5.2- Unemployment- Inclass Formative

A computer programmer is laid off because of a recession.

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

• Not counted in unemployment

Answer explanation

The correct choice is Cyclical Unemployment because it is caused by economic downturns like recessions, leading to temporary job losses.

A magazine editor leaves his job in New York to look for a new job in San Francisco.

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

• Not counted in unemployment

Answer explanation

The editor voluntarily left his job to search for a new one, indicating Frictional Unemployment where people are temporarily unemployed while transitioning between jobs.

An unemployed college graduate is looking for his first job.

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

• Not counted in unemployment

Answer explanation

The correct choice is Frictional Unemployment because the individual is actively seeking employment, which is a characteristic of frictional unemployment where people are temporarily between jobs.

Advances in technology make the assembly-line worker’s job obsolete.

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

• Not counted in unemployment

Answer explanation

Advances in technology causing the assembly-line worker's job to become obsolete is an example of Structural Unemployment, where skills of workers do not match the available jobs.

Gale is a college sophemore who decides to start looking for a job during her second semester, to pay for tuition.

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

• Not counted in unemployment

Answer explanation

Gale looking for a job is not counted in unemployment as she is a college student seeking part-time work, not currently in the labor force.

Slumping sales lead to the cashier being laid off.

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

• Not counted in unemployment

Answer explanation

Cyclical Unemployment occurs due to economic downturns, such as slumping sales leading to layoffs. This type of unemployment is directly related to the business cycle.

Workers at a clothing production facility in Vermont lose their jobs when the company they work for decides to relocate production to Vietnam.

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

• Not counted in unemployment

Answer explanation

Workers losing their jobs due to the relocation of production to another country is an example of Structural Unemployment, where skills of workers do not match the available job opportunities.

Workers are laid off at a local manufacturing plant when the economy goes bad.

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

• Not counted in unemployment

Answer explanation

Workers being laid off at a local manufacturing plant due to a bad economy is an example of Cyclical Unemployment, which is caused by fluctuations in the business cycle.

A skilled glass blower becomes unemployed when a new machine does the job faster.

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

• Not counted in unemployment

Answer explanation

The correct choice is Structural Unemployment because it refers to unemployment caused by changes in the structure of the economy, such as technological advancements replacing human labor.

A 35 year old former construction worker cannot find a job after looking for 3 months and decides to stop looking.

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

• Not counted in unemployment

Answer explanation

The individual is not counted in unemployment because they have stopped looking for a job; this makes the indivdiual a "Discouraged Worker" which falls under 'Not counted in unemployment.'