Question 1

The government can assist in reducing the level of structural unemployment by

Accepted Answer

Subsidizing the relocation of workers who lose their jobs can assist in reducing structural unemployment by helping workers who are unable to find jobs in their local area to move to areas with better job prospects. This can help to reduce the skills mismatch between available jobs and workers' skills, which is often a key factor in causing structural unemployment. Providing unemployment benefits can provide some relief to those who are unemployed but it does not directly address the root causes of structural unemployment. Establishing government regulations on hiring employees can both help and hurt structural unemployment, depending on the regulations. Instituting a minimum-wage law can potentially increase structural unemployment by making it more expensive for firms to hire low-skilled workers. Incentivizing companies to move their production overseas could potentially increase structural unemployment in the domestic economy, as jobs are moved to other countries.

Question 2

A major casual dining chain decided to install tablet computers at the booths in their restaurants.Customers can now browse the menu at their leisure and place their orders without the help of servers.Thousands of workers lose their jobs.They can best be classified as ________ unemployed.

Accepted Answer

The workers lost their jobs due to a fundamental change in the structure of the industry, as the restaurant installed tablets to replace them. This type of unemployment is considered structural unemployment.

Question 3

Unemployment caused by delays in matching available jobs and workers is called ________ unemployment.

Accepted Answer

Frictional unemployment is caused by the time it takes for workers to search for and find a job that matches their skills and preferences, and for employers to find and hire the right workers. This type of unemployment is unavoidable in a dynamic economy with constantly changing job opportunities and labor market conditions. Structural unemployment, on the other hand, arises from a mismatch between the skills and requirements of available workers and the demands of available jobs. Cyclical unemployment is caused by fluctuations in aggregate demand and economic activity. Discouraged and seasonal unemployment are subsets of frictional unemployment, with discouraged workers giving up on their job search and seasonal unemployment being caused by seasonal variations in demand for labor.

Question 4

Suppose that over time,the majority of people who read books shift toward reading on an electronic device as opposed to reading physical books.As a result,a number of bookstores go out of business.This leads to what type of unemployment?

Accepted Answer

The shift towards electronic reading devices is a long-term structural change that is resulting in the decline of bookstores. This type of unemployment is structural unemployment, which occurs when changes in the economy make some skills obsolete and some jobs unnecessary.

Question 5

Brian Murphy is a political consultant for a candidate in Massachusetts.Mr.Murphy's candidate is defeated in the November election,and as a result,Mr.Murphy finds himself unemployed.Mr.Murphy's unemployment is classified as ________ unemployment.

Accepted Answer

Frictional unemployment occurs when individuals are temporarily unemployed while transitioning between jobs or entering the workforce. Mr. Murphy's unemployment is due to the temporary nature of his job as a political consultant, which ended after the election.

Question 6

Frictional unemployment is

Accepted Answer

Frictional unemployment is caused by time delays in matching available jobs and workers. It occurs when individuals are in between jobs or searching for their first job. These individuals may have the necessary skills and qualifications for available jobs, but the process of finding a job may take time. This type of unemployment is considered natural and can be reduced through education and training programs, improved job matching services, and better communication between job seekers and employers.

Question 7

Suppose the government reduces the number of weeks a worker who becomes unemployed can collect unemployment insurance payments.All else the same,we would expect ________ unemployment to ________.

Accepted Answer

Reducing the duration of unemployment benefits typically decreases frictional unemployment because it incentivizes unemployed workers to find new jobs more quickly.

Question 8

Nina has a part-time job as she finishes her degree in fashion design.After obtaining her degree she decides to quit her part-time job to search for a job that better fits her now-improved skill set.Nina has a few interviews,but it is taking time to find the job that suits her best.Nina would be considered

Accepted Answer

Nina is currently unemployed because she left her part-time job to search for a job that better fits her improved skill set. However, she is actively seeking new employment and has been going to interviews, indicating that she is frictionally unemployed. Frictional unemployment is when workers are between jobs or searching for better job opportunities.

Question 9

Pietro quits his job in New York and moves to California.After two months he finds a job.This is an example of ________ unemployment.

Accepted Answer

Frictional unemployment occurs when a worker is between jobs or searching for a job. In this case, Pietro was unemployed because he quit his job in New York and was searching for a job in California. When he found a job after two months, this type of unemployment was resolved.

Question 10

Which of the following is an example of frictional unemployment?

Accepted Answer

Frictional unemployment occurs when individuals are temporarily unemployed while transitioning between jobs or entering the workforce, such as Chad searching for a job after graduation.

Question 11

Thalia graduates from college and begins to look for a job.After two months she finds a job.This is an example of ________ unemployment.

Accepted Answer

Thalia's unemployment was caused by the time it takes to search for and find a job that matches her skills and qualifications, which is known as frictional unemployment.

Question 12

Frictional unemployment is present in an economy because

Accepted Answer

Frictional unemployment occurs when workers are temporarily unemployed while transitioning between jobs or entering the workforce, as they take time to find a job that best matches their skills and preferences.

Question 13

Dido loses her job because sales are slow at her firm,due to a general slowdown in the entire economy.This is an example of ________ unemployment.

Accepted Answer

This is an example of cyclical unemployment as it is caused by a downturn in the overall economy and a decrease in aggregate demand for goods and services, leading to a reduction in hiring and layoffs.

Question 14

The government can assist in reducing the level of structural unemployment by

Accepted Answer

Providing job-training programs can assist individuals in gaining the necessary skills for higher-paying jobs and reduce the level of structural unemployment. The other options may provide temporary relief or regulations but do not address the root causes of structural unemployment.

Question 15

Maria is a high school math teacher.When her husband is transferred to another state with his company,she quits her job so she can move with him.She can be classified as ________ unemployed.

Accepted Answer

Maria's unemployment is temporary and caused by a change in her personal circumstances, as opposed to a lack of demand for her skills or the overall state of the economy. This aligns with the definition of frictional unemployment, which refers to short-term unemployment caused by workers moving between jobs, entering or leaving the labor force, etc.

Question 16

The government adopts a new regulation that requires all firms to give their employees a raise each year that is not less than the rate of inflation.All else the same,we would expect ________ unemployment to ________.

Accepted Answer

The answer of The government adopts a new regulation that...

Question 17

The invention of the Internet has reduced ________ unemployment because it allows for workers and employers to find each other more quickly.

Accepted Answer

The invention of the Internet has reduced frictional unemployment because it allows for a more efficient matching of workers and employers, which decreases the time it takes for unemployed workers to find job openings that suit their skills and preferences. Structural unemployment is caused by a mismatch between the skills of job seekers and the skills required by available jobs, cyclic unemployment is caused by fluctuations in the economy's overall level of activity, discouraged workers are those who have given up looking for work, and seasonal unemployment is caused by changes in demand for labor that occur throughout the year.

Question 18

The government adopts new regulation that requires all firms to contribute to their employees' retirement funds.All else the same,we would expect ________ unemployment to ________.

Accepted Answer

Frictional unemployment occurs when workers are temporarily unemployed while searching for a new job. The new regulation would increase frictional unemployment because it would make it more expensive for firms to hire new workers.

Question 19

Estelle loses her job when the factory in her local area closes.She is unable to find another factory job.This is an example of ________ unemployment.

Accepted Answer

This is an example of structural unemployment because the factory closing is a result of shifts in the economy, such as a decrease in demand for the product the factory was producing. Estelle's skills may not match the requirements for other available jobs in the area, leading to her inability to find another factory job.

Question 20

Some individuals are unemployed because it takes time for them to find jobs that fit their skill sets.These individuals would be considered to be

Accepted Answer

Frictional unemployment occurs when individuals are in between jobs or searching for the right fit. This type of unemployment is usually temporary and not caused by any inherent flaws in the labor market.

Quiz 20: Unemployment

The government can assist in reducing the level of structural unemployment by

A major casual dining chain decided to install tablet computers at the booths in their restaurants.Customers can now browse the menu at their leisure and place their orders without the help of servers.Thousands of workers lose their jobs.They can best be classified as ________ unemployed.

Unemployment caused by delays in matching available jobs and workers is called ________ unemployment.

Suppose that over time,the majority of people who read books shift toward reading on an electronic device as opposed to reading physical books.As a result,a number of bookstores go out of business.This leads to what type of unemployment?

Brian Murphy is a political consultant for a candidate in Massachusetts.Mr.Murphy's candidate is defeated in the November election,and as a result,Mr.Murphy finds himself unemployed.Mr.Murphy's unemployment is classified as ________ unemployment.

Frictional unemployment is

Suppose the government reduces the number of weeks a worker who becomes unemployed can collect unemployment insurance payments.All else the same,we would expect unemployment to .

Pietro quits his job in New York and moves to California.After two months he finds a job.This is an example of ________ unemployment.

Which of the following is an example of frictional unemployment?

Thalia graduates from college and begins to look for a job.After two months she finds a job.This is an example of ________ unemployment.

Frictional unemployment is present in an economy because

Dido loses her job because sales are slow at her firm,due to a general slowdown in the entire economy.This is an example of ________ unemployment.

The government can assist in reducing the level of structural unemployment by

Maria is a high school math teacher.When her husband is transferred to another state with his company,she quits her job so she can move with him.She can be classified as ________ unemployed.

The government adopts a new regulation that requires all firms to give their employees a raise each year that is not less than the rate of inflation.All else the same,we would expect unemployment to .

The invention of the Internet has reduced ________ unemployment because it allows for workers and employers to find each other more quickly.

The government adopts new regulation that requires all firms to contribute to their employees' retirement funds.All else the same,we would expect unemployment to .

Estelle loses her job when the factory in her local area closes.She is unable to find another factory job.This is an example of ________ unemployment.

Some individuals are unemployed because it takes time for them to find jobs that fit their skill sets.These individuals would be considered to be