Deck 26: Unemployment

Question 1

Cyclical unemployment is most likely:

A) In a boom.
B) In a recession.
C) When aggregate demand increases.
D) When GDP growth is high.

Answer 1

B

Question 2

Structural unemployment occurs when:

A) There is a slump in aggregate demand.
B) Real wages in the economy are too high.
C) An industry has lost its competitiveness.
D) At particular times of year.

Answer 2

C

Question 3

The number of people who are looking for work but not yet willing to accept work at the given real wage rate is measured by:

A) Voluntary unemployment
B) Seasonal unemployment
C) Structural unemployment
D) Involuntary unemployment

Answer 3

A

Question 4

Which of the following is a demand-side policy to reduce cyclical unemployment?

A) Higher interest rates
B) An increase in income tax
C) Incentives to encourage the training of staff
D) Increased government spending on capital goods

Question 5

If an economy has high levels of unemployment:

A) This will shift the production possibility frontier outwards.
B) This means the economy may be operating within the production possibility frontier.
C) This means that there is an inflationary gap.
D) This means the level of full employment needs to be reduced.

Question 6

The equilibrium rate of unemployment:

A) Is the average level of unemployment over 50 years.
B) Is the average level of unemployment over the last 12 months.
C) Is the level of unemployment at the Full Employment level.
D) Is the level of unemployment the government is aiming to achieve.

Question 7

Supply-side economics is most useful to reduce:

A) Cyclical unemployment
B) Demand deficient unemployment
C) The natural rate of unemployment
D) Involuntary unemployment

Question 8

Cyclical unemployment is linked directly to the level of aggregate exports.

Question 9

Supply-side policies will increase the number of people willing and able to accept jobs at each and every wage rate.

Question 10

One way of measuring unemployment is to interview people to find out the number of people who want to work but who are not employed. This is called the Labour Force ______.

Question 11

Which of the following is a measure that can be used to gauge the level of unemployment within an economy?

A) Employment count
B) Benefit count
C) Claimant count
D) Inactivity count

Question 12

To be classed as unemployed, an individual would:

A) Be without a job.
B) Want to work, be available to work and be actively seeking work.
C) Seeking work on a regular basis.
D) Be without a job, want to work, be available to work and be looking for work.

Question 13

The claimant count generally:

A) Suggests that unemployment is higher than what the Labour Force Survey indicates.
B) Suggests that unemployment is lower than what the Labour Force Survey indicates.
C) Suggests that unemployment is equal to the level that the Labour Force Survey indicates.
D) Is a better measure of the level of unemployment when compared to the Labour Force Survey.

Question 14

In the context of unemployment, NEETS are those who are:

A) Newly educated, employed and trainees
B) Not experienced, employed or in training
C) Never in education, employment or training
D) Not in education, employment or training

Question 15

People who are not in work and not seeking or available to work are referred to as the:

A) Economically persistent
B) Economically unable
C) Economically inactive
D) None of the above