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MUF0062 Economics Unit 2 - Semester 2, 2025 Types of Unemployment Quiz (10 - 15 minutes)

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Read each example of unemployment and decide which type of unemployment it best shows, 1: David works for a building construction company. Due to a downturn in the economy the company has less work so his employer terminated his employment. ____ 2: Robin gained employment in a labour-intensive manufacturing business. The management of this business has decided that they will introduce technology to replace workers, and Robin is made redundant. ____ 3: There has been a slowdown in economic activity recently, so Tylar's employer no longer needs so many workers, since there is less production to do. Tylar's contract ends in December and it is not renewed for the following year. ____ 4: Su Li gained employment as a beach lifeguard but she has been told that this employment will end, at the end of March when the beach closes for the winter. ____ 5: Michael has decided that he no longer wants to be a chef. He has quit his job at a restaurant and is looking for a new job a retail assistant. ____ 6: The government of Shimoli's country makes some free trade agreements with many other countries. This leads to less local demand for the product Shimoli makes since there are now more imports. Shimoli's company closes down. The free trade agreements lead to more demand for exports in other industries but Shimoli does not have the skills to work in those industries. ____

Options
A.Structural
B.Frictional
C.Cyclical
D.Seasonal
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We need to classify each unemployment scenario according to the main types: structural, cyclical, frictional, and seasonal. Structural unemployment arises from a long-term mismatch between skills and jobs or when industries decline due to structural changes. Cyclical unemployment is tied to the business cycle—recessions reduce overall demand and layoffs occur. Frictional unemployment is short-term and occurs as workers transition between jobs or search for new ones. Seasonal unemployment comes from regular seasonal patterns in certain industries. Now, let's analyze each item one by one. 1) David is ......Login to view full explanation

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