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IB Unemployment

Total questions: 21

Worksheet time: 10mins

Name
Class
Date
1.

Cyclical unemployment

a)

Describes recent college graduates

b)

Lasts longer than 6 months

c)

Describes employees moving from one job to another

d)

Increases inflation Increases inflation

2.

Seasonal unemployment

a)

Describes recent college graduates

b)

Is predictable

c)

Is a result of changes in technology

d)

Slows the economy Slows the economy

3.

In which type of unemployment workers find it hard to obtain new jobs without retraining, gaining additional education, or relocating??

a)

cyclical

b)

frictional

c)

structural

d)

all of them

4.

The unemployment rate is the ratio of

a)

unemployed (not seeking employment) to labor force

b)

employed seeking employment to labor force

c)

unemployed (and seeking employment) to labor force

d)

dissatisfied to labor force

5.

The unemployment rate will drop if

a)

A person is hired into a new job

b)

Someone who was previously laid off is rehired

c)

An unemployed person stops looking

d)

Better technology

6.

Unemployment which exists in any economy due to people being in the process of moving from one job to another

a)

frictional

b)

cyclical

c)

functional

d)

structural

7.

If operators are fired and replaced with computer technology, the operators would be considered

a)

frictionally unemployed

b)

structurally unemployed

c)

cyclically unemployed

d)

dissatisfiededly unemployed dissatisfiededly unemployed

8.

Which is not the type of unemployment?

a)

frictional

b)

functional

c)

cyclical

d)

structural

9.

Discouraged workers in

the economy implies that the measurement of unemployment...

a)

understates the true unemployment rate

b)

overstates the true unemployment rate

c)

correctly measures the true unemployment rate

d)

doubles the unemployment rate

10.

Which of the following statements is true of an economy at its "natural

rate of unemployment"?

a)

Everyone who wants to work is working

b)

The economy is producing at its potential

c)

The economy is only experiencing cyclical unemployment

d)

The economy is producing beyond the PPF The economy is producing beyond the PPF

11.

If actual GDP is less than potential GDP...

a)

Actual unemployment exceeds the natural unemployment rate

b)

Actual unemployment rate is less than the natural rate

c)

No cyclical unemployment is present

d)

Hyperinflation is present Hyperinflation is present

12.

If an economy is at its Natural Rate of Unemployment...

a)

Only cyclical unemployment would be present

b)

There would be no frictional unemployment

c)

Only frictional, seasonal and structural unemployment would be present

d)

Everyone is working

13.

What is the formula of unemployment rate???

a)

=(labor force/unemployed)*100%

b)

=(GDP*labor force)/100%

c)

=(unemployed/labor force)*100%

d)

none of them

14.

The economically active population is...

a)

Working age people

b)

Labour force

c)

Adults and retired

15.

Hidden unemployment and underemployment include:

a)

Unemployed not searching for jobs

b)

Part-time workers that would prefer working full time

c)

Over-qualified workers

d)

Under-qualified workers

16.

Distribution of unemployment is not even in a population. Differences might include ...

a)

regional disparities

b)

age disparities

c)

ethnic differences

d)

gender disparities

e)

occupational disparities

17.

Costs of unemployment to society include

a)

Vandalism

b)

Poverty

c)

Homelessness

d)

High crime rates

e)

High rate of discouraged workers

18.

An economy operating at a point within its production possibility curve (X in the image)

a)

Is not using all its factors of production

b)

Has some type o unemployment

c)

Has more structural than frictional unemployment

19.

Unemployment for the government means:

a)

Spending more due to unemployment benefits

b)

Earning less due to lower income/ activities / taxes than potential

c)

Spending more on training to fight frictional unemployment

20.

Causes of unemployment include

a)

Factors hindering the labour market from clearing

b)

Lack of enough aggregate demand

c)

The fact that wages are "sticky upwards"

d)

The fact that people are not always aware of job opportunities

e)

The fact that people are not always able to take a job opportunity

21.

What is shown in the red line?

a)

Natural unemployment

b)

Cyclical unemployment