Question 1

The best example of a frictionally unemployed worker is one who:​

Accepted Answer

Frictional unemployment occurs when individuals are temporarily unemployed while transitioning from one job to another, often voluntarily. This is the case with someone who is in the process of switching jobs.

Question 2

Which of the following types of unemployment is the hardest to reduce?​

Accepted Answer

Structural unemployment is the hardest to reduce because it is caused by long-term changes in the economy, such as changes in technology or shifts in the demand for certain goods and services. These changes can lead to entire industries or regions becoming obsolete, resulting in a mismatch between available jobs and the skills of workers. It requires significant changes in education, training, and sometimes even relocation to overcome structural unemployment.

Question 3

Which type of unemployment is likely to increase the most during an economy's recession?​

Accepted Answer

Cyclical unemployment is caused by a decline in economic activity, which often occurs during a recession. As businesses cut back on production and lay off workers, unemployment rises. Therefore, cyclical unemployment is likely to increase the most during an economy's recession.

Question 4

Which type of unemployment is likely to decrease the most during an economy's boom?​

Accepted Answer

Cyclical unemployment is directly related to the business cycle and occurs due to downturns in the economy. During an economy's boom phase, there is an increase in output and growth, which leads to an increase in demand for goods and services, resulting in an increase in employment opportunities and a decrease in cyclical unemployment.

Question 5

Recently,banking has become easier with automated teller machines replacing bank tellers.The loss of tellers' jobs is an example of _____.​

Accepted Answer

Structural unemployment refers to job losses due to changes in the economy, such as advances in technology, that lead to a mismatch between the skills of workers and the available job opportunities. The replacement of bank tellers with automated teller machines is a clear example of this type of job loss. Cyclical unemployment refers to job losses that occur due to downturns in the business cycle, frictional unemployment refers to temporary job losses due to workers searching for better jobs, voluntary unemployment refers to job losses due to workers choosing not to work, and underemployment refers to workers who are employed but not fully utilizing their skills or working less than they would like. None of these explanations fully describe the job loss of bank tellers due to automation.

Question 6

In recent times,there has been a decline in the sale of newspapers in the U.S.as people prefer to read the news on the internet.This has caused many newspaper journalists to lose their jobs.This is an example of:​

Accepted Answer

Structural unemployment occurs due to changes in the structure of the economy, such as the decline in the newspaper industry, which results in the loss of jobs that are no longer in demand. This is different from frictional unemployment, which is caused by people transitioning in and out of jobs, cyclical unemployment, which is caused by fluctuations in the business cycle, and seasonal unemployment, which is caused by seasonal changes in demand for labor. Underemployment refers to workers who are employed but not utilizing their skills or working in jobs below their qualifications.

Question 7

The impact of _____ unemployment is removed from official monthly unemployment figures.​

Accepted Answer

Seasonal unemployment refers to the fluctuations in the demand for labor based on seasonal factors, such as harvesting or tourism. This type of unemployment is expected and temporary, and therefore not included in official monthly unemployment figures.

Question 8

_____ unemployment is experienced by a customer service representative who is laid off from a job because new technology reduces the need for people to handle customer service inquiries.​

Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills and qualifications of workers and the requirements of available jobs. The customer service representative in this scenario is laid off because new technology reduces the need for people to handle customer service inquiries, which is a structural change in the industry.

Question 9

Which type of unemployment is most likely to help an economy become more efficient?​

Accepted Answer

Frictional unemployment, which refers to workers who are in transition between jobs or entering the workforce for the first time, is most likely to help an economy become more efficient. As workers search for better career opportunities, they may discover new skills and acquire additional education or training, enhancing their human capital. This increases the productivity of workers and, in turn, makes the economy more efficient.

Question 10

Structural unemployment refers to unemployment that results from:​

Accepted Answer

The answer of Structural unemployment refers to unemployment that results...

Question 11

Which of the following statements is true of unemployment?​

Accepted Answer

Unemployment exists even when the economy is healthy and growing. This is called natural unemployment, which includes structural and frictional unemployment. Cyclical unemployment, which is caused by downturns in the business cycle, increases during recessions and decreases during expansions. Unemployment and inflation are related, as lower unemployment rates can lead to higher inflation rates. People who have given up searching for a job are not considered unemployed, as they are no longer part of the labor force. Voluntary unemployment refers to a situation where individuals choose not to work, not just pretending to look for jobs.

Question 12

In 2004,Jamal lost his job as a shipbuilder.His shipyard never reopened,and his very specialized skills as a shipbuilder were no longer in demand.Jamal's unemployment is best classified as _____.​

Accepted Answer

Jamal's unemployment is a result of his very specialized skills as a shipbuilder no longer being in demand. This means that his unemployment is caused by structural factors, such as changes in the economy or technology, rather than cyclical factors (related to fluctuations in the business cycle), seasonal factors (related to changes in seasonal demand for certain types of work), frictional factors (related to temporary unemployment while searching for a new job), or voluntary factors (when someone chooses to be unemployed for personal reasons).

Question 13

If the official unemployment rate increases from December to January because the Christmas season is over,we can conclude that _____ is responsible for the increase.​

Accepted Answer

The increase in unemployment is due to seasonal factors, as many seasonal jobs in retail, hospitality, and other sectors come to an end after the holiday season. This is a type of seasonal unemployment, which is a predictable and recurring pattern in the labor market.

Question 14

Jacqueline has a Ph.D.in economics.She has turned down many job offers because she eventually hopes to teach at one of the top ten universities in her field.The type of unemployment she is experiencing is:​

Accepted Answer

Jacqueline is experiencing frictional unemployment, which occurs when someone is between jobs due to personal decisions or circumstances. She is not unemployed due to a lack of demand for her skills (cyclical unemployment), a mismatch between her skills and available jobs (structural unemployment), or due to a seasonal industry (seasonal unemployment). Additionally, she is not technically underemployed as she is not working in a job that is below her qualifications or skills.

Question 15

Frictional unemployment refers to unemployment that is a result of:​

Accepted Answer

The answer of Frictional unemployment refers to unemployment that is...

Question 16

Which of the following is most likely to reduce structural unemployment?​

Accepted Answer

Retraining workers in marketable skills can help them qualify for jobs that are currently in demand in the labor market, thus addressing structural unemployment. A reduction in wage rates may reduce unemployment temporarily, but it would not necessarily address the underlying structural issues. Access to better information on job openings, promotion of full employment through government policies, and enhancing unemployment benefits may help reduce overall unemployment, but they may not be effective in addressing structural unemployment specifically.

Question 17

After graduating from Harvard Law School,Anne started looking for a job.She could not find a job after looking for one week.Which of the following is true in this case?​

Accepted Answer

This is an example of frictional unemployment, which refers to unemployment that occurs when people are in between jobs or transitioning from one job to another. It is a temporary type of unemployment that is considered part of the natural economy.

Question 18

Juanita worked for a defense contractor in the United States.During the 2008 recession,the government cut spending and Juanita and ninety-nine others were laid off.In such a case,the unemployment Juanita is experiencing is _____.​

Accepted Answer

The 2008 recession was a result of economic cycles and fluctuations, meaning that the unemployment Juanita is experiencing is cyclical. This type of unemployment occurs due to a decline in economic activity and is usually temporary.

Question 19

Unemployment arising from a mismatch of skills is called:​

Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills workers have and the skills employers are looking for. This can be caused by changes in technology or the economy that make certain skills obsolete, or by a lack of training opportunities for workers to develop new skills.

Question 20

The type of unemployment most likely to be experienced by a touring professional golfer is:​

Accepted Answer

Seasonal unemployment is caused by seasonal fluctuations in demand for labor. In the case of a touring professional golfer, there may be periods of time when there are fewer tournaments or events available, leading to a temporary lack of employment.

Quiz 7: Unemployment and Inflation

The best example of a frictionally unemployed worker is one who:​

Which of the following types of unemployment is the hardest to reduce?​

Which type of unemployment is likely to increase the most during an economy's recession?​

Which type of unemployment is likely to decrease the most during an economy's boom?​

Recently,banking has become easier with automated teller machines replacing bank tellers.The loss of tellers' jobs is an example of _____.​

In recent times,there has been a decline in the sale of newspapers in the U.S.as people prefer to read the news on the internet.This has caused many newspaper journalists to lose their jobs.This is an example of:​

The impact of _____ unemployment is removed from official monthly unemployment figures.​

_____ unemployment is experienced by a customer service representative who is laid off from a job because new technology reduces the need for people to handle customer service inquiries.​

Which type of unemployment is most likely to help an economy become more efficient?​

Structural unemployment refers to unemployment that results from:​

Which of the following statements is true of unemployment?​

In 2004,Jamal lost his job as a shipbuilder.His shipyard never reopened,and his very specialized skills as a shipbuilder were no longer in demand.Jamal's unemployment is best classified as _____.​

If the official unemployment rate increases from December to January because the Christmas season is over,we can conclude that _____ is responsible for the increase.​

Jacqueline has a Ph.D.in economics.She has turned down many job offers because she eventually hopes to teach at one of the top ten universities in her field.The type of unemployment she is experiencing is:​

Frictional unemployment refers to unemployment that is a result of:​

Which of the following is most likely to reduce structural unemployment?​

After graduating from Harvard Law School,Anne started looking for a job.She could not find a job after looking for one week.Which of the following is true in this case?​

Juanita worked for a defense contractor in the United States.During the 2008 recession,the government cut spending and Juanita and ninety-nine others were laid off.In such a case,the unemployment Juanita is experiencing is _____.​

Unemployment arising from a mismatch of skills is called:​

The type of unemployment most likely to be experienced by a touring professional golfer is:​

The best example of a frictionally unemployed worker is one who:

Which of the following types of unemployment is the hardest to reduce?

Which type of unemployment is likely to increase the most during an economy's recession?

Which type of unemployment is likely to decrease the most during an economy's boom?

Recently,banking has become easier with automated teller machines replacing bank tellers.The loss of tellers' jobs is an example of _____.

In recent times,there has been a decline in the sale of newspapers in the U.S.as people prefer to read the news on the internet.This has caused many newspaper journalists to lose their jobs.This is an example of:

The impact of _____ unemployment is removed from official monthly unemployment figures.

_____ unemployment is experienced by a customer service representative who is laid off from a job because new technology reduces the need for people to handle customer service inquiries.

Which type of unemployment is most likely to help an economy become more efficient?

Structural unemployment refers to unemployment that results from:

Which of the following statements is true of unemployment?

In 2004,Jamal lost his job as a shipbuilder.His shipyard never reopened,and his very specialized skills as a shipbuilder were no longer in demand.Jamal's unemployment is best classified as _____.

If the official unemployment rate increases from December to January because the Christmas season is over,we can conclude that _____ is responsible for the increase.

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

Frictional unemployment refers to unemployment that is a result of:

Which of the following is most likely to reduce structural unemployment?

After graduating from Harvard Law School,Anne started looking for a job.She could not find a job after looking for one week.Which of the following is true in this case?

Juanita worked for a defense contractor in the United States.During the 2008 recession,the government cut spending and Juanita and ninety-nine others were laid off.In such a case,the unemployment Juanita is experiencing is _____.

Unemployment arising from a mismatch of skills is called:

The type of unemployment most likely to be experienced by a touring professional golfer is: