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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: 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. ____ 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: 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. ____ 4: 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. ____ 5: 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. ____ 6: 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. ____

Options
A.Seasonal
B.Frictional
C.Cyclical
D.Structural
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Step-by-Step Analysis
We are given six unemployment scenarios and a list of four possible types: Seasonal, Frictional, Cyclical, and Structural. For each scenario, we evaluate which type best explains the situation, and we discuss why other types do not fit as well. 1) Tylar’s contract ends due to a slowdown in economic activity and is not renewed: this is best described as Cyclical unemployment, which arises from downturns in the business cycle when overall demand falls and firms lay off workers. Seasonal would not apply here because the ending is tied to the business cycle, not a regular seasonal pattern. Structural would be about a mismatch between skills and job opportunities in the long term, which ......Login to view full explanation

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