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During the most recent recession, the so-called Great Recession the United States government increased the amount of time an individual was eligible for unemployment benefits from a maximum of 26 weeks to a maximum of 99 weeks. How is this likely to change the incentives facing the unemployed? (To be eligible for unemployment benefits, one must be looking for work and not have refused suitable work) What might this do to the unemployment rate measured in the economy in general?

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Insha Fatima
Insha FatimaLv10
28 Sep 2019

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Severe unemployment is socially catastrophic. Mark all items below that can occur due to unemployment.

Ā  Increased Spending
Ā  Increased work hours for other family members
Ā  Increased Savings
Ā  Uninterrupted schooling
Ā  Increased Stress
Ā  Postponed medical care
Ā  Utilities cut off

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Question 51 pts

What years was the unemployment rate equal to or great than 10%?

Ā  1929-1933, 1937-1938, 1981-1982, 2007-2009
Ā  1928-1932, 1936-1937, 1980-1981, 2008-2010
Ā  1929-1933, 1936-1937, 1980-1981, 2007-2009
Ā  1928-1930, 1937-1938, 1981-1982, 2008-2010

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Question 61 pts

The unemployment rate is understated due to:

Ā  None of the above.
Ā  Part-time workers being counted as unemployed
Ā  Discouraged workers not counted in the labor force
Ā  Underemployed workers being counted an unemployed

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Question 71 pts

True or False. The Labor force participation rate is the percentage of adults in an economy who are either employed or who are unemployed and looking for a job.

Ā  True
Ā  False

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Question 81 pts

True or False. The Bureau of Labor Statistics reports the percentage of labor force unemployed utilizing the current population survey.

Ā  True
Ā  False

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Question 91 pts

Mark all that apply. Over time the unemployment rate.....

Ā  does not fluctuate over time
Ā  an upward or downward trend in unemployment rates is apparent
Ā  never falls all the way to zero
Ā  the timing of rises and falls in unemployment do not match the timing of upswings and downswings in the overall economy

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Question 101 pts

According to the graphs presented by the author in this chapter, which group had the highest unemployment rate in 2010?

Ā  Hispanic
Ā  Black
Ā  Asian
Ā  Whites

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Question 111 pts

According to the information presented by the author in this chapter, which group had the highest unemployment rate in 2015?

Ā  New entrants
Ā  Re-entrants
Ā  Job Losers: non-temporary
Ā  Job Leavers
Ā  Job Losers: temporary

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Question 121 pts

According to the information presented by the author in this chapter, which group had the highest unemployment rate in 2015?

Ā  5 to 14 weeks
Ā  Over 27 weeks
Ā  15-26 weeks
Ā  Under 5 weeks

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Question 131 pts

True or False. An international comparison of unemployment rates across countries can be easily accomplished.

Ā  True
Ā  False

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Question 141 pts

Mark all that apply. Wages are sticky downward due to:

Ā  Implicit contract
Ā  Insider-outsider model
Ā  Efficiency Wage Theory
Ā  Adverse selection of wage cuts argument

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Question 151 pts

Match the word to the correct definition.

Cyclical

[ Choose ] unemployment that occurs as workers move between jobs unemployment that occurs because individuals lack skills valued by employers or the Geographic distribution of jobs changes unemployment closely tied to the business cycle, like higher unemployment during a recession

Frictional

[ Choose ] unemployment that occurs as workers move between jobs unemployment that occurs because individuals lack skills valued by employers or the Geographic distribution of jobs changes unemployment closely tied to the business cycle, like higher unemployment during a recession

Structural

[ Choose ] unemployment that occurs as workers move between jobs unemployment that occurs because individuals lack skills valued by employers or the Geographic distribution of jobs changes unemployment closely tied to the business cycle, like higher unemployment during a recession

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Question 161 pts

A financial analyst who quits his/her job in Chicago and is pursuing similar work in Arizona. What type of unemployment occurred?

Ā  Structural
Ā  Cyclical
Ā  Frictional

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Question 171 pts

True or False. With productivity low, average levels of unemployment will tend to be somewhat higher on average.

Ā  True
Ā  False

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Question 181 pts

True or False. Unemployment benefits in the United States are only federally controlled.

Ā  True
Ā  False

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Question 191 pts

True or False. The natural rate of unemployment will never be zero due to cyclical and frictional unemployment.

Ā  True
Ā  False

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Question 201 pts

True or False. Public policies to assist the unemployed as it relates to the supply side of the labor market affect how eager people are to find work

Ā  True
Ā  False

Topic: Why is unemployment so high in Europe? Briefly discuss.

Optional reading: You can use any Web browser to search for the words Ć¢Ā€ĀœEuropean unemployment.Ć¢Ā€Ā Just by scanning the headlines, see how many possible explanations you can list. Why Is Unemployment So High in Europe? Between World War II and the mid-1970s, unemployment in Western Europe was low. From 1960 to 1974, for example, the unemployment rate in France never got as high as 4 percent. The worldwide recession of the mid-1970s, however, jacked up unemployment rates. But unemployment continued to climb in Continental Europe long after the recession ended, topping 10 percent during the 1990s, and was still 8 percent to 9 percent in 2007. Some observers claim that the natural rate of unemployment has increased in these countries. Economists have borrowed a term from physics, hysteresis (pronounced his-ter-eƃĀ©-sis), to argue that the natural rate of unemployment depends in part on the recent history of unemployment. The longer the actual unemployment rate remains above what had been the natural rate, the more the natural rate itself increases. For example, those unemployed can lose valuable job skills, such as the computer programmer who loses touch with the latest developments. As weeks of unemployment stretch into months and years, the shock and stigma may diminish, so the work ethic weakens. WhatĆ¢Ā€Ā™s more, some European countries offer generous unemployment benefits indefinitely, reducing the hardship of unemployment. Some Europeans have collected unemployment benefits for more than a decade. No consensus exists regarding the validity of hysteresis. The theory seems to be less relevant in the United States and Great Britain, where unemployment fell from 10 percent in 1982 to 4.5 and 5.5, respectively, in 2007. An alternative explanation for high unemployment in Continental Europe is that legislation introduced there in the 1970s made it more difficult to lay off workers. In most European countries, job dismissals must be approved by worker councils, which consider such factors as the workerĆ¢Ā€Ā™s health, marital status, and number of dependents. Severance pay has also become mandatory and can amount to a yearĆ¢Ā€Ā™s pay or more. With layoffs difficult and costly, hiring became almost an irreversible decision for the employer, so firms have become reluctant to add workers, particularly untested workers with little experience. Also, high minimum wages throughout Europe, high payroll taxes, and an expanded list of worker rights have increased labor costs. For example, in Sweden, women are guaranteed a yearĆ¢Ā€Ā™s paid leave on having a child and the right to work no more than six hours a day until the child reaches grade school. Swedish workers are also guaranteed at least five weeks of vacation a year; French workers get at least six weeks (Americans have no minimum vacation guarantees). Regardless of the explanation, the result is high unemployment in Continental Europe, particularly among young workers. As noted in an earlier chapter, 60 percent of those unemployed in Germany in 2006 had been out of work more than a year, versus less than10 percent of those unemployed in the United States. Few private sector jobs have been created there since 1980. If Continental Europe had the same unemployment rate and the same labor participation rate as the United States, about 30 million more people there would be working there.

QUESTION 1

Rosina Gonzales quit her job in Pennsylvania and moved to California to be close to her family. She is currently looking for work, so she would be considered

frictionally unemployed.

cyclically unemployed.

a discouraged worker.

seasonally unemployed.

1 points

QUESTION 2

Discouraged workers

are counted as unemployed workers when the unemployment rate is calculated.

would decrease the unemployment rate if they were added to the number of unemployed workers.

are counted as one-half of a worker in the unemployment statistics.

would increase unemployment rate if they were added to the number of unemployed workers.

1 points

QUESTION 3

In measuring the unemployment rate, part-time workers are ________ and discouraged workers are ________.

included as employed; included as unemployed

excluded; excluded

excluded; included as unemployed

included as employed; excluded

1 points

QUESTION 4

Mary has decided that the she does not like Iowa and has decided to quit her job as a medical technician and move to Arizona. Mary's unemployment as she searches for a new job is best classified as

frictional.

cyclical.

structural.

seasonal.

1 points

QUESTION 5

When a golf caddy in Minnesota (where golf courses close in the winter) is unemployed in December, it is most likely the case that the golf caddy is

cyclically unemployed during long droughts.

frictionally unemployed during spring and summer.

structurally unemployed during spring and summer.

seasonally unemployed.

1 points

QUESTION 6

After graduating from college, Yunis, age 22, started working for his parent's real estate business as an unpaid assistant. He works 25 hours a week helping manage rental units . In the Current Population Survey, Yunis is considered

part of the labor force and employed.

part of the labor force and unemployed.

a discouraged worker.

not part of the labor force.

1 points

QUESTION 7

The working-age population includes

youngsters between the ages of 14 and 16 if they are working at least part time.

only employed people over the age of 16.

those in jails and hospitals.

employed and unemployed people over the age of 16.

1 points

QUESTION 8

Involuntary part-time workers are workers who

work less than 35 hours but would like to work full time.

work more than 35 hours but would like to work less than 35 hours.

work less than 35 hours by choice.

work have lost their jobs within the last four weeks and are seeking another job.

1 points

QUESTION 9

Frictional unemployment is the result of

the normal process of jobs being created and destroyed.

an economic recession.

people not getting along (having friction) with their employers.

the economic decline of major industries

1 points

QUESTION 10

Bill just graduated with his degree in economics. Through Career Services he submitted his resume to several companies and he will visit them during the next two weeks. Bill is considered

not in the labor force.

cyclically unemployed.

frictionally unemployed.

structurally unemployed.

1 points

QUESTION 11

Harry works at the video rental store for 20 hours per week. He's asked his boss to allow him to work 40 hours per week, but has been told that business is too slow. Harry is considered

an involuntary part-time worker.

a marginally attached worker.

a discouraged worker.

not in the labor force.

1 points

QUESTION 12

Discouraged workers who are over 16 years old are

i.not counted as unemployed.

ii.part of the working-age population.

iii.part of the labor force.

i and ii

ii and iii

ii only

i only

1 points

QUESTION 13

Higher unemployment benefits create

higher seasonal unemployment as workers switch jobs.

a lower number of job leavers.

incentives for longer job searches and higher frictional unemployment.

incentives for shorter job searches and higher structural unemployment.

1 points

QUESTION 14

Seasonal unemployment includes people who become unemployed from

changes in the business cycle.

technological changes.

the seasonal weather patterns.

normal changes in the labor force.

1 points

QUESTION 15

Cyclical unemployment is

higher when the economy is expanding.

always greater than the total of structural and frictional unemployment.

the total of structural and frictional unemployment.

created by a recession.

1 points

QUESTION 16

Which of the following people would be classified as employed in the Current Population Survey?

April, who just graduated from college and is looking for work

Jason, who was laid off from work less than 6 months ago but who has stopped looking for work

Rich, who is working 20 hours a week but wants a full-time job

Misty, who just quit her job to return full time to school

1 points

QUESTION 17

People who are willing and able to work but are not looking for work because they have been discouraged by their previous futile efforts are called

discouraged workers.

involuntarily unemployed.

part-time lookers.

unemployed workers.

1 points

QUESTION 18

Discouraged workers are included in the calculation of the

i.unemployment rate.

ii.labor force participation rate.

iii.working-age population.

i and ii

i only

iii only

ii only

1 points

QUESTION 19

As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills, the economy experiences

changes in the business cycle.

cyclical unemployment.

frictional unemployment.

structural unemployment.

1 points

QUESTION 20

Suppose the U.S. population is 275 million. If 210 million people are of working age, 135 million are employed, and 6 million are unemployed, what is the labor force participation rate?

64 percent

67 percent

76 percent

49 percent

1 points

QUESTION 21

During a recession the unemployment rate generally ________ and during an expansion the unemployment rate generally ________.

rises; rises

rises; does not change

falls; rises

rises; falls

1 points

QUESTION 22

In January of 2001, the population of the United States was 276.8 million, the working-age population was 210.2 million, the total number of people employed was 140, and the total number of people unemployed was 5.0 million. What was the labor force participation rate?

56 percent

69 percent

78 percent

67 percent

1 points

QUESTION 23

If Brian, age 24, had no job but was available for work and had looked for a job the week before the survey, Brian is classified in the Current Population Survey as

unemployed.

employed.

a discouraged worker.

not in the labor force.

1 points

QUESTION 24

Julie works part-time for economic reasons. She would be considered

an involuntary part-time worker.

not in the labor force.

a job seeker.

a discouraged worker.

1 points

QUESTION 25

Suppose the population is 300 million people, the labor force is 200 million people, the number of people employed is 185 million, and the working-age population is 170 million people. What is the unemployment rate?

5 percent

7.5 percent

8.8 percent

92.5 percent

1 points

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