Question 1

Which of the following most likely would decrease frictional unemployment?

Accepted Answer

Effective Internet-based employment services and job registries would likely decrease frictional unemployment by reducing the time it takes for workers to find job openings that match their skills and qualifications. Option A would not necessarily decrease frictional unemployment as it may encourage workers to remain unemployed for longer periods of time. Option C may not have a significant impact on frictional unemployment as the number of high school and college graduates may not necessarily correspond to the number of job openings available in the market.

Question 2

Because of a bank merger, Ms. Davis lost her position as Vice President and had to seek work with other banks. Ms. Davis has the skills necessary to find a new job, thus she is best considered as

Accepted Answer

Ms. Davis lost her job due to a specific event, which is the bank merger, and has the skills to find a new job. This type of unemployment is known as frictional unemployment, which is the result of workers voluntarily transitioning between jobs or entering the labor market for the first time.

Question 3

Structural unemployment is

Accepted Answer

Structural unemployment is associated with changes in technology that change required job skills. This type of unemployment occurs when workers do not have the necessary skills or are not in the location where jobs are available. It is a long-term and persistent form of unemployment, as it may take time for workers to acquire the new skills needed to stay employed in a changing economy. Choices A, C, and D do not accurately describe structural unemployment.

Question 4

Structural unemployment is

Accepted Answer

Structural unemployment is associated with the general decline of specific industries such as when a technological change renders a particular industry obsolete or when shifts in consumer demand reduce the demand for certain products or services. It is often long-term and requires retraining of workers for new jobs in growing industries.

Question 5

When a student finishes college and begins looking for work,

Accepted Answer

When a student finishes college and starts looking for work, they may experience frictional unemployment, which is the temporary unemployment that occurs when individuals are transitioning between jobs or entering the workforce. This is because they are actively seeking employment and have the necessary qualifications but have not found a job yet. This situation does not increase cyclical or structural unemployment, as these types of unemployment are related to broader economic factors and long-term shifts in the labor market, respectively.

Question 6

Bill loses his job as a loan officer when the bank he works for is bought up by a larger financial institution. Bill has the skills necessary to find a new job, so as Bill searches for work he is best considered an example of

Accepted Answer

Frictional unemployment refers to the temporary unemployment that occurs when people are transitioning between jobs or careers. Since Bill has the necessary skills to find a new job and is actively searching for employment, he fits the definition of frictional unemployment.

Question 7

Unemployment caused by changes in technology is called __________unemployment.

Accepted Answer

Structural unemployment is caused by changes in technology and the restructuring of industries, resulting in a mismatch between workers' skills and the job requirements. Frictional unemployment is caused by people in between jobs or transitioning to new ones. Cyclical unemployment is caused by changes in the business cycle, such as recessions. There is no type of unemployment called "techno."

Question 8

Students who leave school in the spring and look for work are one source of__________ .

Accepted Answer

Students who leave school in the spring and begin job searching are typically categorized as frictionally unemployed. This is because they are in the process of transitioning into the labor force and searching for employment that aligns with their skills and qualifications. This type of unemployment is considered temporary and necessary for the efficient functioning of the labor market.

Question 9

When the automobile replaced horse-drawn carriages as the principal means of transportation, firms producing horse-drawn carriages went bankrupt and permanently laid off all their workers, thereby increasing

Accepted Answer

This situation represents structural unemployment, as it is caused by a shift in the economy towards a different type of technology, leading to the permanent loss of jobs in a particular industry.

Question 10

Suppose that over a period of years the country of Quasiland switched from being an agriculturally-based economy to a technologically-based economy. As a result, many people lost jobs because they lacked the correct skills. As they search for new jobs, these people are part of

Accepted Answer

Structural unemployment occurs when the structure of the economy changes and there is a mismatch between the skills that workers have and the skills that employers need. In this scenario, the shift from agriculture to technology created a structural change in the economy, resulting in the loss of jobs for those who lacked the necessary technological skills. Frictional unemployment refers to temporary unemployment that arises when people are between jobs or searching for new jobs, which may apply to some of the displaced workers. Cyclical unemployment results from a downturn in the business cycle and is not applicable in this scenario. Discouraged workers have given up looking for work and therefore are not part of the unemployed labor force.

Question 11

The best example of a frictionally unemployed individual is

Accepted Answer

Frictional unemployment occurs when individuals are temporarily unemployed while transitioning between jobs or entering the workforce. Mary fits this description as she quit her job voluntarily to find another one closer to her home.

Question 12

Structural unemployment

Accepted Answer

Structural unemployment is caused by a mismatch between workers' skills and the available job opportunities. This type of unemployment can last longer than frictional unemployment, which is caused by the time it takes for workers to find new jobs.

Question 13

Structural unemployment is the result of

Accepted Answer

Structural unemployment arises due to changes in the structure of the economy, such as advances in technology or increased international competition, which may make some jobs obsolete or cause industries to decline. This type of unemployment usually requires retraining or relocation of workers to find new employment. Therefore, option A correctly defines the causes of structural unemployment. Options B, C, and D do not accurately describe the causes of structural unemployment.

Question 14

An individual is structurally unemployed if

Accepted Answer

Structural unemployment occurs when an individual’s skills become obsolete due to changes in technology or industry. Therefore, choice C is the correct answer as the individual lacks marketable job skills because technology has changed.

Question 15

A major characteristic of structural unemployment that differentiates it from frictional unemployment is that structural unemployment

Accepted Answer

A major characteristic of structural unemployment is that it usually lasts longer than frictional unemployment. Structural unemployment occurs due to a mismatch between the skills or location of job seekers and the available job openings. This type of unemployment requires significant changes in the economy or job training programs to address, making it a long-term issue. In contrast, frictional unemployment is a short-term problem that occurs as workers transition between jobs or enter the workforce for the first time.

Question 16

Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment. Matt would be best be considered as

Accepted Answer

Matt is voluntarily leaving his job to seek better opportunities, which makes him frictionally unemployed. He is not considered hidden employment, cyclically unemployed, or still employed at his current job after quitting.

Question 17

Suppose that the number of jobs in the fishing industry decreases but the number of jobs in the travel industry increases. Initially,__________ .

Accepted Answer

A decrease in jobs in one industry (fishing) and an increase in another industry (travel) suggest a shift in the labor market from one sector to another. Therefore, structural unemployment increases due to a mismatch between the skills required by employers in the fishing industry and those available among the workers who have lost their jobs. This shift, however, does not suggest an overall decrease in the number of jobs, nor does it suggest a cyclical imbalance in the economy.

Question 18

Catherine quit her job in order to look for a new one; therefore, she is best considered as

Accepted Answer

Catherine voluntarily left her job and is actively searching for a new one. This type of unemployment is known as frictional unemployment, which occurs when workers are in transition between jobs. Structural unemployment occurs when there is a mismatch between the skills of workers and the skills required for available jobs. Cyclical unemployment occurs during times of economic downturns, when businesses are cutting back on production and laying off workers. Seasonal unemployment occurs when workers are employed in jobs that are only available during certain times of the year, such as summer tourism jobs. None of these describe Catherine's situation as well as frictional unemployment.

Question 19

The nationʹs structural unemployment will increase when

Accepted Answer

Structural unemployment occurs when workers do not have the necessary skills or abilities to find new jobs in a changing market. In this scenario, the increase in textile imports is displacing older textile workers who lack the skills required for new jobs, leading to an increase in structural unemployment. Options A and D refer to cyclical unemployment, which is caused by fluctuations in the business cycle. Option B may lead to temporary frictional unemployment as new graduates search for jobs, but it is not directly related to structural unemployment.

Question 20

Which statement correctly describes ʺstructural unemployment?ʺ

Accepted Answer

Structural unemployment is a type of unemployment caused by shifts in the structure of the economy, such as changes in technology, consumer preferences, or globalization, that leave some workers without the skills or geographic location needed for available jobs. Unlike frictional unemployment, which is caused by normal turnover in the labor market, or cyclical unemployment, which is caused by fluctuations in aggregate demand, structural unemployment occurs even when the economy is at the natural unemployment rate, which includes frictional and structural unemployment. Therefore, option B is the correct statement.

Quiz 5: Monitoring Jobs and Inflation

Which of the following most likely would decrease frictional unemployment?

Because of a bank merger, Ms. Davis lost her position as Vice President and had to seek work with other banks. Ms. Davis has the skills necessary to find a new job, thus she is best considered as

Structural unemployment is

Structural unemployment is

When a student finishes college and begins looking for work,

Bill loses his job as a loan officer when the bank he works for is bought up by a larger financial institution. Bill has the skills necessary to find a new job, so as Bill searches for work he is best considered an example of

Unemployment caused by changes in technology is called __________unemployment.

Students who leave school in the spring and look for work are one source of__________ .

When the automobile replaced horse-drawn carriages as the principal means of transportation, firms producing horse-drawn carriages went bankrupt and permanently laid off all their workers, thereby increasing

Suppose that over a period of years the country of Quasiland switched from being an agriculturally-based economy to a technologically-based economy. As a result, many people lost jobs because they lacked the correct skills. As they search for new jobs, these people are part of

The best example of a frictionally unemployed individual is

Structural unemployment

Structural unemployment is the result of

An individual is structurally unemployed if

A major characteristic of structural unemployment that differentiates it from frictional unemployment is that structural unemployment

Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment. Matt would be best be considered as

Suppose that the number of jobs in the fishing industry decreases but the number of jobs in the travel industry increases. Initially,__________ .

Catherine quit her job in order to look for a new one; therefore, she is best considered as

The nationʹs structural unemployment will increase when

Which statement correctly describes ʺstructural unemployment?ʺ