IGCSE Unemployment Revision

Cyclical unemployment refers to

• lack of demand in a specific industry

• lack of demand in a particular region

• lack of demand for goods and services in the economy

• when wages are set too high

A labor force of 20 million people has 18.5 million people employed. Find the unemployment rate.

• 10%

• 8.5%

• 7.5%

• 6%

Discouraged workers in

the economy implies that the measurement of unemployment...

• understates the true unemployment rate

• overstates the true unemployment rate

• correctly measures the true unemployment rate

• doubles the unemployment rate

If phone operators are fired and replaced with computer technology, the operators would be considered

• frictionally unemployed

• structurally unemployed

• cyclically unemployed

• underemployed

There will always be some unemployment in the US economy

• True

• False

One way to measure unemployment is

• To carry out a survey each month

• To count the number of homeless people

• To find out how many people applied for unemployment benefits

• Options 1 and 3 are possible

Cyclical unemployment

• Describes recent college graduates

• Lasts longer than 6 months

• Describes employees moving from one job to another

• Increases inflation

Which of the following is not an impact of unemployment

• A waste of resources

• Poverty

• High consumer confidence

• Higher government spending

Seasonal unemployment

• Describes recent college graduates

• Is predictable

• Is a result of changes in technology

• Slows down the economy

The unemployment rate will drop if

• A person is hired into a new job

• Someone who was previously laid off is rehired

• An unemployed person stops looking

• ALL of these answers are CORRECT