MACRO OBJECTIVES 2

The unemployment rate rose to 5% this week in the UK. Which group of people were most affected?

• 16-24

• 25-35

• 35-50

• 50-65

What do we mean by the unemployment rate?

• number of people willing and able to work but not currently employed

• proportion of the labour force willing and able to work but not currently employed

• proportion of the population willing to work but not currently employed

• number of people able to work but not currently employed

How many households are interviewed for the labour force survey?

• 50,000

• 100,000

• 40,000

• 10,000

• 30,000

Which group of people are not interviewed in the labour force survey?

• 16-24

• top 5% income earners

• vegans

• motorists

• homeowners

A benefit of the LFS measure of unemployment is......

• it is not a sample

• it is cheap and easy to calculate

• it is not out of date

• it is internationally recognised and used across EU

• it is free from human error

One reason the claimant count measure usually records lower unemployment levels/rates than the LFS measure is because......

• large number of restrictions before accessing benefit

• there is no stigma attached to claiming benefits in the UK

• The LFS only surveys people who are unemployed

• The LFS is only used in boom periods

Which of the following is the most likely reason why you cannot use the claimant count to compare unemployment between countries?

• age range for benefits differs between countries

• meaning of unemployment differs between countries

• restrictions on accessing benefit differs between countries

• stigma around claiming benefit differs between countries

Which of the following is not a component of the current account in the balance of payments?

• goods balance

• services balance

• investment income

• international transfers

• FDI

Which of the following balances has the UK run a deficit for much of the last 30 years?

• services balance

• financial account balance

• goods balance

• bank account balance

Which of the following is the most likely reason the UK runs a current account deficit?

• low exchange rate

• low wages

• high productivity

• high incomes

• leaving the eu