Question 1

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

Accepted Answer

While the other options have contributed to the decline in the U.S. men's labor-force participation rate over the past several decades, there is no evidence to suggest that the increase in women's employment has directly resulted in fewer jobs available for men.

Question 2

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.

Accepted Answer

The answer of Some persons are counted as out of...

Question 3

Just after World War II, the labor-force participation rate of men was
A)about 33 percent, and in 2015, it was about 50 percent.
B)about 50 percent, and in 2015, it was about 60 percent.
C)about 60 percent, and in 2015, it was about 60 percent.
D)about 90 percent, and in 2015, it was about 70 percent.

Accepted Answer

The answer of Just after World War II, the labor-force...

Question 4

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

Accepted Answer

The answer of Which of the following is not a...

Question 5

Discouraged workers are included in
A)the number of unemployed.
B)frictional unemployment.
C)the labor force.
D)None of the above is correct.

Accepted Answer

The answer of Discouraged workers are included in
A)the number of...

Question 6

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.

Accepted Answer

The answer of Spells of unemployment end about
A)1/5 of the...

Question 7

Just after World War II, the labor-force participation rate of women was
A)about 25 percent, and in 2015 it was about 50 percent.
B)about 33 percent, and in 2015 it was about 60 percent.
C)about 50 percent, and in 2015 it was about 70 percent.
D)about 60 percent, and in 2015 it was about 80 percent.

Accepted Answer

According to the Bureau of Labor Statistics, the labor-force participation rate of women in 1948 was approximately 33 percent, while in 2015 it was about 60 percent.

Question 8

Figure 28-2 
-Refer to Figure 28-2. What do the two lines in the figure measure?
A)The top line is the labor force participation rate, and the bottom line is the unemployment rate.
B)The top line is the labor force participation rates of the college-educated population, and bottom line is the labor force participation rates of the high-school-educated population.
C)The top line is the foreign labor force participation rate, and the bottom line is the domestic labor force participation rate.
D)The top line is the labor force participation rates of men, and the bottom line is the labor force participation rates of women.

Accepted Answer

The answer of Figure 28-2 
-Refer to Figure 28-2. What...

Question 9

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.

Accepted Answer

The answer of Suppose that some people are counted as...

Question 10

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.

Accepted Answer

The answer of Some people who are employed or who...

Question 11

Figure 28-1 
-Refer to Figure 28-1. Which of the following correctly identifies lines A and B?
A)Line A is the unemployment rate, and line B is the natural rate of unemployment.
B)Line A is the labor force participation rate, and line B is the adult population.
C)Line A is the employment rate, and line B is the adult population.
D)Line A is the labor force participation rate, and line B is the unemployment rate.

Accepted Answer

The answer of Figure 28-1 
-Refer to Figure 28-1. Which...

Question 12

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.

Accepted Answer

All three options have contributed to the changing role of women in American society. New technologies, such as washing machines and dishwashers, have reduced the amount of time required to complete routine household tasks, giving women more time and freedom to pursue other interests, such as education and jobs. Improved birth control has allowed women to plan their families and careers, further increasing their opportunities for education and employment. Changing political and social attitudes, including the women's rights movement, have also led to greater opportunities and equality for women in all aspects of society.

Question 13

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.

Accepted Answer

The answer of Suppose that some people report themselves as...

Question 14

Since 1960, the natural rate of unemployment in the U.S. has been between
A)0% and 1%.
B)5% and 6%.
C)10% and 12%.
D)12% and 24%.

Accepted Answer

The natural rate of unemployment in the U.S. has been estimated to be between 5% and 6% since the 1960s. This means that even in a healthy economy with strong job growth and low unemployment, there will always be some level of unemployment due to factors such as frictional unemployment (people transitioning between jobs) and structural unemployment (mismatch between worker skills and job openings).

Question 15

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.

Accepted Answer

The person in question is not actually trying hard to find a job, so they should not be counted as unemployed. Instead, they are counted as out of the labor force since they are not actively seeking employment.

Question 16

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 they were counted as unemployed the unemployment rate would be higher.
D)None of the above is correct.

Accepted Answer

Discouraged workers are considered to be out of the labor force because they are not actively seeking employment. If they were counted as unemployed, it would artificially inflate the unemployment rate. Therefore, the BLS does not include them in either the numerator or denominator when calculating the unemployment rate.

Question 17

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.

Accepted Answer

The labor-force participation rate of women has increased, while the labor-force participation rate of men has decreased. According to the Bureau of Labor Statistics, the labor-force participation rate for women increased from 43.3% in 1970 to 57% in 2016, while the rate for men decreased from 79.7% to 69.2%.

Question 18

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

Accepted Answer

While there may be individual cases where women work to support their parents, this is not a commonly-cited explanation for the overall increase in labor-force participation rates for women. The other options-availability of reliable birth control, invention of household labor-saving devices, and changing social attitudes about working mothers- are more commonly cited as reasons for this trend.

Question 19

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.

Accepted Answer

The labor-force participation rate for women has steadily increased over the past several decades, while the labor-force participation rate for men has gradually decreased. As a result, the difference between the two rates has gradually decreased. Therefore, the best choice is C-gradually decreased.

Question 20

Which of the following is correct?
A)In the U.S. the natural rate of unemployment is frequently near 2%.
B)The natural rate of unemployment fluctuates more than the cyclical rate of unemployment.
C)The cyclical rate of unemployment is sometimes below the natural rate of unemployment.
D)None of the above is correct.

Accepted Answer

The natural rate of unemployment is typically between 4-5% in the U.S. (A is incorrect). The cyclical rate of unemployment fluctuates more because it is affected by changes in the business cycle (B is incorrect). The cyclical rate of unemployment can be higher or lower than the natural rate depending on whether the economy is in a recession or expansion, but it cannot remain below the natural rate in the long run (C is correct).

Quiz 28: Unemployment and Its Natural Rate

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?

Just after World War II, the labor-force participation rate of men was

Which of the following is not a commonly-cited explanation for the decreasing labor-force participation rates for men from 1950 to the present?

Discouraged workers are included in

Spells of unemployment end about

Just after World War II, the labor-force participation rate of women was

Figure 28-2 -Refer to Figure 28-2. What do the two lines in the figure measure?

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

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.

Figure 28-1 -Refer to Figure 28-1. Which of the following correctly identifies lines A and B?

Which of the following is a cause of the changing role of women in American society over the past several decades?

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

Since 1960, the natural rate of unemployment in the U.S. has been between

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

The Bureau of Labor Statistics counts discouraged workers as

Over the past several decades in the United States, the labor-force participation rate of women has

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?

Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has

Which of the following is correct?