A level Unemployment Quiz 1

17 Questions

Quiz Description

In this economics quiz, we shall be looking at the study of unemployment. Nowadays, unemployment is a very common find in many countries. Here, we will be looking at some concepts on unemployment such as the reasons for unemployment, types of unemployment, and the consequences of unemployment. This quiz is tailored towards training you to understand the topic well.

Unemployment occurs when an individual who is actively in search of a job is unable to find any. It is often used to measure the health of the economy. High levels of unemployment can be considered as a signal of economic distress. On the other hand, very low levels of unemployment may signal an overheated economy. There are some basic types of unemployment which are frictional, cyclical, structural, or institutional unemployment. Let’s take a look at the case of frictional unemployment. It is the type of unemployment existing in an economy that is a result of individuals moving from one job to another. This kind of unemployment is usually short-lived.

Do you have what it takes to take an exam paper right now and begin to answer? Why don’t you find out by trying this quiz. Test yourself and see how prepared you are. 

1:

Bob is unemployed if he


Correct
  • 1:
    is temporarily laid off
  • 2:
    is not looking for a job
  • 3:
    has looked for a job for two months and then quit looking
  • 4:
    A and C are correct
2:

For you to be considered out of the labor force, you can be


Correct
  • 1:
    a full-time student
  • 2:
    a full-time retiree
  • 3:
    a full-time volunteer
  • 4:
    any of the above
3:

The number of people unemployed equals


Correct
  • 1:
    the number of people employed minus the labor force
  • 2:
    the labor force plus the number of people employed
  • 3:
    the labor force minus the number of people employed
  • 4:
    the number of people employed divided by the labor force
4:

When an individual quits his/her job and decides to stay at home for a while, the labor-force participation rate


Correct
  • 1:
    decreases
  • 2:
    increases
  • 3:
    stays the same
  • 4:
    may increase or decrease, depending on the length of time he/she stays at home
5:

Discouraged workers are


Correct
  • 1:
    considered cyclically unemployed
  • 2:
    considered structurally unemployed
  • 3:
    considered frictionally unemployed
  • 4:
    not considered as part of the labor force
6:

Which of the following statements is true?


Correct
  • 1:
    The unemployment rate does not tell us anything about the duration of unemployment
  • 2:
    The duration of unemployment decreases during recessions
  • 3:
    The duration of unemployment increases during economic expansions
  • 4:
    The median duration of unemployment is usually greater than the average duration
7:

Classifying discouraged workers as unemployed would


Correct
  • 1:
    increase the unemployment rate
  • 2:
    decrease the unemployment rate
  • 3:
    not change the unemployment rate
  • 4:
    have an indeterminate impact on the unemployment rate
8:

Structural unemployment is the


Correct
  • 1:
    portion of unemployment that is due to changes in the structure of the economy that result in a significant loss of jobs in certain industries
  • 2:
    unemployment that occurs during recessions and depressions
  • 3:
    portion of unemployment that is due to the normal working of the labor market
  • 4:
    unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work
9:

The increase in unemployment that occurs during recessions and depressions is called


Correct
  • 1:
    frictional unemployment
  • 2:
    structural unemployment
  • 3:
    cyclical unemployment
  • 4:
    normal unemployment
10:

The natural rate of unemployment is generally thought of as the


Correct
  • 1:
    ratio of the frictional unemployment rate to the cyclical unemployment rate
  • 2:
    sum of structural unemployment and cyclical unemployment
  • 3:
    sum of frictional unemployment and cyclical unemployment
  • 4:
    sum of frictional unemployment and structural unemployment
11:

When an individual quits his job and decides to look for a new job immediately, the labor-force participation rate


Correct
  • 1:
    decreases
  • 2:
    increases
  • 3:
    stays the same
  • 4:
    may increase or decrease, depending on the length of time he/she stays at home
12:

Unemployment that occurs during the normal workings of an economy as  people change jobs and move across the country is called


Correct
  • 1:
    structural unemployment
  • 2:
    frictional unemployment
  • 3:
    natural unemployment
  • 4:
    cyclical unemployment
13:

The unemployment that occurs during recessions and depressions is


Correct
  • 1:
    the natural rate of unemployment
  • 2:
    cyclical unemployment
  • 3:
    frictional unemployment
  • 4:
    structural unemployment
14:

An auto worker in Ohio who loses her job because the company relocated the plant to another country represents an example of


Correct
  • 1:
    frictional unemployment
  • 2:
    structural unemployment
  • 3:
    cyclical unemployment
  • 4:
    seasonal unemployment
15:

If you hear a person saying "I lost my job because I was replaced by a machine," you should conclude that this person is ________ unemployed


Correct
  • 1:
    cyclically
  • 2:
    structurally
  • 3:
    frictionally
  • 4:
    seasonally
16:

Employment tends to rise when


Correct
  • 1:
    aggregate output falls
  • 2:
    unemployment rises
  • 3:
    aggregate output rises
  • 4:
    labor productivity falls
17:

Minimum wage laws contribute to a higher unemployment rate by


Correct
  • 1:
    raising wages above the market clearing level in some labor markets
  • 2:
    pushing wages below the market clearing level in some labor markets
  • 3:
    raising wages above the market clearing level in all labor markets
  • 4:
    pushing wages below the market clearing level in all labor markets

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A level Unemployment Quiz 1
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