Unemployment — Paper 3 · A Level Economics 9708

15 What is meant by ‘real wages’? A the marginal physical product of labour B the opportunity cost of labour C the purchasing power of money wages D wages net of tax

1 marks

Answer: C

This question in 9708/31 Oct/Nov 2010

14 What is meant by ‘real wages’? A the marginal physical product of labour B the opportunity cost of labour C the purchasing power of money wages D wages net of tax

1 marks

Answer: C

This question in 9708/33 Oct/Nov 2010

21 What is a likely consequence of an increase in cyclical unemployment? A a deficit on the current account of the balance of payments B a deterioration in the fiscal balance of the government C an increased rate of inflation D an increase in immigration

1 marks

Answer: B

This question in 9708/33 Oct/Nov 2011

22 The chart shows the rates of economic growth and unemployment in a country for the period 2007 to 2010. 10 9 8 7 6 percentage change in real GDP % 5 4 percentage rate of unemployment 3 2 1 0 2007 2008 2009 2010 year What does the chart show? A Real GDP was lowest in 2010. B The standard of living fell between 2009 and 2010. C The total labour force declined between 2007 and 2009. D The unemployment rate fell when the growth rate increased.

1 marks

Answer: D

This question in 9708/33 Oct/Nov 2011

28 The number of people employed in a country and the level of unemployment both decrease. What could explain this? A net inward immigration B an increase in the level of unemployment benefits C an increase in the age at which state pensions are payable D an increase in the number of students

1 marks

Answer: D

This question in 9708/31 May/June 2012

15 Which combination of circumstances is most likely to lead to an increase in a country’s budget deficit? discretionary total GDP unemployment government spending A decreases rises decreases B decreases rises no change C increases falls increases D increases falls no change

1 marks

Answer: B

This question in 9708/31 May/June 2013

24 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

1 marks

Answer: D

This question in 9708/32 May/June 2013

30 Without any change in government policy, what will be the effect of an economic recession on tax revenue and on government expenditure? government tax revenue expenditure A decrease decrease B decrease increase C increase increase D increase decrease

1 marks

Answer: B

This question in 9708/32 May/June 2013

23 Which pattern of labour market data is likely to indicate an increase in cyclical unemployment? changes in compulsory voluntary redundancies resignations A decrease decrease B decrease increase C increase decrease D increase increase

1 marks

Answer: C

This question in 9708/33 May/June 2013

1 The diagram shows the production possibility curve for an economy. L good Y O good X What might make it possible for consumers in this economy to consume the combination of goods X and Y indicated by the point L? A a reduction in unemployment B the achievement of productive efficiency C the elimination of a monopoly in the production of good X D trade with other economies

1 marks

Answer: D

This question in 9708/31 Oct/Nov 2013

24 When might an increase in a government budget deficit be considered the most appropriate policy? A when inflation is high B when there is a balance of payments trade deficit C when there is high cyclical unemployment D when there is high structural unemployment

1 marks

Answer: C

This question in 9708/31 Oct/Nov 2013

15 What is most likely to occur when a command economy makes the transition towards becoming a market economy? A an increase in unemployment in the short run B a slower response to changes in technology C a decrease in the production of consumer goods D a decrease in the productivity of workers

1 marks

Answer: A

This question in 9708/33 Oct/Nov 2013

25 What will result from rising unemployment in an economy? A a reduction in the government’s budget deficit B inflationary pressure will be reduced C potential output will fall D the economy’s production possibility curve will move inwards

1 marks

Answer: B

This question in 9708/33 Oct/Nov 2013

29 In the diagram, the curve X1 shows an economy’s initial trade-off between inflation and unemployment. X2 X1 rate of inflation O unemployment rate What could cause the curve to shift to X2? A a decrease in the money supply B a decrease in the natural rate of unemployment C an increase in the rate of interest D the expectation of an increase in the inflation rate

1 marks

Answer: B

This question in 9708/33 Oct/Nov 2013

23 Which type of unemployment occurs when aggregate demand is deficient? A cyclical unemployment B regional unemployment C seasonal unemployment D structural unemployment

1 marks

Answer: A

This question in 9708/32 May/June 2016

24 The diagram shows the annual percentage (%) change in employment and output in the UK private sector between 2000 and 2012. 4 output 10 2 5 0 0 employment output employment –2 –5 –4 –10 –6 –15 2000 02 04 06 08 10 12 In which year did labour productivity increase the most? A 2003 B 2007 C 2009 D 2012

1 marks

Answer: A

This question in 9708/32 May/June 2016

27 When would an economic recession result in an increase in a government’s budget deficit? A The government increases tariffs on imports with inelastic demand and keeps the total amount it spends on unemployment benefit unchanged. B The government keeps the unemployment benefit rate and direct and indirect tax rates unchanged. C The government reduces foreign aid and widens the tax base. D The government reduces the unemployment benefit rate and decreases the tax free allowance on income tax.

1 marks

Answer: B

This question in 9708/32 May/June 2016

28 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

1 marks

Answer: D

This question in 9708/32 May/June 2016

23 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.

1 marks

Answer: C

This question in 9708/32 May/June 2017

27 What will result in the short run from rising unemployment in an economy? A The government’s budget deficit will fall. B Any existing inflationary pressure will be reduced. C Potential output will fall. D The economy’s production possibility curve will move inwards.

1 marks

Answer: B

This question in 9708/33 May/June 2017

27 Which policy is likely to increase unemployment? A an increase in retraining facilities B a significant increase in indirect taxes C the imposition of selective import controls D an increase in the public sector deficit

1 marks

Answer: B

This question in 9708/32 Feb/March 2019

28 A government in a developed economy wishes to reduce cyclical unemployment. Which policy is likely to be most effective? A decrease government expenditure and increase income tax B decrease its budget deficit C increase government expenditure and decrease income tax D increase its budget surplus

1 marks

Answer: C

This question in 9708/32 Feb/March 2019

21 What makes it possible for the increase in real national output to exceed the increase in labour productivity? A an increase in employment B an increase in the inflation rate C an increase in the money supply D an increase in total earnings

1 marks

Answer: A

This question in 9708/32 May/June 2019

23 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

1 marks

Answer: C

This question in 9708/32 May/June 2019

20 Which type of unemployment is associated with a deficiency in aggregate demand? A cyclical B frictional C structural D voluntary

1 marks

Answer: A

This question in 9708/32 Oct/Nov 2019

23 What is an example of a Keynesian macroeconomic policy that would reduce cyclical unemployment? A an increase in government spending on new infrastructure such as roads B an increase in government spending on retraining workers C a reduction in the rate of tax on imports D a reduction in the rate of tax on goods and services

1 marks

Answer: A

This question in 9708/32 Feb/March 2020

21 What is necessary to include to calculate the number unemployed? everyone of those of part-time employees working age who is pension age who seeking full-time not in employment still want to work employment A no no no B no yes yes C yes yes no D yes yes yes

1 marks

Answer: B

This question in 9708/32 May/June 2021

22 The diagram shows changes in the numbers employed in four different industries in a city between 2015 and 2020. 60 employment finance (000) 50 40 manufacturing 30 education 20 leisure 10 0 2015 2016 2017 2018 2019 2020 What can be concluded from the diagram? A Finance was always the largest employer. B Leisure had the fastest growth rate in employment. C Manufacturing was the only industry to show signs of decline. D Total employment in the four industries decreased over the period.

1 marks

Answer: B

This question in 9708/32 May/June 2021

28 Unemployment in an economy increases. What is a probable consequence? A a switch from direct to indirect taxation B an increase in demand-pull inflation C an increase in the balance of trade deficit D an increase in the government budget deficit

1 marks

Answer: D

This question in 9708/32 May/June 2021

22 Which policy would be most likely to increase employment? A decreasing duties on imports B decreasing unemployment benefits C increasing income tax D increasing interest rates

1 marks

Answer: B

This question in 9708/31 Oct/Nov 2021

26 What are the assumptions made by Keynesians in relation to wages and investment? wages investment A flexible interest rates elastic B flexible interest rates inelastic C not flexible interest rates elastic D not flexible interest rates inelastic

1 marks

Answer: D

This question in 9708/31 Oct/Nov 2021

21 The table gives labour market statistics for Malaysia for January to March 2019. number of people employed 15m unemployed 0.5m not available for work 7m population of working age 23m What is the size of Malaysia’s labour force? A 15m B 15.5m C 22m D 22.5m

1 marks

Answer: B

This question in 9708/32 Oct/Nov 2021

21 Which statement about unemployment is correct? A Cyclical unemployment is caused by the occupational immobility of labour. B Frictional unemployment is caused by a lack of information on jobs in the labour market. C Structural unemployment is caused by a deficiency in aggregate demand. D Voluntary unemployment is caused by variations in the demand for labour in the year.

1 marks

Answer: B

This question in 9708/31 Oct/Nov 2022

21 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

1 marks

Answer: C

This question in 9708/32 Oct/Nov 2022

22 A firm initially employs 50 workers, each working 40 hours a week, and produces a total output of 18 000 units. It then employs an additional 10 workers, again each working 40 hours, and total output rises to 19 200 units. Which effect does this rise in employment have on labour productivity per hour? A decreases it by 1 unit B decreases it by 40 units C increases it by 120 units D increases it by 1200 units

1 marks

Answer: A

This question in 9708/32 Oct/Nov 2022

24 An economy is experiencing a negative output gap. What is most likely to happen to the inflation rate and unemployment in this economy? inflation rate unemployment A decreases decreases B decreases increases C increases decreases D increases increases

1 marks

Answer: B

This question in 9708/32 Oct/Nov 2022

30 What are the labels on the axes of a Phillips curve diagram? vertical axis horizontal axis A inflation rate unemployment level B inflation rate unemployment rate C price level unemployment level D price level unemployment rate

1 marks

Answer: B

This question in 9708/32 Oct/Nov 2022