Question 1

About what percentage of jobs are destroyed every year and about what percentage of workers leave their jobs in a typical month?

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Question 2

Which of the following was not among the four industries with the largest employment in the United States a century ago?

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Question 3

Suppose the demand for construction workers increased and the demands for textile and steel workers diminished.This is an example of

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Question 4

Which of the following does not help reduce frictional unemployment?

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Unemployment insurance provides financial assistance to individuals who are jobless but actively seeking work. It does not directly address the causes of frictional unemployment, such as information gaps or skill mismatches. Therefore, it does not help reduce frictional unemployment. Government-run employment agencies and public training programs can help match unemployed workers with job openings and provide them with the necessary skills, thus reducing frictional unemployment.

Question 5

Job search

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Question 6

Consumers decide to ride bikes more and drive cars less.Bicycle companies expand production while automobile companies fire workers.This is an example of

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Question 7

The invention of the telegraph led to the loss of jobs for those who had delivered mail by horse,but created jobs for telegraph operators and delivery persons.This is an example of

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The loss of jobs for mail delivery by horse is an example of sectoral shifts, which refers to a change in the composition of demand among industries or regions. The creation of jobs for telegraph operators and delivery persons is an example of frictional unemployment, which refers to the temporary unemployment that occurs when people are between jobs or entering the workforce for the first time.

Question 8

Public policy

Accepted Answer

Public policy can address both frictional unemployment, which is the short-term unemployment that arises from the process of matching workers with jobs, and the natural rate of unemployment, which includes frictional plus structural unemployment, through measures such as job training programs, education, and efficient unemployment benefits. These policies can make the labor market more efficient and help workers transition between jobs more quickly, thus potentially reducing both types of unemployment.

Question 9

Policies that reduce the time it takes unemployed workers to find new jobs

Accepted Answer

Policies that reduce the time it takes unemployed workers to find new jobs can reduce both frictional unemployment (which is caused by the time it takes for workers to find a job that matches their skills and preferences) and the natural rate of unemployment (which includes frictional unemployment but also includes structural unemployment and unemployment caused by economic factors like recessions). Therefore, Option A is the best choice.

Question 10

Which of the following is not among the four industries with the largest employment in the United States today?

Accepted Answer

According to the Bureau of Labor Statistics, the four industries with the largest employment in the United States today are healthcare, retail, food service, and manufacturing. Lumber is not among the top four.

Question 11

Sectoral shifts in demand for output

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Question 12

Suppose that because of the popularity of the low-carb diet,bakeries need fewer workers and steak houses need more workers.The unemployment created by this change is

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Question 13

Frictional unemployment can be the consequence of

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Frictional unemployment can result from workers seeking better opportunities, changes in industry trends or competition amongst firms. Therefore, all of the choices are correct.

Question 14

The Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline.This change in the labor market could lead to

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Question 15

From time to time,the demand for workers has risen in one region of the United States and fallen in another.This illustrates

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Question 16

Which of the following is a source of frictional unemployment?

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Frictional unemployment occurs when workers are temporarily unemployed as they search for a job that better matches their skills or preferences. Changes in the composition of demand among industries or regions can lead to frictional unemployment as workers may need to relocate or retrain to find employment in a new industry or region. Minimum wages and labor unions are not sources of frictional unemployment.

Question 17

Suppose that consumers choose to smoke less and chew gum more.Tobacco companies cut back on the number of people they employ while chewing gum manufacturers employ more.This is an example of

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Question 18

Which of the following is not correct?

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Question 19

Frictional unemployment is inevitable because

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Frictional unemployment is caused by temporary transitions between jobs or when workers are searching for their first job. This is an inevitable part of the economy, as sectoral shifts (changes in the demand for certain types of labor) are constantly happening. B, C, and D are not necessarily factors that contribute to frictional unemployment. The minimum wage law may affect the quantity of labor demanded, but it does not directly cause frictional unemployment. Some people may choose not to work, but this would fall under the category of voluntary unemployment rather than frictional unemployment. Similarly, while unions may affect wages and job security for workers, they do not directly cause frictional unemployment.

Question 20

If all workers and all jobs were the same such that all workers were equally well suited for all jobs,then there would be no

Accepted Answer

Even if all workers were equally well-suited for all jobs, there would still be frictional unemployment, which is the temporary unemployment that occurs while workers search for a job that matches their skills and preferences. This type of unemployment is inherent in any economy and cannot be eliminated completely. However, there would be no cyclical or structural unemployment, as these types of unemployment are related to fluctuations in the overall economy and mismatches between workers and jobs, respectively.

Quiz 28: Unemployment