CFA 2026 Level I Economics Unemployment Free Quiz 2

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CFA 2026 Level I Economics Unemployment Free Quiz 2

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CFA 2026 Level I Economics Unemployment Free Quiz 2

Practice CFA 2026 Level I Economics MCQs from Unemployment. Get instant results with Explanation.

General5 MCQs

11. Why is the unemployment rate sometimes misleading?

A. It overstates true unemployment.B. It excludes all part-time workers.C. It excludes discouraged workers and underemployed workers.D. It excludes all unemployed workers.

12. What are discouraged workers?

A. UnemployedB. EmployedC. UnderemployedD. Discouraged workers

13. What are underemployed workers?

A. UnderemployedB. UnemployedC. EmployedD. Discouraged

14. Which unemployment rate includes underemployed and discouraged workers?

A. U-3 (official unemployment rate)B. U-6 (includes underemployed and discouraged)C. U-4D. U-5

15. What is the difference between U-3 and U-6 unemployment rates?

A. U-3 includes discouraged workers; U-6 excludes them.B. U-6 is always lower than U-3.C. U-3 is the official rate; U-6 is broader and includes underemployed.D. They are the same.

General5 MCQs

16. What are the consequences of high unemployment?

A. Only lower economic growthB. Only social issuesC. Only loss of human capitalD. Loss of human capital, social issues, and lower economic growth

17. What factors determine the natural rate of unemployment?

A. Demographics, technology, labor market institutions, and government policiesB. Only technologyC. Only demographicsD. Only government policies

18. What is the NAIRU?

A. Natural rate of unemploymentB. NAIRU (Non-Accelerating Inflation Rate of Unemployment)C. Actual unemployment rateD. Cyclical unemployment rate

19. What happens if the unemployment rate falls below the NAIRU?

A. DeflationB. No inflationC. Inflationary pressuresD. Lower wages

20. What happens if the unemployment rate is above the NAIRU?

A. InflationB. Wage increasesC. Labor shortageD. Downward pressure on wages and inflation

📋 CFA - Test Online Practice Quizzes

CFA

Conducting Body: CFA Institute

Frequency: 4 times a year (February, May, August, November) | Time: 135 Minutes

Negative Marking: No

⚡ Test Pattern (Total: 90 MCQs):

Alternative Investments: 8 MCQs
Corporate Issuers: 7 MCQs
Derivatives: 5 MCQs
Economics: 7 MCQs
Equity Investments: 12 MCQs
Ethics: 16 MCQs
Financial Statement Analysis: 11 MCQs
Fixed Income: 11 MCQs
Portfolio Management: 9 MCQs
Quant Methods: 6 MCQs

Merit Formula: -

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