Unemployment - Question Bank

	You are here: Home > Learning Materials > Economics > Question Bank > Unemployment

Economics

Use the drop down boxes below to find resources related to this page.

Question Bank - Economics

Unemployment

Q1. Many economists and government analysts have investigated the effect of a minimum wage on labour markets. The general conclusion reached by the investigators is that (Select one answer) (a) the overall effect of the minimum wage is an increase in the unemployment level (b) teenagers gain most of the beneficial employment effects of the minimum wage (c) all industries are equally affected by the minimum wage laws (d) over a period of time, the minimum wage laws will increase employment in the economy

Source:

Q2. The natural rate of unemployment is generally thought to be the sum of (Select one answer) (a) frictional unemployment and cyclical unemployment. (b) cyclical unemployment and structural unemployment. (c) frictional unemployment and structural unemployment. (d) frictional unemployment and seasonal unemployment.

Source:

Q3. The measured unemployment rate can be pushed below the natural rate, but (Select one answer) (a) only in the long run, and only if the price level is constant. (b) only in the long run, and not without inflation. (c) only in the short run, and not without inflation. (d) only in the short run, and only if the price level is constant.

Source:

Q4. Unemployment benefits may increase the unemployment rate because unemployment benefits (Select one answer) (a) reduce the cost of job search. (b) encourage people to quit their jobs. (c) reduce the benefits of additional job searching. (d) enable people to quit searching for work.

Source:

Q5. Generally speaking, the natural rate of unemployment is (Select one answer) (a) the full-employment rate of unemployment (b) approaching zero when actual output approaches potential output (c) most likely to fall over time (d) most likely to remain constant over time

Source:

Q6. According to the classical economists, those who are not working (Select one answer) (a) are unable to find a job at the current wage rate. (b) are too productive to be hired at the current wage. (c) have chosen not to work at the market wage. (d) have given up looking for a job, but would accept a job at the current wage if one were offered to them.

Source:

Q7. According to Classical models, the level of employment is determined primarily by (Select one answer) (a) the level of aggregate demand for goods and services. (b) prices and wages. (c) government taxation. (d) government spending.

Source:

Contents | Previous | Next