Unemployment is best defined as:

• The state of working in a job below one’s skill level.
• The state of working less than desired hours.
• The state of being jobless and actively seeking work.
• The state of being jobless and not seeking work.

Unemployment resulting from changes in technology or market conditions is classified as:

• Structural unemployment
• Natural unemployment
• Cyclical unemployment
• Frictional unemployment

Unemployment that occurs due to a mismatch between the skills of workers and the requirements of available jobs is known as:

• Frictional unemployment
• Natural unemployment
• Structural unemployment
• Cyclical unemployment

Unemployment that occurs due to changes in the business cycle and overall economic activity is known as:

• Frictional unemployment
• Natural unemployment
• Structural unemployment
• Cyclical unemployment

Variables expressed in monetary units are known as

• Real variables.
• Dichotomous variables.
• Nominal variables.
• Classical variables.

Welfare economics is the study of how

• A consumer's optimal choice affects her demand curve.
• The government helps poor people.
• A price ceiling compares to a price floor.
• The allocation of resources affects economic well-being.

What are externalities?

• The costs or benefits of a government intervention that affect a third party
• The costs or benefits of an individual decision that affect oneself
• All of the answers are correct
• The costs or benefits of a market activity that affect a third party

What are some of the benefits of positive economics?

• It can help test and verify economic theories and hypotheses
• It can help inform and guide normative economic decisions
• It can help improve the understanding of economic behavior and outcomes
• All of the answers are correct

What are some of the challenges of normative economics?

• It may not account for ethical and moral implications of economic decisions
• All of the answers are correct
• It may be difficult to obtain reliable and accurate data for analysis
• It may be influenced by personal biases and ideological assumptions

What are some of the challenges of positive economics?

• It may be difficult to obtain reliable and accurate data for analysis
• All of the answers are correct
• It may be influenced by personal biases and ideological assumptions
• It may not account for ethical and moral implications of economic decisions