Unemployment refers to:
A) The number of people who are actively seeking work but are unable to find jobs
B) The total number of people working in an economy
C) The number of people who have retired
D) The number of people who are self-employed
Which of the following is a type of unemployment that occurs due to changes in demand for products and services?
A) Frictional unemployment
B) Structural unemployment
C) Cyclical unemployment
D) Seasonal unemployment
The unemployment that occurs when workers are temporarily out of work between jobs is called:
A) Frictional unemployment
B) Seasonal unemployment
C) Structural unemployment
D) Cyclical unemployment
Which of the following is a cause of structural unemployment?
A) Recession in the economy
B) Technological changes making certain jobs obsolete
C) Seasonal changes in demand for certain goods
D) Workers temporarily between jobs
What is the primary cause of seasonal unemployment?
A) Economic recessions
B) Changing technology
C) Fluctuations in demand for certain jobs during specific seasons
D) Government policies
Which type of unemployment is most likely to occur during an economic downturn?
A) Frictional unemployment
B) Cyclical unemployment
C) Structural unemployment
D) Classical unemployment
Which of the following is an example of frictional unemployment?
A) A software engineer loses a job due to a company’s bankruptcy.
B) A farmer is unemployed during the winter season.
C) A teacher quits their job and searches for a new one.
D) A factory worker is laid off due to automation.
What type of unemployment is associated with a mismatch between workers’ skills and available jobs?
A) Structural unemployment
B) Frictional unemployment
C) Cyclical unemployment
D) Seasonal unemployment
Which of the following would most likely reduce the level of cyclical unemployment?
A) Technological advancements
B) Economic recovery and growth
C) Seasonal changes in production
D) Workers acquiring new skills
Unemployment that occurs when individuals are unable to find work due to a lack of demand for goods and services is known as:
A) Cyclical unemployment
B) Structural unemployment
C) Frictional unemployment
D) Classical unemployment
Which of the following is a cause of classical unemployment?
A) Insufficient demand for goods and services
B) A mismatch between workers’ skills and job requirements
C) Minimum wage laws setting wages too high
D) A worker’s temporary absence from the labor force
Which of the following is an example of seasonal unemployment?
A) A teacher looking for a job during summer break
B) A construction worker unemployed due to economic recession
C) A retail worker unemployed during an off-season
D) A technology professional between job contracts
Which type of unemployment is caused by factors such as changes in government policies or economic restructuring?
A) Cyclical unemployment
B) Structural unemployment
C) Seasonal unemployment
D) Frictional unemployment
Which of the following best describes the situation of a person laid off due to automation in a factory?
A) Frictional unemployment
B) Cyclical unemployment
C) Structural unemployment
D) Seasonal unemployment
Frictional unemployment can be considered:
A) Temporary and short-term
B) Long-term and persistent
C) Caused by insufficient demand
D) Caused by technological obsolescence
The natural rate of unemployment includes:
A) Only cyclical unemployment
B) Only structural unemployment
C) Only frictional unemployment
D) A combination of frictional and structural unemployment
Which of the following is a likely consequence of high levels of structural unemployment in an economy?
A) High inflation
B) Increased government spending
C) Long-term unemployment for specific sectors of workers
D) Decreased economic growth
Which type of unemployment is primarily caused by a reduction in consumer spending?
A) Cyclical unemployment
B) Structural unemployment
C) Frictional unemployment
D) Classical unemployment
Which of the following could reduce structural unemployment?
A) Increasing demand for goods and services
B) Workers acquiring new skills that match job requirements
C) Short-term government subsidies
D) Cutting wages across all sectors
What type of unemployment tends to be highest during an economic recession?
A) Cyclical unemployment
B) Structural unemployment
C) Frictional unemployment
D) Classical unemployment
The unemployment rate is calculated by dividing:
A) The number of unemployed individuals by the working-age population
B) The total population by the number of people employed
C) The number of job openings by the number of unemployed
D) The number of job seekers by the number of workers employed
Which of the following would likely reduce frictional unemployment?
A) Increased job-search assistance programs
B) Higher wages for all workers
C) Economic expansion in all sectors
D) Automation of jobs
Which of the following is the most likely consequence of high cyclical unemployment?
A) Long-term unemployment in specific industries
B) Increased wages across all sectors
C) Reduced consumer spending due to job loss
D) Higher levels of investment in the economy
Which of the following best explains why cyclical unemployment tends to increase during recessions?
A) Lack of available workers
B) Mismatch of skills to job opportunities
C) Reduced demand for goods and services
D) Inability of workers to find suitable locations
Which of the following can lead to increased frictional unemployment in an economy?
A) Lack of economic growth
B) Increased labor force participation
C) Increased business investment
D) New technology causing job displacements
In which type of unemployment do workers experience job loss due to automation?
A) Cyclical unemployment
B) Structural unemployment
C) Frictional unemployment
D) Classical unemployment
