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WorksheetsUnemployment Rate
Total questions: 20
Worksheet time: 10mins
When an economy uses all of its labor resources in the most efficient way possible, it has achieved
full employment.
minimal unemployment.
structural unemployment.
classical employment.
The unemployment rate is a(n) __________ indicator.
coincident
irrelevant
lagging
leading
Which type of unemployment is voluntary?
Cyclical unemployment
Seasonal unemployment
Structural unemployment
Frictional unemployment
There are jobs available in Javier’s town; however, none of the jobs are a good match for his skills and experience. This is an example of __________ unemployment.
seasonal
structural
frictional
technological
Which of the following is an example of technological unemployment:
The cancellation of a TV show leaves its actors, writers, and production crews out of work.
The local outlawing of single-use plastics leads to fewer jobs in straw factories.
The recent trend in healthier eating leads to fewer jobs producing soda.
The invention of digital photography leads to fewer jobs developing film.
Which of the following is an example of seasonal unemployment:
A frozen yogurt shop decreases its staff in winter.
A person moves to Chicago to look for a job that matches his/her skills.
A truck driver is replaced by a self-driving truck.
An engineer’s job contract expires.
Which of the following is a potential reason for structural unemployment:
A change in consumer preferences
Increased competitiveness of main industries in the economy
An overabundance of available jobs
People transitioning between jobs
The poor economy is causing consumer demand and spending to go down. As a result, companies aren’t hiring. This is called __________ unemployment.
classical
structural
frictional
cyclical
The classical theory of unemployment states that unemployment begins when
prices decrease.
wages rise too high.
demand goes down.
spending goes up.
According to the classical theory of unemployment, the best solution for unemployment is to
cut wages.
increase prices.
encourage spending.
decrease inflation.
The Keynesian theory of unemployment states that unemployment begins when
spending goes up.
demand goes down.
prices decrease.
businesses cut wages.
According to the Keynesian theory of unemployment, the best solution for unemployment is to
keep prices the same.
increase inflation.
increase demand.
cut wages.
During difficult economic times, the unemployment rate is often
unimportant.
understated.
at its lowest.
not calculated.
The official unemployment rate does not include wait unemployment or
150 million workers.
underemployment.
truck drivers.
business cycles.
Which of the following is usually the first effect that unemployment has on an individual or family:
Higher crime rates
Less tax revenue
Economic recession
Lowered standard of living
Long-term unemployment may affect an individual by
building savings.
lowering crime rates.
eroding his/her skills.
improving mental health.
Unemployment affects the economy by
raising wages.
forcing businesses to shut down.
reducing demand and spending.
increasing production.
Long-term unemployment may affect the nation by
increasing poverty
increasing volunteerism.
lowering crime rates.
lowering the value of currency.
Unemployment benefits can have a positive effect on the economy by
raising prices.
stimulating demand.
increasing tax revenue.
creating new jobs.
Unemployment can have a positive effect on individuals by
reducing levels of poverty.
lowering prices of goods and services.
stimulating demand in the economy.
encouraging them to create their own businesses.
