Question

1)

Individuals included in the Bureau of Labor Statistics’ “employed” category include:

I. People not currently working, but looking for a job.

II. People working in a full-time job.

III. People working in a part-time job.

IV. People who are retired (who worked previously).

Group of answer choices

II, III, and IV.

I, II, and III.

II and III only.

III and IV only.

2) Unemployment insurance may _______ the ability of workers and employers to find the right job match, and like leads to a(n) __________ in the natural rate of unemployment.

Group of answer choices

increase....decrease

increase....increase

decrease....decrease

decrease....increase

Answer 1

(1) According to BLS employed category included people working in full time job and people working in a part time job.

Answer: Option (C) i.e., II and III only.

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(2) Unemployment insurance may decrease the ability of workers and employers to find the right job match, and like leads to a(n) increases in the natural rate of unemployment.

If unemployed people get unemployment insurance then they will put less effort in finding the job. As a result frictional unemployment will rise as well as natural rate of unemployment will rise.

Note: Natural rate of unemployment = Frictional unemployment + Structural unemployment.

Answer: Option (D)