Question 1

Which of the following is the best example of frictional unemployment?

Accepted Answer

Heather's situation is the best example of frictional unemployment, which occurs when individuals are between jobs or entering the workforce for the first time, such as after graduating.

Question 2

During a typical nonrecession year,the duration for at least half of the unemployed is:

Accepted Answer

According to the Bureau of Labor Statistics, in a typical nonrecession year, the median duration of unemployment is approximately 10 weeks, which means at least half of the unemployed individuals are unemployed for less than 14 weeks. Therefore, option B (less than 14 weeks) is the best choice.

Question 3

When not in a recession,the largest fraction of unemployment in the United States lasts:

Accepted Answer

When not in a recession, the largest fraction of unemployment in the United States typically lasts less than 5 weeks, as many people find new jobs relatively quickly.

Question 4

The causes of frictional unemployment include:

Accepted Answer

Frictional unemployment occurs when workers are temporarily unemployed while transitioning between jobs. This can be due to the scarcity of information about job opportunities, which delays the matching process between employers and job seekers.

Question 5

Creative destruction occurs at the level of the:

Accepted Answer

Creative destruction, a concept popularized by economist Joseph Schumpeter, refers to the process by which new innovations lead to the demise of older technologies or business models, affecting the firm, industry, and entire economy levels. This process is integral to the dynamism and evolution of economies, fostering progress and adaptation across all these levels.

Question 6

Frictional unemployment is caused by:

Accepted Answer

Frictional unemployment occurs when workers are temporarily unemployed while transitioning between jobs or entering the workforce. Creative destruction, which involves the continuous process of innovation and the replacement of outdated industries, can lead to frictional unemployment as workers move to new jobs.

Question 7

Someone who recently moved to Florida because of its warmer climate will need to spend some time looking for a new job.This is an example of:

Accepted Answer

Frictional unemployment refers to the period of unemployment that occurs when an individual is between jobs or is searching for a new job. In this scenario, the individual has voluntarily moved to Florida and will need to spend some time looking for a new job, which is a prime example of frictional unemployment. Structural unemployment refers to a mismatch between the skills and qualifications an individual has and the skills and qualifications needed for available jobs. Cyclical unemployment is caused by changes in the business cycle, such as recessions, and typically affects a large number of individuals across many different industries. Underemployment refers to individuals who are employed, but not in jobs that fully utilize their skills and qualifications.

Question 8

Frictional unemployment is best defined as:

Accepted Answer

Frictional unemployment refers to short-term unemployment caused by the difficulties of matching employees to employers. This type of unemployment occurs even in a healthy, growing economy with low overall unemployment rates. It is caused by factors such as people quitting their jobs, searching for new jobs, and transitioning between careers.

Question 9

Which type of unemployment is an outcome of economist Joseph Schumpeter's "creative destruction" process within an industry?

Accepted Answer

The answer of Which type of unemployment is an outcome...

Question 10

What is one of the causes of frictional unemployment?

Accepted Answer

Frictional unemployment is caused by temporary transitions in employment, such as workers searching for new jobs or entering the workforce for the first time. However, this job search process can be hindered by a scarcity of information, such as lack of knowledge about available job openings or qualifications needed.

Question 11

Following the great recession in 2010,the largest fraction of unemployment in the United States had lasted:

Accepted Answer

According to data from the Bureau of Labor Statistics, the largest fraction of unemployment in the United States after the great recession in 2010 lasted more than 27 weeks.

Question 12

Which of the following is a case of frictional unemployment?

Accepted Answer

Frictional unemployment occurs when individuals are between jobs or are looking for their first jobs. It includes people who have left their previous job to find a better one, like Timothy, who is seeking a job that matches his computer programming skills.

Question 13

The short-term unemployment caused by the ordinary difficulties of matching employee to employer is called:

Accepted Answer

Frictional unemployment occurs when workers are between jobs or are searching for new ones due to various reasons such as relocation, resignation, or first-time employment. Therefore, it is associated with the ordinary difficulties of matching employee to employer, making it the best choice.

Question 14

In a nonrecession year,the majority of U.S.unemployment is:

Accepted Answer

In a nonrecession year, the economy is generally stable and growing, which means that most individuals who are unemployed are likely in the process of transitioning between jobs or entering the workforce for the first time. This type of unemployment is referred to as frictional unemployment and is typically short-term and voluntary. Structural unemployment, on the other hand, occurs when there is a mismatch between the skills of available workers and the demands of available jobs, while cyclical unemployment is caused by fluctuations in the business cycle. Recurrent unemployment is not a widely recognized category of unemployment.

Question 15

Several years ago,the rising popularity of Barnes & Noble and Borders shifted workers from independent bookshops to larger chains.What type of unemployment was associated with this reallocation of the work force?

Accepted Answer

The answer of Several years ago,the rising popularity of Barnes...

Question 16

Which of the following is TRUE of frictional unemployment?

Accepted Answer

Frictional unemployment is typically short-term unemployment that arises from the normal turnover in the labor market as workers search for better job opportunities or as employers search for better employees.

Question 17

Oil shocks,the shift from manufacturing to service jobs,and the use of new technologies are reasons for _____ unemployment.

Accepted Answer

Structural unemployment refers to persistent unemployment caused by a mismatch between the skills and qualifications of workers and the needs of employers, often due to changes in the economy and technology. The oil shocks, the shift from manufacturing to service jobs, and the use of new technologies are all examples of structural changes that can lead to unemployment. Frictional unemployment is caused by temporary transitions between jobs, while cyclical unemployment is caused by the economic cycle, and permanent unemployment is a long-term state of joblessness without the prospect of finding work.

Question 18

Frictional unemployment is:

Accepted Answer

Frictional unemployment is short-term unemployment caused by the normal difficulties of matching employers and employees. It is a result of the time and effort it takes for unemployed workers to search for and find new job opportunities that match their skills and preferences.

Question 19

The persistent,long-term unemployment caused by long-lasting shocks or permanent features of an economy is called:

Accepted Answer

Structural unemployment refers to the persistent, long-term unemployment caused by fundamental shifts in an economy, such as changes in technology, globalization, and industry decline. It is not caused by temporary economic fluctuations or seasonal changes.

Question 20

The most likely influence of the Internet on the rate of frictional unemployment has been to:

Accepted Answer

The Internet has made job searching easier and more efficient, thereby reducing the time and effort it takes for unemployed individuals to find suitable jobs. This, in turn, lowers the rate of frictional unemployment.

Quiz 11: Unemployment and Labor Force Participation