Unemployment Fundamentals QuizOnline version Learn about unemployment concepts. by Hasan Khouly 1 What is unemployment in economic terms? a People who are able and willing to work but do not have a paid job. b A measure of inflation c People not looking for work d People employed part-time 2 Frictional unemployment refers to? a Long-term joblessness due to layoffs b Short-term unemployment as workers move between jobs. c Unemployment from structural changes in technology d Unemployment caused by a recession 3 Structural unemployment is caused by? a Temporary demand drop in a single industry b Cyclic fluctuations during a recession c Seasonal work fluctuations d Mchanges in the economy that create skills mismatches. 4 Cyclical unemployment rises when? a There is full employment b Technological advancements replacing workers c A temporary job shortage during holidays d The economy is in a downturn or recession. 5 Natural rate of unemployment means? a Unemployment due to inflation b Zero unemployment in the long run c Unemployment caused only by cycles d The baseline level of unemployment when the economy is at potential output. 6 Unemployment rate formula is? a (Number unemployed ÷ Labor force) × 100 b (Number employed ÷ Labor force) × 100 c (Total population ÷ Labor force) × 100 d (Labor force ÷ Number unemployed) × 100 7 Labor force participation rate measures? a The rate of inflation in the labor market b The percentage of job vacancies filled c The share of employed people in a country d The share of the working-age population in the labor force. 8 Which is a common cause of unemployment? a Weak overall demand for goods and services. b Excess population growth c Excess government spending d High unemployment benefits always increasing employment 9 What is underemployment? a People working fewer hours or in jobs below their skill level. b People who are self-employed only c Full-time workers who are promoted d People who are unemployed for a year or more 10 Policy tools to reduce unemployment include? a Deregulation with no spending b Only tax increases c Fiscal and monetary policies and job programs. d Export subsidies with no domestic demand impact
