Unemployment Quiz JPE (IB)

1. What is the primary measure of unemployment in an economy?

• GDP
• CPI
• Unemployment rate
• Inflation rate

2. Which of the following is a difficulty associated with measuring unemployment accurately?

• Lack of data
• Underreporting of unemployment
• High participation rate
• Consistency in reporting

3. Which type of unemployment is caused by fluctuations in the business cycle?

• Structural
• Seasonal
• Cyclical
• Frictional

4. The natural rate of unemployment is the sum of which types of unemployment?

• Structural, seasonal
• Frictional, cyclical
• Structural, seasonal, frictional
• Cyclical, seasonal

5. What are the economic costs of unemployment?

• Personal and social costs
• Personal costs only
• Social costs only
• No costs

6. If the unemployment rate is 5% and the total labor force is 200 million, how many people are unemployed?

• 10 million
• 15 million
• 20 million
• 25 million

7. In which diagram can you represent the impact of a fall in the demand for labor for a particular market or geographical area?

• Supply and demand in a particular market

• Minimum wage
• Deflationary gap
• Phillips curve

8. Which type of unemployment occurs due to changes in the seasons, such as agricultural workers being unemployed in the winter?

• Structural
• Seasonal
• Cyclical
• Frictional

9. When the economy is operating below its potential output, what type of unemployment is likely to be present?

• Structural
• Seasonal
• Cyclical
• Frictional

10. Which factor contributes to frictional unemployment?

• Changes in technology
• Business cycle fluctuations
• Minimum wage laws
• Lack of job information