#1
Which of the following is an example of frictional unemployment?
A recent college graduate searching for their first job
ExplanationFrictional unemployment occurs when individuals are temporarily between jobs, such as new graduates seeking employment.
#2
Which of the following is an example of voluntary unemployment?
A worker who quits their job to go back to school full-time
ExplanationVoluntary unemployment occurs when individuals choose not to work, such as leaving a job voluntarily for personal reasons like education or career change.
#3
Which of the following best describes the concept of natural unemployment?
The lowest level of unemployment achievable without causing inflation
ExplanationNatural unemployment represents the portion of the workforce temporarily between jobs, seeking better opportunities without causing inflationary pressure on the economy.
#4
Which of the following best describes seasonal unemployment?
Unemployment resulting from temporary fluctuations in demand for certain goods or services
ExplanationSeasonal unemployment arises due to predictable shifts in demand, such as holiday seasons or changes in weather affecting industries like tourism or agriculture.
#5
What is the primary cause of technological unemployment?
Technological advancements leading to automation
ExplanationTechnological unemployment arises when automation and technological advancements replace human labor, reducing the demand for certain job types.
#6
Structural unemployment occurs when:
There is a mismatch between job seekers' skills and available job openings
ExplanationStructural unemployment arises from long-term changes in the economy, causing a disparity between skills sought by employers and those possessed by job seekers.
#7
Cyclical unemployment is most closely associated with which economic phenomenon?
Fluctuations in the business cycle
ExplanationCyclical unemployment is tied to the economic cycle, increasing during recessions and decreasing during periods of economic growth.
#8
Which factor is most likely to contribute to disguised unemployment?
Underemployment in the agricultural sector
ExplanationDisguised unemployment involves individuals employed but not contributing significantly to productivity, often seen in sectors with excess labor, like agriculture.
#9
What is the main difference between underemployment and unemployment?
Unemployment occurs when individuals are actively seeking jobs, while underemployment refers to people working part-time or below their skill level.
ExplanationUnderemployment refers to individuals not utilizing their full skills or working fewer hours than desired, while unemployment refers to those actively seeking but unable to find work.
#10
Which factor is NOT typically associated with technological unemployment?
Government policies promoting job creation
ExplanationTechnological unemployment results from automation replacing human labor, generally not influenced by government policies aimed at job creation.
#11
In which phase of the business cycle is cyclical unemployment most likely to be at its peak?
Recession
ExplanationDuring a recession, economic activity declines, leading to layoffs and reduced demand for labor, causing cyclical unemployment to peak.
#12
What is the main characteristic of seasonal unemployment?
It is linked to fluctuations in weather or demand for certain goods and services
ExplanationSeasonal unemployment occurs due to predictable patterns, such as changes in weather or holiday demand, affecting specific industries.
#13
Which type of unemployment is likely to be most affected by fiscal and monetary policies?
Cyclical unemployment
ExplanationCyclical unemployment, being tied to economic conditions, is often targeted by government policies aimed at stimulating or stabilizing the economy.
#14
Which type of unemployment is typically considered the most harmful to an economy's long-term growth?
Structural unemployment
ExplanationStructural unemployment can lead to a persistent mismatch between available jobs and skills, hindering economic growth and efficiency.
#15
In which situation might discouraged workers contribute to the unemployment rate?
When they give up looking for jobs and drop out of the labor force
ExplanationDiscouraged workers, no longer actively seeking employment due to perceived lack of opportunities, contribute to the unemployment rate by being excluded from the labor force.
#16
Which type of unemployment is least likely to be influenced by government intervention?
Frictional unemployment
ExplanationFrictional unemployment, resulting from individuals transitioning between jobs, is less influenced by government intervention due to its temporary nature.
#17
How might globalization contribute to structural unemployment?
By reducing barriers to trade, leading to job outsourcing
ExplanationGlobalization can lead to structural unemployment by facilitating job outsourcing as companies seek cheaper labor markets, causing displacement in domestic industries.