Unemployment

What name is given to the type of unemployment that occurs while people search for new jobs?

• cyclical

• frictional

• residual

• structural

Which type of unemployment is generally regarded by economists as the least serious for the economy?

• cyclical

• frictional

• regional

• structural

A country experiences a significant fall in unemployment.

What is a possible advantage and a possible disadvantage of such a fall?

• A

• B

• C

• D

A country experienced its usual yearly increase in the rate of unemployment. Unfortunately this was followed by the loss of jobs resulting from the regular downturn in global economic activity.

Which types of unemployment occurred?

• A

• B

• C

• D

In an economic recession, which policy might be adopted to reduce unemployment?

• an increase in foreign exchange rates

• an increase in interest rates

• a reduction in import duty

• a reduction in tax rates

Which type of unemployment occurs when the total demand for goods and services in the economy falls?

• cyclical

• frictional

• seasonal

• structural

Between 2009 and 2010 the number of potential jobs for qualified law students fell by 16%. During the same period the total number of applicants for places on law courses increased. What is the most likely explanation for this?

• an economic recession and an increase in general unemployment

• an increase in crime rates and the possibility of high salaries in the legal profession

• an increase in the retirement age for existing lawyers and an increase in law course fees

• the merger of law firms and the closure of law courses

It was reported in 2011 that an economy had negative economic growth for six months in a row. What would be evidence for such a situation?

• an increase in GDP

• an increase in profit levels

• an increase in the level of unemployment

• an increase in the standard of living

The diagram shows the rate of unemployment and the periods of recession in Britain between 1978 and 2012. What can be concluded from the diagram?

• Each recession lasted for more than two years.

• Recessions occurred at regular intervals.

• The unemployment rate peaked in a recession period.

• The unemployment rate rose during recession periods.

In which case is success for the government in achieving the first aim likely to cause problems in achieving the second?

• A

• B

• C

• D