What is unemployment?

• People working less than 10 hours per week

• People not in the labor force

• People who are able and willing to work but cannot find a job

• People on long-term sick leave

Which of the following is an effect of unemployment on an individual?

• Increased income

• Improved job security

• Loss of skills and confidence

• More employment opportunities

How can unemployment affect consumer spending?

• It increases demand for luxury goods

• It has no impact

• It reduces overall consumer spending

• It increases business profits

What is one impact of high unemployment on a business?

• Higher wage demands

• Increased customer loyalty

• Reduced demand for goods and services

• More opportunities to expand

How can high unemployment benefit some businesses?

• Increases costs

• Reduces availability of skilled workers

• Reduces pressure to pay high wages

• Increases staff turnover

If unemployment rises, what might a business do?

• Increase prices

• Hire more staff

• Delay investment plans

• Offer more employee benefits

Why might a business find it easier to recruit during high unemployment?

• There are fewer skilled workers

• There is a larger pool of job applicants

• People are less willing to work

• Government bans hiring during unemployment

Which of the following is a potential disadvantage for a business in an area with high unemployment?

• Lower wage expectations

• Reduced local customer spending

• Easier recruitment

• Higher productivity

How does unemployment impact the economy overall?

• Increases tax revenue

• Boosts consumer confidence

• Reduces government spending

• Increases demand for state benefits

What might a government do to reduce unemployment?

• Cut training programs

• Increase business taxes

• Invest in education and skills development

• Reduce the minimum wage