Questions
MUF0062 Economics Unit 2 - Semester 1, 2025 Types of Unemployment Quiz (10 - 15 minutes)
Matching
Read each example of unemployment and decide which type of unemployment it best shows, 1: 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. ____ 2: 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. ____ 3: 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. ____ 4: 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. ____ 5: 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. ____ 6: 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. ____
Options
A.Structural
B.Cyclical
C.Seasonal
D.Frictional
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Step-by-Step Analysis
We’re asked to match each unemployment example to one of the provided types: Structural, Cyclical, Seasonal, or Frictional. I’ll go item by item, considering what each type means and why a particular type fits best.
1) Free trade agreements reduce local demand for Shimoli’s product, causing firm closure, and workers there cannot easily transition to the growing export sectors due to lacking skills. This reflects a mismatch between the structure of the economy (industries and skills available) and the jobs demanded, i.e., a structural unemployment situation. Other types don’......Login to view full explanationLog in for full answers
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