Quiz on Labour Force and Inflation

What is defined as the number of persons over the age of 16 or legal age (according to the laws of a country) who are employed or willing to be employed?

• Unemployment

• Employment

• Underemployment

• Labour force

What does unemployment refer to?

• The number of persons working part-time

• The number of persons seeking employment

• The total number of employed persons

• The percentage of the labour force that is unemployed

Which of the following is a cost of unemployment?

• Increased consumer spending

• Higher employment rates

• Loss of personal income

• Increased tax revenue

What type of unemployment arises from a decline in demand for labour in a specific industry?

• Structural unemployment

• Technological unemployment

• Frictional unemployment

• Seasonal unemployment

What is technological unemployment caused by?

• Seasonal job fluctuations

• The introduction of new technology

• A rise in demand for labour

• Increased international competition

Which type of unemployment occurs when individuals are temporarily unemployed while seeking better jobs?

• Structural unemployment

• Underemployment

• Frictional unemployment

• Cyclical unemployment

What is inflation defined as?

• A reduction in purchasing power

• A temporary rise in wages

• A persistent increase in the average level of prices

• A decrease in the average level of prices

What type of inflation is caused by aggregate demand factors?

• Cost-push inflation

• Monetary inflation

• Demand-pull inflation

• Structural inflation

What is the quantity theory of money represented by?

• T = MP

• P = MV

• V = PT

• MV = PT

What happens during periods of unanticipated inflation?

• Investment levels increase

• Tax revenue decreases

• Lenders benefit at the expense of borrowers

• Borrowers benefit at the expense of lenders