Unemployment Flashcard

Front

What is frictional unemployment?

Back

The unemployment that occurs when people take time to find a job.

Front

Which of the following is a reason for frictional unemployment? A factory closing down due to lack of demand. A person returning to the workforce after a period of time. A decrease in the availability of raw materials. A long-term decline in an industry.

Back

A person returning to the workforce after a period of time.

Front

How does unemployment insurance contribute to frictional unemployment?

Back

It provides income to laid-off workers seeking new jobs.

Front

Why is frictional unemployment considered a natural part of a healthy economy?

Back

It allows for the movement and reallocation of labor.

Front

What type of unemployment occurs when workers' skills do not match those needed for jobs available?

Back

Structural Unemployment

Front

Which of the following is NOT a cause of Structural Unemployment? Invention of new technology, Discovery of new resources, Increased minimum wage, Globalization

Back

Increased minimum wage

Front

Is Structural Unemployment considered a natural part of a healthy economy?

Back

Yes, it is a natural part.

Front

What is Seasonal Unemployment?

Back

Unemployment that occurs as a result of harvest schedules, vacations, or seasonal shifts in production schedules

Front

Is Seasonal Unemployment considered a natural part of a healthy economy?

Back

Yes, and the government does not take steps to intervene

Front

Which of the following is an example of Seasonal Unemployment? Factory workers laid off due to a recession, IT professionals who are unemployed due to outsourcing, Farm workers and other seasonal work, Employees who are unemployed due to company bankruptcy

Back

Farm workers and other seasonal work