Economic Issues: Unemployment & Inflation

Unemployment occurs when a person who is actively searching for employment is unable to find work.

• True

• False

Unemployment Rate is the number of people who could be in the workforce, but are not actively working.

• True

• False

The four types of unemployment are

• traditional

  command

  market

  mixed

• land

  labor

  physical capital

  human capital

• frictional

  seasonal

  structural

  cyclical

This type of unemployment occurs in industries that slow or shut down for a particular time of year.

• frictional

• seasonal

• structural

• cyclical

This type of unemployment happens when workers’ skills do not match the jobs that are available.

It can occur when economy is healthy and growing.

• frictional

• seasonal

• structural

• cyclical

This type of unemployment occurs during recessions, when demand for goods & services drops resulting in a slowdown in production which causes demand for labor to drop.

• frictional

• seasonal

• structural

• cyclical

This type of unemployment occurs when people are in between jobs or returning to the workforce.

• frictional

• seasonal

• structural

• cyclical

Larry normally makes a living by picking citrus fruit, but it is not yet time to harvest any crops.

Which type of unemployment describes this person?

• frictional

• seasonal

• structural

• cyclical

Mrs. Coyne-Logan is a certified social studies teacher. She has filled out hundreds of applications, but she cannot

find any work. This is likely because the labor union keeps the wages for social studies teachers too high. Which type of unemployment describes this person?

• frictional

• seasonal

• structural

• cyclical

Sarah is a personal trainer, but she has no clients. She blames her lack of income on the bad economy

because people are unwilling to spend money on luxury items when money is tight. Which type of unemployment describes this person?

• frictional

• seasonal

• structural

• cyclical