Unemployment review

Which of the following is the best definition of unemployment?

• Unemployment is the count of jobless people who are between the age of 18 and 65

• Unemployment is the count of jobless people in a country who are seeking work but who do not have a job

• Unemployment is the count of jobless people in a country

• Unemployment is the count of jobless people in a country who are seeking work but who cannot find a job

Using the following data, which of the following is the rate of unemployment? Working population: 26.7 million

Number employed: 25.2 million

• 12.4%

• 4.3%

• 5.62%

• 29.96%

Which of the following is least likely to be a type of underemployment?

• Someone who makes entertaining Youtube clips and makes money from advertising

• A person driving a taxi who is a qualified doctor

• Someone working 5 hours a week on a zero-hours contract who would like to work 30 hours a week

• An individual employed by a firm who is given no work to do

Which of the following is not a problem of measuring unemployment?

• People who are economically inactive

• The amount of frictional unemployment

• Regional and demographic disparities in the unemployment rate

• Underemployment

Which of the following best describes frictional unemployment?

• Occurs because there is low priced foreign competition for a domestic industry

• Occurs because there is a mismatch of skills between potential employers and unemployed workers

• Occurs because there is a fall in demand for workers in a declining industry

• Occurs because there is imperfect communication in the labour market

Which of the following best describes unemployment caused when a business in a declining industry makes employees redundant?

• Seasonal unemployment

• Structural unemployment

• Frictional unemployment

• Demand deficient unemployment

Which of the following is statements are untrue about the diagram below?

• The economy is in short-run equilibrium national income

• Y to YFE is a deflationary gap

• Actual output is below the potential output

• There will only be demand deficient unemployment

Which of the following is least likely to be a problem caused by high unemployment?

• Reduced consumer confidence

• Rising levels of poverty

• Increased budget deficit

• Reduced cost-push pressures in the labour market

In which of the following situations is an economy most likely to experience high unemployment?

• When the economy is in the recovery phase of the business cycle

• When the economy has a deflationary gap

• When consumption spending is increasing

• When the government is using expansionary fiscal policy

Which of the following is unlikely to be a consequence of high unemployment?

• Rising levels of poverty

• Falling consumer confidence

• Rising income inequality

• Falling household debt