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CHAPTER 6 . UNEMPLOYMENT. GROUP DIL 23/2A

Total questions: 99

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.

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

14.

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

a)

Cyclical unemployment

b)

Technological unemployment

c)

Frictional unemployment

d)

Seasonal unemployment

15.

Farm helpers are unemployed when the cropping season is over.

a)

frictional

b)

cyclical

c)

structural

d)

seasonal

16.

Who among the following would be considered as unemployed?

a)

A graduating student of legal age to work

b)

An entrepreneur in the process of starting a new business

c)

A secretary who has resigned from work & looking at job ads

d)

A housewife running 2 internet shops at the same time

17.

When individuals lose jobs due to a decline in the economy (aggregate demand), often during an economic recession.

a)

Structural Unemployment

b)

Cyclical Unemployment

c)

Frictional Unemployment

d)

Seasonal Unemployment

18.

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

a)

Cyclical Unemployment

b)

Frictional Unemployment

c)

Structural Unemployment

d)

Seasonal Unemployment

19.

Sum of the employed and the unemployed

a)

Employed

b)

Unemployment

c)

Labor Force

20.

When individuals are searching for greener pastures is considered what type of unemployment?

a)

frictional

b)

cyclical

c)

structural

d)

seasonal

21.

Which of these is NOT a characteristic of an unemployed person?

a)

He/she does not work

b)

He/she has made specific efforts to find a job

c)

He/she is laid off from a job in the succeeding months

d)

He/she is undergoing a career change

22.

WHO BENEFITS AND WHO LOSES WHEN UNEXPECTED INFLATION OCCURS?

a)

creditors benefit; debtors lose

b)

creditors lose; debtors benefit

23.

Unemployment Rate =

a)

population / # of unemployed X 100

b)

# of unemployed / # in the civilian labor force X 100

c)

# in the civilian labor force / # of unemployed X 100

24.

What is it called when a worker takes a lower skilled job when they are overqualified to earn money to pay bills?

a)

A discouraged worker

b)

Underemployed worker

c)

A seasonal worker

d)

A structural worker

25.

There are levels of unemployment. Someone who was looking for work but gave up trying is __

a)

a high school dropout

b)

discouraged worker

c)

underemployed

d)

a quitter

26.

When a company has to pay workers higher wages, it can lead to a rise in prices for their product. This is known as __

a)

demand pull inflation

b)

wage price spiral

c)

cyclical unemployment

d)

deflation

27.

Those who are willing and able to work at the current wage rate but do not have a paid job

a)

Employed

b)

Involuntary unemployed

c)

Voluntary unemployed

28.

Those who are not willing and able to work at the current wage rate and do not have a job.

a)

Employed

b)

Involuntary unemployed

c)

Voluntary unemployed

29.

Unemployment caused by an imbalance between the skills of workers and the requirements of employers

a)

Employed

b)

Structural unemployment

c)

Frictional unemployment

d)

Voluntary unemployment

e)

Cyclical unemployment

30.

Short-term temporary unemployment caused by people being temporarily between jobs or entering the job market for the first time

a)

Employed

b)

Structural unemployment

c)

Frictional unemployment

d)

Voluntary unemployment

e)

Cyclical unemployment

31.

Unemployment caused by a downturn in economic activity

a)

Employed

b)

Structural unemployment

c)

Frictional unemployment

d)

Voluntary unemployment

e)

Cyclical unemployment

32.

Those who are willing and able to work at the current wage rate and have a paid job

a)

Employed

b)

Structural unemployment

c)

Frictional unemployment

d)

Voluntary unemployment

e)

Cyclical unemployment

33.

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

34.

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

35.

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

36.

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

37.

Farm helpers are unemployed when the cropping season is over.

a)

frictional

b)

cyclical

c)

structural

d)

seasonal

38.

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

39.

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

40.

What are the impacts of unemployment on the individual?

a)

Increase in welfare spending

b)

Loss of skill over time

c)

Increase in disposable income

d)

Increase in demand pull inflation

41.

Which of the following is not in the labor force?

a)

Charles, who wants to work but has given up looking for work until the weather improves.

b)

Mary, who works part-time but wishes for work full time.

c)

John, who has a graduate degree but is working as a waiter.

d)

Carl, who does not have work but applied for work at a local factory.

e)

Melissa, who just graduated from business school and is currently seeking employment as an accountant.

42.

Unemployment Rate formula

a)

(Unemployed/ Labor force) * 100

b)

(Employed/ Unemployed) * 100

c)

(Labor force/ Employed) * 100

43.

Which is not the type of unemployment?

a)

frictional

b)

functional

c)

cyclical

d)

structural

44.

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

45.

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

46.

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

47.

A situation where labor force participants are available or willing to work but are unable to find jobs

a)

Unemployment

b)

Underemployment

c)

Discourage worker

d)

Outside of the labour force

48.

Liza took 3 months to find a job after her graduation. The period of 3 months for Liza to find the jobs is what types of unemployment?

a)

Cyclical

b)

Seasonal

c)

Frictional

d)

Structural

49.

Structural unemployment is unemployment caused by ___________.

a)

discrimination

b)

a temporary change in jobs

c)

the time required to match employers and workers

d)

change in economic structure

50.

During unemployment, Bank Negara Malaysia will _______ short term bonds or government securities from individual and institutions.

a)

Buy

b)

Sell

51.

To overcome unemployment, Government will _________ the tax.

a)

Increase

b)

Decrease

52.

Demand pull inflation is caused by ________.

a)

Increase in supply

b)

Increase in demand

c)

Decrease in supply

d)

Decrease in demand

53.

Cost push inflation is caused by _______.

a)

Increase in supply

b)

Increase in demand

c)

Decrease in supply

d)

Decrease in demand

54.

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

a)

frictionally unemployed

b)

structurally unemployed

c)

cyclically unemployed

d)

dissatisfiededly unemployed dissatisfiededly unemployed

55.

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

56.

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

57.

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

58.

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

59.

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

60.

Farm helpers are unemployed when the cropping season is over.

a)

frictional

b)

cyclical

c)

structural

d)

seasonal

61.

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

62.

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

63.

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

64.

What are the impacts of unemployment on the individual?

a)

Increase in welfare spending

b)

Loss of skill over time

c)

Increase in disposable income

d)

Increase in demand pull inflation

65.

Which of the following is not in the labor force?

a)

Charles, who wants to work but has given up looking for work until the weather improves.

b)

Mary, who works part-time but wishes for work full time.

c)

John, who has a graduate degree but is working as a waiter.

d)

Carl, who does not have work but applied for work at a local factory.

e)

Melissa, who just graduated from business school and is currently seeking employment as an accountant.

66.

What type of unemployment is a person experiencing when they are laid off during a recession?

a)

Frictional

b)

Seasonal

c)

Cyclical

d)

Structural

67.

What type of unemployment is a lawn worker experiencing when he is without work the week after Christmas?

a)

Frictional

b)

Seasonal

c)

Cyclical

d)

Structural

68.

Those who are willing and able to work at the current wage rate but do not have a paid job

a)

Employed

b)

Involuntary unemployed

c)

Voluntary unemployed

69.

Unemployment caused by an imbalance between the skills of workers and the requirements of employers

a)

Employed

b)

Structural unemployment

c)

Frictional unemployment

d)

Voluntary unemployment

e)

Cyclical unemployment

70.

Frictional unemployment (3 answers)

a)

Describes recent college graduates

b)

Lasts less than 6 months

c)

Describes employees moving from one job to another

d)

Increases inflation Increases inflation

71.

What type of unemployment is due to a business shutting down for a part of a year?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

72.

What type of unemployment occurs when advanced technology takes your job?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

73.

What type of unemployment occurs during a transition period from one job to another job?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

74.

What type of unemployment occurs when there is a decline in business activity resulting in layoffs?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

75.

You work at a Lobster Shack in Maine that is open from May to August. What type of unemployment will you experience in September?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

76.

Radio Shack filed for bankruptcy resulting in their employees facing what type of unemployment?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

77.

A worker who leaves their job at an eye doctor's office, but hasn't started their new job at a school. What type of unemployment are they categorized in?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

78.

Keith lost his job at his company’s telephone switchboard when the company installed an automated phone system. Which type of unemployment did Keith experience?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

79.

You have just graduated from high school and are applying for various jobs in your local area. You would be under what category of unemployment?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

80.

A new machine at the fast food restaurant has replaced your job at the fry station. You would be under what category of unemployment?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

81.

Your summer job at Bahama Bucks has come to an end due to school starting in August. You would be under what category of unemployment?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

82.

The oil field in Texas has busted and you have lost your job at a refinery. You would be under what category of unemployment?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

83.

You are married and must quit your job to relocate with your spouse to a new location. You would be under what category of unemployment?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

84.

What type of unemployment is due to a business shutting down for a part of a year?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

85.

What type of unemployment occurs when advanced technology takes your job?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

86.

What type of unemployment occurs during a transition period from one job to another job?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

87.

What type of unemployment occurs when there is a decline in business activity resulting in layoffs?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

88.

You work at a Lobster Shack in Maine that is open from May to August. What type of unemployment will you experience in September?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

89.

A Halloween Spirit Worker will experience what type of unemployment?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

90.

Radio Shack filed for bankruptcy resulting in their employees facing what type of unemployment?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

91.

A worker who leaves their job at an eye doctor's office, but hasn't started their new job at a school. What type of unemployment are they categorized in?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

92.

Keith lost his job at his company’s telephone switchboard when the company installed an automated phone system. Which type of unemployment did Keith experience?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

93.

You have just graduated from high school and are applying for various jobs in your local area. You would be under what category of unemployment?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

94.

A new machine at the fast food restaurant has replaced your job at the fry station. You would be under what category of unemployment?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

95.

Your summer job at Bahama Bucks has come to an end due to school starting in August. You would be under what category of unemployment?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

96.

The oil field in Texas has busted and you have lost your job at a refinery. You would be under what category of unemployment?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

97.

You are married and must quit your job to relocate with your spouse to a new location. You would be under what category of unemployment?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

98.

Your position with the local newspaper has ended due to online media taking over. You would be under what category of unemployment?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

99.

Your job as a reindeer at Six Flags will end in January. You would be under what category of unemployment?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical