Unemployment 7013
70.
Data on the unemployment rate in the U.S. since 1960 show that the economy always has some
unemployment and
that the amount changes from year to year.
a.
True
b.
False
71.
Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate
sometimes is close to
zero.
a.
True
b.
False
72.
The normal rate of unemployment around which the unemployment rate fluctuates is called the
natural rate of
unemployment.
a.
True
b.
False
73.
The normal rate of unemployment around which the unemployment rate fluctuates is called
cyclical unemployment.
a.
True
b.
False
74.
Economists at the Congressional Budget Office estimated that for 2012, the U.S. natural rate of
unemployment was
about 5.5 percent.
a.
True
b.
False
75.
In 2012, the U.S. natural rate of unemployment was estimated to be about 5.5 percent, which at
the time was
below the actual rate of unemployment of about 8.1 percent.
a.
True
b.
False
76.
The deviation of unemployment from its natural rate is called cyclical unemployment.
a.
True
b.
False
77.
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.
a.
True
b.
False
78.
Over the past several decades, the difference between the labor-force participation rates of men
and women in the U.S. has gradually decreased.
a.
True
b.
False
79.
Over the past several decades, the difference between the labor-force participation rates of men
and women in the U.S. has gradually increased.
a.
True
b.
False
80.
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.
a.
True
b.
False
81.
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.
a.
True
b.
False
82.
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.
a.
True
b.
False
83.
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.
a.
True
b.
False
84.
Measuring the amount of unemployment in the economy is a straightforward task.
a.
True
b.
False
85.
More than one-third of the unemployed are recent entrants into the labor force.
a.
True
b.
False
86.
More than three-fourths of the unemployed are recent entrants into the labor force.
a.
True
b.
False
87.
Not all unemployment ends with the job seeker finding a job.
a.
True
b.
False
88.
Because people move into and out of the labor force so often, statistics on unemployment are
difficult to interpret.
a.
True
b.
False
89.
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.
a.
True
b.
False
90.
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.
a.
True
b.
False
91.
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.
a.
True
b.
False
92.
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.
a.
True
b.
False
93.
Discouraged workers are people who want to work but have given up trying to find a job after an
unsuccessful
search.
a.
True
b.
False
94.
It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.
a.
True
b.
False
95.
The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true
unemployment rate.
a.
True
b.
False
96.
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.
a.
True
b.
False
97.
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.
a.
True
b.
False
98.
The Bureau of Labor Statistics’ U-1 measure of joblessness is smaller than its U-6 measure of
joblessness.
a.
True
b.
False
99.
The Bureau of Labor Statistics’ U-1 measure of joblessness is larger than its U-6 measure of
joblessness.
a.
True
b.
False
100.
The Bureau of Labor Statistics’ U-1 measure of joblessness includes only very long-term
unemployed.
a.
True
b.
False
101.
The Bureau of Labor Statistics’ U-2 measure of joblessness includes job losers and job leavers.
a.
True
b.
False
102.
The Bureau of Labor Statistics’ U-3 measure of joblessness is the official unemployment rate.
a.
True
b.
False
103.
The Bureau of Labor Statistics’ U-4 measure of joblessness includes discouraged workers.
a.
True
b.
False
104.
The Bureau of Labor Statistics’ U-5 measure of joblessness is the official unemployment rate.
a.
True
b.
False
105.
The Bureau of Labor Statistics’ U-5 measure of joblessness includes marginally attached
workers.
a.
True
b.
False
106.
Almost half of all spells of unemployment end when the unemployed person leaves the labor
force.
a.
True
b.
False
107.
Almost nine-tenths of all spells of unemployment end when the unemployed person finds a job.
a.
True
b.
False
108.
Most spells of unemployment are short, and most unemployment observed at any given time is
long-term.
a.
True
b.
False
109.
Most spells of unemployment are short, and most unemployment observed at any given time is
short-term.
a.
True
b.
False
110.
Most spells of unemployment are long, and most unemployment observed at any given time is
long-term.
a.
True
b.
False
111.
Data on unemployment indicate that most people who become unemployed will soon find jobs.
a.
True
b.
False
112.
Most spells of unemployment are long, and most unemployment observed at any given time is
long-term.
a.
True
b.
False
113.
Most spells of unemployment are short. About half of unemployment spells end with an exit
from the labor force.
a.
True
b.
False
114.
In an ideal labor market, wages would adjust to balance the quantity of labor supplied and the
quantity of labor
demanded, ensuring that all workers are always fully employed.
a.
True
b.
False
115.
There are always some workers without jobs, even when the overall economy is doing well.
a.
True
b.
False
116.
The unemployment rate never falls to zero.
a.
True
b.
False
117.
One explanation for long–run unemployment is that it takes time for workers to search for the
jobs that are best
suited for them.
a.
True
b.
False
118.
The unemployment that results from the process of matching workers and jobs is called frictional
unemployment.
a.
True
b.
False
119.
The unemployment that results from the process of matching workers and jobs is called
structural unemployment.
a.
True
b.
False
120.
Frictional unemployment is often thought to explain relatively short spells of unemployment.
a.
True
b.
False
121.
Frictional unemployment is often thought to explain relatively long spells of unemployment.
a.
True
b.
False
122.
Some long-run unemployment may be explained by the fact that the number of jobs available in
some labor markets
may be insufficient to give a job to everyone who wants one.
a.
True
b.
False
123.
The unemployment that results from the quantity of labor supplied exceeding the quantity
demanded is called
structural unemployment.
a.
True
b.
False
124.
The unemployment that results from the quantity of labor supplied exceeding the quantity
demanded is called
frictional unemployment.
a.
True
b.
False
125.
Structural unemployment results when wages are, for some reason, set above the level that
brings supply and
demand into equilibrium.
a.
True
b.
False
126.
Structural unemployment is often thought to explain relatively long spells of unemployment.
a.
True
b.
False
127.
Structural unemployment is often thought to explain relatively short spells of unemployment.
a.
True
b.
False
128.
Three possible reasons for an above-equilibrium wage are minimum-wage laws, unions, and
efficiency wages.
a.
True
b.
False
129.
Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help
determine the number
of jobs the economy has gained or lost.
a.
True
b.
False