Employment and Unemployment

Cyclic Unemployment occurs when

• There is a fall in the aggregate demand

• Workers are in between jobs

• When there is a fall in population

• Demand falls during different times of the year

Unemployment caused by long-term changes in the patterns of demand is known as

• Cyclic Unemployment

• Frictional Unemployment

• Structural Unemployment

• Seasonal Unemployment

Which of the following policies will be used to reduce frictional unemployment?

• Use supply-side policy measures to improve the performance of the labour market.

• Supply-side policy measures to improve the quality of training and education.

• Expansionary fiscal policy and monetary policy measures to increase government spending and decrease taxes

• Contractionary monetary policy to increase rates of interest

What is a flexible labour force?

• A labour force that is able to specialize in only one form of production

• A labour force that can adjust quickly and smoothly to changes in market conditions

• A labour force that is able to avoid frictional unemployment

• A labour force that is more efficient than capital equipment

What is unemployment

• Being without a job while willing and able to work

• Being without a job while unwilling but able to work

• Being without a job while willing but unable to work

• Being without a job while unwilling and unable to work

What is technological unemployment?

• Unemployment caused by technical problems in the firm

• Unemployment caused by technical diseconomies of scale

• Unemployment caused by workers being replaced by capital equipment

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 iron industry closed down, as buyers switch their purchases of iron to another country, what type of unemployment will occur as a result of this?

• Cyclical

• Seasonal

• Frictional

• Structural

Unemployment arising from workers regularly being between periods of unemployment is what type of unemployment?

• Cyclical unemployment

• Casual unemployment

• Regional unemployment

• Seasonal unemployment

What is a cost of unemployment?

• Low productivity

• Lost output

• Higher tax revenue

• Reduced inflationary pressure