Understanding Unemployment

What is unemployment?

• People not in the labor force

• People who choose not to work

• People actively seeking work but unable to find jobs

• People working part-time

Which of the following is included in the labor force?

• Retirees

• Full-time students not seeking work

• Employed workers and job seekers

• Military personnel

The formula for the unemployment rate is:

• (Employed ÷ Labor Force) × 100

• (Unemployed ÷ Labor Force) × 100

• (Labor Force ÷ Population) × 100

• (Unemployed ÷ Population) × 100

What are the three main types of unemployment?

• Natural, structural, and seasonal

• Frictional, structural, and cyclical

• Frictional, voluntary, and technological

• Seasonal, cyclical, and voluntary

Which type of unemployment is caused by economic downturns?

• Frictional

• Structural

• Seasonal

• Cyclical

Unemployment caused by workers transitioning between jobs is called:

• Seasonal unemployment

• Structural unemployment

• Frictional unemployment

• Cyclical unemployment

Unemployment due to skills mismatch in the labor market is:

• Structural unemployment

• Frictional unemployment

• Cyclical unemployment

• Seasonal unemployment

Which of the following is an example of seasonal unemployment?

• A factory worker laid off during a recession

• A farmworker unemployed after the harvest season

• A recent college graduate searching for their first job

• A worker replaced by automated machinery

Frictional unemployment typically occurs because:

• Job seekers lack skills for available jobs

• Workers are in between jobs or entering the labor market

• Economic conditions are declining

• Jobs are only available during certain times of the year

Which policy could help reduce frictional unemployment?

• Training programs for new skills

• Job search assistance and better information systems

• Stimulus spending during recessions

• Reducing taxes on businesses