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Reading 22: Monitoring Jobs and the Price Level - LOS c ~

Q1. Unemployment due to the time it takes for qualified workers to be matched with existing job openings describes:

A)     structural unemployment.

B)     frictional unemployment.

C)     cyclical unemployment.

Q2. The natural rate of unemployment exists when:

A)   the economy operates below full employment.

B)   structural unemployment is zero.

C)   the economy operates at full employment.

Q3. When individuals are unemployed because they do not have perfect information concerning available jobs, this is:

A)   structural unemployment.

B)   frictional unemployment.

C)   natural unemployment.

Q4. Which of the following statements about unemployment is least accurate?

A)   Frictional unemployment is unemployment due to changes in the economy that prevent qualified workers from being immediately matched with existing job openings.

B)   The economy is said to be operating at full employment when cyclical unemployment is zero.

C)   The economy is said to be operating at full employment only if there is no cyclical or frictional unemployment in the economy.

Q5. Which type of unemployment describes a situation where workers who have been laid off due to economic changes and they are unable to find work due to a lack of education or the necessary skills to move into another available job?

A)    Structural.

B)    Frictional.

C)    Cyclical.

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D

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