What is the primary cause of cyclical unemployment?
a) Changes in technology
b) Fluctuations in the business cycle
c) Government labor policies
d) Increase in population
Which type of unemployment occurs when workers’ skills do not match job requirements?
a) Frictional unemployment
b) Structural unemployment
c) Seasonal unemployment
d) Cyclical unemployment
What is frictional unemployment?
a) Unemployment due to business recessions
b) Unemployment caused by workers switching jobs
c) Long-term unemployment due to structural changes
d) Unemployment resulting from globalization
Which government policy is aimed at reducing unemployment?
a) Raising corporate taxes
b) Increasing interest rates
c) Implementing job training programs
d) Reducing government spending
What is the natural rate of unemployment?
a) 0% unemployment in an economy
b) The minimum level of unemployment expected in a healthy economy
c) The unemployment rate during a recession
d) The unemployment rate after government intervention
Which of the following is an example of seasonal unemployment?
a) A factory worker losing their job due to automation
b) A lifeguard being out of work in winter
c) A software engineer between jobs
d) A worker losing their job due to an economic downturn
What is the main goal of labor market policies?
a) To reduce economic growth
b) To protect workers and promote employment
c) To increase government control over businesses
d) To eliminate all unemployment
Which organization is responsible for global labor standards?
a) WHO
b) IMF
c) ILO
d) WTO
What is the purpose of minimum wage laws?
a) To eliminate the need for labor unions
b) To ensure workers receive fair compensation
c) To reduce inflation
d) To lower government spending
Which type of policy aims to create more job opportunities?
a) Expansionary fiscal policy
b) Contractionary monetary policy
c) Deregulation of labor laws
d) Increasing corporate taxes
What is underemployment?
a) Working fewer hours than desired or in a job below one’s skill level
b) Being completely out of work
c) Receiving benefits while unemployed
d) Working for multiple employers
What is the labor force participation rate?
a) The total number of unemployed individuals
b) The percentage of working-age people who are employed or seeking work
c) The number of full-time workers in an economy
d) The rate at which workers retire
Which of the following is a demand-side cause of unemployment?
a) Lack of worker skills
b) Outsourcing of jobs
c) Declining consumer demand
d) Changes in technology
What is the Gig Economy?
a) A type of economy based only on agriculture
b) Short-term, flexible jobs rather than traditional full-time employment
c) A financial crisis caused by government policies
d) An economic downturn affecting multiple industries
Which of the following is not a cause of unemployment?
a) Automation
b) Population growth
c) Government investment in infrastructure
d) Economic recessions
What is the hidden unemployment?
a) Unemployment that is unreported due to lack of government data
b) The number of people working multiple jobs
c) Unemployment that is seasonal in nature
d) Unemployment among highly skilled workers
What is the main objective of unemployment insurance?
a) To provide financial support to workers between jobs
b) To encourage people to stop working
c) To reduce government revenue
d) To increase the number of temporary jobs
Which sector typically experiences the lowest unemployment rates?
a) Agricultural sector
b) Manufacturing sector
c) Public sector
d) Informal sector
What is labor mobility?
a) The movement of workers between jobs, sectors, or regions
b) The ability to work from home
c) A government program to increase employment
d) The shift from full-time to part-time employment
What is the main goal of vocational training programs?
a) To increase government spending
b) To improve worker skills and employability
c) To reduce labor force participation
d) To eliminate private-sector jobs
Which factor is most likely to reduce unemployment in the long run?
a) Increasing interest rates
b) Investing in education and skill development
c) Reducing worker rights
d) Implementing trade restrictions
What does job security refer to?
a) The likelihood that an employee will keep their job
b) The number of jobs in an industry
c) The wages paid to employees
d) The overall unemployment rate
