Assignment 7: POL 338 Administration of Social Services

    April 7, 2023

(Each question is worth 5 points)

From Module 7, powerpoint “Unemployment Insurance”, answer the following questions True or False

1_____ The federal-state unemployment insurance system (UI) helps people who have lost their jobs by temporarily replacing part of their wages while they look for work.

2­_____The UI was created in 1935

3_____UI is a form of social insurance in which taxes collected from employers are paid into the system on behalf of working people to provide them with income support if they lose their jobs.

4_____The system also helps sustain consumer demand during economic downturns by providing a continuing stream of dollars for families to spend.

5_____The basic unemployment insurance program is run by the states, although the U.S. Department of Labor oversees the system. 

6_____The basic program in most states provides up to 26 weeks of benefits to unemployed workers

7_____States provide most of the funding and pay for the actual benefits provided to workers; the federal government pays only the administrative costs. 

8_____The permanent Extended Benefits (EB) program typically provides an additional 13 or 20 weeks of compensation to jobless workers who have exhausted their regular benefits in states where the unemployment situation has worsened dramatically (regardless of whether the national economy is in recession).

9_____The total number of weeks available depends on a state’s unemployment rate and its unemployment insurance laws

10____During recessions and while unemployment remains high during recoveries, the federal government has historically created temporary, wholly federally funded programs providing further weeks of benefits

11____Temporary federal programs implemented during recessions are fully federally funded

12____Under UI:

  • Workers receive unemployment benefits from the state where they were employed, even if they reside in a different state. 
  • The benefits provided to any particular individual will vary in two respects:  the number of weeks that they last and their weekly dollar amount.
  •  While some states simply provide the same number of weeks of benefits to all unemployed workers, most states vary the number of weeks according to the amount of a worker’s past earnings,
  • In most states, workers are eligible for a maximum of 26 weeks, although many UI recipients qualify for fewer than the maximum number of weeks because of uneven earnings or a brief work history
  • Dollar amount. The average unemployment benefit is a little more than $300 per week. But individual benefit levels vary greatly depending on the state and the worker’s previous earnings. In addition, in several states, workers receive higher benefits if they have dependents. 
  • State laws typically aim to replace about half of a worker’s previous earnings up to a maximum benefit level.

13____Three programs can potentially provide extra weeks of benefits to workers in states where unemployment has increased significantly:  (1) temporary federal programs that Congress generally establishes during national economic downturns; (2) the permanent federal-state Extended Benefits (EB) program, which is available to hard-hit states even when the national economy is not performing poorly; and (3) additional temporary or permanent programs that states sometimes put in place. The dollar amount of additional benefits an individual receives is typically the same as his or her regular state benefits and the duration is based on the duration of those regular benefits. 

14_____Unemployment is high during economic recessions and in the early stages of economic recoveries

15_____The permanent Extended Benefits program.  Congress enacted the EB program in 1970 to provide additional weeks of benefits to workers in high-unemployment states who have exhausted their regular, state-provided UI benefits.  Normally, the federal government and the states split the cost of EB equally.  However, the federal government began to fully fund the program on a temporary basis following enactment of the Recovery Act in February 2009.  States resumed responsibility for their half of the funding in 2014.

16_____A state must provide up to 13 weeks of EB when the insured unemployment rate (IUR) â€” the number of UI recipients as a percentage of the total number of people working in jobs in which they would potentially be eligible for UI— reaches at least 5 percent and if the IUR is at least 20 percent higher than it was during the same period in each of the previous two years.

17_____The basic UI system is funded by taxes that employers pay on behalf of their employees

18_____States levy taxes on employers to finance regular UI benefits for unemployed workers (the federal government typically picks up the full tab for temporary emergency UI benefit programs such as EUC)

19_____The federal tax is equal to 0.6 percent of the first $7,000 paid annually to each employee. This tax is regressive; because most workers earn more than $7,000 per year, they are effectively paying the same flat tax of $42 per year regardless of income.  FUTA taxes thus represent a much smaller share of the wages of high-wage workers than low-wage workers.

20_____UI puts money on the hands of unemployed workers


Your answers, including essay, MUST be:

1-Include your first and last names

2-Include Course’s name and Assignment’s number

3-Submitted through Canvas

Late Assignments will automatically be graded as a D or 68 points (a passing grade)

Answer & Explanation

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  1. True
  2. False
  3. True
  4. True
  5. True
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