Multiple-Choice Test on Unemployment

What is the best definition of unemployment?

• A situation where a person is not interested in working

• A situation where a person actively looks for work but cannot find any

• A situation where a person works part-time

• A situation where a person voluntarily leaves a job

How is the unemployment rate calculated?

• By dividing the total workforce by the number of unemployed people

• By multiplying the number of unemployed people by the total workforce

• By dividing the number of unemployed people by the total labor force

• By subtracting the number of employed people from the total population

Which type of unemployment is usually short-lived and voluntary?

• Cyclical unemployment

• Structural unemployment

• Frictional unemployment

• Seasonal unemployment

What type of unemployment is caused by economic downturns and recessions?

• Frictional unemployment

• Structural unemployment

• Cyclical unemployment

• Voluntary unemployment

What causes structural unemployment?

• A mismatch between workers' skills and job requirements

• Seasonal changes in employment demand

• Economic growth

• People voluntarily leaving their jobs

Which of the following is NOT a major type of unemployment?

• Frictional unemployment

• Cyclical unemployment

• Technological unemployment

• Structural unemployment

How does high unemployment affect economic production?

• It increases total economic output

• It reduces total economic output

• It has no effect on economic production

• It leads to higher worker productivity

What is one long-term consequence of high unemployment?

• Increased worker skills

• Higher economic growth

• Increased poverty rates and social unrest

• Lower dependency on government assistance

Which government action is likely to reduce high unemployment?

• Cutting public spending

• Increasing taxes on businesses

• Implementing workforce development programs

• Reducing wages

A recent graduate looking for their first job is an example of what type of unemployment?

• Cyclical unemployment

• Structural unemployment

• Frictional unemployment

• Seasonal unemployment