Economics Quiz

What is the primary concern of economies?

• Achieving macroeconomic objectives

• Increasing unemployment rate

• Maintaining price stability

• Improving the standard of living

What does full employment indicate?

• Non-zero, low rate of unemployment

• High rate of unemployment

• Involuntary unemployment for all jobseekers

• Excess supply of labour

How is unemployment rate calculated?

• Percentage of employed persons to the labour force

• Percentage of job vacancies to the labour force

• Percentage of unemployed persons to the labour force

• Percentage of labour force to the total population

What is the main cause of demand-deficient unemployment?

• Rise in aggregate demand

• Increase in labour productivity

• Fall in demand for final goods and services

• Rise in labour supply

What type of unemployment occurs when there is a mismatch of skills between the unemployed and job opportunities?

• Frictional unemployment

• Structural unemployment

• Disequilibrium unemployment

• Equilibrium unemployment

What is the main cause of frictional unemployment?

• High costs of moving

• Imperfect information in the labour market

• Technological advancements

• Resistance to change

What are the effects of unemployment on consumers?

• Increase in standard of living

• Decrease in crime levels

• Positive correlation with mental illnesses

• Fall in material living standards

How does unemployment affect firms?

• Reduces profitability

• Decreases productivity

• Increases cost of labour

• Increases demand for goods and services

What is a benefit of being unemployed?

• Higher income

• More time for leisure activities

• Increased job security

• Improved career objectives

What is the significance of unemployment rate?

• Has no impact on the economy

• Depends on the cause, rate, and duration

• Is always a serious problem

• Is directly proportional to GDP growth