Economics Readings Site By Colin Ong

This blog has been created to provide an area for economics students to read about how economics impacts daily life. It is especially useful for students to understand the application of macroeconomics as communicated through the media and governmental websites.

This online resource has been set up for educational purposes.All rights are reserved by the various websites.

For further clarification, please email colin@mrmc.com.sg

MCQ 25

The amount of unemployment that the economy normally experiences is known as
a.
the natural rate of unemployment.
b.
cyclical unemployment.
c.
efficiency wage unemployment.
d.
frictional unemployment.


ANSWER: 

A
Which one of the following types of unemployment results from the wage being held above the competitive equilibrium wage?
a.
Structural unemployment
b.
Cyclical unemployment
c.
Frictional unemployment
d.
None of these answers
e.
Sectoral unemployment


ANSWER: 

A
Which of the following government policies would fail to lower the unemployment rate?
a.
Establishing worker training programs
b.
Establishing right-to-work laws
c.
Reducing unemployment benefits
d.
Establishing employment agencies
e.
Raising the minimum wage


ANSWER: 

E
Some frictional unemployment is inevitable because
a.
of minimum wage laws.
b.
there are changes in the demand for labour among different firms.
c.
of unions.
d.
all of these answers
e.
efficiency wages may hold the wage above the equilibrium wage.


ANSWER: 

B