#1
In the context of unemployment, what does the term 'discouraged workers' refer to?
Workers who have given up looking for a job but are still counted as unemployed
ExplanationDiscouraged workers are those who cease job search but are still considered unemployed.
#2
What is the role of the Bureau of Labor Statistics (BLS) in measuring unemployment?
It conducts surveys to gather data on employment and unemployment and calculates various unemployment rates
ExplanationBLS gathers data and computes unemployment rates using surveys.
#3
In the context of unemployment, what is the concept of 'underemployment'?
Being employed part-time but desiring full-time employment
ExplanationUnderemployment involves part-time employment despite seeking full-time work.
#4
What is the definition of frictional unemployment?
Unemployment caused by a mismatch between the skills of workers and the requirements of jobs
ExplanationMismatch between skills and job requirements leads to frictional unemployment.
#5
Which of the following is an example of structural unemployment?
A worker being laid off because their skills are no longer in demand
ExplanationLosing a job due to outdated skills exemplifies structural unemployment.
#6
Which type of unemployment is most likely to occur during an economic recession?
Cyclical unemployment
ExplanationCyclical unemployment is prevalent during economic downturns.
#7
What is the purpose of the U-6 unemployment rate?
To include all unemployed individuals, including discouraged workers and part-time workers
ExplanationU-6 rate accounts for all unemployed, including part-time workers and discouraged ones.
#8
What is the concept of 'hidden unemployment'?
Unemployment that is not reflected in official statistics due to underreporting or misclassification
ExplanationHidden unemployment occurs due to underreporting or misclassification in official stats.
#9
What is the impact of technological advancements on structural unemployment?
It can increase or decrease structural unemployment depending on the nature of the technological change
ExplanationTechnological advances can either raise or lower structural unemployment.
#10
What is the Phillips curve used to illustrate in economics?
The relationship between inflation and unemployment
ExplanationPhillips curve illustrates the trade-off between inflation and unemployment.
#11
What is the labor force participation rate?
The percentage of the working-age population that is either employed or actively seeking employment
ExplanationLabor force participation rate measures the active workforce as a percentage of the total working-age population.
#12
What is the natural rate of unemployment?
The rate of unemployment that prevails when the economy is operating at full employment
ExplanationNatural rate of unemployment is the level during full employment.
#13
In the context of unemployment, what does 'full employment' mean?
The economy is operating at its maximum potential output with a low level of cyclical unemployment
ExplanationFull employment means maximum output with minimal cyclical unemployment.
#14
Which economic theory suggests that unemployment may result from wage rates being too high?
Classical economics
ExplanationClassical economics posits high wage rates may lead to unemployment.
#15
What is the primary focus of supply-side policies to reduce unemployment?
Reducing taxes and regulations to stimulate business growth and job creation
ExplanationSupply-side policies aim to stimulate business growth and job creation through tax and regulation reduction.