Question 1

In a healthy economy, the unemployment rate is

Accepted Answer

In a healthy economy, there will always be some level of unemployment, which is why the correct answer is D (greater than zero). A 0% unemployment rate is not sustainable as some people are always transitioning between jobs or entering/re-entering the workforce. Additionally, some people may choose to be voluntarily unemployed or may not have the necessary skills to be employed, resulting in a natural level of unemployment.

Question 2

Workers who lose their jobs because the skill set they possess is no longer required in the economy are considered to be

Accepted Answer

Workers who lose their jobs because their skills are no longer required in the economy are considered to be structurally unemployed. This type of unemployment results from shifts in the structure of the economy, such as changing consumer preferences, technological advancements, or globalization, which lead to a decreased demand for certain types of labor.

Question 3

One misconception that people often have about unemployment is that

Accepted Answer

C

Question 4

Some jobs in the economy are no longer needed after an advancement in technology. A person who loses his or her job this way would be considered

Accepted Answer

Structural unemployment occurs when a permanent shift occurs in the economy, such as advancements in technology, that renders certain jobs obsolete. Workers who lose their jobs due to structural unemployment often require retraining or education to acquire new skills and find employment in a different field.

Question 5

Which of the following people would be officially considered unemployed?

Accepted Answer

The answer of Which of the following people would be...

Question 6

Which of the following statements about structural unemployment is true?

Accepted Answer

Structural unemployment cannot be eliminated as it is caused by shifts in the structure of an economy, such as changes in technology or globalization. While government intervention may mitigate its effects or provide training programs, it cannot completely eliminate structural unemployment.

Question 7

Which of the following is an example of structural unemployment?

Accepted Answer

Structural unemployment occurs when a worker's skills no longer match the demands of the job market. Jasmine losing her job as a newspaper editor because the publication has gone digital is an example of structural unemployment, as her skills are no longer in demand in the changing job market. The other options can be categorized as frictional unemployment (B and D) or voluntary unemployment (C) caused by personal decisions or a temporary slowdown in the economy.

Question 8

Official unemployment is identified as when a worker

Accepted Answer

Official unemployment is defined as someone who is currently not employed but actively seeking employment. Therefore, option A is the best choice. Option B describes discouraged workers, option C describes a personal choice to leave work, and options D and E describe people who are no longer in the labor force.

Question 9

Structural unemployment is

Accepted Answer

Structural unemployment is caused by changes in the industrial makeup of an economy, such as technological advancements leading to the obsolescence of certain jobs or industries.

Question 10

Structural, frictional, and cyclical are all types of

Accepted Answer

These are types of unemployment. Structural unemployment is caused by changes in the economy's structure, such as the decline of certain industries. Frictional unemployment is due to the time it takes for individuals to find a job or transition between jobs. Cyclical unemployment is a product of economic fluctuations, such as recessions.

Question 11

Workers who lose their jobs because of market innovations are considered

Accepted Answer

Workers who lose their jobs because of market innovations are considered structurally unemployed. This is a type of unemployment that occurs due to changes in the structure of the economy, such as advances in technology or shifts in consumer demand, that make certain jobs or industries obsolete.

Question 12

Between 1979 and 2014 manufacturing employment in the United States

Accepted Answer

According to the Bureau of Labor Statistics, manufacturing employment in the United States fell from 19.9 million jobs in 1979 to 12.1 million jobs in 2014, which is a decrease of almost 40 percent. Therefore, the best choice is B.

Question 13

Jamal works in a factory in Lake Zurich, Illinois, assembling toy trains. The factory owner updates the current equipment and installs new robots that can do Jamal's job. As a result, Jamal is laid off and is now unemployed. Jamal would be considered

Accepted Answer

Jamal's unemployment is a result of a long-term structural change in the economy, specifically the installation of new robots that can do his job. This type of unemployment is known as structural unemployment.

Question 14

All three types of unemployment

Accepted Answer

The answer of All three types of unemployment
...

Question 15

Between 1979 and 2014 service industries employment in the United States

Accepted Answer

The answer of Between 1979 and 2014 service industries employment...

Question 16

The main statistic that is used to monitor unemployment in the economy is

Accepted Answer

The unemployment rate is the most commonly used statistic to monitor unemployment in the economy. It measures the percentage of the labor force that is unemployed and actively seeking work.

Question 17

Between 1960 and 2012, the average unemployment rate in the United States was about

Accepted Answer

According to the Bureau of Labor Statistics, the average unemployment rate in the United States between 1960 and 2012 was approximately 6 percent.

Question 18

The government has decided to give governmental grants to community colleges that offer job training for individuals who have recently been laid off due to their outmoded skills. The government is trying to reduce the level of

Accepted Answer

Structural unemployment is caused by a mismatch between the skills of job seekers and the skills demanded by employers. By providing grants to community colleges for job training, the government is trying to reduce this mismatch and therefore reduce structural unemployment.

Question 19

Which of the following two types of unemployment occur even when the economy is healthy and growing?

Accepted Answer

Frictional unemployment occurs when workers are between jobs or are searching for better job opportunities. Structural unemployment occurs due to changes in the structure of the economy, such as advancements in technology or shifts in consumer demand. Both types of unemployment can occur even when the economy is healthy and growing. Cyclical unemployment, on the other hand, occurs due to a downturn in the business cycle and is not present in a healthy and growing economy. Practical unemployment is not a recognized type of unemployment.

Question 20

Which of the following lists the three types of unemployment?

Accepted Answer

The three types of unemployment are frictional (when workers are in between jobs or transitioning careers), structural (when there is a mismatch between workers' skills and available jobs), and cyclical (when there is a downturn in the economy and decreased demand for labor). Choice E lists these three types correctly.

Quiz 7: Unemployment