Unemployment Quiz

Match the following types of unemployment:

• from minimum wage / trade union

• Frictional

• demand deficient in a recession

• Seasonal

• unemployment at specific times in year

• Cyclical

• when people are between jobs

• Structural

• skill gap or technology replacement

• Real Wage

The regular problems of measuring unemployment include:

• Informal workers, high prices and in a trade union

• Prisoners who work, and those in the military as well as office workers

• Discouraged workers and those paying taxes

• Informal workers, discouraged workers and hidden workers

What is the main cause of cyclical unemployment?

• Technological advancements

• Government minimum wage

• Excessive trade union power

• Insufficient level of aggregate demand

In real wage unemployment, why does the labour market not adjust to point c at wage W1?

• Government Minimum Wage is imposed

• Market equilibrium

• Market demand

• Technological advancements

What type of unemployment is caused by Trade Unions and Government Minimum Wages setting a wage above the market equilibrium?

• Frictional Unemployment

• Real-wage Unemployment

• Cyclical Unemployment

• Structural Unemployment

At wage We, what is represented by the gap between points A and B on the labour market graph?

• Number of unemployed workers

• Number of employed workers

• Market equilibrium

• Technological advancements

With cyclical unemployment, where on the business cycle would this type of unemployment take place?

How might excessive trade union power and the minimum wage explain real-wage unemployment?

• By increasing aggregate demand

• By setting a wage above the market equilibrium

• By decreasing the number of unemployed workers

• By reducing technological advancements

Put the​ causes of unemployment in the correct category

Groups:

(a) Disequilibrium Unemployment

,

(b) Equilibrium Unemployment

• Real Wage

• Structural

• Frictional

• Seasonal

• Cyclical

This diagram probably demonstrates:

• Inflationary gap

• Equilibrium Unemployment

• Cyclical Unemployment

• Seasonal Unemployment