Question 1

Almost nine-tenths of all spells of unemployment end when the unemployed person finds a job.

Accepted Answer

Many spells of unemployment end when the person leaves the labor force, not necessarily when they find a job. Factors such as discouragement, retirement, returning to education, or personal issues can also end unemployment spells.

Question 2

Not all unemployment ends with the job seeker finding a job.

Accepted Answer

Unemployment can also end due to factors such as the job seeker giving up on the job search or returning to school.

Question 3

The Bureau of Labor Statistics defines discouraged workers as marginally attached workers who have given a job-market related reason for not currently looking for a job.

Accepted Answer

This is the definition of discouraged workers according to the Bureau of Labor Statistics.

Question 4

Rupert is collecting unemployment insurance benefits.To continue to receive his benefits,he must be looking for work.Because he'd like to continue collecting benefits rather than take a job,he applies at places that are unlikely to hire him.People like Rupert make the reported unemployment rate less than it would otherwise be.

Accepted Answer

Rupert's behavior does not make the reported unemployment rate less than it would otherwise be, as he is not actually counted as being employed or unemployed. The unemployment rate is calculated based on the number of people actively seeking and available for work who cannot find a job, regardless of whether they are currently collecting benefits or not.

Question 5

The Bureau of Labor Statistics' U-1 measure of joblessness includes only very long-term unemployed.

Accepted Answer

The answer of The Bureau of Labor Statistics' U-1 measure...

Question 6

The Bureau of Labor Statistics' U-2 measure of joblessness includes job losers and job leavers.

Accepted Answer

The Bureau of Labor Statistics' U-2 measure of joblessness includes only job losers, not job leavers.

Question 7

It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.

Accepted Answer

The official unemployment rate provides a basic snapshot of joblessness in an economy, but it has limitations and does not capture all aspects of the labor market. For example, it does not account for people who are underemployed, those who have given up looking for work, and those who are working but would prefer to have more hours or better-paying jobs. Additionally, the unemployment rate may not be fully representative of all demographic groups or geographic areas.

Question 8

The Bureau of Labor Statistics' U-1 measure of joblessness is smaller than its U-6 measure of joblessness.

Accepted Answer

The U-1 measure of joblessness only counts people who have been unemployed for 15 weeks or longer, while the U-6 measure includes not only the officially unemployed but also marginally attached workers and those employed part-time for economic reasons, making U-6 a broader and typically higher measure of joblessness.

Question 9

Discouraged workers are people who want to work but have given up trying to find a job after an unsuccessful search.

Accepted Answer

Discouraged workers are defined as individuals who have given up seeking employment after an unsuccessful job search, but still want to work.

Question 10

The Bureau of Labor Statistics' U-3 measure of joblessness is the official unemployment rate.

Accepted Answer

The U-3 measure of joblessness is indeed the official unemployment rate as determined by the Bureau of Labor Statistics in the United States.

Question 11

The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.

Accepted Answer

The statement accurately defines marginally attached workers according to the Bureau of Labor Statistics.

Question 12

The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate.

Accepted Answer

The answer of The unemployment rate reported by the Bureau...

Question 13

Because people move into and out of the labor force so often,statistics on unemployment are difficult to interpret.

Accepted Answer

This is because someone who is not currently looking for work is not considered unemployed, so the unemployment rate only includes those who are actively seeking employment. Additionally, individuals may leave the labor force for various reasons, such as going back to school or caring for a family member, which can affect the unemployment rate.

Question 14

The Bureau of Labor Statistics' U-1 measure of joblessness is larger than its U-6 measure of joblessness.

Accepted Answer

The U-6 measure of joblessness is larger than the U-1 measure of joblessness. The U-6 measure includes all unemployed individuals, plus those who are marginally attached to the labor force and working part-time for economic reasons, while the U-1 measure only includes the total number of unemployed individuals.

Question 15

People who report being unemployed but who,in fact,are working for "under the table" pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.

Accepted Answer

The statement is true. People who work for "under the table" pay are considered employed but are not counted in official employment statistics, resulting in a higher reported unemployment rate than it would be if they were included as employed.

Question 16

Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

Accepted Answer

This statement is true. According to the Bureau of Labor Statistics, in 2020 approximately 45% of spells of unemployment ended with the unemployed person leaving the labor force.

Question 17

If people who report being unemployed are not,in fact,trying hard to find a job,then the reported unemployment rate will be baised upward.

Accepted Answer

If people who are not actively seeking employment are included in the measurement of unemployment, the reported rate will be artificially inflated. This is because they are not looking for a job, so they should not be considered part of the labor force or the unemployed population. Therefore, if they are included, the unemployment rate will appear to be higher than it actually is.

Question 18

People who report being not in the labor force but who,in fact,want to work but have given up trying to find a job after an unsuccessful search cause the reported unemployment rate to be lower than it would otherwise be.

Accepted Answer

This is known as "hidden unemployment" and it can affect the reported unemployment rate. These individuals are not included in the official unemployment rate calculations, even though they are technically unemployed and want to work.

Question 19

The Bureau of Labor Statistics' U-5 measure of joblessness is the official unemployment rate.

Accepted Answer

The Bureau of Labor Statistics' U-5 measure is not the official unemployment rate. The official unemployment rate is calculated using the U-3 measure. The U-5 measure includes all unemployed persons as well as discouraged workers who have given up looking for work due to a perceived lack of job opportunities.

Question 20

The Bureau of Labor Statistics' U-4 measure of joblessness includes discouraged workers.

Accepted Answer

The U-4 measure of joblessness includes unemployed workers who have given up on searching for work because they believe that there are no suitable job opportunities available to them, otherwise known as discouraged workers.

Quiz 20: Unemployment