Question

1. If a country signs a trade agreement so that employment in some industries rises and employment in some industries fall, then

	a.	structural unemployment rises permananently.
	b.	frictional unemployment rises temporarily.
	c.	frictional unemployment rises permanently.
	d.	structual unemployment rises temporarily.

2.Between 2002 and 2014, employment

	a.	increased in construction and manufacturing.
	b.	declined in construction and increased in manufacturing.
	c.	declined in construction and manufacturing.
	d.	declined in manufacturing and increased in construction.

3. According to 2014 data on the U.S. population, which of the following was correct for the adult population of prime working age, ages 25-54?

	a.	Black females had similar labor-force participation rates and higher unemployment rates compared to white females.
	b.	Black females had higher labor-force participation rates and lower unemployment rates compared to white females.
	c.	Black females had lower labor-force participation rates and higher unemployment rates compared to white females.
	d.	Black females had both lower labor-force participation rates and lower unemployment rates compared to white females.

Answer 1

1.

Structural unemployment: A type of unemployment occurs when the skills demanded by employers are different from the skills offered by employees. In other words, the mismatch between the skill set demanded by employers and supplied by employees results m structural unemployment.

Frictional unemployment: A type of unemployment occurs when a worker moves from one job to another or a worker is looking for a job. It is also called search unemployment.

Since the employment fall in some industries and employment rises in some industries due to a trade agreement, the change in employment arises due to mismatch of skill set between different industries. Thus, there will be structural unemployment. However, the structural unemployment rises temporarily untill the labor is shifted from the falling industries to rising industries. Hence, the correct option is d.

2. Between 2002 and 2004, the employment in construction and manufacturing sector declined. Hence, the correct option is c.

3. As per the data of 2014 US population, the labor-force participation rate of black women hashad higher in comparison to other women. Even in 2015, the black women were more likely to be employed or looking for the job. Hence, the correct option is b.