Understanding Unemployment: A Quiz

Underemployment includes individuals who:

• Are working part-time but desire full-time work.

• Have been unemployed for a very long time.

• Are working in seasonal jobs.

• Have lost their jobs due to technological advancements.

A decrease in demand for coal leading to coal miners losing their jobs is an example of:

• Cyclical unemployment

• Structural unemployment

• Frictional unemployment

• Seasonal unemployment

Which type of unemployment would likely increase during a recession?

• Frictional unemployment

• Structural unemployment

• Cyclical unemployment

• Seasonal unemployment

A person who is skilled in a job that is becoming obsolete due to technological advancements is most likely to experience:

• Cyclical unemployment

• Structural unemployment

• Frictional unemployment

• Seasonal unemployment

Seasonal unemployment occurs when:

• There is a downturn in the economy.

• People are between jobs.

• There is a mismatch between skills and job requirements.

• Employment fluctuates according to the season or weather.

Which of the following is an example of structural unemployment?

• A ski instructor without a job in the summer.

• A factory worker laid off because of a recession.

• A typewriter manufacturer's employee losing their job due to the rise in computer use.

• A recent college graduate looking for their first job.

The type of unemployment that is often short-term and occurs when people are transitioning from one job to another is:

• Cyclical unemployment

• Structural unemployment

• Frictional unemployment

• Seasonal unemployment

What is frictional unemployment?

• Unemployment due to the time workers spend in job search.

• Unemployment caused by a downturn in the economy.

• Unemployment due to seasonal variations in employment.

• Unemployment caused by changes in the structure of the economy.

If Bob had been looking for a job, but gives up looking and becomes a discouraged worker then what will happen to the number of people unemployed and to the labor force participation rate?

• They would both go up

• They would both go down

• The number of people employed would go up and the labor force participation rate would go down

• The number of people employed would go down and the labor force participation rate would go up