macro L8 Quiz

What is the unemployment rate?

• The percentage of people who are willing to work but choose not to

• The percentage of people in the economy who are willing and able to work but who cannot find jobs

• The percentage of people who are unwilling to work

• The percentage of people who are employed

What causes cyclical unemployment?

• Institutional structure of an economy

• People moving between jobs

• Fluctuations in economic activity

• Technological advancements

What is structural unemployment?

• Unemployment caused by people moving between jobs

• Unemployment caused by the institutional structure of an economy or by economic restructuring making some skills obsolete

• Unemployment caused by fluctuations in economic activity

• Unemployment caused by a deficiency in demand

What is frictional unemployment?

• Unemployment caused by fluctuations in economic activity

• Unemployment caused by the institutional structure of an economy

• Unemployment caused by people moving between jobs

• Unemployment caused by technological advancements

What is the definition of full employment?

• An economic climate where everyone has a job they desire.

• An economic climate where nearly everyone who wants a job has one.

• An economic climate where unemployment is zero.

• An economic climate where the government provides jobs for everyone.

What type of unemployment is not highly susceptible to expansionary monetary and fiscal policy?

• Cyclical unemployment

• Frictional unemployment

• Structural unemployment

• Seasonal unemployment

What is the primary cause of structural unemployment?

• Seasonal changes in employment

• Changes in the structure of the economy

• Short-term economic downturns

• High inflation rates

Which of the following is an advantage of strong employment laws?

• Introduces inefficiency into competitive markets

• Creates rigidity and inflexibility in terms of factor mobility

• Reduced worker exploitation

• May keep companies from competing globally

What is one of the drawbacks of strong employment laws?

• Support progressive labour legislation

• Increase labour supply in non-union sector

• Reduced worker exploitation

• Support supply side developments

Which of the following is NOT a drawback of strong employment laws?

• Introduces inefficiency into competitive markets

• Creates rigidity and inflexibility in terms of factor mobility

• Support progressive labour legislation

• May keep companies from competing globally