Different Types of Employment Quiz

Frictional and structural unemployment can be alleviated by implementing a supply-side policy such as

• increasing the power of trade unions.

• decreasing government subsidies.

• cutting back on business spending on educational training.

• the government giving tax breaks to companies locating in poor geographic areas.

Suppose the economy was at full employment last year. Now supposed that the U.S. declared war on a country in the Middle East AND created a program ensuring all high school seniors could receive federal funding for college. Given this scenario, which of these would be MOST likely to take place?

• increased unemployment

• a decline in nominal wages

• decreased unemployment

• increased inflation

Based on the information provided in the chart, which statement is correct?

• Women of all age groups have declined in the workforce since the 1950s.

• Women in the labor force have increased in all age groups from the 1950s.

• Women younger than sixty-four have increased in the labor force since the 1950s.

• Very few women of any age group have increased in the work force from the 1950s.

Which type of unemployment would increase if workers lost their jobs because their positions were replaced by an automated process?

• Cyclical

• Frictional

• International

• Structural

Joe has been working at a coffee shop since he graduated from college. But yesterday he realized that if he has to fill another coffee cup he will cry, so he quit his job. He'll look for another job once he gets the smell of coffee out of his clothes.

What kind of unemployment is Joe experiencing?

• cyclical

• frictional

• structural

• technological

Milford has a job as a ski instructor at a resort in Vermont. He does not have a job during the summer months. What type of unemployment is Milford experiencing?

• causal unemployment

• cyclical unemployment

• seasonal unemployment

• structural unemployment

Which type of unemployment would increase if workers lost their jobs because their positions were replaced by an automated process?

• Cyclical

• Frictional

• International

• Structural

Which of these individuals is classified as unemployed?

• a computer programmer who retired early at age 47

• a recent college graduate looking for his first job

• a laid-off factory worker who has given up looking for a new job

• a barista who works as at a coffee shop 20 hours a week but would like to increase their hours

Which choice BEST describes what might happen to unemployment rates, if minimum wage laws were repealed?

• In the short term, unemployment rates would remain stable.

• In the short term, unemployment rates would drop drastically.

• In the short term, unemployment rates would rise drastically.

• In the short term, unemployment rates would depend on other market factors.