Quiz on Unemployment

What is the best measure of utilization in a service-based economy?

• Inflation rate

• Industrial capacity utilization

• Unemployment rate

• GDP growth rate

• Unemployment rate is the

• percent of labor force that is jobless & looking for work 

• number of people in the labor force that are jobless & looking for work 

1. 1. Excessive, persistent unemployment is inefficient 

2. Promotes inequality since least experienced lose jobs first

3. Discourages workers who lose faith in ability to find good job

• Causes of Unemployement

• Impact of Unemployment

What type of unemployment is the deviation of actual unemployment from the natural rate of unemployment?

• Total employed part-time for economic reasons

• Marginally attached workers

• Discouraged workers

• All of the above

• Jobs are lost as industries decline due to structural change in the economy e.g. ship building industries

• This is known as:

• Cyclical Unemployment

• Frictional Unemployment

• Structural Unemployment

• Seasonal Unemployment

• This is general unemployment that occurs across many industries due to an economic downturn or recession.

• Cyclical Unemployment

• Seasonal Unemployment

• Frictional Unemployment

• Structural Unemployment

• This occurs when people take some time to find another job after losing or leaving their previous one

• Cyclical Unemployment

• Frictional Unemployment

• Structural Unemployment

• Seasonal Unemployment

Which of the following best describes an increase in structural unemployment?

• An economy enters a recession

• • People become less willing to move to another state for a job

• • People must undergo a long retraining process in new skills after losing their jobs

• More job-search websites are created to better match job seekers with jobs