Question 1

A general mismatch between the skills of unemployed workers and the skills needed by employers with job openings results in:

Accepted Answer

Mismatch between skills of unemployed workers and skills needed by employers causes structural unemployment, which is a type of unemployment resulting from a mismatch between the skills and characteristics of workers in the labor force and the requirements of the available jobs.

Question 2

Unemployment that occurs from fundamental technological changes in the production, or from the substitution of new goods for customary ones, is known as:

Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills of workers and the requirements of available jobs, often caused by technological changes or shifts in consumer preferences leading to a decline in demand for certain goods or services.

Question 3

Sam is a musician who is out of work because electronic equipment replaced live musicians. This is an example of:

Accepted Answer

This is an example of structural unemployment because Sam's skills (being a live musician) no longer match the demands of the labor market due to technological advancements.

Question 4

A mismatch of the skills of unemployed workers and the skills required for existing jobs is defined as:

Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills and qualifications of workers and the available jobs in the labor market. This mismatch can occur due to changes in technology, shifts in consumer demand, or changes in the distribution of industries in a particular region.

Question 5

An example of structural unemployment is a(n):

Accepted Answer

Structural unemployment is caused by changes in technology, shifts in consumer preferences, or other fundamental changes in the economy that make certain skills or industries obsolete. An engineer permanently laid off due to advances in technology is an example of structural unemployment. The other choices are not examples of structural unemployment.

Question 6

Sharon was being treated unfairly by her boss, so she stormed off the job and two days later found another position. For two days, Sharon experienced:

Accepted Answer

Sharon's situation represents frictional unemployment, as she voluntarily quit her job and took some time to search for a new one before finding it.

Question 7

If Sam Jackson voluntarily quits one job, possesses marketable skills, and expects to find a new job in a few weeks, then Mr. Jackson is considered:

Accepted Answer

Frictional unemployment refers to the temporary unemployment that occurs when someone is in between jobs or looking for a new job. In this scenario, Sam Jackson voluntarily quits one job but possesses marketable skills and expects to find a new job in a few weeks, which is a clear example of frictional unemployment.

Question 8

When people become unemployed because of a higher minimum wage, this type of unemployment is called:

Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills and qualifications of workers and the job openings available. When the minimum wage rises, employers may not be able to afford to keep all their employees or may have to cut back on hiring, leading to job losses. This results in unemployment due to a mismatch between the wage rate and the available jobs, which is a form of structural unemployment.

Question 9

Unemployment that is caused by a mismatch of the demand for workers with certain skills and the skills of unemployed workers is:

Accepted Answer

Structural unemployment is caused by a mismatch between the skills of workers and the skills demanded by employers. This can be due to technological changes, changes in consumer demand, or shifts in the economy. It is different from frictional unemployment, which occurs when workers are temporarily between jobs, and cyclical unemployment, which occurs due to changes in the overall economy. Mismatch unemployment is not a commonly used term, and it is not a specific type of unemployment.

Question 10

Workers who may be between jobs are considered:

Accepted Answer

Workers who are temporarily between jobs and searching for new employment are considered frictionally unemployed. This type of unemployment is generally considered to be a natural part of a dynamic labor market, as workers move between jobs or industries.

Question 11

Althea, a brilliant new Ph.D. in economics, has turned down many job offers because she hopes eventually to teach at one of the top 10 universities in her field. The type of unemployment she is experiencing is:

Accepted Answer

Althea's situation is an example of frictional unemployment, which occurs when individuals are in between jobs or are searching for a job that better matches their skills and qualifications. Since Althea is being selective about her job opportunities because of her aspirations to work at a top university, she is voluntarily unemployed and not due to any structural or cyclical issues in the economy.

Question 12

Unemployment caused by people voluntarily quitting work in order to seek more attractive employment is called:

Accepted Answer

The term for unemployment caused by people voluntarily quitting work in order to seek more attractive employment is frictional unemployment. The other options are either general conditions of employment (natural rate of unemployment, full employment) or caused by economic downturns (cyclical unemployment, structural unemployment).

Question 13

Which of the following people would be classified as fictionally unemployed?

Accepted Answer

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

Question 14

When individuals are unemployed because they lack the qualifications to fill available jobs, this is called:

Accepted Answer

Structural unemployment occurs when individuals lack the skills or qualifications necessary to fill available jobs. This can be caused by changes in technology, shifts in the economy, or a mismatch between the skills of the unemployed and the needs of employers. Frictional unemployment refers to temporary unemployment that occurs as individuals search for new jobs, while cyclical unemployment is caused by changes in the business cycle. Natural unemployment is the combination of structural and frictional unemployment that exists even when the economy is operating at full employment.

Question 15

Frictional unemployment refers to:

Accepted Answer

Frictional unemployment refers to workers who are between jobs, as they are searching for a new job or transitioning from one job to another.

Question 16

Bob is unemployed because his skills have become obsolete due to technological advances. This is ____ unemployment.

Accepted Answer

Bob's unemployment is due to structural changes in the labor market, as his skills are now obsolete. This type of unemployment is referred to as structural unemployment.

Question 17

Structural unemployment is unemployment caused by:

Accepted Answer

Structural unemployment is caused by a mismatch between worker skills and employer requirements, which results in a situation where workers do not have the skills that employers are looking for, and hence are unable to find employment. This type of unemployment is often caused by technological changes, changes in the structure of the market, or changes in the skills required for certain types of jobs.

Question 18

Louise is unemployed due to a decrease in the demand for workers with a knowledge of a certain word processing language. This is an example of:

Accepted Answer

Louise's unemployment is a result of a structural shift in the labor market, where the demand for workers with her specific skill set has decreased. This type of unemployment is known as structural unemployment.

Question 19

Consider a broom factory that permanently closes because of foreign competition. If the broom factory's workers cannot find new jobs because their skills are no longer marketable, then they are classified as:

Accepted Answer

The workers are no longer marketable because their skills do not fit the current market demands. This type of unemployment is called structural unemployment.

Question 20

Which of the following offers an example of structural unemployment?

Accepted Answer

Structural unemployment refers to unemployment caused by shifts in the economy that result in a mismatch between available jobs and the skills or location of workers. The development of automobiles and subsequent decline in horse-and-buggy transportation is an example of a shift in the economy that caused unemployment for stable workers who were no longer needed in their previous jobs. The other options listed do not illustrate structural unemployment.

Quiz 12: Business Cycles and Unemployment