Question 1

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.

Accepted Answer

The Bureau of Labor Statistics does define 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.

Question 2

The Bureau of Labor Statistics' U-2 measure of joblessness includes job losers and job leavers.

Accepted Answer

The Bureau of Labor Statistics' U-2 measure of joblessness includes only job losers, not job leavers.

Question 3

Because people move into and out of the labor force so often,statistics on unemployment are difficult to interpret.

Accepted Answer

This statement is true. The labor force is not a fixed group of individuals, rather it is constantly changing as people enter or leave the workforce. This dynamic nature of the labor force makes it difficult to accurately measure and interpret unemployment statistics.

Question 4

The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate.

Accepted Answer

The answer of The unemployment rate reported by the Bureau...

Question 5

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.

Accepted Answer

The definition of discouraged workers given is accurate according to the Bureau of Labor Statistics.

Question 6

The Bureau of Labor Statistics' U-1 measure of joblessness includes only very long-term unemployed.

Accepted Answer

The answer of The Bureau of Labor Statistics' U-1 measure...

Question 7

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.

Accepted Answer

If individuals are working for "under the table" pay, they are still considered employed even though their income is not being reported to the government or they are not paying taxes on it. Therefore, they still contribute to the labor force and should be included in unemployment rate calculations, which is the ratio of individuals who are unemployed and actively seeking employment to the total labor force. If these individuals are not included or misreported as unemployed, it can artificially inflate the unemployment rate.

Question 8

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.

Accepted Answer

People like Rupert, who are actively applying for jobs (even if selectively), are counted as part of the labor force and therefore contribute to the unemployment rate, not reduce it. The reported unemployment rate includes individuals actively seeking employment.

Question 9

Almost nine-tenths of all spells of unemployment end when the unemployed person finds a job.

Accepted Answer

Many spells of unemployment end when the person leaves the labor force, not necessarily when they find a job. Factors such as discouragement, retirement, returning to education, or personal issues can also end unemployment spells.

Question 10

The Bureau of Labor Statistics' U-5 measure of joblessness includes marginally attached workers.

Accepted Answer

The U-5 measure of joblessness includes marginally attached workers, along with the unemployed and people who are available for work but have not actively looked for a job in the past four weeks.

Question 11

The Bureau of Labor Statistics' U-5 measure of joblessness is the official unemployment rate.

Accepted Answer

The Bureau of Labor Statistics' U-5 measure of joblessness is not the official unemployment rate. The U-3 measure is the official unemployment rate that is reported monthly.

Question 12

The Bureau of Labor Statistics' U-1 measure of joblessness is larger than its U-6 measure of joblessness.

Accepted Answer

The U-6 measure includes a broader range of unemployed individuals, including those who have given up looking for work and those who are working part-time but would like to work full-time. Therefore, the U-6 measure is generally larger than the U-1 measure.

Question 13

It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.

Accepted Answer

The official unemployment rate does not capture all forms of joblessness, such as those who have given up looking for work or are underemployed. However, it is still a widely used and important indicator of the overall health of the job market.

Question 14

Discouraged workers are people who want to work but have given up trying to find a job after an unsuccessful search.

Accepted Answer

Discouraged workers are defined as individuals who would like to have a job and are available for work but have given up actively searching for employment due to perceived lack of opportunities or their personal circumstances.

Question 15

Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

Accepted Answer

According to research by the Federal Reserve Bank of San Francisco, almost half of all spells of unemployment end when the unemployed person leaves the labor force. This means they have given up on job-seeking and are no longer considered part of the labor force.

Question 16

The Bureau of Labor Statistics' U-1 measure of joblessness is smaller than its U-6 measure of joblessness.

Accepted Answer

The U-1 measure of joblessness only counts people who have been unemployed for 15 weeks or longer, while the U-6 measure includes not only the officially unemployed but also marginally attached workers and those employed part-time for economic reasons, making U-6 a broader and typically higher measure of joblessness.

Question 17

The Bureau of Labor Statistics' U-4 measure of joblessness includes discouraged workers.

Accepted Answer

The U-4 measure of unemployment includes both unemployed individuals who have actively looked for work in the past 4 weeks and discouraged workers who have given up on finding work.

Question 18

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.

Accepted Answer

This is called the "discouraged worker effect" and it can skew the reported unemployment rate because these individuals are not counted as unemployed if they are not actively seeking employment.

Question 19

The Bureau of Labor Statistics' U-3 measure of joblessness is the official unemployment rate.

Accepted Answer

The U-3 measure of joblessness is indeed the official unemployment rate used by the Bureau of Labor Statistics.

Question 20

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.

Accepted Answer

If people are not putting effort into searching for a job but still reporting themselves as unemployed, then the actual number of unemployed individuals will be overestimated. This leads to the reported unemployment rate being biased upward.

Quiz 15: Unemployment: Part B