Question 1

Structural unemployment is often thought to explain relatively long spells of unemployment.

Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills and qualifications of workers and the available job openings. This type of unemployment tends to be more long-lasting as it requires workers to acquire new skills or change industries, which can take time.

Question 2

The Bureau of Labor Statistics' household survey and establishment survey both yield the same results about total employment.

Accepted Answer

The household survey measures employment status of individuals, while the establishment survey measures the number of employees on non-farm payrolls. These two surveys may yield different results.

Question 3

The Bureau of Labor Statistics' household survey and establishment survey both yield information about unemployment.

Accepted Answer

The answer of The Bureau of Labor Statistics' household survey...

Question 4

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.

Accepted Answer

The Bureau of Labor Statistics does indeed survey 160,000 business establishments every month to gather data on employment and unemployment.

Question 5

Frictional unemployment is often the result of changes in the demand for labor among different firms.

Accepted Answer

Frictional unemployment occurs when workers are between jobs or search for a better job, and it is due to the normal turnover in the labor market, such as changes in the demand for labor among different firms.

Question 6

Frictional unemployment is inevitable because the economy is always changing.

Accepted Answer

Frictional unemployment is caused by temporary transitions in workers' lives, such as changing jobs, moving to a new location, or entering or re-entering the workforce. As the economy and job market continually evolve, workers will always be undergoing these types of transitions, making frictional unemployment a natural and inevitable part of a dynamic economy.

Question 7

Employment can rise in one region of the country while it falls in another.

Accepted Answer

This is true as the economy and job market can vary by region based on factors such as industry, population growth, and government policies.

Question 8

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

Accepted Answer

If all workers and all jobs were the same and all workers were equally well suited for all jobs, then there would be no need for job search as any worker could take any job without considering their individual qualifications or preferences.

Question 9

The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates.

Accepted Answer

The demand for labor is directly related to the demand for the firm's product as the more demand for the product, the more labor is needed to produce it. Similarly, if the demand for the product decreases, the demand for labor decreases as well.

Question 10

Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.

Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills and qualifications of workers and the jobs available, but it can also result from wages being set above the market-clearing level, which reduces demand for labor and creates unemployment.

Question 11

Three possible reasons for an above-equilibrium wage are minimum-wage laws, unions, and efficiency wages.

Accepted Answer

Minimum-wage laws set a legal minimum wage above the equilibrium wage, unions negotiate higher wages for their members, and employers may choose to pay efficiency wages above the equilibrium to motivate higher productivity and reduce turnover.

Question 12

Job search is the process of matching workers with appropriate jobs.

Accepted Answer

Job search involves finding suitable employment opportunities for workers who are looking for work. The process involves searching for job openings, submitting job applications, and attending interviews to be selected for the job.

Question 13

Structural unemployment is often thought to explain relatively short spells of unemployment.

Accepted Answer

Structural unemployment is caused by a mismatch between the skills and qualifications that workers possess and the requirements of available jobs in the market. It is typically a long-term phenomenon, rather than a cause of short spells of unemployment.

Question 14

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called structural unemployment.

Accepted Answer

This is the correct definition of structural unemployment. It occurs when workers' skills or experience do not match the requirements of job openings, leading to a mismatch between the supply and demand for labor in certain industries or occupations.

Question 15

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no frictional unemployment.

Accepted Answer

If all workers were equally well suited for all jobs, there would be a perfect match between job seekers and job openings, eliminating the time it takes for workers to search for and find suitable job opportunities, which is the cause of frictional unemployment.

Question 16

One reason economies always experience some unemployment is job search.

Accepted Answer

This is true because even in a well-functioning economy with job openings, it takes time for individuals to search for and find suitable employment opportunities. Additionally, there may be mismatches between the skills of available workers and the requirements of available jobs, leading to structural unemployment.

Question 17

Frictional unemployment is often thought to explain relatively long spells of unemployment.

Accepted Answer

Frictional unemployment typically explains short periods of unemployment between jobs, not long spells.

Question 18

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.

Accepted Answer

This statement suggests that there may be structural or geographic factors that limit job opportunities in certain areas or industries, leading to persistent unemployment for some individuals.

Question 19

The demand for labor by a certain firm is independent of the demand for that firm's product.

Accepted Answer

The demand for labor by a firm is directly related to the demand for the firm's product because as demand for the product increases, the firm typically needs more labor to increase production.

Question 20

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called frictional unemployment.

Accepted Answer

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called structural unemployment, not frictional unemployment. Frictional unemployment occurs when workers are between jobs or are entering the workforce for the first time.

Quiz 28: Unemployment and Its Natural Rate