Unemployment!

What is the definition of unemployment?

• The state of being employed part-time

• The state of being without a job despite actively seeking work

• The state of being retired

• The state of being employed full-time

Which type of unemployment is always present and is an acceptable indication of a healthy economy?

• Situational Unemployment

• Cyclical Unemployment

• Frictional Unemployment

• Seasonal Unemployment

What is an example of structural unemployment?

• A college graduate searching for their first job

• A ski instructor unemployed in summer

• Factory workers losing jobs due to automation

• Retail workers laid off during a recession

Which type of unemployment is directly tied to the business cycle?

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

• Seasonal Unemployment

What components make up the natural rate of unemployment?

• Cyclical + Seasonal Unemployment

• Frictional + Structural Unemployment

• Structural + Cyclical Unemployment

• Frictional + Seasonal Unemployment

What is a key idea about unemployment in a healthy economy?

• Some unemployment exists.

• Unemployment is completely eliminated.

• Unemployment is only seasonal.

• Unemployment is always increasing.

Which of the following is an economic cost of unemployment?

• Increased consumer spending.

• Loss of GDP.

• Improved quality of life.

• Decreased government spending.

What is one social cost of unemployment?

• Increased poverty and inequality.

• Higher tax revenues.

• Improved psychological well-being.

• Increased consumer spending.

What is a consequence of reduced consumer spending due to unemployment?

• Increased GDP.

• Economic growth.

• Economic stagnation.

• Higher tax revenues.

Which of the following is a psychological impact of unemployment?

• Increased quality of life.

• Decreased quality of life.

• Improved mental health.

• Higher social status.