OCR GCSE Economics - 3.2 - Low Unemployment

Which of the following is the correct definition for unemployment?

• Occurs when workers are wanting to work

• Occurs when workers can’t find a job

• Occurs when workers able and willing to work but cannot find employment

• Occurs when workers are able to find employment but are not willing to work

How do we calculate the unemployment rate?

• Number of unemployed - workforce x 100

• Number of unemployed + workforce x 100

• Number of unemployed x workforce x 100

• Number of unemployed / workforce x 100

Calculate the unemployment rate if there are 10 million people in the workforce and the number of unemployed is 0.5 million.

• 1%

• 5%

• 10%

• 15%

Calculate the unemployment rate if there are 1 million people in the workforce and the number of unemployed is 50,000.

• 1%

• 5%

• 10%

• 15%

Unemployment caused by a fall in demand in a particular season is called:

• Seasonal unemployment

• Frictional unemployment

• Structural unemployment

• Cyclical unemployment

Unemployment caused by a lack of demand in the economy is called:

• Seasonal unemployment

• Frictional unemployment

• Structural unemployment

• Cyclical unemployment

Unemployment caused by time lags when workers move between jobs is called:

• Seasonal unemployment

• Frictional unemployment

• Structural unemployment

• Cyclical unemployment

Unemployment caused by time lags when workers move between jobs is called:

• Seasonal unemployment

• Frictional unemployment

• Structural unemployment

• Cyclical unemployment

Which of the following is a benefit of unemployment?

• Wage rates will be low

• Costs for firms can be higher

• Less movement between jobs

• Markets can become more efficient

Which of the following is the most important cost of unemployment to individuals?

• Loss of status

• Become unemployable

• Lower standard of living

• Costs to taxpayers