AZER ALIYEV

1)Which of the following is not considered a cost associated with high rates of unemployment?
Lost output
Increasing costs of production
Social costs (e.g., crime)
Lost income

2)The Labour Force is?

600,000
480,000
440,000
500,000

3)Which of the following policies is most likely to reduce structural unemployment?

Lowering taxes
Reducing interest rates
Increasing the mobility of labour
Lowering unemployment benefits

4)Which of the following policies could lead to a lower rate of natural unemployment?
Lower income taxes
The sale of government bonds and securities
A higher budget deficit
Vocational retraining programmes for the unemployed *

5)Those workers in the finance industry who lost their jobs in the global financial crisis are
considered:
Frictional unemployment
Seasonal unemployment
Cyclical unemployment
Structural unemployment

6)A permanent reduction in demand for a single product will cause:

Voluntary unemployment
Structural unemployment
Frictional unemployment
Demand deficient unemployment

7)A policy encouraging firms to establish operations in small population centres would be aimed at
correcting:
Structural unemployment
Cyclical unemployment
Seasonal unemployment
Frictional unemployment

8)A policy that the government can use to reduce cyclical unemployment could be to:
Increase the exchange rate
Increase interest rates
Decrease direct taxes
Decreases government spending
9)Which of the following would a monetarist recommend to reduce the natural rate of
unemployment?
Increasing unemployment benefits
An increase in aggregate demand
Higher import tariffs
Deregulation of the labour market

10)The Labour force is?

600,000
500,000
480,000
440,000

11)The participation rate will increase if:

There is an increase in income support payments
Better conditions increase opportunities for part-time work
Women are encouraged to enter the workforce
The retirement age is reduced from 60 to 55 years

12)The unemployment rate is?

6.50%
8.33%
7.67%
2.50%

13)In attempting to reduce unemployment, which is not a supply-side policy? Providing:

Tax breaks and other government incentives
Additional information about job availability
Relocation allowances to increase labour mobility
Training and education programmes

14)The unemployment in this region is?

8.3%
10%
5%
15%

15)Which of the following doesn’t present a difficulty in measuring unemployment?

Underemployment
Those past the age of official retirement
Discouraged workers
Type of work done

16)Which of the following is not a potential cause of classical unemployment?

Agreements between workers and employers
Inadequate aggregate demand
Strong labour unions
Minimum wage laws *
17)People choosing to take a break before starting their new job causes:
Frictional unemployment
Structural unemployment
Seasonal unemployment
Cyclical unemployment

18)An example of structural unemployment is the:

Shutdown of a manufacturing plant because of global recession
Decision to lay off workers with redundant skills
An employee leaving the country to work overseas
An employee taking a holiday before looking for a new job

19)Unemployment is an economic problem for the government because:

Growth potential and living standards are not being maximised
It means a reduction in transfer payments
It reduces the popularity of the government
It leads to higher taxation revenue

20)Increased government spending should reduce:

Seasonal unemployment
Frictional unemployment
Structural unemployment
Cyclical unemployment

21)Underemployment is:
People being less productive than they would like
When AD is greater than AS
An inefficiently high level of employment
People who can work but don’t have jobs

22)Delays in applying for and starting a new job causes:

Frictional unemployment
Cyclical unemployment
Seasonal unemployment
Structural unemployment