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Unemployment in India

Total questions: 102

Worksheet time: 58mins

Name
Class
Date
1.

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 and structural unemployment would be present

d)

Everyone is working Everyone is working

2.

A labor force of 20 million people has 18.5 million people employed. Find the unemployment rate.

a)

10%

b)

8.5%

c)

7.5%

d)

6%

3.

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

4.

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

5.

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

6.

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

7.

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

8.

The unemployment rate is the ratio of

a)

unemployed to labor force

b)

employed to labor force

c)

seeking employment to labor force

d)

dissatisfied to labor force

9.

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

10.

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)

ALL of these answers are CORRECT

11.

The natural rate of unemployment is equal to

a)

frictional plus cyclical

b)

cyclical plus structural

c)

frictional plus seasonal

d)

structural plus frictional

12.

Which of these people is officially unemployed

a)

A secretary who took 6 months off for maternity leave

b)

An aspiring actress who waits tables but would rather act

c)

Maid who got fired and will start a new job in 2 weeks

d)

A student who only works 4 hours a week in the library

13.

What is the unemployment????

a)

decisions to work based on each individuals' valuation of their own work

b)

proportion of younger workers in the labor force

c)

the situation of actively looking for employment but not being currently employed.

d)

person who is simultaneously an income earner,

14.

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

15.

How many general types of unemployement in economy?

a)
b)
c)
d)
16.

How many general types of unemployement in economy?

a)
b)
c)
d)
17.

Which is not the type of unemployment?

a)

frictional

b)

functional

c)

cyclical

d)

structural

18.

Which type of unemployment consisting of search unemployment and wait unemployment ( for workers who are either searching for jobs or waiting to take jobs in the near future)???

a)

frictional

b)

cyclical

c)

functional

d)

structural

19.

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

20.

What is the natural rate of unemployment (NRU)?

a)

is defined as the percentage of unemployed workers in the total labor force

b)

is defined an economy if there were no cyclical unemployment. In other words, it's frictional unemployment plus structural unemployment.

c)

refers to an overall increase in the Consumer Price Index (CPI),

d)

none of them

21.

Who is the Arthur Okun???

a)

identifyed the relationship between the unemployment rate and the inflation

b)

gave definition for cyclical unemployment

c)

got Nobel Prize in math

d)

the first who quantify the relationship between the unemployment rate and the GDP gap

22.

What Okun’s law indicate?

a)

Inflation reduces the “purchasing power” of money

b)

for each 1 percentage point of unemployment above the natural rate, economy suffers a 2 percent decline in real GDP below its potential GDP

c)

demand for labor also changes over time.

d)

none of them

23.

A snow ski instructor is considered

a)

seasonally unemployed in the summer

b)

especially talented if she can get that ski boat back up the hill

c)

frictionally unemployed

d)

structurally unemployed when he feels discouraged

24.

What is the correct formula for calculating the unemployment rate in the US?

a)

#unemployed/labor force x100

b)

#labor force/working age population x100

c)

#unemployed/#employed x100

d)

#labor force/60,000 (BLS household survey

25.

"Okun's Law"

a)

informs us that there is a connection between unemployment and lost GDP.

b)

is a hard and fast rule that for every 1% increase in GDP, there is a 2.5% decrease in employment.

c)

is a hard and fast rule that for every 1% increase in unemployment, there is a 2.5% decrease in GDP.

d)

informs us that there is an increase in inflation whenever there is a decrease in employment.

26.

Professor Doty feels that although it is not the largest form of unemployment, it is the most serious because it is not self-correcting. Which is it?

a)

structural unemployment

b)

frictional unemployment

c)

cyclical unemployment

d)

seasonal unemployment

27.

We had a guest speaker in class today, which best represents your evaluation

a)

I would be interested in taking a class from her in my field of interest.

b)

I would be interested in taking a class from her as an elective.

c)

I would not be interested in taking a class from her but I thought she did a good job.

d)

I would not be interested in taking a class from her.

28.

Which of the following best defines unemployment?

a)

The state of being able to work and actively seeking work, but unable to find employment

b)

The state of being able to work, but choosing not to

c)

The percentage of the labour force that is able and actively seeking work, but cannot find employment

d)

The total number of people who do not work

29.

Which of the following are criticisms of unemployment rate statistics?

a)

The underemployed are counted as being employed

b)

Discouraged workers (who give up searching for employment) are not counted as part of the labour force

c)

Survey inaccuracies

d)

It provides information about the relative health of the economy

30.

If an economy is operating at its full employment level of output, labour markets have ___________, and the aggregate demand for labour __________ the aggregate supply of labour.

a)

Overheated, is greater than

b)

Overheated, equals

c)

Reached an equilibrium, equals

d)

Reached an equilibrium, is smaller than

31.

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

32.

What is the natural rate of unemployment (NRU)?

a)

is defined as the percentage of unemployed workers in the total labor force

b)

is defined an economy if there were no cyclical unemployment. In other words, it's frictional unemployment plus structural unemployment.

c)

refers to an overall increase in the Consumer Price Index (CPI),

d)

none of them

33.

When individuals lose jobs due to fall in aggregate demand, often during an economic recession.

a)

Structural Unemployment

b)

Cyclical Unemployment

c)

Frictional Unemployment

d)

Seasonal Unemployment

34.

If auto workers lose their jobs as the industry becomes far more technically intensive and capital intensive, what form of unemployment occurs?

a)

Cyclical

b)

Seasonal

c)

Frictional

d)

Structural

35.

Which of the following is applicable to the economic concept of unemployment

a)

It is a stock concept

b)

The unemployed are those not in work but are actively seeking work

c)

The number of unemployed is measured at a point in time

d)

The labour force excludes those who are considered to be inactive

36.

Identify the correct definition of the unemployment rate

a)

The number of those in work as a percentage of the population of working age people

b)

The number of those unemployed as a percentage of the population of working age people

c)

The number of those unemployed as a percentage of the labour force

d)

The number of those not in work and unemployed as a percentage of the population of working age people

37.

Which of the following is not an example of supply-side unemployment

a)

Frictional

b)

Seasonal

c)

Cyclical

d)

Structural

38.

Which of the following occupations might be subject to seasonal unemployment

a)

Agricultural labourers

b)

Bus drivers

c)

Landscape gardeners

d)

Operations manager in a frozen food factory

39.

Which of the following might solve the problem of regional unemployment?

a)

Making cheap rented accommodation available in areas with low unemployment and many unfilled job vacancies

b)

Making cheap rented accommodation available in areas of high unemployment

c)

Giving grants to firms to set up in areas of low unemployment

d)

Building more vocational training colleges in areas of high employment

40.

What does YF minus Y1 represent in the graph

a)

Full employment

b)

Cyclical unemployment

c)

Supply-side unemployment

d)

Voluntary unemployment

41.

Real wage unemployment may be caused by which of the following

a)

Minimum wage legislation

b)

Generous welfare payments

c)

Geographical immobility

d)

Powerful trade unions

42.

What was the most recent UK rate of unemployment (before the coronavirus pandemic forced the government to declare social distancing)

a)

14.7%

b)

1.47%

c)

47%

d)

4.7%

43.

Which of the following is most likely to occur during a period of low unemployment?

a)

Investment in new technology by businesses

b)

Government will abolish minimum wage

c)

Rapid wage inflation

d)

Rapid rise in trades union membership

44.

What would happen if there was a significant fall in the number of frictional, seasonal and structurally unemployed workers?

a)

There would be a leftward shift in the LRAS curve

b)

There would be a movement along the PPF

c)

There would be a shift to the left of the PPF

d)

There would be a rightward shift in the LRAS

45.

Fred Flinstone was laid off from the Quarry because the nation is suffering from a recession.

a)

Cyclical

b)

Frictional

c)

Seasonal

d)

Structural

46.

Ronald McDonald, who just graduated from Clown School, is looking to find his first real job.

a)

Cyclical

b)

Frictional

c)

Seasonal

d)

Structural

47.

Scooby Doo is looking for a job during the winter since Kings Island is closed until Spring.

a)

Cyclical

b)

Frictional

c)

Seasonal

d)

Structural

48.

Paul Bunyan lost his job as a lumberjack because the timber company he works for decided to just buy chainsaws.

a)

Cyclical

b)

Frictional

c)

Seasonal

d)

Structural

49.

The Tooth Fairy was fired because she just is not doing a good job.

a)

Cyclical

b)

Frictional

c)

Seasonal

d)

Structural

50.

Frosty the Snowman is expecting to be out of work shortly following the last big snow of the year.

a)

Cyclical

b)

Frictional

c)

Seasonal

d)

Structural

51.

The Easter Bunny found out that he was being let go, since Americans have decided to not eat eggs, which are high in cholesterol.

a)

Cyclical

b)

Frictional

c)

Seasonal

d)

Structural

52.

Mickey Mouse voluntarily quit his job at Disney & has decided that he will seek a job as a truck driver.

a)

Cyclical

b)

Frictional

c)

Seasonal

d)

Structural

53.

Sam I Am was laid off after orders for Green Eggs & Ham declined greatly following last years stock market crash.

a)

Cyclical

b)

Frictional

c)

Seasonal

d)

Structural

54.

Peter Pan was fired from his job at the Peanut Butter factory because he is being replaced by RoboCop (a highly efficient peanut butter machine).

a)

Cyclical

b)

Frictional

c)

Seasonal

d)

Structural

55.
Unemployment caused by the changes in the skills needed by employers
a)
Frictional
b)
 Cyclical
c)
Seasonal
d)
Structural
56.
Unemployment caused by decreased demand for lifeguards during the winter.
a)
Frictional
b)
Seasonal
c)
Cyclical
d)
Structural
57.
Unemployment caused by decreased demand for lifeguards during the winter.
a)
Frictional
b)
Seasonal
c)
Cyclical
d)
Structural
58.
Unemployment caused when a man resigns from his job to start looking for a higher paying job.
a)
Structural
b)
Seasonal
c)
Frictional
d)
Cyclical
59.
Unemployment caused by a recession.
a)
Seasonal
b)
Cyclical
c)
Structural
d)
Frictional
60.
An increase in the general level of prices. 
a)
CPI
b)
Deflation
c)
Inflation
61.
A decrease in the general level of prices.
a)
CPI
b)
Deflation
c)
Inflation
62.
If CPI goes from 100 to 300 and your salary goes from $100,000 to $200,000, what happened to your purchasing power?
a)
Increase
b)
Decrease
c)
No change
63.
Unexpected inflation helps . . .
a)
Borrowers
b)
Savers
64.
Seth is laid off from work because he is a life guard at the local water park. He is experiencing what kind of unemployment?
a)
Structural
b)
Seasonal
c)
Frictional
d)
Cyclical
65.
Seth is laid off from work because he is a life guard at the local water park. He is experiencing what kind of unemployment?
a)
Structural
b)
Seasonal
c)
Frictional
d)
Cyclical
66.
Unemployment caused by a fall in demand for goods and services across the economy.
a)
frictional unemployment
b)
seasonal unemployment
c)
structural unemployment
d)
cyclical unemployment
67.
Unemployment caused when a person resigns from their job to start looking for a higher paying job that better suits their skills.
a)
Structural
b)
Seasonal
c)
Frictional
d)
Cyclical
68.
How many people are NOT in the Labor Force?
Unemployed (Looking for job) = 20
Retired = 5          Prison = 2
School = 10         Employed = 180
Unemployed (not looking for job) = 20
a)
20
b)
40
c)
37
d)
140
69.
The Unemployment rate is calculated as the number of
a)
unemployed persons divided by number of employed persons
b)
persons in the labour force divided by the number of unemployed
c)
unemployed persons divided by the size of the labour force
d)
employed persons divided by number of unemployed persons
70.
Someone who works part-time but wants a full-time job is considered 
a)
a discouraged worker
b)
unhappy
c)
underemployed
d)
overemployed
71.
Someone who works part-time but wants a full-time job is considered 
a)
a discouraged worker
b)
unhappy
c)
underemployed
d)
hidden unemployed
72.
The unemployment rate does not account for which two types of people?
a)
discouraged workers (hidden unemployed) and those employed
b)
full time carers and those in school
c)
retirees and those in prison
d)
discouraged workers (hidden unemployed)  and underemployed
73.
What is the term for the lowest possible level of unemployment?
a)
full employment
b)
cyclical employment
c)
perfect employment
d)
peak employment
74.
Use the following data to determine the unemployment rate: 
Total population 1000
Full time workers 500
Part time workers 200
Discouraged workers 10
Unemployed  70
What is the unemployment rate?
a)
8%
b)
9%
c)
10%
d)
11%
75.
If CPI goes from 100 to 300 and your salary goes from $100,000 to $200,000, what happened to your purchasing power?
a)
Increase
b)
Decrease
c)
No change
76.
Inflation is usually higher during what part of the Business Cycle?
a)
upswing 
b)
recession
c)
trough
d)
boom
77.
What causes demand pull inflation?
a)
rise in price due to a decrease in supply
b)
a rise in price level due to an increase in demand
c)
a rise in price due to an increase in the cost of production
d)
a decrease in price due to a decrease in supply
78.
If CPI last year was 177 and the CPI this year is 186, what is the rate of inflation?
a)
8%
b)
7%
c)
6%
d)
5%
79.
Who is most likely to be hurt by inflation?
a)
someone who borrowed money
b)
a retiree on a fixed income
c)
a business owner
d)
the U.S. government
80.
Which of the following groups suffer from high inflation
a)
Borrowers
b)
Lenders
c)
Taxpayers
d)
Property Investors
81.
Which of the following groups suffer from high inflation
a)
Borrowers
b)
Lenders
c)
Taxpayers
d)
Property Investors
82.
What causes cost push inflation
a)
An increase in demand for goods and services
b)
An increase in supply
c)
A rise in production costs passed on to consumers
d)
A fall in the price of imports
83.
what is the ideal rate of inflation?
a)
0-1%
b)
1-2%
c)
2-3%
d)
3-4%
84.
Economists consider inflation to be negative because 
a)
inflation encourages consumers to buy goods made in Australia rather than imports
b)
It increases the rate of savings
c)
It means a recession is around the corner
d)
It leads to uncertainty and makes investment more ri
85.
What is the current inflation rate in Australia
a)
1.4%
b)
1.6%
c)
1.8%
d)
2.2%
86.

A peak in business cycle is indicated by ______ unemployment and _______ output.

a)

higher ; lower

b)

lower ; higher

c)

decreasing ; increasing

d)

increasing ; decreasing

87.

A peak in business cycle is indicated by ______ unemployment and _______ output.

a)

higher ; lower

b)

lower ; higher

c)

decreasing ; increasing

d)

increasing ; decreasing

88.

_______ occurs when people are in between jobs, entering and reentering the labour force.

a)

Cyclical unemployment

b)

Technological unemployment

c)

Frictional unemployment

d)

Seasonal unemployment

89.

_______ occurs when people are in between jobs, entering and reentering the labour force.

a)

Cyclical unemployment

b)

Technological unemployment

c)

Frictional unemployment

d)

Seasonal unemployment

90.

This inflation results from an inefficient market or structure of the economy.

a)

Cost push inflation

b)

Demand pull inflation

c)

Divisional inflation

d)

Structural inflation

91.

Farm helpers are unemployed when the cropping season is over.

a)

frictional

b)

cyclical

c)

structural

d)

seasonal

92.

When individuals are unemployed due to a change in season, e.g. Santa Claus after christmas.

a)

Seasonal Unemployment

b)

Frictional Unemployment

c)

Structural Unemployment

d)

Cyclical Unemployment

93.

Sum of the employed and the unemployed

a)

Employed

b)

Unemployment

c)

Labor Force

94.

If a change in income appears permanent such as being promoted to a secure and high paying job, __________________.

a)

then people are likely to consume less.

b)

then people are likely to save more.

c)

then people are likely to consume more.

d)

then people are likely to save less.

95.

What is the correct formula for calculating the unemployment rate in the US?

a)

#unemployed/labor force x100

b)

#labor force/working age population x100

c)

#unemployed/#employed x100

d)

#labor force/60,000 (BLS household survey

96.

What is the unemployment????

a)

decisions to work based on each individuals' valuation of their own work

b)

proportion of younger workers in the labor force

c)

the situation of actively looking for employment but not being currently employed.

d)

person who is simultaneously an income earner,

97.

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

98.

How many general types of unemployement in economy?

a)
b)
c)
d)
99.
When inflation is high the _______________of the dollar decreases
a)
cost value
b)
purchasing power
c)
importance
d)
validity
100.

Which is not the type of unemployment?

a)

frictional

b)

functional

c)

cyclical

d)

structural

101.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices
102.
Who is most likely to be hurt by inflation?
a)
someone who borrowed money
b)
a retiree on a fixed income
c)
a business owner
d)
the U.S. government