Unemployment and Employment Patterns Quiz

Why do governments aim to keep unemployment levels low?

• To reduce poverty and raise standards of living

• To increase unemployment benefits

• To decrease economic growth

• To lower tax revenues

How does the industrial structure change in terms of employment patterns?

• Workers move from tertiary to primary sector jobs

• Workers leave jobs in the primary sector and take jobs in the secondary and then tertiary sector

• Workers stay in the primary sector

• Workers move from secondary to primary sector jobs

One advantage of using the claimant count to measure unemployment is that it is cheap and quick, while one disadvantage is that it understates unemployment.

• It is expensive and overstates unemployment

• It is cheap and quick, but understates unemployment

• It is slow and accurate

• It is unreliable and easy to use

What is a possible reason for the increase in the proportion of women in employment?

• More men are working

• Gender discrimination is declining

• Women prefer part-time work

• There are fewer jobs available

How might full-time and part-time work arrangements benefit workers?

• They allow workers to fit work around their children’s school hours and care for elderly relatives

• They reduce job security

• They increase unemployment

• They make jobs less interesting

Which of the following is a disadvantage of using labor surveys to collect unemployment data?

• They are less accurate than other methods.

• They take longer to gather information than a claimant count.

• They only include data from a small group of people.

• They do not provide any information about the unemployed.

What is the main characteristic of frictional unemployment?

• It is caused by technological changes.

• It is long-term and persistent.

• It occurs when workers leave one job and spend time looking for a new one.

• It is caused by a fall in aggregate demand.

Which consequence of unemployment is most likely to lead to higher average costs for businesses?

• People losing their incomes

• Machines, tools, and factory spaces being unused.

• Crime rates rising.

• Tax revenue falling.

If unemployment increases, what is a likely effect on government spending according to the text?

• Government spending on unemployment benefits will decrease.

• Government spending on schools and roads will increase.

• Government spending on unemployment benefits will increase.

• Government spending on projects will remain unchanged.

Which policy involves increasing government spending to help reduce unemployment?

• Cutting unemployment benefits

• Depreciating the exchange rate

• Cutting down taxes and increasing government spending

• Restricting imports and encouraging exports