Macro Chapter 8

Which of the following is a type of unemployment defined by economists?

• Marginal unemployment

• Frictional unemployment

• Cyclical inflation

• Structural inflation

What does the supply and demand model help explain in the labor market?

• The calculation of GDP

• The impact of government spending

• Changes in real wages and employment

• The creation of new industries

Which of the following is NOT one of the three main types of unemployment?

• Frictional unemployment

• Seasonal unemployment

• Cyclical unemployment

• Structural unemployment

Which trend has characterized labor markets in industrialized countries in recent decades?

• Decreased use of technology in production

• Increased participation of women in the workforce

• Declining importance of education

• Reduced international trade

What is the main cost associated with cyclical unemployment?

• Higher training costs for new workers

• Loss of output due to economic downturns

• Increased job search time

• Mismatch of skills and jobs

If the demand for labor increases while supply remains constant, what is the likely effect on real wages?

• Real wages will fall

• Real wages will stay the same

• Real wages will rise

• Real wages will become unpredictable

Which of the following best describes structural unemployment?

• Unemployment from voluntary job changes

• Unemployment caused by changes in the structure of the economy

• Unemployment due to temporary layoffs

• Unemployment from seasonal work

A decrease in the supply of labor, with demand unchanged, will most likely result in:

• Lower real wages and higher employment

• No change in real wages or employment

• Higher real wages and lower employment

• Lower real wages and lower employment

Which of the following is an example of frictional unemployment?

• A factory worker laid off due to automation

• A recent college graduate searching for their first job

• A worker losing a job during a recession

• A farmer not working during the winter

Which trend has NOT been observed in industrialized labor markets in recent decades?

• Growth in service sector employment

• Decline in manufacturing jobs

• Increase in part-time and temporary work

• Decrease in labor force participation