QUICK QUIZ - What Is Full Employment?

1.	Kevin has lost his job in an automobile plant because of the use of robots for welding on the assembly line. Kevin plans to go to technical school to learn how to repair microcomputers. The type of unemployment Kevin is faced with is: A. cyclical. B. frictional. C. structural. D. natural.

2.	At the full-employment unemployment rate there is only: A. cyclical and frictional unemployment. B. frictional and structural unemployment. C. demand-deficient unemployment. D. "discouraged workers" unemployment.

3.	The full-employment rate of unemployment is also called the: A. potential rate of unemployment. B. cyclical rate of unemployment. C. frictional rate of unemployment. D. natural rate of unemployment.

4.

One reason why economists argue that the full-employment unemployment rate was higher in the 1980s than in the 1960s is that: A. smaller numbers of women and young workers entered the labor force in the 1980s. B. larger numbers of white male workers have entered the labor force in the 1980s. C. unemployment compensation was increased in terms of the number of workers covered and the size of benefits over this time period. D. substantial decreases occurred in the minimum wage over this time period.

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