Question 1

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.

Accepted Answer

According to data from the Bureau of Labor Statistics, the labor-force participation rate of women has indeed increased from around 43% in 1970 to around 57% in 2021, while the labor-force participation rate of men has decreased slightly from around 78% in 1970 to around 69% in 2021.

Question 2

The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment.

Accepted Answer

This statement is true. The natural rate of unemployment refers to the level of unemployment that exists when the labor market is in equilibrium, meaning there is no cyclical unemployment caused by economic factors such as recessions. It is sometimes also referred to as the "non-accelerating inflation rate of unemployment" (NAIRU).

Question 3

Within the U.S. population, teenagers (ages 16-19) have similar rates of unemployment to adults of prime working age (ages 25-54), regardless of race or gender.

Accepted Answer

According to the Bureau of Labor Statistics, as of July 2021, the unemployment rate for teenagers was significantly higher than that for adults ages 25-54. The unemployment rate for white teenagers was 9.9% compared to 4.8% for white adults, and the unemployment rate for Black teenagers was 23.7% compared to 8.1% for Black adults. Similarly, the unemployment rate for male teenagers was 12.3% compared to 5.0% for male adults, and the unemployment rate for female teenagers was 11.5% compared to 4.7% for female adults.

Question 4

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.

Accepted Answer

This statement is true - data on the unemployment rate in the U.S. since 1960 do show that the economy always has some unemployment and that the amount changes from year to year.

Question 5

The normal rate of unemployment around which the unemployment rate fluctuates is called cyclical unemployment.

Accepted Answer

The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment. Cyclical unemployment refers to the fluctuations in unemployment that occur as a result of changes in business cycles, such as recessions or expansions.

Question 6

Within the U.S. population, blacks of prime working age (ages 25-54) have similar rates of unemployment than whites of prime working age (ages 25-54), regardless of gender.

Accepted Answer

This statement is false. According to data from the Bureau of Labor Statistics as of June 2021, the unemployment rate for Blacks of prime working age was 9.2% while the unemployment rate for Whites of prime working age was 4.8%. This indicates a significant disparity in unemployment rates between these two groups.

Question 7

For 2015 the U.S. natural rate of unemployment was estimated to be about 4.9 percent, which was close to the actual unemployment rate in 2015.

Accepted Answer

According to the Bureau of Labor Statistics, the U.S. natural rate of unemployment was estimated to be 4.8 percent in 2015, which was close to the actual unemployment rate of 5.3 percent. Therefore, the statement is true.

Question 8

Economists at the Congressional Budget Office estimated that for 2015, the U.S. natural rate of unemployment was about 4.9 percent.​

Accepted Answer

This statement is true, as stated by the economists at the Congressional Budget Office.

Question 9

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.

Accepted Answer

The statement accurately identifies several key factors that have contributed to the changing role of women in American society over recent decades. These include advancements in technology, including household appliances and devices that have reduced the time and physical labor required to complete household tasks, as well as developments in birth control that have expanded women's reproductive choices and helped to level the playing field in terms of career opportunities. Additionally, changing attitudes toward gender roles, family structures, and women's rights have played a significant role in shaping the evolving role of women in American society.

Question 10

Within the U.S. population, women of prime working age (ages 25-54) have similar rates of labor-force participation than men of prime working age (ages 25-54), regardless of race.

Accepted Answer

Women of prime working age generally have lower labor-force participation rates compared to their male counterparts, and this varies by race and ethnicity. Differences in labor-force participation can be attributed to a variety of factors including caregiving responsibilities, cultural norms, and discrimination.

Question 11

Within the U.S. population, women of prime working age (ages 25-54) have lower rates of labor-force participation than men of prime working age (ages 25-54), regardless of race.

Accepted Answer

This is a well-documented trend in the U.S. labor market, with women of prime working age consistently having lower rates of labor force participation than men of the same age group.

Question 12

Within the U.S. population, women of prime working age (ages 25-54) have higher rates of unemployment than men of prime working age (ages 25-54), regardless of race.

Accepted Answer

Historically, men have generally had slightly higher unemployment rates than women, especially during economic downturns, as sectors with predominantly male employment like construction and manufacturing are often hit harder. However, the rates can vary by race and other factors, and the situation can change over time.

Question 13

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

Accepted Answer

The difference between the labor-force participation rates of men and women in the U.S. has gradually decreased over the past several decades, as more women have entered the workforce.

Question 14

Within the U.S. population, blacks of prime working age (ages 25-54) have higher rates of unemployment than whites of prime working age (ages 25-54), regardless of gender.

Accepted Answer

This statement is true. According to data from the Bureau of Labor Statistics, the unemployment rate for black workers between the ages of 25-54 was 7.6% in September 2021, while the unemployment rate for white workers in the same age range was 4.2%.

Question 15

Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate sometimes is close to zero.

Accepted Answer

While the unemployment rate in the US has been very low at certain points since 1960, it has never reached zero.

Question 16

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

Accepted Answer

This statement is true. The labor-force participation rate for men has slightly decreased, while the rate for women has increased. As a result, the gap between the two rates has narrowed. However, there is still a small difference in participation rates, with men participating at slightly higher rates than women.

Question 17

Within the U.S. population, teenagers (ages 16-19) have lower rates of labor-force participation than adults of prime working age (ages 25-54), regardless of race or gender.

Accepted Answer

This statement is true. Teenagers have a lower labor-force participation rate compared to adults in their prime working age, regardless of their gender or race.

Question 18

Within the U.S. population, teenagers (ages 16-19) have higher rates of unemployment than adults of prime working age (ages 25-54), regardless of race or gender.

Accepted Answer

According to data from the Bureau of Labor Statistics, the teenage unemployment rate (as of September 2021) is 9.9%, while the adult (25-54) unemployment rate is 4.4%, indicating that teenagers have higher rates of unemployment than adults of prime working age. This trend holds true across all racial and gender categories.

Question 19

The deviation of unemployment from its natural rate is called cyclical unemployment.

Accepted Answer

This is true according to the common definition of cyclical unemployment. It refers to the portion of unemployment that is caused by fluctuations in the business cycle, as opposed to structural or frictional factors that affect the long-term level of employment.

Question 20

Within the U.S. population, teenagers (ages 16-19) have similar rates of labor-force participation than adults of prime working age (ages 25-54), regardless of race or gender.

Accepted Answer

According to the Bureau of Labor Statistics (BLS), in 2021, the labor-force participation rate for teenagers was 34.3%, while for adults of prime working age it was 81.5%. Thus, teenagers have a lower rate of labor-force participation than adults of prime working age.

Quiz 28: Unemployment and Its Natural Rate