Sunday, January 17, 2010

Types of Unemployment

Summary: What kind of unemployment is described or inferred?

Take this quiz. Identify each scenerio as "F" for frictional, "S" for structural, "C" for cyclical, or "N" for nonsense.

1. Juan, a teacher, loses his job as the economy slumps into a recession.

2. Zeglin's Appliances pay their workers an efficieny wage.

3. Workers in a drive-thru McDonalds lose their jobs as automation outsources orders to India.

4. Bill, using the Internet, finds a higher paying job in Idaho and leaves his job at Frank's Fabulous Franks.

5. A hike in the minimum wages puts thousands of teenagers out of work.

My answers in order are: C, S, S, F, S.

About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA.


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