Understanding Unemployment

What is the definition of unemployment?

• People without jobs who are not looking for work

• People without jobs who are actively seeking work

• People with part-time jobs who want full-time work

• People who are retired from the labor force

Which of the following people would be counted as unemployed?

• A recent college graduate actively searching for a job

• A retiree who occasionally volunteers at a local charity

• A stay-at-home parent who does not work outside the home

• A part-time worker looking for additional hours

The unemployment rate is calculated by dividing the number of unemployed people by the:

• total population

• working-age population

• employed population

• labor force

Frictional unemployment occurs when:

• Workers are replaced due to technological advancements

• The economy is in a recession

• People are temporarily between jobs or searching for new ones

• Workers do not have the required skills for available jobs

Structural unemployment is most likely caused by:

• Changes in consumer preferences and technology

• Short-term layoffs

• Workers transitioning between jobs

• Economic recessions

Which type of unemployment occurs due to a downturn in the economy?

• Frictional unemployment

• Structural unemployment

• Cyclical unemployment

• Seasonal unemployment

Seasonal unemployment can be observed in which of the following sectors?

• Technology

• Agriculture

• Banking

• Healthcare

The natural rate of unemployment is composed of:

• Frictional and cyclical unemployment

• Structural and frictional unemployment

• Cyclical and seasonal unemployment

• Seasonal and frictional unemployment

If the labor force consists of 500 people and 50 of them are unemployed, the unemployment rate is:

• 5%

• 10%

• 15%

• 20%

Full employment occurs when:

• Everyone in the labor force is employed

• Only cyclical unemployment exists

• Only frictional and structural unemployment exist

• There is no frictional unemployment