1.5.4

What is Unemployment?

• A measure of how many people are not actively seeking employment

• A measure of how many people are employed in a specific industry

• A measure of how many people are actively seeking employment but unable to find a job

• A measure of how many people are retired and not seeking employment

Answer explanation

1. What is meant by high unemployment rate?

• A situation where a significant percentage of the labor force is unable to find jobs despite actively seeking employment

• A situation where the government provides ample job opportunities for its citizens

• A situation where there are more job openings than people seeking employment

• A situation where a large percentage of the population is employed

2. What is meant by low unemployment rate?

• A situation where a large percentage of the population is employed

• A situation where a significant percentage of the labor force is unable to find jobs despite actively seeking employment

• A situation where there are more job openings than people seeking employment

• A situation where the government provides ample job opportunities for its citizens

Which of these are considered unemployed?

• Actively looking for a job but out of work

• Long term sick

• Off work due to family care

• Wealthy and not working

Which one of these is not a way people become unemployed?

• Voluntary resignation from a job

• Being laid off due to company downsizing

• Completing education and entering the workforce

• Being fired for misconduct or poor performance

Which one of these is an impact of an increase in unemployment?

• Better pay

• Increased Staff Costs

• Increased consumer spending - more disposable income

• Improved recruitment - employers can fill jobs with low rates of pay

Which one of these is an impact of a decrease in unemployment?

• Increased consumer spending - more disposable income

• Improved recruitment

• Skill Shortages

• Business Closures

What are interest rates?

• The rates at which individuals or entities lend money to banks

• The rates at which banks borrow money from individuals or entities

• The rates at which banks lend money to individuals or entities

• Cost of buying currency

Who sets the interest rates in the UK?

• The Prime Minister

• The Chancellor of the Exchequer

• The Bank of England

• The Treasury Department

What impacts does interest rates have on businesses?

• Firms with overdrafts will have higher costs because now they pay more interest

• Firms that make luxury goods will be affected more when interest rates rise

• Customers with debts could have less to spend if interest goes up

• Firms with loans will pay less because interest rates are higher