#1
Which of the following is considered a type of unemployment caused by seasonal variations in employment?
Seasonal unemployment
ExplanationUnemployment resulting from seasonal changes in labor demand.
#2
Which type of unemployment arises due to changes in the structure of the economy?
Structural unemployment
ExplanationUnemployment caused by shifts in economic structure.
#3
Which of the following is NOT a component of the labor force?
Individuals who are retired
ExplanationRetired individuals are not actively part of the labor force.
#4
What is the purpose of the unemployment insurance system?
To provide temporary financial assistance to individuals who are unemployed through no fault of their own
ExplanationTemporary financial aid for involuntary unemployment.
#5
What is the primary cause of frictional unemployment?
Mismatch of skills and job requirements
ExplanationDiscrepancy between skills and available jobs.
#6
What does the labor force participation rate measure?
The percentage of the working-age population that is employed or actively seeking employment
ExplanationPercentage of eligible workers either employed or seeking employment.
#7
What is the concept that refers to individuals who have given up searching for employment due to discouragement?
Discouraged workers
ExplanationPeople who cease looking for jobs due to frustration.
#8
Which of the following is NOT a factor that contributes to structural unemployment?
Minimum wage laws
ExplanationMinimum wage laws do not directly contribute to structural unemployment.
#9
What does the term 'discouraged worker' refer to?
A person who has given up looking for a job due to lack of success in finding one
ExplanationIndividuals who stop seeking employment due to lack of opportunities.
#10
What is the formula for calculating the unemployment rate?
(Number of unemployed / Labor force) * 100
ExplanationPercentage of unemployed individuals relative to the labor force.
#11
What is the concept of full employment?
Maximum employment achievable without causing inflation
ExplanationOptimal employment level without inflationary pressures.
#12
What is the natural rate of unemployment?
The unemployment rate that exists when the economy is at full employment
ExplanationStable rate of unemployment in an economy at full capacity.
#13
What is the difference between full employment and the natural rate of unemployment?
Full employment refers to maximum employment without causing inflation, while the natural rate of unemployment is the unemployment rate that exists at full employment.
ExplanationFull employment vs. the stable unemployment rate at full capacity.
#14
Which of the following is NOT a solution to reduce structural unemployment?
Implementing policies to stimulate aggregate demand
ExplanationAggregate demand policies do not directly address structural unemployment.
#15
What is the difference between the U-3 and U-6 unemployment rates?
U-3 is the official unemployment rate, while U-6 includes discouraged workers and those working part-time for economic reasons.
ExplanationOfficial vs. broader unemployment rate including additional categories.