Question 1

Structural unemployment refers to unemployment that results from

Accepted Answer

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

Question 2

A person whose skills do not match the available job openings is considered frictionally unemployed.

Accepted Answer

The answer of A person whose skills do not match...

Question 3

Ginger quits her job as a secretary because she cannot handle the stress. It takes her three weeks of solid effort to land a job as a receptionist. Over these three weeks, she would be considered frictionally unemployed.

Accepted Answer

Frictional unemployment refers to the period of time in which workers are in between jobs due to voluntary decisions such as quitting, searching for a new job, or entering or re-entering the workforce. In this scenario, Ginger voluntarily quit her job as a secretary and it took her three weeks of effort to find a new job, making her frictionally unemployed during that time.

Question 4

Government fiscal policies that attempt to stimulate aggregate demand are often aimed at reducing cyclical unemployment.

Accepted Answer

Government fiscal policies, such as increasing government spending or cutting taxes, can stimulate aggregate demand and lead to increased economic activity, which can ultimately reduce cyclical unemployment.

Question 5

The only job Justin ever holds is preparing income tax forms at H&R Block from January 2 to April 15. In March, while he is still working, he sends his resume to prospective employers. In March, he was counted as

Accepted Answer

The answer of The only job Justin ever holds is...

Question 6

Seasonal unemployment refers to unemployment that results from

Accepted Answer

Seasonal unemployment is caused by seasonal fluctuations in the demand for labor. Examples include jobs related to agriculture and tourism, which may only be in high demand during certain times of the year. The other choices, such as a mismatch of skills or being in the wrong location, do not necessarily apply to seasonal unemployment.

Question 7

Cyclical unemployment results from

Accepted Answer

The answer of Cyclical unemployment results from
...

Question 8

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

Accepted Answer

Jacqueline's unemployment is voluntary and due to her intentional decision to wait for a job offer from one of the top ten universities. This type of unemployment is known as frictional unemployment, which occurs when individuals are between jobs or searching for better job opportunities. Other types of unemployment, such as structural, seasonal, and cyclical, occur due to factors such as changes in the economy, lack of demand for certain industries, or decreased business activity. Underemployment occurs when individuals work in jobs that are below their skill level or part-time jobs when they desire full-time work. However, this is not the case for Jacqueline as she has not yet entered the workforce.

Question 9

Most of the unemployment during the Great Depression was cyclical unemployment.

Accepted Answer

Cyclical unemployment refers to unemployment that is caused by economic downturns or recessions. The Great Depression was a severe economic recession that led to high levels of cyclical unemployment as businesses cut back on production and laid off workers. Other forms of unemployment, such as frictional and structural unemployment, also contributed to the overall unemployment rate during the Great Depression, but cyclical unemployment was the most significant factor.

Question 10

Juanita earned a B.S. in engineering and went to work for a defense contractor. When the government cut spending, Juanita and 99 others were laid off. The only other business in the town is growing grapes, but the growers refuse to hire laid-off engineers, knowing they will leave at the first opportunity. The unemployment Juanita is experiencing is

Accepted Answer

The unemployment Juanita is experiencing is structural unemployment, as her skills are not in demand in her local area due to the lack of available jobs in her field. The growers in the area are not willing to hire her because they know she has skills that are valuable in other sectors and will likely leave as soon as she finds another opportunity.

Question 11

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

Accepted Answer

Jamal's job loss is due to the permanent closure of his shipyard and the lack of demand for his specialized skills. This is a structural unemployment, which is caused by a mismatch between the skills of the labor force and the skills demanded by employers.

Question 12

Which of the following groups has historically had the highest unemployment rate?

Accepted Answer

Black teenagers have historically had the highest unemployment rate in the United States. This is due to a variety of factors including systemic racism and limited access to job opportunities.

Question 13

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

Accepted Answer

Seasonal unemployment is defined as unemployment caused by changes in the demand for certain kinds of labor at certain times of the year. In the case of a touring professional golfer, their job is dependent on the golf season, which means they are likely to experience unemployment during the off-season. Therefore, the most likely type of unemployment for a touring professional golfer is seasonal unemployment.

Question 14

Since World War II, the average duration of unemployment in the U.S.

Accepted Answer

The answer of Since World War II, the average duration...

Question 15

Most of the unemployment experienced in the United States during the Great Depression was

Accepted Answer

The answer of Most of the unemployment experienced in the...

Question 16

In which of the following industries are workers least likely to suffer from cyclical unemployment?

Accepted Answer

Education is least likely to suffer from cyclical unemployment because even during economic downturns, the demand for education remains relatively stable as people may use that time to improve their skills or seek retraining for new jobs.

Question 17

An accountant who lost their job in the last recession who gives up looking for work after 12 months of unsuccessful job search, would be considered as

Accepted Answer

The answer of An accountant who lost their job in...

Question 18

Your cousin recently graduated from Harvard Law School and has not found a job after looking for one last week. She can be described as

Accepted Answer

Frictional unemployment refers to temporary unemployment experienced by individuals who are in the process of transitioning from one job to another. Your cousin is unemployed because she just finished school and is actively searching for a job, so she is considered frictionally unemployed.

Question 19

Frictional unemployment refers to unemployment that results from

Accepted Answer

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

Question 20

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

Accepted Answer

Frictional unemployment occurs when someone voluntarily leaves their job and is in the process of finding a new one. In this scenario, Sharon left her job due to unfair treatment and was actively looking for a new job during the two weeks she was unemployed.

Quiz 8: Unemployment and Inflation