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Economics 11 Q4 - Unemployment

Total questions: 10

Worksheet time: 20mins

Name
Class
Date
1.

What does the unemployment rate measure?

a)

The percentage of the labor force that is unemployed

b)

The total population that is unemployed

c)

The number of people unemployed for over a year

d)

The difference between job vacancies and applicants

2.

Cyclical unemployment occurs due to:

a)

Technological advancements

b)

A lack of demand for goods and services

c)

Seasonal variations in production

d)

Job transitions

3.

Frictional unemployment refers to:

a)

Workers who are temporarily unemployed while switching jobs

b)

Unemployment due to long-term economic shifts

c)

Seasonal unemployment in industries like tourism

d)

Unemployment caused by automation

4.

The natural rate of unemployment includes all of the following EXCEPT:

a)

Structural unemployment

b)

Frictional unemployment

c)

Seasonal unemployment

d)

Cyclical unemployment

5.

Which of the following is a social cost of unemployment?

a)

Decrease in tax revenue

b)

Loss of personal income

c)

Increased crime rates

d)

Decline in economic growth

6.

If 5 million people are unemployed and the labor force is 50 million, the unemployment rate is:

a)

5%

b)

10%

c)

15%

d)

20%

7.

If the unemployment rate increases from 5% to 8%, and the labor force remains constant at 60 million, how many more people are unemployed? This formula was not given in class, but you shall know it. Apply this formula: Labor force × (New rate - Old rate)

a)

1.8 million

b)

1.5 million

c)

2 million

d)

3 million

8.

If the labor force participation rate is 70% and the working-age population is 200 million, the labor force is:

a)

70 million

b)

140 million

c)

200 million

d)

150 million

9.

If structural unemployment accounts for 3%, frictional unemployment for 2%, and seasonal unemployment for 1%, the natural rate of unemployment is:

a)

3%

b)

5%

c)

6%

d)

7%

10.

The unemployment rate decreases from 10% to 8%, and the labor force is 50 million. How many people found jobs? This formula was not given in class, but you shall know it. Apply this formula: Labor force × (Old rate - New rate)

a)

1 million

b)

2 million

c)

3 million

d)

4 million