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WorksheetsUnemployment (the economy/business) Edexcel
Total questions: 15
Worksheet time: 8mins
A labour force of 20 million people has 18.5 million people employed. Find the unemployment rate.
10%
8.5%
6%
7.5%
If a change in income appears permanent such as being promoted to a secure and high paying job, __________________.
Then people are likely to spend more.
Then people are likely to spend less.
Then people are likely to save more.
Then people are likely to save less.
Which of the following businesses is most likely to experience a rise in demand as consumer income falls?
A producer of chocolate
A specialist bakery selling luxury products
Travel agent
A department store selling discounted goods
What is the most likely impact of rising unemployment levels on a business selling luxury goods?
Falling sales and falling profit
Falling sales and rising profit
Rising sales and falling profit
Rising sales and rising profit
The unemployment rate will drop if
A person is hired into a new job
Someone who was previously laid off is rehired
An unemployed person stops looking
ALL of these answers are CORRECT
Who among the following would be considered as unemployed?
A college student of legal age to work but who is still in school full time.
An entrepreneur in the process of starting a new business.
A secretary who was laid-off from work & is looking at job ads
A housewife taking care of three children.
Unemployment is most likely to occur during an economic expansion
True
False
The phase of a business cycle in which unemployment is at a low level is a ________________.
expansion
contraction / recession.
Farm helpers are unemployed when the cropping season is over.
frictional
cyclical
structural
seasonal
Complete the following equation: Unemployment Rate = (Unemployed/ (a) )*100
Since 1950, in which year was the unemployment rate 0% in the UK?
1991
2002
1951
It's never been at 0%.
1991 and 1951
If unemployment decreases, which of the following will most likely happen?
Recruitment becomes more difficult
Revenues/sales decrease
Wage rates decrease
Inflation can best be defined as...
A general increase in prices.
An increase in prices of key items purchased by consumers.
The increase in the value of fiat money
The printing of too much paper money.
What is expected to happen when unemployment falls?
More people will be without a job
Consumer spending will rise
More inferior goods will be sold
when the economy is described as 'booming' the following will happen...
unemployment is low, inflation is higher as more people are spending money so interest rates rise to slow this down
unemployment is high so the Government reduces taxes to encourage people to spend more
employment is lower so shops selling cheaper products make more money
