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Unemployment: Determinants - Question Bank

Question Bank ''Unemployment: Determinants'' with interactive revision questions on a variety of economics topics.

Question Bank - Economics

Unemployment: Determinants

Q1. Which one of the following statements about cyclical unemployment is not correct?

(Select one answer)

(a) * cyclical unemployment exists when there are more job vacancies than there are individuals looking for jobs
(b) * cyclical unemployment exists when there is a GNP gap
(c) * cyclical unemployment is not included in the natural rate of unemployment
(d) * the duration of cyclical unemployment is affected by the level of aggregate demand

Source: McGraw Hill logo

Q2. The natural rate of unemployment is generally thought of as the

(Select one answer)

(a) * ratio of the frictional unemployment rate to the cyclical unemployment rate.
(b) * sum of structural unemployment and cyclical unemployment.
(c) * sum of frictional unemployment and cyclical unemployment.
(d) * sum of frictional unemployment and structural unemployment.

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Q3. Which of the following will contribute to a rise in the normal rate of unemployment?

(Select one answer)

(a) * a labour force that is growing faster than the growth of the general population
(b) * an increase in the level of unemployment compensation and an easing of the requirements to receive the payments
(c) * a change in the composition of the labour force
(d) * all of the above contribute to a rise in the normal rate of unemployment

Source: McGraw Hill logo

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