Unemployment 6873
152. Which of the following is not a commonly–cited explanation for the dramatically increasing
labor–force participation rates for women from 1950 to the present?
a. availability of reliable birth control
b. invention of household labor-saving devices such as dishwashers and microwave ovens
c. an increasing number of women who work to support their parents
d. changing social attitudes about working mothers
153. Which of the following is not a commonly-cited explanation for the decreasing labor-force
participation rates for men from 1950 to the present?
a. availability of reliable birth control
b. men acquiring additional years of schooling before entering the labor force
c. a preference for men to retire when younger
d. changing social attitudes about stay–at–home fathers
6874 Unemployment
154. People who are unemployed because they are in search of a job that suits their skills are included
within
a. structural unemployment.
b. frictional unemployment.
c. cyclical unemployment.
d. marginal unemployment.
155. Which of the following is a cause of the changing role of women in American society over the
past several decades?
a. new technologies that have reduced the amount of time required to complete routine
household tasks
b. improved birth control
c. changing political and social attitudes
d. All of the above are correct.
Unemployment 6875
156. Just after World War II, the labor-force participation rate of women was
a. about 25 percent, and in 2012, it was about 50 percent.
b. about 33 percent, and in 2012, it was about 60 percent.
c. about 50 percent, and in 2012, it was about 70 percent.
d. about 60 percent, and in 2012, it was about 80 percent.
157. Over the past several decades, the difference between the labor-force participation rates of men
and women in the U.S. has
a. gradually increased.
b. remained constant.
c. gradually decreased.
d. been eliminated.
6876 Unemployment
158. Over the past several decades in the United States, the labor-force participation rate of women
has
a. increased, and the labor-force participation rate of men has increased.
b. increased, and the labor-force participation rate of men has decreased.
c. decreased, and the labor-force participation rate of men has increased.
d. decreased, and the labor-force participation rate of men has decreased.
159. Which of the following is not a cause of the decline in the U.S. men’s labor-force participation
rate over the past several decades?
a. young men now stay in school longer than their fathers and grandfathers did
b. older men now retire earlier and live longer
c. with more women employed, there are fewer jobs now available to men
d. more fathers now stay at home to raise their children
Unemployment 6877
160. Just after World War II, the labor-force participation rate of men was
a. about 33 percent, and in 2012, it was about 50 percent.
b. about 50 percent, and in 2012, it was about 60 percent.
c. about 60 percent, and in 2012, it was about 60 percent.
d. about 90 percent, and in 2012, it was about 70 percent.
161. Spells of unemployment end about
a. 1/5 of the time with the person leaving the labor force.
b. 1/4 of the time with the person leaving the labor force.
c. 1/3 of the time with the person leaving the labor force.
d. 1/2 of the time with the person leaving the labor force.
6878 Unemployment
162. A person who is not employed and claims to be trying hard to find a job but really is not trying
hard to find a job is
a. counted as out of the labor force but should be counted as unemployed.
b. counted as unemployed but should be counted as out of the labor force.
c. correctly counted as out of the labor force.
d. correctly counted as unemployed.
163. Suppose that some people are counted as unemployed when, to maintain unemployment
compensation, they search for work only at places where they are unlikely to be hired. If these
individuals were counted as out of the labor force instead of as unemployed, then
a. both the unemployment rate and labor-force participation rate would be higher.
b. both the unemployment rate and labor-force participation rate would be lower.
c. the unemployment rate would be lower, and the labor-force participation rate would be higher.
d. the unemployment rate would be higher, and the labor-force participation rate would be lower.
Unemployment 6879
164. Suppose that some people report themselves as unemployed when, in fact, they are working in
the underground economy. If these persons were counted as employed, then
a. both the unemployment rate and labor-force participation rate would be higher.
b. both the unemployment rate and labor-force participation rate would be lower.
c. the unemployment rate would be higher, and the labor-force participation rate would be higher.
d. the unemployment rate would be lower, and the labor-force participation rate would be
unaffected.
165. Some people who are employed or who are not making serious effort to find employment will
report themselves as unemployed. Some people who want to find work will be counted as out of
the labor force.
a. Both the first and the second fact tend to make the reported unemployment rate lower than
otherwise.
b. Both the first and the second fact tend to make the reported unemployment rate higher than
otherwise.
c. The first fact tends to make the reported unemployment rate higher than otherwise, while the
second fact tends to make the reported unemployment rate lower than otherwise.
d. The first fact tends to make the reported unemployment rate lower than otherwise, while the
second fact tends to make the reported unemployment rate higher than otherwise.
6880 Unemployment
166. Some persons are counted as out of the labor force because they have made no serious or recent
effort to look for work. However, some of these individuals may want to work even though they
are too discouraged to make a serious effort to look for work. If these individuals were counted
as unemployed instead of out of the labor force, then
a. both the unemployment rate and labor-force participation rate would be higher.
b. the unemployment rate would be higher ,and the labor-force participation rate would be lower.
c. the unemployment rate would be lower, and the labor-force participation rate would be higher.
d. both the unemployment rate and labor-force participation rate would be lower.
167. Discouraged workers are included in
a. the number of unemployed.
b. frictional unemployment.
c. the labor force.
d. None of the above is correct.
Unemployment 6881
168. The Bureau of Labor Statistics counts discouraged workers as
a. employed. Including them as employed makes the unemployment rate lower than otherwise.
b. unemployed. Including them as unemployed makes the unemployment rate higher than
otherwise.
c. out of the labor force. If the were counted as unemployed the unemployment rate would be
higher.
d. None of the above is correct.
169. The Bureau of Labor Statistics classifies people who would like to work but have given up
looking for a job as
a. unemployed. If they were classified as out of the labor force, the reported unemployment rate
would be larger.
b. unemployed. If they were classified as out of the labor force, the reported unemployment rate
would be smaller.
c. out of the labor force. If they were classified as unemployed, the reported unemployment rate
would be larger.
d. out of the labor force. If they were classified as unemployed, the reported unemployment rate
would be smaller.
6882 Unemployment
170. Some individuals would like to have a job, but they have given up looking for a job after an
unsuccessful search. These individuals are called
a. detached workers, and they are classified by the Bureau of Labor Statistics as unemployed.
b. detached workers, and they are not classified by the Bureau of Labor Statistics as
unemployed.
c. discouraged workers, and they are classified by the Bureau of Labor Statistics as
unemployed.
d. discouraged workers, and they are not classified by the Bureau of Labor Statistics as
unemployed.
171. Who would be included in the labor force?
a. Louie, who is waiting for his new job to start
b. Daisey, who has become discouraged looking for a job and has quit looking
c. Donald, an unpaid stay-at-home father
d. None of the above is correct.
Unemployment 6883
172. The reported unemployment rate should be viewed as
a. a useful but imperfect measure of joblessness.
b. clearly smaller than the true unemployment rate.
c. clearly larger than the true unemployment rate.
d. being very close to the true unemployment rate.
173. Marginally attached workers are people who are
a. looking for a better job than they currently have.
b. not working and are not looking for work, but would work if asked.
c. working part–time while they go to school or get training for a better job.
d. only a few years from retirement.
6884 Unemployment
174. Consider two people who are currently out of work. Tim is not looking for work because there
have been many job cuts where he lives, and he doesn’t think it likely that he will find work. Bev
is not currently looking for work, but she would like a job, and she has looked for work in the
past. The Bureau of Labor Statistics considers
a. both Tim and Bev to be marginally attached workers.
b. neither Tim nor Bev to be marginally attached workers.
c. only Tim to be a marginally attached worker.
d. only Bev to be a marginally attached worker.
175. The BLS reports the U-6 measure of labor underutilization. Which of the following is how it
computes U-6?
a. (total unemployed + marginally attached workers)/adult population
b. (total unemployed + marginally attached workers + part-time employed for economic
reasons)/adult population
c. (total unemployed + marginally attached workers)/(labor force + marginally attached workers)
d. (total unemployed + marginally attached workers + part time employed for economic
reasons)/(labor force + marginally attached workers)
Unemployment 6885
Table 28-6
Civilian labor force
100 million
Persons unemployed 15 weeks or longer
1.6 million
Job losers and persons who have completed temporary jobs (excludes job leavers)
3.1 million
Total unemployed
6.2 million
Total unemployed plus discouraged workers
7.0 million
Total unemployed plus all marginally attached workers
8.1 million
Total unemployed plus all marginally attached workers plus total employed part-time
for economic reasons
9.2 million
176. Refer to Table 28–6. What is the U-1 measure of labor underutilization?
a. 1.6%
b. 3.1%
c. 6.2%
d. 7.0%
177. Refer to Table 28–6. What is the U-2 measure of labor underutilization?
a. 1.5%
b. 3.1%
c. 4.7%
d. 6.2%
6886 Unemployment
178. Refer to Table 28–6. What is the U-3 measure of labor underutilization?
a. 4.7%
b. 6.2%
c. 7.0%
d. 10.9%
179. Refer to Table 28–6. What is the U-4 measure of labor underutilization?
a. 6.5%
b. 6.9%
c. 7.0%
d. 17.9%
180. Refer to Table 28–6. What is the U-5 measure of labor underutilization?
a. 7.5%
b. 7.9%
c. 8.1%
d. 26%
Unemployment 6887
181. Refer to Table 28–6. What is the U-6 measure of labor underutilization?
a. 8.4%
b. 9.0%
c. 9.2%
d. 35.2%
182. Most spells of unemployment are
a. long, and most unemployment observed at any given time is long term.
b. long, but most unemployment observed at any given time is short term.
c. short, but most unemployment observed at any given time is long term.
d. short, and most unemployment observed at any given time is short term.
183. Which of the following is correct?
a. Typically more than one-third of the unemployed are new entrants into the job market.
b. Most spells of unemployment are short.
c. Most unemployment observed at any time is long term.
d. All of the above are correct.
6888 Unemployment
184. In one year, you meet 52 people who are each unemployed for one week and eight people who
are each unemployed for the whole year. What percentage of the unemployment spells you
encountered was short term, and what percentage of the unemployment you encountered in a
given week was long term?
a. 52% was short term; 13.3% was long term
b. 52% was short term; 88.9% was long term
c. 86.7% was short term; 13.3 was long term
d. 86.7% was short term; 88.9 was long term
185. A survey showed that in each of the past 12 months there was one person who was unemployed
who worked in all other months. There were also two people who were unemployed for all 12
months. What percentage of the unemployment spells during the year was short term, and what
percentage of the unemployment in a given month was long term?
a. 75% was short term; 33.3% was long term
b. 75% was short term; 66.7% was long term
c. 85.7% was short term; 33.3% was long term
d. 85.7% was short term; 66.7% was long term
Unemployment 6889
186. Evidence indicates that the typical person who becomes unemployed will
a. soon find a job.
b. find a job but not before a year or more has gone by.
c. leave the labor force and never return.
d. retire soon after
187. Which of the following is not correct?
a. Most people who become unemployed will soon find jobs.
b. In an ideal labor market, wages would adjust to ensure that all workers are always fully
employed.
c. The unemployment rate occasionally falls to zero.
d. There are always some workers without jobs, even when the overall economy is doing well.
6890 Unemployment
188. Unemployment that results because it takes time for workers to search for the jobs that best suit
their tastes and skills is called
a. the natural rate of unemployment.
b. cyclical unemployment.
c. structural unemployment.
d. frictional unemployment.
189. People who are unemployed because of job search are best classified as
a. cyclically unemployed.
b. structurally unemployed.
c. frictionally unemployed.
d. discouraged workers.
Unemployment 6891
190. Which of the following is an explanation for the existence of frictional unemployment?
a. efficiency wages
b. minimum-wage laws
c. unions
d. job search
191. Frictional unemployment results from
a. job searching. It is often thought to explain relatively short spells of unemployment.
b. job searching. It is often thought to explain relatively long spells of unemployment
c. a surplus in the some labor markets. It is often thought to explain relatively short spells of
unemployment.
d. a surplus in some labor markets. It is often thought to explain relatively long spells of
unemployment.
6892 Unemployment
192. Unemployment that results because the number of jobs available in some labor markets may be
insufficient to give a job to everyone who wants one is called
a. the natural rate of unemployment.
b. cyclical unemployment.
c. structural unemployment.
d. frictional unemployment.
193. Which of the following is not an explanation for the existence of structural unemployment?
a. efficiency wages
b. job search
c. minimum-wage laws
d. unions