Unemployment Concepts Quiz
Test your knowledge on types, causes, and impacts of unemployment. Learn about frictional, cyclical, and structural unemployment.
#1
Which of the following is NOT considered a type of unemployment?
Structural unemployment
Frictional unemployment
Inflationary unemployment
Cyclical unemployment
#2
What is the main characteristic of frictional unemployment?
It occurs due to a mismatch between the skills of workers and the requirements of available jobs.
It occurs when the economy is in recession.
It occurs when wages are set above the equilibrium wage rate.
It occurs due to changes in technology or international competition.
#3
What is the term used to describe individuals who are willing and able to work but are not actively seeking employment?
Underemployed
Discouraged workers
Marginally attached workers
Involuntary part-time workers
#4
Which of the following is a characteristic of seasonal unemployment?
It occurs due to a mismatch between the skills of workers and available jobs.
It occurs when wages are set above the equilibrium wage rate.
It occurs when workers are laid off due to a downturn in the business cycle.
It occurs due to changes in weather or demand for specific goods or services at certain times of the year.
#5
Which of the following is an example of voluntary unemployment?
A person who is laid off due to a recession.
A person who quits their job to pursue higher education.
A person who is unable to find a job despite actively searching.
A person who is fired for underperforming at work.
#6
Which of the following best describes cyclical unemployment?
It occurs due to changes in technology or international competition.
It occurs when the economy is in recession.
It occurs when wages are set above the equilibrium wage rate.
It occurs due to a mismatch between the skills of workers and the requirements of available jobs.
#7
The natural rate of unemployment is comprised of which types of unemployment?
Structural and frictional unemployment
Frictional and cyclical unemployment
Cyclical and seasonal unemployment
Structural and cyclical unemployment
#8
What is the Okun's Law used to explain?
The relationship between inflation and unemployment.
The relationship between interest rates and investment.
The relationship between government spending and economic growth.
The relationship between GDP growth and unemployment.
#9
Which of the following is NOT a consequence of long-term unemployment?
Loss of skills and human capital.
Increased likelihood of poverty and social exclusion.
Decrease in the natural rate of unemployment.
Mental health issues and lower well-being.
#10
What is the term for the unemployment rate that exists in an economy at full employment?
Cyclical unemployment rate
Structural unemployment rate
Frictional unemployment rate
Natural unemployment rate
#11
What is the impact of unemployment on the economy?
It leads to a decrease in aggregate demand.
It leads to an increase in inflation.
It leads to a decrease in government spending.
It leads to an increase in GDP growth.
#12
What is the Beveridge curve used to analyze?
The relationship between inflation and unemployment.
The relationship between interest rates and investment.
The relationship between job vacancies and unemployment rates.
The relationship between government spending and economic growth.
#13
Which of the following is a policy measure to address unemployment?
Tightening monetary policy to reduce inflation.
Reducing taxes to stimulate consumer spending.
Decreasing government spending on infrastructure.
Increasing interest rates to encourage saving.
#14
In the Phillips Curve, what does a point on the curve represent?
The inverse relationship between inflation and unemployment.
The direct relationship between inflation and unemployment.
The relationship between GDP growth and unemployment.
The relationship between productivity and wages.
#15
What is the impact of technological advancement on unemployment?
It decreases frictional unemployment.
It increases structural unemployment.
It decreases cyclical unemployment.
It increases seasonal unemployment.
Sign In to view more questions.
Quiz Questions with Answers
Forget wasting time on incorrect answers. We deliver the straight-up correct options, along with clear explanations that solidify your understanding.
Popular Quizzes in Labor Economics
Popular Quizzes in Economics
Report