Which group should not be included in the measurement of unemployment?
redundant unskilled workers seeking alternative work
seasonal agricultural workers in out-of-season periods
students over 18 years continuing with full-time education
those who have left school and cannot get a job
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What describes frictional unemployment?
unemployment caused by a general fall in economic activity
unemployment caused by the time of year
unemployment caused by wages being too high
unemployment caused by workers searching for jobs
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Some governments in the European Union are trying to reduce unemployment.
What should increase to achieve this?
imports of goods
interest rates
public sector spending
taxation of firms
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Which type of unemployment is the result of a permanent fall in the demand for the products of an industry?
cyclical
frictional
seasonal
structural
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Which activity takes place in the tertiary sector?
assembling computers
giving legal advice
harvesting grain
making bread
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During periods of high unemployment across the entire labour force, the highest unemployment rate in an economy is often in the 16–19 year-old age group. Which statement explains why 16–19 year-olds may find it difficult to find a job?
The incentive to earn an income is lower for that age group.
Their wages are lower than those of adults.
They lack both work experience and the necessary skills.
They prefer leisure activities to long working hours.
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What is an example of someone who lost their job because of structural unemployment?
Aneesha lost her job as an engineer when her firm had to make redundancies in a recession.
Jamie lost his job as an ice cream seller during the winter months when little ice cream was sold.
Sunjeev decided to stop working and claim benefits when the government increased unemployment benefits.
Sunjit lost his job as a bank worker when the bank replaced his job with a new computer system.
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Why might a government decide to subsidise a high-cost steel industry?
if cheaper imports of steel are improving the balance of payments
if economic growth is increasing due to the success of other industries
if redundant steel workers can easily be retrained
if unemployment in steel producing areas is increasing
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What is the most likely effect of raising the retirement age in a country?
government spending increases
net immigration increases
spending on pensions increases
working population increases
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There was a fall in investment spending by businesses in the third quarter of 2015.
What would be the likely result of this?
an increase in economic growth
an increase in exports
an increase in incomes
an increase in unemployment
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The table provides information about a country’s labour market.
population size labour force size number of employed number of full-time students | 2000000 1200000 900000 100000 |
What is the unemployment rate of this country?
15%
25%
50%
75%
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The diagrams show Italy’s unemployment rate and GDP per head.
When do Italy’s unemployment rate and GDP per head rise at the same time?
2000–2001
2007–2008
2009–2010
2014–2015
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What is most likely to have caused a long-term decrease in the numbers employed in the banking sector of an economy?
frictional unemployment caused by relocating a bank’s headquarters
seasonal unemployment caused by reduced customer demand in the summer
technological unemployment caused by an increase in internet banking
voluntary unemployment caused by a reduction in wage rates
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A country experienced its usual August increase in the rate of unemployment. Unfortunately this was followed by the loss of jobs resulting from the regular downturn in global economic activity.
Which types of unemployment occurred?
| first type of unemployment (August) | second type of unemployment (global downturn) |
A B C D | cyclical frictional seasonal structural | structural seasonal cyclical frictional |
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An economy is experiencing an unemployment rate of 8%. The government implements policies to stimulate economic growth and create jobs. As a result, the unemployment rate decreases to 5% over a year. What type of unemployment has likely decreased?
Structural unemployment
Frictional unemployment
Seasonal unemployment
Cyclical unemployment
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