Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following is NOT one of the six types of unemployment?

1. Frictional

2. Technological

3. Speculative

4. Cyclical

The correct answer is: Speculative

The correct answer is that speculative unemployment is not recognized as one of the six types typically categorized in economic discussions of unemployment. The recognized types of unemployment include frictional, which occurs when individuals are temporarily out of work while transitioning between jobs; technological, which arises from advancements in technology that displace certain jobs; and cyclical, which is linked to the economic cycle, particularly during downturns when demand for goods and services decreases. Frictional unemployment reflects the time taken for people to find a job that matches their skills and preferences, while technological unemployment involves job losses due to automation and innovation making certain roles obsolete. Cyclical unemployment, on the other hand, is directly related to the ups and downs of the economy, such as during recessions when companies may lay off employees. In contrast, speculative unemployment is not a commonly recognized type within economic theory; it does not fit the established categories that economists use to analyze labor markets. Understanding the distinctions among the recognized types of unemployment is essential for analyzing economic conditions and making informed policy decisions.