Section C

What is the definition of frictional unemployment?

• Temporary unemployment when people are switching jobs

• Job loss due to changes in technology

• Job loss during economic recessions

• Long-term unemployment from lack of demand

What is the definition of seasonal unemployment?

• People unemployed due to automation

• Job loss during certain seasons (e.g., farming, tourism)

• Unemployment caused by inflation

• Workers who quit and don’t want a job

What is the definition of structural unemployment?

• Unemployment caused by inflation

• Job loss because skills don’t match available jobs

• Unemployment caused by people retiring

• People refusing to work for low wages

What is the definition of cyclical unemployment?

• Unemployment in the farming sector

• When workers leave for better jobs

• Job loss due to downturns in the business cycle (e.g., recession)

• Unemployment caused by government policies

What is hyperinflation?

• Slight, steady rise in prices

• Extremely rapid and out-of-control price increases

• A decrease in the general price level

• Government price control on goods

What is the definition of poverty?

• The inability to afford basic needs like food, housing, and healthcare

• Earning below average income

• Job loss due to automation

• A type of tax deduction

What is economic inequality?

• Everyone earning the same wage

• Government spending cuts

• Unequal distribution of income or wealth

• Increased minimum wage

What is cost-push inflation?

• Inflation caused by rising production costs

• Inflation due to government spending

• Inflation when demand for goods increases

• Inflation from printing more money

What is demand-pull inflation?

• Prices falling due to low demand

• Inflation caused by rising interest rates

• Inflation when demand exceeds supply

• Inflation caused by high unemployment

What is a key issue in the minimum wage debate?

• Raising wages may reduce poverty but could increase unemployment

• Minimum wage has no effect on employment

• It increases government spending automatically

• It is only used in developing countries