#1
Which of the following is NOT considered a type of unemployment?
Inflationary unemployment
ExplanationUnemployment not caused by rising prices.
#2
What is the labor force participation rate?
The percentage of the working-age population that is in the labor force
ExplanationPercentage of eligible individuals actively seeking work.
#3
Which of the following is NOT a measure of unemployment?
Inflation rate
ExplanationInflation concerns price level, not job market.
#4
What does the term 'discouraged worker' refer to?
A worker who is no longer seeking employment due to lack of job opportunities
ExplanationIndividuals ceasing job search due to bleak prospects.
#5
Which of the following best describes structural unemployment?
Unemployment caused by changes in technology or industry structure
ExplanationJoblessness due to shifts in industry or tech.
#6
What does the unemployment rate measure?
The percentage of the labor force that is unemployed
ExplanationProportion of those seeking work but unable to find it.
#7
What is the discouraged worker effect?
When workers become discouraged due to long-term unemployment and drop out of the labor force
ExplanationPeople quitting job search due to prolonged failure.
#8
Which of the following is an example of cyclical unemployment?
A worker who is laid off during a recession
ExplanationJoblessness due to economic downturns.
#9
Which of the following best describes the concept of underemployment?
When workers are employed but are not working at their full capacity or skill level
ExplanationEmployees not utilizing full skills in current job.
#10
Which of the following factors does NOT affect the natural rate of unemployment?
Economic growth
ExplanationEconomic expansion doesn't alter natural unemployment.
#11
What is full employment?
A state where the unemployment rate is at its natural rate
ExplanationEconomy operating at optimal job levels.
#12
What is the Beveridge curve used for?
To analyze the relationship between job vacancies and unemployment
ExplanationGraphical representation of job market dynamics.
#13
What is the difference between structural and frictional unemployment?
Structural unemployment occurs when individuals lose their jobs due to economic downturns, while frictional unemployment arises from the mismatch between job seekers' skills and available jobs.
ExplanationOne results from economic shifts, the other from job-seeker/job mismatch.
#14
What is the relationship between the natural rate of unemployment and potential GDP?
There is no relationship between the two.
ExplanationUnemployment rate not tied to GDP output.