Question 1

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

Accepted Answer

Some unemployment cases end with the individual retiring, going back to school, or leaving the workforce for other reasons, not necessarily finding a new job.

Question 2

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

Discouraged workers are indeed defined by the Bureau of Labor Statistics as individuals who are not actively looking for work because they believe no jobs are available for them or there are none for which they would qualify, making them a subset of marginally attached workers.

Question 3

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

Accepted Answer

The official unemployment rate does not account for underemployment, discouraged workers who have stopped looking for work, and those working part-time who would prefer full-time employment, making it an imperfect measure of true joblessness.

Question 4

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

Accepted Answer

Measuring unemployment is complex because it involves defining what constitutes being unemployed versus out of the labor force, dealing with underemployment, and capturing accurate data from the entire population.

Question 5

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

These individuals are technically employed because they are working, even if it's not officially recognized due to the nature of their payment. Their inclusion in unemployment statistics, despite actually working, inaccurately inflates the reported unemployment rate.

Question 6

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

These individuals are not counted as part of the labor force since they are not actively seeking employment, thus they do not contribute to the unemployment rate, making the reported unemployment rate lower than it might be if they were included.

Question 7

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

Accepted Answer

Unemployment statistics can be challenging to interpret due to the dynamic nature of the labor force, with individuals frequently entering and exiting for various reasons such as new job opportunities, retirement, or returning to education.

Question 8

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

Accepted Answer

Recent entrants into the labor force, such as new graduates or people entering or re-entering the workforce, often make up a significant portion of the unemployed, as they may face challenges in finding their first job or re-establishing themselves in a new career or after a break. This group can represent more than one-third of the total unemployed population at any given time, depending on economic conditions and labor market dynamics.

Question 9

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

Over the past several decades in the United States, the labor-force participation rate of women has indeed increased, but the labor-force participation rate of men has generally declined, not remained steady.

Question 10

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 11

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 includes more types of unemployment (such as underemployment and discouraged workers) than the U-1 measure, making U-6 a broader and typically higher measure.

Question 12

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

Marginally attached workers are indeed defined by the Bureau of Labor Statistics as individuals who are not in the labor force, want and are available for work, and have looked for a job sometime in the recent past but are not currently looking for work.

Question 13

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 contribute to the decline in labor-force participation among men in the U.S. by reducing the number of men available for work. Staying in school longer delays entry into the workforce, earlier retirement reduces the number of older men in the workforce, and an increase in stay-at-home fathers reduces the number of men available for work outside the home.

Question 14

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.

Question 15

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 includes those actively seeking employment. If people claim to be unemployed without genuinely seeking work, they are still counted, thus inflating the unemployment rate beyond those truly seeking employment.

Question 16

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 17

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

Accepted Answer

The U-1 measure specifically includes individuals who have been unemployed for 15 weeks or longer, focusing on very long-term unemployment.

Question 18

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 looking for employment due to repeated failures in securing a job, leading them to believe no jobs are available for them.

Question 19

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

Despite the narrowing gap in labor-force participation rates between males and females in the U.S., males still participate in the labor force at a higher rate than females. This is due to a variety of factors, including societal norms, caregiving responsibilities, and other barriers to female labor force participation.

Question 20

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.

Quiz 28: Unemployment and Its Natural Rate