Skip to main content
Back

Types of Unemployment quiz

Control buttons has been changed to "navigation" mode.
1/15
  • What is frictional unemployment?
    Frictional unemployment is short-term unemployment that occurs when workers are between jobs and still possess marketable skills.
  • Why is frictional unemployment considered 'okay' in an economy?
    It's considered okay because it reflects workers searching for jobs that better match their skills, leading to higher job satisfaction and productivity.
  • What type of unemployment includes seasonal unemployment?
    Seasonal unemployment is included in frictional unemployment because it involves workers being between jobs due to seasonal changes.
  • What is structural unemployment?
    Structural unemployment occurs when there is a mismatch between workers' skills and the requirements of available jobs, often due to changes in the economy.
  • Why is structural unemployment considered a bigger problem than frictional unemployment?
    It's a bigger problem because workers' skills are no longer marketable, often requiring retraining or relocation to find new employment.
  • Give an example of structural unemployment.
    An example is 2D animators losing jobs when the industry shifts to 3D animation, making their skills less relevant.
  • What is cyclical unemployment?
    Cyclical unemployment is caused by downturns in the business cycle, such as recessions, when demand for goods and labor decreases.
  • How does cyclical unemployment differ from frictional and structural unemployment?
    Cyclical unemployment is tied to economic recessions and will decrease when the economy recovers, while the other two are always present to some degree.
  • What happens to cyclical unemployment at full employment?
    At full employment, cyclical unemployment is zero, meaning there is no unemployment caused by economic downturns.
  • Does full employment mean everyone has a job?
    No, full employment means there is no cyclical unemployment, but frictional and structural unemployment still exist.
  • What is natural unemployment?
    Natural unemployment is the sum of frictional and structural unemployment present even when the economy is at full employment.
  • How is actual unemployment calculated?
    Actual unemployment is the sum of natural unemployment (frictional plus structural) and cyclical unemployment.
  • What is the GDP gap?
    The GDP gap is the difference between actual GDP and potential GDP at full employment, indicating economic inefficiency.
  • Why might a worker with marketable skills still be unemployed?
    A worker with marketable skills may be unemployed due to frictional unemployment, as they are searching for a job that matches their skills.
  • What typically needs to happen for structurally unemployed workers to find new jobs?
    Structurally unemployed workers often need additional training, education, or relocation to match their skills to available jobs.