L18 Unemployment Policy Solutions

Multiple Choice

If a small village contains 100 adults, of whom 60 are working, 20 are looking for work, and 20 are neither working nor looking for work, what is the labor force participation rate?

• 60%

• 40%

• 80%

• 20%

Multiple Choice

If a small village contains 100 adults, of whom 60 are working, 20 are looking for work, and 20 are neither working nor looking for work, what is the unemployment rate?

• 40%

• 25%

• 60%

• 75%

Multiple Choice

1. __________ unemployment exists when there are more people looking for work than there are jobs available at the existing wage rate. 

• Cyclical

• Frictional

• Natural

• Structural

Multiple Choice

Unemployment that exists because it takes time to match workers to jobs for which they are qualified is called

• Structural Unemployment

• Frictional Unemployment

• Cyclical Unemployment

• Matching Unemployment

Multiple Choice

If automation and AI make many jobs obsolete, what type of unemployment could increase as a result?

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

• Natural Unemployment

Multiple Choice

The economy is often said to be operating at full employment when unemployment is equal to __________.

• zero

• the frictional unemployment rate

• the natural rate of unemployment

• the structural unemployment rate