A-Level - Unemployment

What must result from an increase in a country’s unemployment rate?

• A. a decrease in labour mobility

• B. a decrease in the number of people who are economically inactive

• C. an increase in the number of people unable to find jobs

• D. an increase in the proportion of the labour force without jobs

Lithuania’s unemployment rate fell from 11.7% in 2013 to 6.8% in 2019. Which diagram illustrates this change?

• 
• 
• 
• 

What could explain a country experiencing a rise in the number of employed workers and unemployed workers?

• A. a reduction in the retirement age

• B. a reduction in gender discrimination in labour markets

• C. a rise in net emigration

• D. a rise in the school leaving age

Which group of workers would be classified as frictionally unemployed?

• A. bus drivers losing their jobs as more people switch from bus to car travel

• B. farm workers being unemployed due to a lack of awareness of job vacancies in the industry

• C. shop workers made redundant due to the introduction of self-scanning checkouts in supermarkets

• D. steel workers being made redundant due to a global recession

A group of textile workers lose their jobs as a result of a fall in aggregate demand. What type of unemployment are they experiencing?

• A. cyclical

• B. frictional

• C. seasonal

• D. structural

Which type of unemployment is caused by imperfect information in the labour market?

• A. cyclical

• B. frictional

• C. seasonal

• D. structural

Which type of unemployment is caused by the skills and qualifications of the unemployed not matching the requirements of the jobs on offer?

• A. cyclical

• B. frictional

• C. seasonal

• D. structural

What is the opportunity cost of unemployment?

• A. government spending on training schemes for the unemployed

• B. government spending on unemployment benefits

• C. leisure

• D. national output

What is a possible benefit of unemployment?

• A. an increase in tax revenue

• B. an increase in workers’ wages

• C. the opportunity to achieve a better match between workers’ skills and available jobs

• D. the opportunity to reduce the number of discouraged workers

Which change is most likely to cause a decrease in the rate of frictional unemployment?

• A. a decrease in government spending on unemployment benefits

• B. a decrease in the quality of labour market information

• C. an increase in the rate of income tax

• D. an increase in trade union membership