Question 1

Gracie Burlesford works for a peach grower in Southern Ontario.In July,Burlesford was laid off because of a drought.What type of unemployment is this?
A) frictional
B) structural
C) geographical
D) seasonal

Accepted Answer

The type of unemployment in this scenario is seasonal, as it is caused by a temporary and predictable variation in demand for labour due to the seasonal nature of the peach-growing industry.

Question 2

What is the name of the business cycle that follows a recession?
A) upsizing
B) prosperity
C) inflation
D) recovery

Accepted Answer

The business cycle that follows a recession is called the recovery. This is characterized by an increase in economic activity, employment opportunities, and consumer spending as businesses slowly regain their footing and begin to expand again.

Question 3

Which of the following is a form of unemployment?
A) unseasonal unemployment
B) fractional unemployment
C) cyclical unemployment
D) fiscal unemployment

Accepted Answer

Cyclical unemployment is a form of unemployment that occurs due to fluctuations in the business cycle. It is caused by a downturn in the economy, resulting in a decrease in demand for goods and services, leading to companies laying off workers. Unseasonal, fractional, and fiscal unemployment are not valid forms of unemployment.

Question 4

If the tourism industry in a Canadian province had 43 percent unemployment due to an economic downturn that gripped the country,the workers in the tourism industry would be experiencing which of the following type of unemployment?
A) seasonal
B) cyclical
C) structural
D) frictional

Accepted Answer

Cyclical unemployment occurs due to fluctuations in the business cycle and the overall health of the economy. In this scenario, the economic downturn affecting the tourism industry in the Canadian province is a result of cyclical factors, leading to high levels of unemployment in the industry.

Question 5

Which type of inflation is occurring when the demand for goods and services is greater than the supply?
A) demand-push
B) cost-push
C) demand-pull
D) supply-side

Accepted Answer

Demand-pull inflation occurs when there is excessive demand for goods and services, leading to an increase in their price. This is because the supply is unable to meet the demand, so the buyers are willing to pay more to obtain the product. In contrast, cost-push inflation occurs when the cost of production increases, such as wages or raw materials, leading to an increase in prices. Supply-side inflation occurs when the inflation is caused by a shortage of supply. Therefore, the correct answer is C - demand-pull.

Question 6

When the economy is in a recession,many companies must lay off workers,causing which type of unemployment?
A) cultural
B) cyclical
C) frictional
D) structural

Accepted Answer

Cyclical unemployment occurs as a result of changes in the business cycle, such as a recession, where companies may lay off workers due to decreased demand for their products or services. This type of unemployment is temporary and dependent on the state of the economy.

Question 7

Suppose that 50 percent of the labour force in a country is involved in the agricultural sector,but the economic growth in the nation comes from industry and tourism.What type of unemployment would such a mismatch of ability and job requirements cause?
A) mechanical
B) frictional
C) structural
D) cyclical

Accepted Answer

This mismatch between the skills of the labor force and the requirements of the industries with economic growth would cause structural unemployment. Structural unemployment occurs when there is a mismatch between the available jobs and the skills of the labor force, leading to unemployment even when jobs are available in the economy.

Question 8

Laron Kelly recently quit his job as a car salesperson and is now trying to find a job with another car dealership.This is an example of which type of unemployment?
A) structural
B) frictional
C) recessionary
D) fiscal

Accepted Answer

Laron Kelly's situation is an example of frictional unemployment, which occurs when people are temporarily between jobs or transitioning to a new career.

Question 9

Structural unemployment is unemployment that results from which of the following circumstances?
A) the restructuring of an organization
B) the change in business cycles
C) a mismatch between the available jobs and the skills of available workers
D) people moving to new geographical areas

Accepted Answer

Structural unemployment occurs when there is a mismatch between the available jobs and the skills of available workers, resulting in an inability to fill job openings. This type of unemployment is caused by long-term changes in the economy, such as technological advancements, changes in consumer demand or shifts in the industry, and often requires workers to retrain or acquire new skills to be employable. The other options do not necessarily lead to structural unemployment - A may lead to temporary unemployment until the restructure is complete and new job openings are created, B may lead to cyclical unemployment, and D may lead to frictional unemployment as workers search for new jobs in a new geographical area.

Question 10

The unemployment rate is the percentage of the total work force that is not working but is engaged in which of the following activities?
A) drawing unemployment cheques
B) preparing physically and mentally to begin work
C) actively looking for work
D) laid off,terminated,or downsized due to some economic activity outside of their control

Accepted Answer

The unemployment rate is calculated based on the number of people who are actively looking for work but are unable to find it. A person who is drawing unemployment cheques or preparing to begin work but not actively looking for work would not be considered as unemployed. Additionally, a person who is laid off or terminated but has given up on finding work would also not be included in the unemployment rate.

Question 11

Josh Loachim quit his job in advertising in Toronto and has moved to Calgary,where he is actively seeking employment.This is an example of which type of unemployment?
A) frictional
B) fiscal
C) structural
D) cyclical

Accepted Answer

Frictional unemployment is caused by the natural turnover in the labor market as people change jobs or enter the workforce. In this case, Josh Loachim voluntarily left his job in Toronto to seek new employment opportunities in Calgary, resulting in temporary frictional unemployment.

Question 12

Each January,Lopez is laid off as soon as Christmas is over.She will be hired back sometime during the summer.In terms of unemployment,Lopez is a good example of which type of unemployment?
A) frictional
B) structural
C) seasonal
D) fiscal

Accepted Answer

Lopez's unemployment is due to her job being seasonal, meaning her employer only requires her services during certain times of the year. This type of unemployment is referred to as seasonal unemployment.

Question 13

If,in 2010,7.5 percent of a country's total work force was not working,but was actively seeking employment,this 7.5 percent represents which national figure?
A) recessionary unemployment
B) unemployment rate
C) inflationary unemployment
D) position on the international unemployment scale

Accepted Answer

The 7.5 percent represents the unemployment rate, which is the percentage of the total work force that is not working but actively seeking employment at a particular time.

Question 14

The labourers displaced due to assembly-line automation may not have the skills needed to operate the computerized machines that replaced them.This is an example of which type of unemployment?
A) cyclical
B) operational
C) frictional
D) structural

Accepted Answer

The situation described is an example of structural unemployment, which occurs when there is a mismatch between the skills and qualifications of workers and the jobs that are available. As assembly-line automation has made certain types of jobs obsolete, workers who do not have the necessary computer skills to operate the machines that have replaced them may find themselves unable to find work. This is a long-term problem that may require retraining or education for these workers to acquire the skills they need to re-enter the workforce.

Question 15

What is a general upward movement of prices in the economy known as?
A) purchase power acceleration
B) deflation
C) inflation
D) upsizing

Accepted Answer

Inflation is the general upward movement of prices in the economy.

Question 16

On PEI,jobs are plentiful during the summer months,but difficult to find in September once the tourists leave and many restaurants and inns close.People who work in the island's restaurants annually become unemployed in which way?
A) structurally
B) geographically
C) frictionally
D) seasonally

Accepted Answer

The situation described in the passage, where jobs are plentiful during certain months and difficult to find in others due to seasonal changes, is an example of seasonal unemployment. This type of unemployment occurs when the demand for labor varies with the seasons, and workers are temporarily laid off or unable to find work during off-season periods. Therefore, the best choice is D - seasonally.

Question 17

If the national unemployment rate goes up,which of the following might be a contributing factor?
A) Some people took a job transfer to another province.
B) Some people took a job right out of high school.
C) Some people are preparing for later employment by attending school.
D) Some people started a new job and their old position is vacant.

Accepted Answer

If people are attending school or undergoing training programs, they are not actively seeking employment and are not counted in the labor force, which would contribute to the increase in the unemployment rate. Choices A, B, and D do not involve people being unemployed and actively seeking employment, so they would not contribute to a rise in the unemployment rate.

Question 18

For the past 10 years,Kris Boja has been a welder for a local manufacturer.This morning her boss informed her that a robot would replace her.Boja's unemployment is an example of which type of unemployment?
A) cyclical
B) mechanical
C) structural
D) frictional

Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills and qualifications of workers and the available job opportunities. In this case, Boja's job has been replaced by a robot, indicating a shift in the type of skills and qualifications required for the job.

Question 19

Which of the following represent two types of inflation?
A) demand-pull and cost-push
B) cost-pull and supply-push
C) demand-pull and supply-push
D) recessionary and recovery

Accepted Answer

Demand-pull inflation occurs when demand for goods and services exceeds supply, leading to an increase in prices. Cost-push inflation occurs when the cost of production increases, leading to an increase in prices.

Question 20

Which type of inflation is triggered by increases in production that which push up the costs of final goods and services?
A) supply-side
B) demand-push
C) cost-push
D) demand-side

Accepted Answer

Cost-push inflation is triggered by an increase in production costs, such as wages or raw materials, which in turn increases the prices of final goods and services. This is different from demand-pull inflation, where demand rises and causes prices to increase. Supply-side inflation refers to an increase in the supply of goods and services, which can lower prices. Demand-side inflation refers to an increase in demand for goods and services, which can raise prices.

Quiz 1: understanding Evolving Economic Systems and Competition

Gracie Burlesford works for a peach grower in Southern Ontario.In July,Burlesford was laid off because of a drought.What type of unemployment is this?

What is the name of the business cycle that follows a recession?

Which of the following is a form of unemployment?

If the tourism industry in a Canadian province had 43 percent unemployment due to an economic downturn that gripped the country,the workers in the tourism industry would be experiencing which of the following type of unemployment?

Which type of inflation is occurring when the demand for goods and services is greater than the supply?

When the economy is in a recession,many companies must lay off workers,causing which type of unemployment?

Suppose that 50 percent of the labour force in a country is involved in the agricultural sector,but the economic growth in the nation comes from industry and tourism.What type of unemployment would such a mismatch of ability and job requirements cause?

Laron Kelly recently quit his job as a car salesperson and is now trying to find a job with another car dealership.This is an example of which type of unemployment?

Structural unemployment is unemployment that results from which of the following circumstances?

The unemployment rate is the percentage of the total work force that is not working but is engaged in which of the following activities?

Josh Loachim quit his job in advertising in Toronto and has moved to Calgary,where he is actively seeking employment.This is an example of which type of unemployment?

Each January,Lopez is laid off as soon as Christmas is over.She will be hired back sometime during the summer.In terms of unemployment,Lopez is a good example of which type of unemployment?

If,in 2010,7.5 percent of a country's total work force was not working,but was actively seeking employment,this 7.5 percent represents which national figure?

The labourers displaced due to assembly-line automation may not have the skills needed to operate the computerized machines that replaced them.This is an example of which type of unemployment?

What is a general upward movement of prices in the economy known as?

On PEI,jobs are plentiful during the summer months,but difficult to find in September once the tourists leave and many restaurants and inns close.People who work in the island's restaurants annually become unemployed in which way?

If the national unemployment rate goes up,which of the following might be a contributing factor?

For the past 10 years,Kris Boja has been a welder for a local manufacturer.This morning her boss informed her that a robot would replace her.Boja's unemployment is an example of which type of unemployment?

Which of the following represent two types of inflation?

Which type of inflation is triggered by increases in production that which push up the costs of final goods and services?