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9) Bill just graduated with his degree in economics. Through Career Services he submitted
his resume to several companies and he will visit them during the next two weeks. Bill is
considered
A) not in the labor force.
B) frictionally unemployed.
C) structurally unemployed.
D) cyclically unemployed.
E) employed because he is visiting irms.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
10) Jordan recently quit her job as a marketing consultant in Washington, D.C. and is
looking for a better-paying job with an advertising agency in New York. Jordan is
considered to be
A) cyclically unemployed.
B) structurally unemployed.
C) not in the labor force.
D) frictionally unemployed.
E) a discouraged worker.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: New
AACSB: Relective thinking
11) Which of the following would be considered unemployed as part of normal labor market
turnover?
i. Juliet, who was ired when the company where she worked went bankrupt in a
recession
ii. Hannah, who quit her job to ind one that better suited her skills
iii. Charlotte, who started looking for a job upon graduation from high school
A) ii and iii
B) i and ii
C) i, ii and iii
D) i and iii
E) iii only
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
61
12) Rosina Gonzales quit her job in Pennsylvania and moved to California to be close to her
family. She is currently looking for work, so she would be considered
A) a discouraged worker.
B) frictionally unemployed.
C) cyclically unemployed.
D) avoidably unemployed.
E) not in the labor force because she moved more than 150 miles.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
13) Beth has just quit her job, moved to a new city, and is looking for a new job. Beth is
A) frictionally unemployed.
B) structurally unemployed.
C) distance unemployed.
D) cyclically unemployed.
E) locationally unemployed.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
14) Mary has decided that the she does not like Iowa and has decided to quit her job as a
medical technician and move to Arizona. Mary's unemployment as she searches for a new
job is best classiied as
A) cyclical.
B) distance.
C) structural.
D) frictional.
E) traveling.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
62
15) Which of the following correctly describes "frictional unemployment"?
A) Frictional unemployment includes only people who are job losers.
B) Frictional unemployment includes only people who are job leavers.
C) Frictional unemployment occurs mainly during recessions.
D) Frictional unemployment is a normal occurrence in a growing economy.
E) Frictional unemployment falls in recessions and rises in expansions.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
16) Higher ________ in Canada than in the United States help(s) explain why ________
unemployment is higher in Canada than in the United States.
A) unemployment beneits; frictional
B) unemployment beneits; structural
C) prices; frictional
D) prices; structural
E) investment; structural
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
17) Unemployment beneits in western Europe are more generous than in the United
States. As a result, ________ in the United States.
A) frictional unemployment is lower
B) frictional unemployment is higher
C) structural unemployment is higher
D) avoidable unemployment is lower
E) cyclical unemployment is higher
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
63
18) Structural unemployment is the result of
A) technological change or foreign competition.
B) normal labor market turnover.
C) a slowdown in the rate of economic expansion.
D) irresponsible workers with poor work habits.
E) changing weather patterns through the year.
Skill: Level 1: Deinition
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
19) Structural unemployment is the result of
A) voluntary job quitting by workers.
B) changing labor needs by irms during the year.
C) technology changes or foreign competition.
D) changes in the family structure.
E) downturns in the business cycle.
Skill: Level 1: Deinition
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
20) Which type of unemployment arises when changes in technology or international
competition change the skills needed to perform jobs or change the location of jobs?
A) cyclical
B) luctuating
C) structural
D) frictional
E) skill-set
Skill: Level 1: Deinition
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
64
21) Structural unemployment includes people who become unemployed from
A) changes in the seasons.
B) normal changes in the labor force.
C) technological changes.
D) changes in the business cycle.
E) going back to school.
Skill: Level 1: Deinition
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
22) An employee who is ired from his or her job because he or she lacks the skills required
to accomplish the task, is part of ________ unemployment.
A) frictional
B) cyclical
C) unskilled
D) structural
E) withdrawal
Skill: Level 1: Deinition
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
23) Structural unemployment usually lasts ________ period of time ________ unemployment
A) a longer ; than frictional
B) a shorter; than frictional
C) a shorter; than seasonal
D) a shorter; than cyclical
E) the same; as cyclical
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
65
24) Which type of unemployment is most likely to lead unemployed workers to retrain or
relocate?
A) cyclical
B) forced
C) structural
D) frictional
E) search
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
25) When the automobile replaced horse-drawn carriages as the principal means of
transportation, irms producing horse-drawn carriages went bankrupt and permanently laid
of all their workers, thereby increasing
i. seasonal unemployment.
ii. structural unemployment.
iii. cyclical unemployment.
A) i only
B) ii only
C) i and iii
D) i and ii
E) ii and iii
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
26) During 2009, General Motors announced that it would close its Saturn facilities in the
United States because of the foreign competition it faced. This corporate move
A) increased structural unemployment.
B) increased avoidable unemployment.
C) increased cyclical unemployment.
D) had no impact on unemployment.
E) decreased frictional unemployment.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
66
27) After 15 years with Ford Motor Corporation, one summer Cameron loses his job. His
boss explained that his position has been downsized after the technological advances in
automobile production. Cameron is best considered
A) not in the labor force.
B) frictionally unemployed.
C) structurally unemployed.
D) cyclically unemployed.
E) avoidably unemployed.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
28) Juan recently lost his job as a travel agent, which he has had for 20 years, because the
demand for his services has fallen over time as more and more people book their vacations
online. Unfortunately, Juan has not been able to ind a new job because he lacks the skills
needed to get hired in other industries where job growth is occurring. Juan is considered to
be
A) structurally unemployed.
B) frictionally unemployed.
C) cyclically unemployed.
D) a marginally attached worker.
E) not in the labor force.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: New
AACSB: Relective thinking
29) For twenty years, Jim was a customer service representation at a call center in
Minnesota. In order to save money, his irm moved the call center to India and laid of Jim
two years ago. Jim has been unable to ind a similar job anywhere. Jim's unemployment is
best classiied as
A) cyclical.
B) transported.
C) structural.
D) frictional.
E) competitive.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
67
30) Joann has just lost her job because her company was faced with more foreign
competition and decided to restructure, which reduced the number of jobs at the company.
Joann is
A) frictionally unemployed.
B) structurally unemployed.
C) transported unemployed.
D) cyclically unemployed.
E) internationally unemployed.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
31) Joe has been unable to ind a job because he lacks the necessary computer skills. Joe is
A) frictionally unemployed.
B) structurally unemployed.
C) educationally unemployed.
D) cyclically unemployed.
E) skill-set unemployed.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
32) Cyclical unemployment includes people who become unemployed from
A) changes in the seasons.
B) changes in international competition.
C) technological changes.
D) changes in the business cycle.
E) normal labor market turnover.
Skill: Level 1: Deinition
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
68
33) The type of unemployment that arises from a decrease in real GDP is called
A) frictional unemployment.
B) structural unemployment.
C) non-expansion unemployment.
D) cyclical unemployment.
E) downturn unemployment.
Skill: Level 1: Deinition
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
34) Which type of unemployment is the consequence of downturns in the business cycle?
A) cyclical
B) expansionary
C) structural
D) frictional
E) natural
Skill: Level 1: Deinition
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
35) The unemployment that luctuates over the business cycle is called
A) frictional unemployment.
B) structural unemployment.
C) full unemployment.
D) cyclical unemployment.
E) natural unemployment.
Skill: Level 1: Deinition
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
69
36) Cyclical unemployment is
A) the total of structural and frictional unemployment.
B) always greater than the total of structural and frictional unemployment.
C) created by a recession.
D) higher when the economy is expanding.
E) part of frictional unemployment.
Skill: Level 1: Deinition
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
37) John has been laid of from his job because of a general downturn in the economy.
John's unemployment is best classiied as
A) cyclical.
B) full.
C) structural.
D) frictional.
E) avoidable.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
38) Janae was ired from her job with Microsoft in the 2008-09 recession because
Microsoft's sales dipped. Janae's unemployment would be best classiied as
A) frictional unemployment.
B) structural unemployment.
C) sales-related unemployment.
D) cyclical unemployment.
E) natural unemployment.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
70
