Question

Cross-country comparisons of unemployment rates are difficult for all the following reasons except:

a. Differing definitions of ‘unemployment’ between countries.

b. Non-traditional labor markets (i.e. barter, subsistence agriculture) in many developing countries.

c. Higher government employment in developed countries.

While Japan has enjoyed a persistent low unemployment rate compared to other high-income countries, this may paint too rosy a picture of unemployment in Japan because

a. the Japanese labor force has been shrinking for 20+ years.

b. Japan does not have a modern unemployment insurance program.

c. Japanese employers are reluctant to formally lay off workers even when there is little real work.

Tom graduated from college in June but was still looking for work in August. This is an example of ________.

a. structural unemployment.

b. cyclical unemployment.

c. frictional unemployment.

Answer 1

Ans 1)

Option C is correct answer here as if major proportion of employment is constituted in Government then the data availabiltav for comparison would not be a concern hence option C can't be comprehended as difficulty of comparing cross country unemployment

Ans 2)

Due to demographic disadvantages Japan has population mainly consists of old age individuals which decreases the tendacy of employer to layoff people even in old age

Option C is correct

Ans 3)

This is frictional unemployment because when technology in a job market changes people take time to find the job

Option C is correct