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9708 AS Econ Unemployment

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

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

a)

Cyclical

b)

frictional

c)

structural

d)

voluntary

2.

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

a)

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

b)

a reduction in interest rates

c)

a reduction in the level of direct taxation

d)

the provision of retraining schemes

3.

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?

a)

2001

b)

2008

c)

2011

d)

2012

4.

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

a)

decrease; decrease

b)

decrease; increase

c)

increase; decrease

d)

increase; increase

5.

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

a)

no;no;no

b)

no;no;yes

c)

yes;no;yes

d)

yes;yes;yes

6.

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?

a)

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

b)

The total number in employment increased over the period.

c)

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

d)

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

7.

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

a)

It is impossible to regain consumption lost in recession.

b)

Rising unemployment is likely to raise real wage levels.

c)

Social attitudes become less accepting of unemployment.

d)

There will be a harmful effect on human capital

8.

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

a)

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

workers

b)

the loss of potential exports

c)

the money value of the additional social security benefits paid

d)

the output the unemployed workers could have produced

9.

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

a)

19; 1.0; 180

b)

19; 2.0; 80

c)

20; 1.1; 240

d)

20; 1.5; 100

10.

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

a)

the human capital of unemployed workers

b)

the living standards of all workers

c)

the nominal money wage rate of employed workers

d)

the tax burden on employed workers

11.

Why do some economists suggest there may be positive benefits from frictional unemployment?

a)

A short spell of frictional unemployment may lead workers to become discouraged.

b)

Frictional unemployment allows time for retraining in newly emerging skills.

c)

Job search during frictional unemployment may lead to a better match of workers and jobs.

d)

The psychological effects of frictional unemployment are less than the economic effects.

12.

Steps in calculating the working-age population are shown.

● ......1...... + ......2...... = labour force

● labour force + ......3...... = working-age population

Which row has the correct terms to complete gaps 1, 2 and 3?

a)

A

b)

B

c)

C

d)

D

13.

Why do some economists suggest there may be positive benefits from frictional unemployment?

a)

A short spell of frictional unemployment may lead workers to become discouraged.

b)

Frictional unemployment allows time for retraining in newly emerging skills.

c)

Job search during frictional unemployment may lead to a better match of workers and jobs.

d)

The psychological effects of frictional unemployment are less than the economic effects.

14.

Which type of unemployment results from deficiency in aggregate demand?

a)

cyclical

b)

frictional

c)

seasonal

d)

structural

15.

An economist once said "if you pay people not to work and tax them when they do, don't be surprised if you get unemployment." what is this an example of?

a)

cyclical

b)

frictional

c)

structural

d)

voluntary

16.

Which type of unemployment results from industrial reorganization due to technological change?

a)

cyclical

b)

frictional

c)

seasonal

d)

structural

17.

The table gives the percentage % rates of youth unemployment and total unemployment in France and the UK in 2001 and 2005. what can be concluded from the table?

a)

France and the UK experienced the same trends in unemployment.

b)

France had a higher number of unemployed people than the UK.

c)

the UK used a different definition of unemployment from France

d)

the UK was more successful than France in controlling unemployment

18.

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

a)

human capital of unemployed workers

b)

the living standards of all workers

c)

the nominal money wage rate of employed workers

d)

tax burden on employed workers

19.

a large coal mine is forced to close because of falling demand for coal as consumers switch to less-polluted fuels. The government organises retraining courses and recruitment events for the coal mine workers. which type of unemployment is the government trying to reduce?

a)
Cyclical unemployment
b)
Structural unemployment
c)
Frictional unemployment
d)
Seasonal unemployment
20.

what is a cause of seasonal unemployment?

a)

a general decrease in the demand for goods and services

b)

a lack of necessary skills in the workforce

c)

a temporary change in the pattern of consumers' expenditure

d)

an unwillingness of workers to move to other parts of the country where there is work

21.

what might cause a country to experience both a rise in the number of people unemployed and an increase in job vacancies?

a)

a decrease in housing and transportation cost

b)

a decrease in unemployed benefit

c)

an increase in the occupational immobility of labor

d)

an increase in the skills of the labour force

22.

in 2007 Turkey had a population of 73 m. Its labor force was 36 m, of which 12 m were trained for the primary sector and 24 m were trained for the secondary and tertiary sectors. The unemployment rate was 10%.

what was the number of people unemployed?

a)

1.2m

b)

2.4m

c)

3,6m

d)

7.3m

23.
a)

A

b)

B

c)

C

d)

D

24.
a)

A

b)

B

c)

C

d)

D

25.

A country has a population of 100m. There are 5m people unemployed and the country has an unemployment rate of 10%. what is the size of the labor force?

a)

10m

b)

50m

c)

90m

d)

95m