Unemployment Rate

When an economy uses all of its labor resources in the most efficient way possible, it has achieved

• full employment.

• minimal unemployment.

• structural unemployment.

• classical employment.

The unemployment rate is a(n) __________ indicator.

• coincident

• irrelevant

• lagging

• leading

Which type of unemployment is voluntary?

• Cyclical unemployment

• Seasonal unemployment

• Structural unemployment

• Frictional unemployment

There are jobs available in Javier’s town; however, none of the jobs are a good match for his skills and experience. This is an example of __________ unemployment.

• seasonal

• structural

• frictional

• technological

Which of the following is an example of technological unemployment:

• The cancellation of a TV show leaves its actors, writers, and production crews out of work.

• The local outlawing of single-use plastics leads to fewer jobs in straw factories.

• The recent trend in healthier eating leads to fewer jobs producing soda.

• The invention of digital photography leads to fewer jobs developing film.

Which of the following is an example of seasonal unemployment:

• A frozen yogurt shop decreases its staff in winter.

• A person moves to Chicago to look for a job that matches his/her skills.

• A truck driver is replaced by a self-driving truck.

• An engineer’s job contract expires.

Which of the following is a potential reason for structural unemployment:

• A change in consumer preferences

• Increased competitiveness of main industries in the economy

• An overabundance of available jobs

• People transitioning between jobs

The poor economy is causing consumer demand and spending to go down. As a result, companies aren’t hiring. This is called __________ unemployment.

• classical

• structural

• frictional

• cyclical

The classical theory of unemployment states that unemployment begins when

• prices decrease.

• wages rise too high.

• demand goes down.

• spending goes up.

According to the classical theory of unemployment, the best solution for unemployment is to

• cut wages.

• increase prices.

• encourage spending.

• decrease inflation.