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Worksheets

Economics Unemployment and Inflation

Total questions: 37

Worksheet time: 3hrs 5mins

Name
Class
Date
1.

Inflation can best be defined as...

a)

A general increase in prices.

b)

An increase in prices of key items purchased by consumers.

c)

The increase in the value of fiat money

d)

The printing of too much paper money.

2.

This type of inflation occurs when an increase in the in production costs are passed on to the consumer.

a)

Supply Inflation

b)

Cost Push Inflation

c)

Imported Inflation

d)

Demand Pull Inflation

3.

This type of inflation occurs when the demand for products is greater that the supply of products.

a)

Cost push inflation

b)

Demand pull inflation

c)

Divisional inflation

d)

Structural inflation

4.
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
5.
When inflation is high the _______________of the dollar decreases
a)
cost value
b)
purchasing power
c)
importance
d)
validity
6.

Who does Inflation hurt?

a)

People with a fixed income

b)

Savers

c)

Money Lenders at fixed interest rates

d)

All of the above

7.

Who among the following would be considered as unemployed?

a)

A college student of legal age to work but who is still in school full time.

b)

An entrepreneur in the process of starting a new business.

c)

A secretary who was laid-off from work & is looking at job ads

d)

A housewife taking care of three children.

8.

Unemployment is most likely to occur during an economic expansion

a)

True

b)

False

9.

The phase of a business cycle in which unemployment at the lowest level is a ________________.

a)

expansion

b)

contraction / recession.

10.

_______ 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

11.

Farm workers are unemployed when the cropping season is over. What type of unemployment is this?

a)

frictional

b)

cyclical

c)

structural

d)

seasonal

12.

When individuals lose jobs due to a decline in the economy during an economic recession.

a)

Structural Unemployment

b)

Cyclical Unemployment

c)

Frictional Unemployment

d)

Seasonal Unemployment

13.

Individuals are unemployed due to a lack in skills that modern industries need.

a)

Cyclical Unemployment

b)

Frictional Unemployment

c)

Structural Unemployment

d)

Seasonal Unemployment

14.

Which of the following statements would be classified as “full employment’?

a)

Everyone who wants to work has a job

b)

Approximately 95% of people have a job

c)

People who have been hunting for a job for a long time

d)

Everyone who wants to work have full time jobs

15.

_______ 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

16.

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

17.

Changes in technology often eliminate one type of job. This represent what type of unemployment?

a)

Seasonal

b)

Cyclical

c)

Frictional

d)

Structural

18.
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
19.
Jeff was replaced by a computer. He is experiencing what type of unemployment?
a)
Cyclical
b)
Structural
c)
Seasonal 
d)
Frictional
20.

A sustained general increase in prices across an economy.

a)

Disinflation

b)

Consumer Price Index

c)

Deflation

d)

Inflation

21.

A price index determined by measuring the price of a standard group of goods meant to represent the market basket of a typical consumer.

a)

Customer Purchasing Index

b)

Consumer Price Index

c)

Consumer Policy Index

d)

Inflation

22.

The percentage of a nations labour force that is unemployed.

a)

Labour Force Participation Rate

b)

Unemployment natural Percentage

c)

Unemployment rate

d)

Labour Force percentage

23.

Type of unemployment that occurs as a result of harvest schedules, or when industries make seasonal shifts in their production schedules.

a)

Seasonal Unemployment

b)

Structural Unemployment

c)

Frictional Unemployment

d)

Cyclical Unemployment

24.

Type of unemployment that occurs when workers skills do not match those needed for the jobs available.

a)

Seasonal Unemployment

b)

Structural Unemployment

c)

Frictional Unemployment

d)

Cyclical Unemployment

25.

In a recession, GDP

a)

a) Shrinks

b)

b) Grows slowly

c)

c) Grows by 0%

d)

d) Grows rapidly

26.
In a boom
a)
a)     Unemployment is likely to fall
b)
b)     Prices are likely to fall
c)
c)     Demand is likely to fall
d)
d)     Imports are likely to fall
27.

Refers to an increase in the general price level associated with an increase in the cost of production.

a)

Supply Inflation

b)

Cost Push Inflation

c)

Imported Inflation

d)

Demand Pull Inflation

28.

The labor force includes

a)

the employed only

b)

the unemployed only

c)

the entire country's population

d)

both the employed and unemployed

29.

The equation for calculating unemployment is

a)

(unemployment / workforce) x 100

b)

(unemployed + employed) / workforce x 100

c)

(employed / workforce) x 100

d)

(unemployed / country population) x100

30.

What type of unemployment: lost job to an automatic check out machine at Target.

a)

cyclical

b)

frictional

c)

structural

d)

seasonal

31.

What type of unemployment: Coronavirus shuts things down

a)

frictional

b)

structural

c)

seasonal

d)

cyclical

32.

What type of unemployment: Coronavirus shuts things down

a)

frictional

b)

structural

c)

seasonal

d)

cyclical

33.

To calculate the inflation rate

a)

(new-old / new) x 100

b)

(new-old / old) x 100

c)

(new / old) x 100

d)

(new + old/ old) x 100

34.

If a company lays off half of its employees during a recession, what can you reasonably conclude?

a)

The employees were bad at their job

b)

Another company wanted to higher the employees

c)

The company couldn't afford to pay the employees

d)

The employees were overqualified for their jobs

35.

Which of these people is most likely to be a consumer, but not a producer?

a)

Preschooler

b)

High schooler

c)

College student

d)

Teacher

36.

The statement "recessions are a normal part of the business cycle" supports which of the following arguments?

a)

Recessions are especially hard on regular citizens

b)

Recessions are triggered by a drop in spending

c)

Recessions are not permanent

d)

Recessions are less severe than depressions

37.

Which of the following is an appropriate government policy for increasing employment in an economy?

a)

introducing measures to reduce the level of spending in an economy

b)

encouraging the import of goods from overseas

c)

providing incentives and grants to new businesses

d)

reducing import taxes, leading to an influx of cheap imports