Question 1

The Bureau of Labor Statistics' U­1 measure of joblessness is smaller than its U­6 measure of joblessness.

Accepted Answer

This statement is true. The U-1 measure only includes people who are unemployed and currently looking for work, while the U-6 measure also includes people who are underemployed or have given up looking for work. Therefore, U-6 is a broader and more inclusive measure of joblessness.

Question 2

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 3

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

Accepted Answer

The reported unemployment rate is determined by the number of people who are unemployed and actively seeking employment. If individuals who are not actively seeking employment are included in the reported unemployment rate, it will be biased upwards as the reported rate will be higher than the true rate of unemployment.

Question 4

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 due to the fact that the official unemployment rate only counts those who are actively looking for work and are unable to find it. If someone has given up looking for a job, they are not considered part of the labor force and therefore not counted in the unemployment rate. This can make the reported rate lower than the actual rate of unemployment.

Question 5

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

Accepted Answer

The official unemployment rate, also known as the U-3 rate, is based on a survey of households and measures the percentage of people in the labor force who are actively looking for work but unable to find it. While it is a widely used and important measure of joblessness, it does have limitations and may not fully capture the extent of unemployment or underemployment in the labor market. Factors such as discouraged workers who have stopped looking for work and part-time workers who would prefer full-time work are not fully accounted for in the official rate. Therefore, while it is useful, it is not a perfect measure of the labor market.

Question 6

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 7

The Bureau of Labor Statistics' U­5 measure of joblessness is the official unemployment rate.

Accepted Answer

The Bureau of Labor Statistics' U-3 measure of joblessness is the official unemployment rate, not U-5. U-5 includes U-3 plus discouraged workers and those with part-time jobs who want full-time jobs.

Question 8

The Bureau of Labor Statistics' U­4 measure of joblessness includes discouraged workers.

Accepted Answer

The U-4 measure of unemployment, also known as the broadest measure of unemployment, includes discouraged workers who have given up looking for work but still want a job.

Question 9

The Bureau of Labor Statistics' U­1 measure of joblessness is larger than its U­6 measure of joblessness.

Accepted Answer

The U-6 measure of joblessness includes individuals who are marginally attached to the labor force and those who are working part-time but would prefer full-time work. The U-1 measure only includes individuals who are unemployed and have been actively looking for work in the past 4 weeks. Therefore, the U-6 measure is typically larger than the U-1 measure.

Question 10

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

Accepted Answer

This statement is true. According to Bureau of Labor Statistics data, in 2020, 48.4% of unemployment spells ended because the unemployed person left the labor force, either by retiring, going back to school, or giving up their job search.

Question 11

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 individuals who have stopped actively seeking employment because they believe there are no jobs available for them or they have had no luck in finding a job. Despite their desire to work, they are not included in official unemployment statistics as they are not actively seeking work.

Question 12

The Bureau of Labor Statistics' U­2 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 13

The Bureau of Labor Statistics' U­5 measure of joblessness includes marginally attached workers.

Accepted Answer

The U-5 measure of joblessness includes those who are marginally attached to the labor force, meaning they have looked for work in the past 12 months but not in the past 4 weeks. This category also includes discouraged workers who have given up looking for work.

Question 14

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

This is true because when people work "under the table" and do not report their earnings, they are still employed but not captured in official employment statistics. This leads to an undercounting of employed individuals and an overcounting of the unemployed, thus causing the reported unemployment rate to be higher than it would otherwise be.

Question 15

The Bureau of Labor Statistics' U­3 measure of joblessness is the official unemployment rate.

Accepted Answer

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

Question 16

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

This is the exact definition of marginally attached workers according to the Bureau of Labor Statistics.

Question 17

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 correct definition of discouraged workers according to the Bureau of Labor Statistics.

Question 18

The Bureau of Labor Statistics' U­1 measure of joblessness includes only very long­term unemployed.

Accepted Answer

The answer of The Bureau of Labor Statistics' U­1 measure...

Question 19

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 20

Most spells of unemployment are short, and most unemployment observed at any given time is long-term.

Accepted Answer

Most spells of unemployment are indeed short because many people find new jobs relatively quickly. However, at any given point, the majority of the total amount of unemployment observed can be attributed to a smaller group of people who have been unemployed for a long period, making long-term unemployment a significant concern.

Quiz 20: Unemployment

The Bureau of Labor Statistics' U1 measure of joblessness is smaller than its U6 measure of joblessness.

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

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

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.

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

The Bureau of Labor Statistics' U5 measure of joblessness is the official unemployment rate.

The Bureau of Labor Statistics' U4 measure of joblessness includes discouraged workers.

The Bureau of Labor Statistics' U1 measure of joblessness is larger than its U6 measure of joblessness.

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

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

The Bureau of Labor Statistics' U2 measure of joblessness includes job losers and job leavers.

The Bureau of Labor Statistics' U5 measure of joblessness includes marginally attached workers.

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.

The Bureau of Labor Statistics' U3 measure of joblessness is the official unemployment rate.

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.

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.

The Bureau of Labor Statistics' U1 measure of joblessness includes only very longterm unemployed.

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

Most spells of unemployment are short, and most unemployment observed at any given time is long-term.

Quiz 20: Unemployment

The Bureau of Labor Statistics' U­1 measure of joblessness is smaller than its U­6 measure of joblessness.

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

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

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.

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

The Bureau of Labor Statistics' U­5 measure of joblessness is the official unemployment rate.

The Bureau of Labor Statistics' U­4 measure of joblessness includes discouraged workers.

The Bureau of Labor Statistics' U­1 measure of joblessness is larger than its U­6 measure of joblessness.

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

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

The Bureau of Labor Statistics' U­2 measure of joblessness includes job losers and job leavers.

The Bureau of Labor Statistics' U­5 measure of joblessness includes marginally attached workers.

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.

The Bureau of Labor Statistics' U­3 measure of joblessness is the official unemployment rate.

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.

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.

The Bureau of Labor Statistics' U­1 measure of joblessness includes only very long­term unemployed.

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

Most spells of unemployment are short, and most unemployment observed at any given time is long-term.

The Bureau of Labor Statistics' U1 measure of joblessness is smaller than its U6 measure of joblessness.

The Bureau of Labor Statistics' U5 measure of joblessness is the official unemployment rate.

The Bureau of Labor Statistics' U4 measure of joblessness includes discouraged workers.

The Bureau of Labor Statistics' U1 measure of joblessness is larger than its U6 measure of joblessness.

The Bureau of Labor Statistics' U2 measure of joblessness includes job losers and job leavers.

The Bureau of Labor Statistics' U5 measure of joblessness includes marginally attached workers.

The Bureau of Labor Statistics' U3 measure of joblessness is the official unemployment rate.

The Bureau of Labor Statistics' U1 measure of joblessness includes only very longterm unemployed.