Cyclical unemployment is the:

unemployment that occurs during recessions and depressions

unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work.

portion of unemployment that is due to the normal working of the labor market

portion of unemployment that is due to changes in the structure of the economy that results in a significant loss of jobs in certain industries

Discouraged workers do not count towards the unemployment rate because they are not looking for work and have dropped out of the labor force. Classifying discouraged workers as unemployed would

increase the unemployment rate.

have an indeterminate impact on the unemployment rate.

not change the unemployment rate.

Which of the following WOULD be included as a member of the labor force?

A recent high school graduate looking for a first job.

A homemaker contributing 15 hours per week as a volunteer worker in a hospital

A retired school teacher collecting social security benefits

Which one of the following persons would NOT be considered unemployed?

A construction worker who has given up looking for work after 18 months without a job.

An elderly man actively looking for part-time work to supplement Social Security income.

An auto worker was laid off before the production of new models begins next month. He does not know for sure whether he will be called back to work when this happens, and looked for a new job last week.

A college student looking for a part-time job during the school year.

The labor force participation rate measures the number of people

in the labor force as a percentage of the adult population at least sixteen years old.

in the labor force as a percentage of the total population.

Frictional unemployment often occurs when

People first enter the labor force

People are discriminated against

People lose a job because their skills are no longer needed

Suppose more women decide to stay at home and raise their pre-school aged children. We would expect:

the labor force participation rate for females to fall.

the labor force participation rate for females to rise.

the labor force participation rate for females to remain the same

Who would be included in the labor force?

Dave, who does not have a job, but is looking for work

Bruce, a full-time student not looking for work

Joe, a stay at home Dad who is not interested in returning to work

Jordan loses his job and immediately begins looking for another. As a result,

the unemployment rate increases

the unemployment rate is unaffected

the unemployment rate decreases

the unemployment rate stays the same

Frictional unemployment occurs when which of the following happens?

A worker voluntarily quits a job to search for a better one.

A worker is replaced by robots on factory assembly lines.

A worker is laid off because of a downturn in economic activity.

A worker undergoes on-the-job training.

A worker switches from working full-time to part-time.

Which of the following individuals is considered officially unemployed?

Dan, who recently left a job to look for a different job in another town

James, who has not worked for more than three years and has given up looking for work

Jorge, who is going to school full-time and is waiting until graduation before looking for a job

Shannon, who retired after turning 65 only five months ago

Brian, who is working 20 hours per week and is seeking full-time employment

The unemployment rate is calculated as

unemployed divided by the labor force.

Unemployed divided by the adult population

unemployed plus employed plus labor force.

Structural unemployment is best described as unemployment arising from

the elimination of jobs as a result of technological change

an increase in the number of workers searching for better-paying jobs

an increase in the number of jobs demanding unskilled labor

the temporary reduction of jobs during a downturn in the business cycle

the reduction in jobs due to a seasonal change

The official unemployment rate might be considered understated because the official unemployment rate

ignores underemployed and discouraged workers

ignores how long people are unemployed

includes jobs created by the underground economy

excludes all unemployed teenagers

excludes frictionally unemployed workers

Which of the following individuals is considered underemployed?

Brian, who is working 20 hours per week and is seeking full-time employment

James, who has not worked for more than three years and has given up looking for work

Jorge, who is going to school full-time and is waiting until graduation before looking for a job

Dan, who recently left a job to look for a different job in another town

Shannon, who retired after turning 65 only five months ago

One argument against raising the minimum wage is that it will

help low income workers too much

benefit the wealthy business owners by having skilled workers

A previously unemployed worker gives up looking. How will this affect the unemployment rate?

increase but the labor force participation rate will increase

Out of the following, which would be considered unemployed by the Bureau of Labor Statistics?

An individual who lost their job due when the local factory closed down and is actively seeking employment.

Someone that fell ill and claimed disability insurance but is no longer looking for work.

A person that became frustrated with the labor market, went back to school, and quit looking for work.

Individuals who quit their jobs to take on entrepreneurial endeavors.

Unemployment Test

Quiz

•

others

•

Practice Problem

•

Hard

Matt Duggin

FREE Resource

50 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What type of unemployment would this individual be experiencing? A software engineer is laid off because their company outsourced jobs to India.

Frictional

Structural

Cyclical

Seasonal

Not counted in labor force

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Frictional

Structural

Cyclical

Seasonal

Not counted in labor force

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Unemployment Test

50 questions

What type of unemployment would this individual be experiencing? A software engineer is laid off because their company outsourced jobs to India.

What type of unemployment would this individual be experiencing? Workers lose their jobs at a paper factory due to a steep downturn in demand because of a recession.

What type of unemployment would this individual be experiencing? A single mother who has been out of the workforce decides to start looking again for part-time work when she finds that affordable childcare is available in her local town.

What type of unemployment would this individual be experiencing? Employees at a brick manufacturer are laid off following a recession in the housing market.

What type of unemployment would this individual be experiencing? A number of workers are laid off when General Motors incorporates robotic workers to replace the human assembly-line production.

What type of unemployment would this individual be experiencing? Employees at a brick manufacturer are laid off during the cold Chicago winter.

What type of unemployment would this individual be experiencing? A newly graduated college student decides to go back to school for a graduate degree rather than try to find a job during a down economy.

What type of unemployment would this individual be experiencing? A building firm lay off ten workers for three weeks and closes their existing building sites because of harsh weather in the winter.

What type of unemployment would this individual be experiencing? A former bank manager decides to leave her job and take early retirement in order to look after an elderly relative. She is not looking for a job.

Someone that is working a job that they have too much education, training or skills for would be considered

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