Question 1

Structural unemployment results when the number of jobs is insufficient for the number of workers.

Accepted Answer

Structural unemployment is a type of unemployment that results from a mismatch between the skills of workers and the requirements of available jobs or a mismatch between the location of available jobs and where workers live. This can lead to a situation where there are not enough jobs for the available workforce, resulting in structural unemployment.

Question 2

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a surplus of labor.

Accepted Answer

When the minimum-wage law sets a wage above the equilibrium level determined by supply and demand, it creates a surplus of labor, also known as unemployment. This is because more people are willing to work at the higher wage but fewer job opportunities are available at that wage.

Question 3

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Accepted Answer

Unemployment insurance typically requires that individuals are unemployed through no fault of their own (e.g., layoffs) rather than quitting voluntarily, being fired for cause, or just entering the labor force.

Question 4

Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Accepted Answer

When unemployment benefits are more generous and longer-lasting, it reduces the incentive for people to actively seek work or accept jobs that may be available to them, thus leading to higher unemployment rates.

Question 5

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well­being.

Accepted Answer

This statement is false. Most economists do not agree that eliminating unemployment insurance would increase the nation's overall well-being. In fact, many argue that unemployment insurance serves an important role in providing a safety net for workers who have lost their jobs and in stimulating the economy during downturns by providing additional spending power to those who have become unemployed.

Question 6

Minimum wages are the predominant reason for unemployment in the U.S. economy.

Accepted Answer

The relationship between minimum wage and unemployment is complex and not straightforward. While some studies suggest that increasing minimum wage can lead to job loss in certain sectors, other studies indicate that it can increase consumer spending and stimulate job growth in the long run. Additionally, factors such as automation and outsourcing can also contribute to unemployment in the U.S. economy. Therefore, minimum wages are not the sole or predominant reason for unemployment in the U.S. economy.

Question 7

A typical American worker covered by unemployment insurance receives 50 percent of his former wages for 52 weeks.

Accepted Answer

A typical American worker covered by unemployment insurance usually receives benefits for a maximum of 26 weeks, not 52 weeks, and the replacement rate is often less than 50% of their former wages, varying by state.

Question 8

Unemployment insurance causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment.

Accepted Answer

Unemployment insurance provides a safety net for workers who lose their jobs, which can reduce the pressure for them to negotiate for job security. This can make workers more willing to accept temporary or precarious employment arrangements, knowing that they can fall back on unemployment benefits if their employment ends.

Question 9

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is lower and the quantity of labor demand is higher than at the equilibrium wage.

Accepted Answer

When a minimum-wage law forces the wage to remain above the equilibrium level, the quantity of labor supplied becomes higher than the quantity demanded, leading to a surplus of labor or unemployment, not the other way around.

Question 10

Minimum-wage laws are one reason there is always some unemployment in the U.S. economy.

Accepted Answer

When the minimum wage is set above the equilibrium wage level, some employers may be unwilling or unable to hire as many workers as they would without the minimum wage. This can lead to some level of unemployment.

Question 11

A minimum wage that is below the equilibrium wage rate does not raise unemployment.

Accepted Answer

A minimum wage set below the equilibrium wage rate does not raise unemployment because it is already lower than what employers are willing to pay and what workers are willing to accept, thus it does not interfere with the labor market equilibrium.

Question 12

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, there are more workers willing to work than there are jobs, so some workers are unemployed.

Accepted Answer

This is the basic principle of how a minimum-wage law can lead to unemployment. The increased wage puts a strain on employers who may not be able to afford to hire as many workers as they normally would at a lower wage. This creates a surplus of workers who are willing to work, but not enough jobs available to meet their demand.

Question 13

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

Accepted Answer

This is the basic principle of how a minimum-wage law affects the labor market. When the wage is artificially raised above the equilibrium level, there will be a surplus of labor (more workers willing to work than employers are willing to hire) which can result in higher unemployment rates.

Question 14

Minimum wage laws help explain the natural rate of unemployment if they create a surplus in any labor market.

Accepted Answer

When minimum wage laws create a surplus in the labor market, employers may not be willing to hire as many workers or may need to lay off some workers to compensate for the higher wage costs. This can increase the natural rate of unemployment, as some workers who would be willing to work at a lower wage are unable to find employment.

Question 15

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Accepted Answer

Unemployment insurance can reduce the urgency for unemployed individuals to find and accept new jobs quickly because it provides them with a temporary source of income, potentially making them less motivated to seek employment immediately.

Question 16

Studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed.

Accepted Answer

Studies have found that when unemployment benefits are more generous and last longer, unemployed individuals tend to spend less time and effort searching for a job. This is known as the “unemployment trap” and can be influenced by various design factors of the unemployment insurance system, such as benefit duration, benefit level, eligibility criteria, and work requirements.

Question 17

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.

Accepted Answer

Most economists believe that unemployment insurance provides a safety net for individuals who lose their jobs, allowing them to spend money on goods and services, which helps to stabilize the economy. Eliminating it could reduce consumer spending, potentially leading to higher unemployment, but the statement as phrased suggests the opposite effect, which is not the consensus view.

Question 18

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor.

Accepted Answer

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a surplus of labor, meaning unemployment, not a shortage.

Question 19

Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

Accepted Answer

Unemployment insurance provides a financial cushion for workers who have lost their jobs, allowing them to take the time to find a job that is a better fit for their skills and experience. This improves the overall matching process between workers and employers and can lead to a more efficient labor market.

Question 20

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are not eligible for unemployment insurance.

Accepted Answer

According to the guidelines for unemployment insurance in the United States, individuals who quit their jobs, were fired for cause (such as misconduct or violating workplace policies), or who are new entrants to the labor force (such as recent graduates) are generally not eligible for unemployment insurance benefits.

Quiz 28: Unemployment

Structural unemployment results when the number of jobs is insufficient for the number of workers.

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a surplus of labor.

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of wellbeing.

Minimum wages are the predominant reason for unemployment in the U.S. economy.

A typical American worker covered by unemployment insurance receives 50 percent of his former wages for 52 weeks.

Unemployment insurance causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment.

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is lower and the quantity of labor demand is higher than at the equilibrium wage.

Minimum-wage laws are one reason there is always some unemployment in the U.S. economy.

A minimum wage that is below the equilibrium wage rate does not raise unemployment.

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, there are more workers willing to work than there are jobs, so some workers are unemployed.

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

Minimum wage laws help explain the natural rate of unemployment if they create a surplus in any labor market.

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed.

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor.

Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are not eligible for unemployment insurance.

Quiz 28: Unemployment

Structural unemployment results when the number of jobs is insufficient for the number of workers.

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a surplus of labor.

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are eligible for unemployment insurance.

Other things the same, countries that offer more generous and longer-lasting unemployment insurance benefits are likely to have higher unemployment rates.

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well­being.

Minimum wages are the predominant reason for unemployment in the U.S. economy.

A typical American worker covered by unemployment insurance receives 50 percent of his former wages for 52 weeks.

Unemployment insurance causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment.

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is lower and the quantity of labor demand is higher than at the equilibrium wage.

Minimum-wage laws are one reason there is always some unemployment in the U.S. economy.

A minimum wage that is below the equilibrium wage rate does not raise unemployment.

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, there are more workers willing to work than there are jobs, so some workers are unemployed.

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

Minimum wage laws help explain the natural rate of unemployment if they create a surplus in any labor market.

Unemployment insurance reduces the incentive for the unemployed to find and take new jobs.

Studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed.

Most economists agree that eliminating unemployment insurance would increase the amount of unemployment in the economy.

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor.

Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

The unemployed who quit their jobs, were fired for cause, or just entered the labor force are not eligible for unemployment insurance.

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of wellbeing.