Economics Unemployment

What type of unemployment occurs when workers are between jobs or are looking for their first job?

• Cyclical

• Frictional

• Structural

• Seasonal

Which of the following best describes structural unemployment?

• Unemployment that occurs due to downturns in the business cycle.

• Unemployment that occurs when job seekers do not have the skills needed for the jobs available.

• Unemployment that occurs due to temporary transitions made by individuals moving between jobs.

• Unemployment due to seasonal variations in job availability.

Cyclical unemployment is directly related to:

• The mismatch of skills in the labour market.

• The normal ups and downs of the economy.

• Changes in the seasons or weather patterns.

• Short-term changes in the demand for labour.

Which indicator is used to measure the percentage of the labour force that is unemployed and actively looking for employment?

• Inflation rate

• Unemployment rate

• Labour force participation rate

• Gross Domestic Product (GDP)

What is the term for the lowest rate of unemployment that an economy can sustain over the long term?

• Full employment

• Natural rate of unemployment

• Zero unemployment

• Equilibrium unemployment

Seasonal unemployment can be best described as:

• Unemployment due to time of year and the nature of the job.

• Unemployment due to economic downturns.

• Unemployment that occurs when workers lack necessary skills.

• Unemployment due to workers changing jobs or entering the workforce.

Which policy would most likely reduce structural unemployment?

• Increasing interest rates

• Reducing income tax rates

• Investing in education and training programs

• Decreasing government spending

1. The what? rate is a key economic indicator that measures the percentage of the labor force that is jobless and actively seeking employment.

1. what? unemployment occurs when individuals are temporarily unemployed while transitioning from one job to another.

1. What? unemployment arises from a mismatch between the skills of the labour force and the skills demanded by employers.