Crash Course in Economics Unemployment

Which of the following is the correct definition for unemployment?

• Occurs when workers are wanting to work

• Occurs when workers can’t find a job

• Occurs when workers able and willing to work but cannot find employment

• Occurs when workers are able to find employment but are not willing to work

Unemployment caused by a fall in demand in a particular season is called:

• Seasonal unemployment

• Frictional unemployment

• Structural unemployment

• Cyclical unemployment

Unemployment caused by a lack of demand in the economy is called:

• Seasonal unemployment

• Frictional unemployment

• Structural unemployment

• Cyclical unemployment

Unemployment caused by time lags when workers move between jobs is called:

• Seasonal unemployment

• Frictional unemployment

• Structural unemployment

• Cyclical unemployment

Unemployment caused by time lags when workers move between jobs is called:

• Seasonal unemployment

• Frictional unemployment

• Structural unemployment

• Cyclical unemployment

Which of the following is a benefit of unemployment?

• Wage rates will be low

• Costs for firms can be higher

• Less movement between jobs

• Markets can become more efficient

Which of the following is the most important cost of unemployment to individuals?

• Loss of status

• Become unemployable

• Lower standard of living

• Costs to taxpayers

Which of these people is officially unemployed

• A secretary who took 6 months off for maternity leave

• An aspiring actress who waits tables but would rather act

• Maid who got fired and will start a new job in 2 weeks

• A student who only works 4 hours a week in the library

Farm helpers are unemployed when the cropping season is over.

• frictional

• cyclical

• structural

• seasonal

If auto workers lose their jobs as the industry becomes far more technically intensive and capital intensive, what form of unemployment occurs?

• Cyclical

• Seasonal

• Frictional

• Structural