Question 1

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

Accepted Answer

Sharon's unemployment was due to her decision to quit her job and look for another one, which is known as frictional unemployment. This type of unemployment occurs when workers voluntarily leave their jobs in search of better opportunities or when they first enter the labor market.

Question 2

Which type of unemployment is most closely connected with the saying "you can't teach an old dog new tricks"?

Accepted Answer

Structural unemployment is caused by a mismatch between the skills of the available workers and the skills demanded by employers. This is closely connected to the saying "you can't teach an old dog new tricks," suggesting that older workers may struggle to retrain or learn new skills to fit into changing job demands. Therefore, choice C, structural unemployment, is the best answer.

Question 3

The population (age 16 and over)of Italia is 250 million;10 million are unemployed,and 125 million hold jobs.The employment/population ratio in Italia is

Accepted Answer

The employment/population ratio is calculated by dividing the number of employed people by the total population (age 16 and over) and then multiplying by 100. Here, it is (125 million / 250 million) * 100 = 50 percent.

Question 4

Which of the following is true?

Accepted Answer

Even in an efficiently operating dynamic labor market, there will always be some amount of frictional and structural unemployment, as these types of unemployment are inherent to any economy. Therefore, some unemployment will still be present despite an efficiently operating labor market.

Question 5

If Sam Jackson voluntarily quits one job,possesses marketable skills,and expects to find a new job in a few weeks,then Mr.Jackson is considered

Accepted Answer

Frictional unemployment occurs when individuals voluntarily leave their jobs and are in a temporary state of unemployment while they search for a new job. This describes Mr. Jackson's situation as he possesses marketable skills and expects to find a new job in a few weeks. The other options (B, C, D) are not applicable in this scenario.

Question 6

The population (age 16 and over)of Econoland is 100 million;5 million are unemployed,and 70 million hold jobs.The employment/population ratio of Econoland is

Accepted Answer

To find the employment/population ratio, we divide the number of employed individuals by the total population (age 16 and over).

Employment/population ratio = (Number of employed individuals / Total population) x 100%

= (70 million / 100 million) x 100%

= 70%

Therefore, the employment/population ratio of Econoland is 70%, which is option C.

Question 7

An individual who is employed part time but is looking for a full-time job is classified as

Accepted Answer

An individual working part-time but seeking full-time employment is still considered employed because they have a job, even if it is not their preferred full-time position.

Question 8

Louise is unemployed due to a decrease in the demand for workers with a knowledge of a certain word processing language.This is an example of

Accepted Answer

The fact that Louise is unable to find a job due to a decrease in demand for workers with knowledge of a certain word processing language indicates that her unemployment is a result of structural changes in the labor market. Structural unemployment occurs when there is a mismatch between the skills of workers and the skills required by employers. This type of unemployment is long-term and generally occurs as a result of changes in the industrial or technological landscape, rather than economic fluctuations.

Question 9

As of 2011,which of the following groups had the highest unemployment?

Accepted Answer

In 2011, the unemployment rate was particularly high among younger individuals, with males aged 16 through 19 experiencing the highest unemployment rates compared to other age and gender groups.

Question 10

Which of the following best explains why the rate of unemployment is highest among individuals aged 16 through 19?

Accepted Answer

The answer of Which of the following best explains why...

Question 11

In a dynamic economy under ideal conditions,

Accepted Answer

In a dynamic economy under ideal conditions, there will always be some level of frictional unemployment, which is the temporary unemployment that workers experience while they search for new jobs or as they transition from one job to the next. This type of unemployment is not a sign of economic weakness, but rather a natural part of the job-matching process. Therefore, option B is the best choice as it acknowledges the presence of some unemployment in a dynamic economy, but also clarifies that this is due to temporary situations and job transitions. The other options are not accurate. Option A is incorrect because even in the best of economic conditions, it is nearly impossible to completely eliminate unemployment. Option C is incorrect because inflation tends to be associated with higher levels of unemployment, as it reduces the purchasing power of consumers and forces businesses to cut back on production and hiring. Option D is incorrect because while unemployment compensation benefits might help individuals during periods of unemployment, they are not likely to have a significant impact on the overall level of unemployment in the economy.

Question 12

The reduction of structural unemployment in the United States' economy may require

Accepted Answer

Structural unemployment arises from a mismatch between the skills and qualifications of workers and the available jobs in the economy. To reduce this kind of unemployment, workers need to be retrained and equipped with the skills demanded by the job market. Therefore, increased spending on worker retraining is the best choice to reduce structural unemployment in the United States' economy.

Question 13

If the official unemployment rate increases in March from its February level because of sluggish sales in the auto industry,we can conclude that ____ unemployment is responsible for the increase.

Accepted Answer

The increase in unemployment due to sluggish sales in the auto industry is an example of cyclical unemployment. This is because it is caused by a temporary downturn in the economy, which results in a decrease in demand for cars and subsequently, a decrease in employment in the industry.

Question 14

Althea,a brilliant new Ph.D.in economics,has turned down many job offers because she hopes eventually to teach at one of the top 10 universities in her field.The type of unemployment she is experiencing is

Accepted Answer

Frictional unemployment occurs when individuals are in the process of transitioning between jobs, such as when Althea is searching for a position at a top university. She is not unemployed due to any structural or cyclical changes in the economy, but rather because she is waiting for the right opportunity to arise. Seasonal unemployment applies to jobs that are only available during certain times of the year, and underemployment refers to those who are employed in a position that does not fully utilize their skills and qualifications.

Question 15

A decrease in aggregate demand and the subsequent cutbacks in production lead to

Accepted Answer

A decrease in aggregate demand leads to a decrease in overall economic activity and a reduction in production, which can lead to cyclical unemployment. Cyclical unemployment occurs as a result of fluctuations in the business cycle and is often a reflection of the overall health of the economy. It is distinct from frictional unemployment (temporary unemployment due to job searching or transitioning) and structural unemployment (long-term unemployment due to changes in the structure of the economy). Cost-push and transitory unemployment are not directly related to changes in aggregate demand.

Question 16

Unemployment caused by people voluntarily quitting work in order to seek more attractive employment is called

Accepted Answer

Frictional unemployment is caused by people voluntarily quitting work in order to seek more attractive employment. The other options refer to different types of unemployment. The natural rate of unemployment is the rate which exists in a healthy, growing economy with low inflation. Full employment refers to the situation where everyone who is able and willing to work can find employment. Cyclical unemployment is caused by fluctuations in the business cycle, with less demand for goods and services leading to layoffs and unemployment. Structural unemployment is caused by changes in the structure of the economy, such as technological changes or the decline of certain industries.

Question 17

Jamal (now age 54)lost his job.He has very specialized skills that are no longer in demand.Jamal's unemployment is best classified as

Accepted Answer

Jamal's unemployment is best classified as structural because his skills are no longer in demand and he may need to acquire new skills or education to become employable in a different field. Cyclical unemployment is caused by fluctuations in the business cycle, seasonal unemployment occurs due to seasonal changes, frictional unemployment is due to temporary job transitions, and voluntary unemployment is when someone chooses not to work.

Question 18

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

Frictional unemployment refers to the temporary unemployment that arises from the time and resources it takes for workers to search for and find new jobs that are better suited to their skills and preferences. In this case, Jacqueline's situation of turning down job offers as she hopes for a better opportunity at a top university is an example of frictional unemployment. She is actively searching and waiting for the right opportunity, which is a typical characteristic of frictional unemployment.

Question 19

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

Accepted Answer

Frictional unemployment, which is caused by individuals searching for better job opportunities, can be seen as a sign of a healthy and improving economy. It encourages workers to seek higher-paying and more productive jobs, which in turn leads to a more efficient allocation of labor resources. Therefore, frictional unemployment is most likely to help the economy become more efficient.

Question 20

Which of the following groups will generally have the highest rate of unemployment?

Accepted Answer

Teenagers generally have the highest rate of unemployment because they lack experience, education, and skills that employers are looking for. They are also more likely to have part-time or seasonal jobs, which are often more vulnerable to fluctuations in the economy. Women over the age of 25 and college graduates are generally more educated and have more job experience, making them more employable. Men over the age of 25 may face some challenges in the job market, but they are less likely to be unemployed than teenagers.

Quiz 8: Economic Fluctuations, unemployment, and Inflation