Unemployment and its types, and the Natural Rate of Unemployment.
1) Frictional unemployment is the result of
A) an economic recession.
B) the economic decline of major industries.
C) the normal process of jobs being created and destroyed.
D) people not getting along (having friction) with their employers.
E) changing weather throughout the year.
2) Bill has graduated with his degree in economics. Through Career Services he submitted his resume to several companies and he will visit them during the next two weeks. Bill is considered
A) not in the labor force.
B) frictionally unemployed.
C) structurally unemployed.
D) cyclically unemployed.
E) employed because he is visiting firms.
3) Structural unemployment includes people who become unemployed from
A) changes in the seasons.
B) normal changes in the labor force.
C) technological changes.
D) changes in the business cycle.
E) going back to school.
4) An employee who is fired from his or her job because he or she lacks the skills required to accomplish the task, is part of ________ unemployment.
A) frictional
B) cyclical
C) unskilled
D) structural
E) withdrawal
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5) How would you best describe a manufacturing employee who has been fired because he was replaced by a robot (new technology) and does not have the skills necessary to help operate the robot?
A) job leaver
B) entrant/reentrant
C) cyclically unemployed
D) structurally unemployed
E) withdrawal
6) Seasonal unemployment includes people who become unemployed from
A) the seasonal weather patterns.
B) normal changes in the labor force.
C) technological changes.
D) changes in the business cycle.
E) changes in international competition.
7) Cyclical unemployment includes people who become unemployed from
A) changes in the seasons.
B) changes in international competition.
C) technological changes.
D) changes in the business cycle.
E) normal labor market turnover.
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8) The type of unemployment that arises from a decrease in real GDP is called
A) frictional unemployment.
B) structural unemployment.
C) seasonal unemployment.
D) cyclical unemployment.
E) downturn unemployment.
9) John has been laid off from his job because of a general downturn in the economy. John's unemployment is best classified as
A) cyclical.
B) seasonal.
C) structural.
D) frictional.
E) avoidable.
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10) Full employment means that
A) 100 percent of the labor force have jobs.
B) only those who are willing, able and looking for work are unemployed.
C) the cyclical unemployment rate is zero.
D) the natural unemployment rate is zero.
E) the frictional unemployment rate is zero.
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11) The natural unemployment rate is the unemployment rate that exists when there is no
A) structural unemployment.
B) frictional unemployment.
C) cyclical unemployment.
D) cyclical or structural unemployment.
E) seasonal unemployment.
12) The natural unemployment rate equals the sum of
A) cyclical and frictional unemployment.
B) cyclical, seasonal, and structural unemployment.
C) frictional, seasonal, and structural unemployment.
D) seasonal and cyclical unemployment.
E) cyclical, frictional, seasonal, and structural unemployment.
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