-01
Feedback: In the United States in 2014, the average worker’s yearly earnings could command more than five as many goods and services as in 1929, just prior to the Great Depression.

4. In the United Sates, the average annual rate of growth of real wages was fastest in the period:
A. 1960-1973.
B. 1960-1995.
C. 1996-2010.
D. 1973-1995.
Answer: A
Difficulty: 01 Easy
Topic: Five Important Labor Market Trends
AACSB: Reflective Thinking
Blooms: Remember
Learning Objective: 15-01
Feedback: The decade of the 1960’s, and spilling into the 70’s, saw large increases in average real wages.

5. The growth rate of average annual earnings in the United States from 1973 to 1995 was:
A. higher than it was from 1960 to 1973.
B. lower than it was from 1960 to 1973.
C. the same as it was from 1960 to 1973.
D. roughly equal to zero.
Answer: B
Difficulty: 01 Easy
Topic: Five Important Labor Market Trends
AACSB: Reflective Thinking
Blooms: Remember
Learning Objective: 15-01
Feedback: The U.S. growth rate of average annual earnings slowed in the early 1970’s, and was negative until 1995.

6. Compared to the 1973 to 1995 period, average real earnings of workers ______ from 1960 to 1973.
A. grew more slowly
B. declined
C. grew at about the same rate
D. grew more rapidly
Answer: D
Difficulty: 02 Medium
Topic: Five Important Labor Market Trends
AACSB: Reflective Thinking
Blooms: Remember
Learning Objective: 15-01
Feedback: The U.S. growth rate of average annual earnings started to decline in the early 1970’s, and declined annually until 1995.