Economics MCQs

Page No. 234

Some frictional Unemployment is inevitable because ?


aof minimum wage laws


bThere are changes in the demand for labour among different firms.


cOf unions


dAll of these answers



Sector shifts tend to raise which type of unemployment ?


aStructural Unemployment


bUnemployment due to efficiency wages


cUnemployment due to unions


dFrictional Unemployment



A reservation wage is the ?


aMaximum wage the firm is willing to pay


btip necessary to get a waiter to reserve a table


cminimum wage the worker is willing to accept


dcompetitive equilibrium wage.



Which one of the following types of Unemployment results from the wage being held above the competitive equilibrium wage ?


aStructural unemployment


bCyclical Unemployment


cFrictional Unemployment


dNone of these answers



A miner who has been unable to find work for so long that he has stopped looking for work is considered to be ?


aNot in the labour force


bNot in the adult population


cUnemployed


dEmployed



Refer to Figure 1. The labour force participation rate is ?


a47.1 Percent


b65.9 Percent


c50.2 Percent


d 70.2 Percent


View Answer 70.2 Percent

Refer to Figure 1 The labour fouce is ?


a 134.0 million


bNone of theses answers


c92.3 million


d 98.0 million


View Answer 98.0 million

The amount of unemployment that the economy normally experiences is known as ?


aThe natural rate of unemployment


bcyclical unemployment


cefficiency wage unemployment


dfrictional unemployment



Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This is called ?


aThe upward accelerator


b The downward multiplier


cThe upward PPF


dThe downward mpc



Which of the following is not a supply side measure ?


a Increased training


bProviding more information


cHelping individuals to move location to find work


dIncreasing spending on existing industries



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