4.2.1 Measurement of Unemployment

• What is the general definition of unemployment?

  Being without a job
• Order the different types of unemployment based on their primary causes.

  1️⃣ Frictional Unemployment

  2️⃣ Seasonal Unemployment

  3️⃣ Structural Unemployment

  4️⃣ Cyclical Unemployment
• Structural unemployment occurs due to a mismatch between workers' skills and available job requirements
• What is the main cause of seasonal unemployment?

  Fluctuating demand
• Match the labor force component with its definition:

  Employed ↔️ Working for pay

  Unemployed ↔️ Seeking work
• The unemployment rate is calculated using the formula: (Number of Unemployed / Labor Force) * 100
• Cyclical unemployment rises during economic expansions.

  False
• What are the two main components of the labor force?

  Employed and unemployed
• The formula for calculating the unemployment rate is (Number of Unemployed / Labor Force) * 100

  True
• The unemployment rate is calculated by dividing the number of unemployed by the total labor force.
• Frictional and structural unemployment are considered natural forms of unemployment


  True
• The unemployment rate measures the percentage of the labor force that is unemployed
• What is the primary cause of frictional unemployment?

  Changing jobs
• Cyclical unemployment increases during economic downturns.


  True
• The labor force includes all people who are employed and unemployed
• Which groups are not included in the labor force?

  Students, retirees, homemakers
• What is the unemployment rate if there are 5 million unemployed people and a labor force of 50 million?

  10%
• The unemployment rate is calculated as the number of unemployed divided by the total labor force
• The unemployment rate measures the percentage of the labor force that is unemployed
• If there are 5 million unemployed people and a labor force of 50 million, what is the unemployment rate?

  10%
• Match each type of unemployment with its definition:

  Frictional Unemployment ↔️ Short-term unemployment caused by job changes

  Structural Unemployment ↔️ Unemployment due to skill mismatches

  Cyclical Unemployment ↔️ Unemployment that rises during economic downturns

  Seasonal Unemployment ↔️ Unemployment due to seasonal demand fluctuations
• Order the limitations of the unemployment rate measurement from those affecting the numerator to those affecting the denominator:

  1️⃣ Discouraged Workers

  2️⃣ Part-Time Employment

  3️⃣ Exclusion of Self-Employed

  4️⃣ Definition of Labor Force