Question

In: Economics

1. The unemployment rate a. increases as the economy moves from a trough to a peak...

1. The unemployment rate

a. increases as the economy moves from a trough to a peak of the business cycle. b. increases as the economy moves from a peak to a trough of the business cycle. c. reaches a peak at the beginning of a recession. d. reaches its lowest number at the trough of the business cycle.

4. ______________ workers are those who have dropped out of the labor force due to feeling pessimistic about their prospects of finding a job.

a. Cyclical b. Structural c. Frictional d. Discouraged

2. What is in the denominator of the fraction for the unemployment rate?

a. The labor force b. The population over age 18 c. The population with a high school diploma d. The number of people receiving unemployment compensation

3. The type of unemployment due to workers in the process of job search is known as _________________ unemployment.

a. Cyclicalb. Structuralc. Frictional d. Discouraged

5. Potential workers unemployed due to being in the recessionary phase of the business cycle account for _______________ unemployment.

a. Cyclical b. Structural c. Frictional d. Discouraged

6. A mismatch between the skills needed by employers and the skills possessed by job seekers is referred to as __________________ unemployment.

a. Cyclical b. Structural c. Frictional d. Discouraged

7. The economy is at the natural rate of unemployment when

a. the labor force participation rate is 100%. b. the business cycle reaches a trough. c. there is no frictional unemployment. d. there is no cyclical unemployment.

Solutions

Expert Solution

Answer 1:

The unemployment rate increases as the economy moves from a peak to trough of the business cycle. Correct option is option b.

Answer 4:

Discouraged workers are those who have dropped out of the labor force due to feeling pessimistic about their prospects of finding a job.

Correct option is option d.

Answer 2:

Unemployment rate=Number of unemployed/Labor force.

Denominator of the fraction for the unemployment rate is the Labour force.

Correct option is option a.

Answer 3:

Type of unemployment due to workers in the process of job search is known as Frictional unemployment.

Correct option is option c.

Answer 5:

Potential worker unemployed due to being in recessionary phase of the business cycle account for cyclical unemployment.

Correct option is option a.

Answer 6:

A mismatch between the skills needed bynthe employer and the skills possessed by the job seekers is referred to as Structural unemployment.

Correct option is option b.

Answer 7:

The economy is at natural rate of unemployment when there is no cyclical unemployment.

Correct option is option d.

Natural rate of unemployment is due to structural and frictional unemployment.

Rahul Sunny answered 1 year ago

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