Unemployment Types and Causes

The video tutorial explains the two major groups of unemployment: disequilibrium and equilibrium. Disequilibrium unemployment includes cyclical and real wage unemployment, while equilibrium unemployment, also known as the natural rate, includes structural, frictional, and seasonal unemployment. The tutorial delves into the causes and characteristics of each type, emphasizing the role of economic cycles, wage levels, and labor market dynamics. Structural unemployment is explored in detail, highlighting the impact of technological advancements and shifts in industry structure.

What are the two major groups of unemployment discussed in the video?

• Natural and Artificial

• Frictional and Seasonal

• Disequilibrium and Equilibrium

• Cyclical and Structural

Cyclical unemployment is primarily caused by which of the following?

• Lack of aggregate demand

• Technological advancements

• Seasonal changes

• High minimum wages

Which of the following is NOT a cause of cyclical unemployment?

• Increase in interest rates

• Falling consumer confidence

• Technological advancements

• Global pandemic

Real wage unemployment occurs when:

• There is a lack of demand for goods

• Wages are above equilibrium

• There is a skills mismatch

• Wages are below equilibrium

What is the natural rate of unemployment?

• Unemployment that occurs only during a recession

• Unemployment that exists even when the labor market is in equilibrium

• Unemployment due to seasonal factors

• Unemployment caused by technological changes

Which type of unemployment is characterized by workers being between jobs?

• Structural unemployment

• Frictional unemployment

• Seasonal unemployment

• Cyclical unemployment

Structural unemployment is primarily due to:

• High minimum wages

• Seasonal demand changes

• Long-term changes in industry structure

• Short-term economic fluctuations

What is occupational immobility?

• Inability to move geographically for work

• Unemployment due to high wages

• Mismatch between workers' skills and job requirements

• Temporary unemployment due to seasonal changes

Geographical immobility occurs when workers:

• Lack the skills required for available jobs

• Are affected by economic downturns

• Are temporarily out of work due to seasonal changes

• Are unwilling to move to where jobs are available

Which of the following is an example of a shock leading to structural unemployment?

• Seasonal demand for ski instructors

• Technological advancements automating jobs

• Increase in consumer confidence

• Government intervention with high minimum wages