11.Which of the following is zero when an economy is at full employment?

A)   Structural unemployment.

B)   Total unemployment.

C)   Frictional unemployment.

D)   Cyclical unemployment.

12.Full employment is said to occur when:

A)   the natural rate of unemployment equals zero.

B)   the number employed divided by the number in the labor force is less then 5.0 percent.

C)   structural and frictional unemployment approach zero.

D)   cyclical unemployment equals zero.

答案和详解如下：

11.Which of the following is zero when an economy is at full employment?

A)   Structural unemployment.

B)   Total unemployment.

C)   Frictional unemployment.

D)   Cyclical unemployment.

The correct answer was D)

Full employment is reached when cyclical unemployment is zero.

12.Full employment is said to occur when:

A)   the natural rate of unemployment equals zero.

B)   the number employed divided by the number in the labor force is less then 5.0 percent.

C)   structural and frictional unemployment approach zero.

D)   cyclical unemployment equals zero.

The correct answer was D)

Cyclical unemployment is unemployment caused by a change in the general level of economic productivity. When cyclical unemployment is zero, the economy is said to be operating at full employment.

Note: When the economy is operating at less than full capacity, positive levels of cyclical unemployment will be present. At levels above full capacity, negative cyclical unemployment will exist.

The natural rate of unemployment is that rate of unemployment present when the economy is at its full employment rate of production or output. At full employment, both structural and frictional unemployment still exist. Therefore, there is some level of unemployment, and the natural rate of unemployment is not equal to zero.

The “number unemployed divided by the number in the labor force” is the definition of the rate of unemployment. There is no magical number or parameter that indicates full employment.