Question 1

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

Accepted Answer

According to research by the Federal Reserve Bank of Cleveland, almost half of all spells of unemployment end when the unemployed person leaves the labor force, either by giving up on finding a job or retiring early.

Question 2

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually decreased.

Accepted Answer

According to data from the Bureau of Labor Statistics, the labor-force participation rate for women has been increasing while the participation rate for men has been declining slightly, resulting in a gradual convergence of the two rates.

Question 3

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

Accepted Answer

This is the definition of discouraged workers. They have the desire to work, but have become discouraged and stopped actively searching for employment.

Question 4

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

If individuals are working for "under the table" pay, they are still employed but not reporting their income to the government. Therefore, they are not counted as employed in official statistics, causing the reported unemployment rate to be higher than it should be.

Question 5

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 aren't trying to find a job but still report being unemployed, it would increase the number of reported unemployed individuals and therefore bias the unemployment rate upward.

Question 6

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has gradually increased.

Accepted Answer

The difference between the labor-force participation rates of men and women in the U.S. has gradually decreased over the past several decades, as more women have entered the workforce.

Question 7

More than one-third of the unemployed are recent entrants into the labor force.

Accepted Answer

According to the Bureau of Labor Statistics, as of September 2020, 35.6% of the unemployed have been jobless for less than 5 weeks, suggesting that they are recent entrants into the labor force.

Question 8

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

Accepted Answer

The statement is true because individuals may leave the labor force (such as giving up on finding a job) or enter it (such as graduating from school or starting a new job) which can impact the overall unemployment rate. Therefore, the statistics on unemployment may not give a clear picture of the current state of the labor market.

Question 9

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

People like Rupert, who are actively applying for jobs (even if selectively), are counted as part of the labor force and therefore contribute to the unemployment rate, not reduce it. The reported unemployment rate includes individuals actively seeking employment.

Question 10

Causes of the changing role of women in American society over the past several decades include new technologies that have reduced the amount of time required to complete routine household tasks, improved birth control, and changing political and social attitudes.

Accepted Answer

The statement accurately summarizes some of the causes that have contributed to the changing role of women over time. New technologies such as washing machines, vacuum cleaners and kitchen appliances have given women more free time and reduced the burden of domestic work. Improved birth control methods have given women greater control over their reproductive choices, allowing them to pursue education and careers. Changing attitudes towards gender roles have also played a significant role, with more people embracing gender equality, women's rights and diversity.

Question 11

Causes of the decline in the U.S. men's labor-force participation rate over the past several decades include young men now staying in school longer than their fathers and grandfathers did, older men now retiring earlier and living longer, and more fathers now staying at home to raise their children.

Accepted Answer

These factors have all contributed to the decline in the U.S. men's labor-force participation rate, as documented by various economic studies.

Question 12

Measuring the amount of unemployment in the economy is a straightforward task.

Accepted Answer

Measuring the amount of unemployment in the economy is not a straightforward task because it requires a definition of unemployment, a survey method, and data collection and analysis. Different definitions and methods can result in different unemployment rates.

Question 13

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had remained steady.

Accepted Answer

The labor-force participation rate of men has actually been decreasing since the 1950s.

Question 14

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

Accepted Answer

Unemployment can also end due to factors such as discouraged workers leaving the labor force, retirement, or returning to school.

Question 15

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 16

Even though the difference in labor-force participation rates of U.S. males and females has narrowed, the labor-force participation rate of males remains higher than that of females.

Accepted Answer

According to the Bureau of Labor Statistics, as of December 2020, the labor-force participation rate for men was 69.9% while it was 57.5% for women. Therefore, the statement is true.

Question 17

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

Accepted Answer

While the official unemployment rate provides some insight into joblessness, it has limitations such as not accounting for discouraged workers who have given up searching for work and underemployed workers who are working part-time but desire full-time employment.

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 true. These individuals are considered discouraged workers and are not counted in the official unemployment rate, which only includes actively seeking work individuals who are jobless. Therefore, the actual unemployment rate may be higher than reported.

Question 19

Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had decreased.

Accepted Answer

This is a well-documented trend in the United States, where more women have entered the labor force and pursued careers, while fewer men have participated in the labor force due to factors such as automation, globalization, and changes in the economy.

Question 20

More than three-fourths of the unemployed are recent entrants into the labor force.

Accepted Answer

Most unemployed people have previous work experience and are not recent entrants into the labor force. Recent entrants make up only a portion of the total unemployed.

Quiz 10: Unemployment