Question

Zoe just graduated. She is applying for many jobs but she receives no calls. There are lots of job openings and she hears in the news that the economy is growing. She notices that all these openings requires for her to know excel, which she does not. So, she takes a course in excel, learns it and puts it in the resume. It takes her one month to start a job, due to interviews, calls, etc. What is the type of unemployment was it during this month prior to starting the job?

a-structural unemployment

b-frictional unemployment.

c-cyclical unemployment

d-all of the above

2-Ani just graduated. She is applying for many jobs but she receives no calls. There are barely any job openings and she hears in the news that the economy is experiencing a recession. What is the type of unemployment is this called?

a-structural unemployment

b-frictional unemployment.

c-cyclical unemployment

d-all of the above

3-Full employment means which of the following is zero

a-structural unemployment

b-cyclical unemployment

c-frictional unemployment

d-aggregate unemployment

Answer 1

Q1) The answer is (b) structural unemployment as Zoe did not have the necessary skills to be hired for the job as she did not understand excel. Thus, she was structurally unemployed

Q2) The answer is (c) cyclical unemployment. Ani is not getting the job due to a recessionary phase of the business cycle and she might get it later when the economy improves. thus, she is cyclically unemployed.

Q3) The answer is (b) cyclical unemployment. At the full employment level, cyclical unemployment is 0. All other types of unemployment can exist even at full employment.