#1
Which type of unemployment occurs when individuals are transitioning between jobs?
Frictional unemployment
ExplanationOccurs during job transitions.
#2
Which economist is known for his work on the concept of 'Full Employment'?
John Maynard Keynes
ExplanationAdvocated for government intervention during downturns.
#3
In economics, what is the natural rate of unemployment?
5%
ExplanationAn equilibrium rate in the economy.
#4
Which of the following is NOT a type of unemployment?
Inflationary unemployment
ExplanationNot recognized as a form of unemployment.
#5
What is the concept of the 'Natural Rate of Unemployment' based on?
Inherent economic factors
ExplanationDetermined by economic fundamentals.
#6
What is the term used to describe the unemployment rate that exists when the economy is at full employment?
Natural unemployment rate
ExplanationOccurs when economy reaches full capacity.
#7
What does the term 'underemployment' refer to in the context of unemployment?
Working at a job below one's skill level
ExplanationNot fully utilizing skills in current employment.
#8
Which type of unemployment is often associated with changes in technology and industry structure?
Structural unemployment
ExplanationResult of shifts in economic landscape.
#9
What is the Phillips Curve used to illustrate in the context of unemployment and inflation?
Negative relationship between unemployment and inflation
ExplanationInverse correlation between inflation and unemployment.
#10
Which policy tool is commonly used to reduce unemployment during a recession?
Expansionary monetary policy
ExplanationIncreases money supply to stimulate economic activity.
#11
Which of the following is a consequence of long-term structural unemployment?
Persistent income inequality
ExplanationLeads to enduring disparity in earnings.
#12
How does the discouraged worker effect influence the official unemployment rate?
Decreases the official unemployment rate
ExplanationReduces reported unemployment figures.
#13
Which factor is primarily responsible for cyclical unemployment?
Fluctuations in business cycles
ExplanationTied to economic ups and downs.
#14
In the Phillips Curve, what does a point on the curve represent?
A trade-off between inflation and unemployment
ExplanationBalancing act between price stability and joblessness.