9708 AS Econ Unemployment

Which type of unemployment is associated with a deficiency in aggregate demand?

• Cyclical

• frictional

• structural

• voluntary

Which policy is specifically designed to reduce the level of structural unemployment?

• an increase in the level of state benefits paid to the unemployed

• a reduction in interest rates

• a reduction in the level of direct taxation

• the provision of retraining schemes

The diagram shows the annual percentage (%) change in employment and output in the UK private sector between 2000 and 2012. In which year did labour productivity decrease the most?

• 2001

• 2008

• 2011

• 2012

Which pattern of labour market data is likely to indicate an increase in cyclical unemployment?

• decrease; decrease

• decrease; increase

• increase; decrease

• increase; increase

What would an economist include when using social cost-benefit analysis to assess policies to reduce the level of unemployment?

• no;no;no

• no;no;yes

• yes;no;yes

• yes;yes;yes

The graph shows the changes (expressed as an index) in employment and in GDP in the United Kingdom between 2008 and 2012.What can be concluded from the graph?

• The number in full-time jobs as a percentage of total employment fell over the period.

• The total number in employment increased over the period.

• There was a fall in the number unemployed over the period.

• There was an increase in GDP per worker over the period.

An economic recession leads to an increase in unemployment. Why might this cause a fall in an economy’s long-term growth rate?

• It is impossible to regain consumption lost in recession.

• Rising unemployment is likely to raise real wage levels.

• Social attitudes become less accepting of unemployment.

• There will be a harmful effect on human capital

What is the best measure of the economic cost of an increase in unemployment?

• the additional social security benefits paid plus the loss of tax revenue from newly unemployed

  workers

• the loss of potential exports

• the money value of the additional social security benefits paid

• the output the unemployed workers could have produced

The table shows the labour market for an economy in four different years. In which year was there excess demand in the labour market?

• 19; 1.0; 180

• 19; 2.0; 80

• 20; 1.1; 240

• 20; 1.5; 100

What will be most likely to rise if unemployment is increasing in an economy?

• the human capital of unemployed workers

• the living standards of all workers

• the nominal money wage rate of employed workers

• the tax burden on employed workers