30 Employment and Unemployment

Which of the following defined as 'being without a job while willing and able to work'?

• employment

• unemployment

• full employment

• labour force

Which type of unemployment occurs due to the long-term changes in the pattern of demand and methods of production?

• frictional

• structural

• cyclical

• seasonal

Which of the following is not part of the workforce?

• employed

• unemployed

• pensioner

• self-employed

It measures the number of people who are out of work and claiming unemployment benefits.

• labour force survey

• claimant count

• unemployment rate

• productivity rate

Which of the following are of working age, but do not form a part of the labour force?

• people past the age of retirement

• people who are in full-time education

• The self-employed

• The unemployed

A country's steel industry is closed down, as buyers switch their purchases of steel to another country. What type of unemployment will occur as result of this?

• cyclical

• frictional

• seasonal

• structural

What is a cost of unemployment?

• higher tax revenue

• lower productivity

• lost output

• reduced inflationary pressure

Which policy is most likely to reduce cyclical unemployment?

• a reduction on government expenditure

• a reduction in interest rates

• an increase in direct taxes

• an increase in indirect taxes

If 5 million people are unemployed out of 40 million labour force. What is the unemployment rate?

• 11%

• 12.5%

• 14.3%

• 22%

A country has a population of 120 million anda labour force of 50 million, of which 6 million of its labour force are unemployed. What is the unemployment rate?

• 3.53%

• 5%

• 10.71%

• 12%