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WorksheetsLow Unemployment
Total questions: 13
Worksheet time: 14mins
Unemployment is defined as
the percentage of people in the population who do not have a job
the percentage of people in the labour force who do not have a job
the percentage of people in the population who do not have a job and are actively looking for one
the percentage of people in the labour force who do not have a job and are actively looking for one
Hidden unemployment does not refer to
unemployed workers who have given up looking for a job
workers who are no longer satisfied with the job they have
part-time workers who would rather be working full time
workers who are working in a different field than what they were trained to do
Consequences of unemployment include
loss of real GDP and loss of workers' income
loss of government tax revenues and increased burden on the budget of unemployment benefits
a great inequality in the distribution of income and increased poverty
all of the above
Cyclical unemployment is caused by
a fall in aggregate demand
a fall in long run aggregate supply
labour market rigidities
changes in the demand for labour skills
Which of the following is not included in natural unemployment?
fricitional unemployment
seasonal unemployment
demand-deficient unemployment
structural unemployment
Which of the following is not a cause of structural unemployment?
high minimum wages
technological change that replaces labour with machines
a firm moves to a different location
workers in ski resorts lose their jobs during the summer
In Country X, the labour force is 40% of a population of 5 million people, the unemployed are 200,000 and discouraged workers are 50,000. The unemployment rate is:
10%
4%
12.5%
5%
Two economic costs of unemployment include
a loss of real output and a more unequal distribution of income
increased government payments for unemployment benefits and higher inflation
a loss of tax revenue for the government and an increase in imports
a loss income for the unemployed and a smaller labour force
Structural unemployment can arise from
a change in demand for certain skills provided by labour
large firms moving away from their current geographical region
labour market rigidities
all of the above
If someone quits their job in search of a better job, they become
seasonally unemployed
frictionally unemployed
structurally unemployed
cyclically unemployed
People working on a farm often face:
frictional unemployment
structural unemployment
seasonal unemployment
cyclical unemployment
Cyclical unemployment results in
unemployment equal to the natural rate of unemployment
unemployment less than the natural rate of unemployment
unemployment greater than the natural rate of unemployment
any of the above, as it depends on the natural rate of unemployment
An inflationary gap involves:
cyclical unemployment greater than the natural rate of unemployment
unemployment equal to the natural rate of unemployment
cyclical unemployment less than the natural rate of unemployment
zero cyclical unemployment and unemployment less than the natural rate of unemployment
