The goal of full employment

What does the goal of full employment aim to achieve?

• Zero unemployment for all working-age individuals

• A balance between the availability of jobs and the number of job seekers

• Employment for every individual, regardless of skills or experience

• Maximum possible employment without causing high inflation

What is NAIRU (natural rate of unemployment)?

• The highest possible unemployment rate in an economy

• The unemployment rate when the economy is producing at its potential output

• The unemployment rate that is required for a stable rate of inflation

• The minimum unemployment rate that can be achieved without causing a recession

Which of the following is an example of frictional unemployment?

• A person who has been unemployed for over a year

• A person who lost their job due to technological advancements

• A person who is in between jobs during a job search

• A person who works fewer hours than desired

Which of these groups is considered part of the hidden unemployed?

• Individuals actively looking for a job

• Individuals who have given up looking for a job

• Individuals who are currently employed but seeking better opportunities

• Individuals who are temporarily laid off

The long-term unemployed are individuals who have been unemployed for:

• At least six months

• At least one year

• At least three months

• At least two years

Underemployment occurs when:

• An individual works fewer hours than desired

• An individual is overqualified for their job

• An individual has been unemployed for an extended period

•  Both A and B

The labour force participation rate is calculated as:

• (Employed + Unemployed) / Total working-age population

• (Employed + Unemployed) / Total population

• Employed / (Employed + Unemployed)

• Unemployed / (Employed + Unemployed)

The unemployment rate is calculated as:

• Unemployed / (Employed + Unemployed)

• Employed / (Employed + Unemployed)

• Unemployed / Total working-age population

• Unemployed / Total population

The labour force under-utilisation rate takes into account:

• Unemployment rate only

• Underemployment rate only

• Both unemployment and underemployment rates

• Neither unemployment nor underemployment rates

Cyclical unemployment is:

• Caused by changes in the business cycle

• A result of long-lasting unemployment

• Due to a mismatch between skills and job requirements

• A result of people voluntarily leaving jobs