Employment/unemployment — Paper 3 · A Level Economics 9708

18 According to monetarist theory, what will be the short-run effect of an unexpected increase in the money supply? A an appreciation of the foreign exchange rate B an increase in employment C an increase in real wages D an increase in the rate of interest

1 marks

Answer: B

This question in 9708/31 Oct/Nov 2009

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

1 marks

Answer: A

This question in 9708/31 Oct/Nov 2009

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

1 marks

Answer: A

This question in 9708/32 Oct/Nov 2009

25 An economy is operating at its natural rate of unemployment. According to monetarist theory, what will be the effect on unemployment in the short run and in the long run of an unanticipated increase in the money supply? short run long run A no change no change B no change reduction C reduction no change D reduction reduction

1 marks

Answer: C

This question in 9708/31 May/June 2010

26 The diagram shows the relationship between the rate of increase in wages and the rate of unemployment. rate of increase in wages O rate of unemployment What would be likely to cause the curve in the diagram to shift downwards and to the left? A a reduction in regional differences in unemployment rates B an increase in the proportion of the workforce belonging to trade unions C an increase in the unemployment rate D the expectation of a higher rate of inflation

1 marks

Answer: A

This question in 9708/31 May/June 2010

28 Which is most likely to result in an increase in the natural rate of unemployment? A a decrease in government expenditure on goods and services B a decrease in the level of government payments to the unemployed C an increase in trade union membership D an increase in interest rates

1 marks

Answer: C

This question in 9708/31 May/June 2010

24 An economy is operating at its natural rate of unemployment. According to monetarist theory, what will be the effect on unemployment in the short run and in the long run of an unanticipated increase in the money supply? short run long run A no change no change B no change reduction C reduction no change D reduction reduction

1 marks

Answer: C

This question in 9708/32 May/June 2010

25 The diagram shows the relationship between the rate of increase in wages and the rate of unemployment. rate of increase in wages O rate of unemployment What would be likely to cause the curve in the diagram to shift downwards and to the left? A a reduction in regional differences in unemployment rates B an increase in the proportion of the workforce belonging to trade unions C an increase in the unemployment rate D the expectation of a higher rate of inflation

1 marks

Answer: A

This question in 9708/32 May/June 2010

27 Which is most likely to result in an increase in the natural rate of unemployment? A a decrease in government expenditure on goods and services B a decrease in the level of government payments to the unemployed C an increase in trade union membership D an increase in interest rates

1 marks

Answer: C

This question in 9708/32 May/June 2010

24 An economy is operating at its natural rate of unemployment. According to monetarist theory, what will be the effect on unemployment in the short run and in the long run of an unanticipated increase in the money supply? short run long run A no change no change B no change reduction C reduction no change D reduction reduction

1 marks

Answer: C

This question in 9708/33 May/June 2010

25 The diagram shows the relationship between the rate of increase in wages and the rate of unemployment. rate of increase in wages O rate of unemployment What would be likely to cause the curve in the diagram to shift downwards and to the left? A a reduction in regional differences in unemployment rates B an increase in the proportion of the workforce belonging to trade unions C an increase in the unemployment rate D the expectation of a higher rate of inflation

1 marks

Answer: A

This question in 9708/33 May/June 2010

27 Which is most likely to result in an increase in the natural rate of unemployment? A a decrease in government expenditure on goods and services B a decrease in the level of government payments to the unemployed C an increase in trade union membership D an increase in interest rates

1 marks

Answer: C

This question in 9708/33 May/June 2010

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 9708/32 Oct/Nov 2010

18 According to monetarist theory, what will be the short-run and the long-run effect of an unexpected increase in the money supply on the real wage level? short-run long-run A decrease increase B decrease unchanged C unchanged increase D unchanged unchanged

1 marks

Answer: B

This question in 9708/32 Oct/Nov 2010

17 According to monetarist theory, what will be the short-run and the long-run effect of an unexpected increase in the money supply on the real wage level? short-run long-run A decrease increase B decrease unchanged C unchanged increase D unchanged unchanged

1 marks

Answer: B

This question in 9708/33 Oct/Nov 2010

15 An economy is operating at its natural rate of unemployment. According to monetarist theory, what will be the effect on unemployment in the short run and in the long run of an unanticipated increase in the money supply? short run long run A no change no change B no change reduction C reduction no change D reduction reduction

1 marks

Answer: C

This question in 9708/31 May/June 2011

14 An economy is operating at its natural rate of unemployment. According to monetarist theory, what will be the effect on unemployment in the short run and in the long run of an unanticipated increase in the money supply? short run long run A no change no change B no change reduction C reduction no change D reduction reduction

1 marks

Answer: C

This question in 9708/32 May/June 2011

14 An economy is operating at its natural rate of unemployment. According to monetarist theory, what will be the effect on unemployment in the short run and in the long run of an unanticipated increase in the money supply? short run long run A no change no change B no change reduction C reduction no change D reduction reduction

1 marks

Answer: C

This question in 9708/33 May/June 2011

14 According to monetarist theory, if there is an unanticipated increase in the money supply what will be the short-run effect on money wages, real wages and the level of employment? money wages real wages employment A increase decrease increase B increase increase decrease C decrease increase decrease D decrease decrease increase

1 marks

Answer: A

This question in 9708/31 Oct/Nov 2011

22 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 9708/31 Oct/Nov 2011

23 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 9708/31 Oct/Nov 2011

6 The table shows the labour market for an economy in four separate years. In which year was there excess demand in the labour market? working population unemployment job vacancies (millions) rate (%) (thousands) A 19 1.0 180 B 19 2.0 80 C 20 1.1 240 D 20 1.5 100

1 marks

Answer: C

This question in 9708/32 Oct/Nov 2011

26 The diagram shows an economy’s short-run Phillips curve (SRPC). SRPC the rate of change in money wages O unemployment rate What is assumed to remain constant when drawing this curve? A the average price level B the exchange rate C the expected rate of inflation D the money supply

1 marks

Answer: C

This question in 9708/32 Oct/Nov 2011

13 According to monetarist theory, if there is an unanticipated increase in the money supply what will be the short-run effect on money wages, real wages and the level of employment? money wages real wages employment A increase decrease increase B increase increase decrease C decrease increase decrease D decrease decrease increase

1 marks

Answer: A

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

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 9708/32 May/June 2012

27 A government’s priority is to reduce the natural rate of unemployment (NAIRU). Which policy would be most likely to help it achieve this objective? A an increase in interest rates B an increase in rates of unemployment benefit C the introduction of minimum wage rates D the introduction of subsidised travel for unemployed workers to search for jobs

1 marks

Answer: D

This question in 9708/33 May/June 2012

22 An economy’s unemployment rate is below the natural rate. What is likely to be the implications of this for inflation and what can be deduced from this about the economy’s actual level of output? inflation actual output A accelerating below potential output B accelerating above potential output C decelerating below potential output D decelerating above potential output

1 marks

Answer: B

This question in 9708/32 Oct/Nov 2012

24 What is most likely to lead to an increase in the natural rate of unemployment? A more rapid technological and structural change B a widening in regional wage differentials C a narrowing in regional house price differentials D a decrease in trade union membership

1 marks

Answer: A

This question in 9708/32 Oct/Nov 2012

25 Which type of unemployment arose from the worldwide decline in the demand for electronic goods beginning in the summer of 2001? A seasonal B voluntary C frictional D structural

1 marks

Answer: D

This question in 9708/32 Oct/Nov 2012

25 In the long run, productive potential in an economy grows at an average rate of 3 % per year. In a particular year actual growth is zero because of a fall in domestic consumption. What is likely to occur? A an increase in unemployment B an increase in the rate of inflation C an increase in the trade deficit D a reduction in the government budget deficit

1 marks

This question in 9708/33 Oct/Nov 2012

27 The natural rate of unemployment in an economy is 5 %. What will happen if a government persists in trying to achieve a target rate of unemployment of 3 % by expansionary monetary policy? A an accelerating rate of inflation B a diminishing rate of inflation C a high but constant rate of inflation D a negative rate of inflation

1 marks

This question in 9708/33 Oct/Nov 2012

28 What is the best measure of the economic cost of an increase in unemployment? A the loss of potential exports B the money value of the additional social security benefits paid C the goods and services the unemployed workers could have produced D the additional social security benefits paid plus the loss of tax revenue from newly redundant workers

1 marks

This question in 9708/33 Oct/Nov 2012

29 What is the most effective policy a government could introduce to reduce frictional unemployment? A cut welfare spending on benefits B improve information about job vacancies C reduce tax rates D raise interest rates

1 marks

This question in 9708/33 Oct/Nov 2012

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 9708/31 May/June 2013

24 What would an economist include when using social cost-benefit analysis to assess policies to reduce the level of unemployment? changes in changes in changes in crime rates mental health work skills A no no no B no no yes C yes no yes D yes yes yes

1 marks

Answer: D

This question in 9708/31 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

24 What would an economist include when using social cost-benefit analysis to assess policies to reduce the level of unemployment? changes in changes in changes in crime rates mental health work skills A no no no B no no yes C yes no yes D yes yes yes

1 marks

Answer: D

This question in 9708/33 May/June 2013

25 The diagram shows the relationship between the rate of increase in wages and the rate of unemployment. rate of increase in wages O rate of unemployment What would be likely to cause the curve in the diagram to shift downwards and to the left? A an increase in regional differences in unemployment rates B an increase in the proportion of the workforce belonging to trade unions C an increase in the unemployment rate D the expectation of a lower rate of inflation

1 marks

Answer: D

This question in 9708/31 Oct/Nov 2013

24 What is a possible combination of a cost and a benefit of rising levels of unemployment? cost benefit A a deterioration in human capital an increase in capital expenditure B an increase in import expenditure a decrease in government tax revenue C an increase in the rate of economic growth a more responsive workforce D an irretrievable loss of output a reduction in inflationary pressure

1 marks

Answer: D

This question in 9708/32 Oct/Nov 2013

25 What would increase an economy’s actual output but not its potential output? A an increase in the capital available to the labour force B an increase in the labour force’s skill level C an increase in the number in the labour force D an increase in the proportion of the labour force employed

1 marks

Answer: D

This question in 9708/32 Oct/Nov 2013

29 A government aims to achieve steady and stable growth, in line with the economy’s long-run increase in productivity. If this objective is achieved, how is this likely to affect average living standards and the level of unemployment? average living level of standards unemployment A constant falling B falling unchanged C rising rising D rising unchanged

1 marks

Answer: D

This question in 9708/32 Oct/Nov 2013

19 An economy is operating at its natural rate of unemployment. According to monetarist theory, what will be the effect of an unanticipated increase in the money supply on unemployment in the short run and in the long run? short run long run A no change no change B no change reduction C reduction no change D reduction reduction

1 marks

Answer: C

This question in 9708/31 Oct/Nov 2014

25 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 9708/31 Oct/Nov 2014

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

1 marks

Answer: B

This question in 9708/31 Oct/Nov 2014

29 In which set of circumstances is an economy likely to experience both falling inflation and, at the same time, falling unemployment? unemployment actual growth rate in output A above the natural rate above long-term trend rate of growth B above the natural rate below long-term trend rate of growth C below the natural rate above long-term trend rate of growth D below the natural rate below long-term trend rate of growth

1 marks

Answer: A

This question in 9708/31 Oct/Nov 2014

27 What is the opportunity cost to society of an increase in unemployment? A the increase in taxes to pay for unemployment benefits B the loss in national output C the reduction in the disposable income of those who lose their jobs D the resulting increase in the government’s fiscal deficit

1 marks

Answer: B

This question in 9708/33 Oct/Nov 2014

25 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

1 marks

Answer: D

This question in 9708/31 May/June 2015

23 Why will an inflationary process be brought to a halt if the money supply is held constant? A Consumption will decrease as money incomes decline. B Government expenditure will have to be reduced as government revenues decline. C The rate of interest will rise as more money is required for transactions purposes. D The stimulus to invest will decline as the real burden of company debt rises.

1 marks

Answer: C

This question in 9708/32 May/June 2015

24 Between 2012 and 2014 a country’s national output fell by 2%. Over the same period its unemployment rate decreased from 6% to 4%. What could explain this? A There was a decrease in labour productivity. B There was a fall in the rate of inflation. C There was an increase in the long-term potential rate of growth. D There was an increase in the size of the labour force.

1 marks

This question in 9708/31 Oct/Nov 2015

25 An economy is operating at its natural rate of unemployment. According to monetarist theory, what will be the effect on unemployment in the short run and in the long run of an unanticipated increase in the money supply? short run long run A no change no change B no change reduction C reduction no change D reduction reduction

1 marks

Answer: C

This question in 9708/32 Oct/Nov 2015

25 A fall in aggregate demand results in a rise in the number of full-time workers who are unemployed. What is the most likely direct consequence? A a deterioration in the country’s balance of trade B an influx of workers from abroad C a rise in the government’s budget deficit D a rise in the rate of inflation

1 marks

Answer: C

This question in 9708/33 Oct/Nov 2015

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

1 marks

Answer: A

This question in 9708/33 Oct/Nov 2015

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

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 9708/33 May/June 2016

24 What is a possible combination of a cost and a benefit of rising levels of unemployment? cost benefit A a deterioration in human capital an increase in capital expenditure B an increase in import expenditure a decrease in government tax revenue C an increase in the rate of economic growth a more responsive workforce D an irretrievable loss of output a reduction in inflationary pressure

1 marks

Answer: D

This question in 9708/33 May/June 2016

19 The increase in a country’s labour productivity exceeds the increase in its real national output. What could explain this? A a decrease in employment B a deficit in the balance of trade C an increase in real wages D an increase in the rate of inflation

1 marks

Answer: A

This question in 9708/33 Oct/Nov 2016

26 In the diagram, OP is the equilibrium level of income and OQ the full employment level of income in a closed economy. V U C + I + G expenditure T C + I R C 45° O P Q income What is the deflationary gap? A PQ B RV C TV D UV

1 marks

Answer: D

This question in 9708/33 Oct/Nov 2016

19 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 2017

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

18 Output per worker in an industry increases more slowly than the industry’s total output. What could explain this? A a decrease in labour productivity B an increase in employment C an increase in overtime working D an increase in the hourly wage rate

1 marks

Answer: B

This question in 9708/32 Oct/Nov 2018

23 In 2007 Turkey had a population of 73 m. Its labour 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 1.2 m B 2.4 m C 3.6 m D 7.3 m

1 marks

Answer: C

This question in 9708/32 Oct/Nov 2018

24 An economy’s manufacturing share of real GDP fell from 30% in 1970 to 12% in 2016. What type of unemployment would result from this? A cyclical B frictional C structural D voluntary

1 marks

Answer: C

This question in 9708/32 Oct/Nov 2018

29 An economy adopts an expansionary monetary policy to boost employment. A result of this policy is that the consumer price index rises at an accelerating rate. Which curve could represent this? A Kuznets curve B Laffer curve C Lorenz curve D Phillips curve

1 marks

Answer: D

This question in 9708/32 Feb/March 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

24 The graph shows changes in the unemployment rates in countries X, Y and Z over the period 2000 to 2010. All three countries faced recession between 2008 and 2010. 10 unemployment rate % 8 X Y 6 Z 4 2 0 2000 2005 2008 2010 year Which conclusion can be drawn from the graph about the period 2000 to 2010? A All three countries experienced an upward trend in unemployment over the period. B Country X had the highest number out of work in 2010. C In terms of unemployment, the country least harmed by the recession was country Y. D The total number out of work in the three countries was higher in 2010 than in 2000.

1 marks

Answer: C

This question in 9708/32 Feb/March 2020

25 The diagram shows the annual percentage (%) change in employment and output in the UK private sector between 2000 and 2012. 4 output 10 employment 2 5 output 0 0 employment –2 –5 –4 –10 –6 –15 2000 02 04 06 08 10 12 In which year did labour productivity decrease the most? A 2001 B 2008 C 2011 D 2012

1 marks

Answer: D

This question in 9708/32 Feb/March 2020

26 Recently, among European countries the Netherlands had the highest percentage of part-time employees and an average working week for all employees of 32 hours. Greece had a smaller percentage of part-time employees but an average working week for all employees of 41 hours. Which conclusion may be drawn from this information? A Greece has a higher percentage of its workforce in full-time employment than the Netherlands. B On average part-time employees work longer in Greece than in the Netherlands. C The average working week in Greece for full-time employees is longer than in the Netherlands. D There are more part-time employees in the Netherlands than in Greece.

1 marks

Answer: A

This question in 9708/32 Feb/March 2020

27 In 2017 a report suggested that by 2030 automated robots could threaten 33% of existing jobs in the UK, compared with 38% in the US and 21% in Japan. Manufacturing and retail jobs faced the greatest threat. Which type of unemployment is illustrated in the above paragraph? A demand-deficient unemployment B frictional unemployment C seasonal unemployment D structural unemployment

1 marks

Answer: D

This question in 9708/32 Feb/March 2020

20 An individual was temporarily unemployed but found a job quickly. What type of unemployment is this? A cyclical unemployment B frictional unemployment C seasonal unemployment D structural unemployment

1 marks

Answer: B

This question in 9708/31 Oct/Nov 2020

28 The table shows combinations of statements associated with Keynesian and Monetarist schools of thought. Which combination is correct? Keynesian Monetarist A crowding out effect prevents controlling the money supply private sector investment controls inflation B fiscal policy is best for wages are flexible economic growth C reducing inflation is more important reducing unemployment is more than reducing unemployment important that reducing inflation D wages are sticky downwards controlling aggregate demand controls inflation

1 marks

Answer: B

This question in 9708/31 Oct/Nov 2020

29 The diagram shows an economy in short-run equilibrium with price level P2 and output level Y2. LRAS price level AS E2 P2 P1 E1 AD2 AD1 O Y1 Y2 real output Which combination is most likely to be achieved in the economy at the equilibrium point E2? macroeconomic policy aim macroeconomic policy aim A reduced current account deficit increased international competitiveness B reduced rate of inflation reduced exchange rate C increased level of employment increased per capita income D increased economic growth reduced environmental degradation

1 marks

Answer: C

This question in 9708/31 Oct/Nov 2020

20 What would not be classified as structural unemployment? A a car worker who is replaced by a robot on the production line B a coal miner whose mine closes because of increased use of solar power C a fruit picker who cannot find work in the winter months D a textile worker whose factory closes as production moves abroad

1 marks

Answer: C

This question in 9708/32 Oct/Nov 2020

24 The diagram shows a closed economy in which the full employment level of income is YF. J aggregate AD demand, K consumption C L 45° O M N YF income Which distance measures the deflationary gap? A JK B JL C NYF D MYF

1 marks

Answer: A

This question in 9708/33 Oct/Nov 2020

30 Which policy is most likely to lead to a reduction in the natural rate of unemployment? A an increase in government expenditure on goods and services B an increase in government expenditure on training schemes to address skill shortages C an increase in the period when the unemployed are eligible for welfare benefits D an increase in the minimum wage

1 marks

Answer: B

This question in 9708/33 Oct/Nov 2020

21 Two members of the Hernandez family have recently become unemployed. Mariana has lost her job at the local factory, which has closed because of competition from cheaper imports. Alfonso has lost his job as a shop assistant because the sales have dropped during a recession. How would an economist classify these job losses? Mariana Alfonso A frictional unemployment seasonal unemployment B regional unemployment frictional unemployment C structural unemployment cyclical unemployment D technological unemployment structural unemployment

1 marks

Answer: C

This question in 9708/32 Feb/March 2021

29 The natural rate of unemployment in an economy is 5%. What will happen if a government persists in trying to achieve a target rate of unemployment of 3% by expansionary monetary policy? A an accelerating rate of inflation B a diminishing rate of inflation C a high but constant rate of inflation D a negative rate of inflation

1 marks

Answer: A

This question in 9708/32 Feb/March 2021

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

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 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 9708/31 May/June 2022

22 There has been a switch in demand from goods produced by labour-intensive methods of production to similar goods produced using high-technology methods of production. This has led to an overall increase in unemployment. What is the best policy to reduce this type of unemployment? A reduce the rate of income tax B increase the rate of interest on borrowing for investment C subsidise products produced by labour-intensive methods D subsidise exports produced by high-technology industries

1 marks

Answer: C

This question in 9708/31 May/June 2022

21 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 9708/33 May/June 2022

22 There has been a switch in demand from goods produced by labour-intensive methods of production to similar goods produced using high-technology methods of production. This has led to an overall increase in unemployment. What is the best policy to reduce this type of unemployment? A reduce the rate of income tax B increase the rate of interest on borrowing for investment C subsidise products produced by labour-intensive methods D subsidise exports produced by high-technology industries

1 marks

Answer: C

This question in 9708/33 May/June 2022

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

21 Based on the International Labour Office definition of unemployment, which individual is most likely to be classified as unemployed? A a single parent who would like to work but cannot afford to pay for child-care facilities B a teacher who has decided to retire permanently C a redundant steel worker who is not actively seeking alternative work D a student who is desperately seeking any weekend job to supplement his income

1 marks

Answer: D

This question in 9708/33 Oct/Nov 2022

20 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 2023

19 Four citizens have each been unemployed for the past six months. Which citizen would not be characterised as being structurally unemployed? A worked as a coal miner but coal-fired power stations are now being closed and is not willing to retrain B no longer works in a town centre coffee shop because fewer people are buying goods in the town centre since a pandemic C cannot move with the firm that has relocated because of changing demand for its products D has many skills and is waiting to decide which job might be the most suitable

1 marks

Answer: D

This question in 9708/31 May/June 2023

21 What is the most effective policy a government could introduce to reduce frictional unemployment? A cut welfare spending on benefits B improve information about job vacancies C reduce tax rates D raise interest rates

1 marks

Answer: B

This question in 9708/31 May/June 2023

28 Economists define the unemployed as being those who are not in work but are actively seeking work. Other groups of people in the population of working age include those classed as inactive or self-employed. Which groups of people are included as part of a country’s labour force? unemployed inactive self-employed A no no no B yes no yes C yes yes no D no yes yes

1 marks

Answer: B

This question in 9708/31 May/June 2023

20 An open economy has injections, J, into the circular flow of income and withdrawals, W. W injections and withdrawals S T J R O Q E national income If the full employment level of national income is OQ, what represents the inflationary gap? A QE B RT C SR D ST

1 marks

Answer: C

This question in 9708/32 May/June 2023

22 Which type of unemployment can be classified as voluntary? A cyclical B frictional C structural D technological

1 marks

Answer: B

This question in 9708/32 May/June 2023

19 Four citizens have each been unemployed for the past six months. Which citizen would not be characterised as being structurally unemployed? A worked as a coal miner but coal-fired power stations are now being closed and is not willing to retrain B no longer works in a town centre coffee shop because fewer people are buying goods in the town centre since a pandemic C cannot move with the firm that has relocated because of changing demand for its products D has many skills and is waiting to decide which job might be the most suitable

1 marks

Answer: D

This question in 9708/33 May/June 2023

21 What is the most effective policy a government could introduce to reduce frictional unemployment? A cut welfare spending on benefits B improve information about job vacancies C reduce tax rates D raise interest rates

1 marks

Answer: B

This question in 9708/33 May/June 2023

28 Economists define the unemployed as being those who are not in work but are actively seeking work. Other groups of people in the population of working age include those classed as inactive or self-employed. Which groups of people are included as part of a country’s labour force? unemployed inactive self-employed A no no no B yes no yes C yes yes no D no yes yes

1 marks

Answer: B

This question in 9708/33 May/June 2023

21 In all major towns in a country, a government adopts a policy of opening centres where job vacancies are advertised. Which type of unemployment is the government aiming to reduce with this policy? A cyclical B frictional C regional D seasonal

1 marks

Answer: B

This question in 9708/31 Oct/Nov 2023

26 The table shows data on the unemployment and inflation rates for four countries in 2010 and 2014. unemployment rate inflation rate country (% of workforce) (% per annum) 2010 2014 2010 2014 Australia 5.2 6.1 2.7 1.6 Canada 8.0 6.9 2.2 1.9 Japan 5.1 3.6 –0.3 2.5 United States 9.6 6.2 1.7 0.6 Which countries had a typical Phillips curve? A Australia and Japan B Australia only C Japan only D Canada and the United States

1 marks

Answer: A

This question in 9708/31 Oct/Nov 2023

18 A pandemic encourages many workers in developed countries to work from home, leading to a closure of city centre businesses such as coffee shops and retailers. If this way of working continues after the pandemic, what is the most likely result? A Frictional unemployment will decrease. B The geographical mobility of labour will increase. C Structural unemployment will increase. D Voluntary unemployment will increase.

1 marks

Answer: C

This question in 9708/33 Oct/Nov 2023

17 What is most likely to result from a decrease in the natural rate of unemployment? A a decrease in government expenditure on goods and services B a decrease in the level of government payments to the unemployed C a decrease in trade union membership D a decrease in interest rates

1 marks

Answer: B

This question in 9708/31 May/June 2024

18 The table gives the percentage (%) rates of youth unemployment and total unemployment in France and the UK in 2001 and 2005. France UK youth total youth total unemployment unemployment unemployment unemployment (%) (%) (%) (%) 2001 19.2 8.7 12.0 5.2 2005 22.1 10.1 12.5 4.8 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.

1 marks

Answer: D

This question in 9708/31 May/June 2024

21 The diagram represents the short-run Phillips curves SRPC1 and SRPC2 and the long-run Phillips curve in an economy, where NRU is the natural rate of unemployment. The economy is originally in equilibrium with no inflation. long-run Phillips curve inflation rate P2 J K L P1 SRPC2 M O U2 U1 SRPC1 NRU unemployment rate If the government introduces a fiscal stimulus to reduce unemployment, monetarists predict that there will be a series of movements before long-run equilibrium is restored. Which set of movements illustrates this prediction? A J to K to L B L to K to J C M to K to J D M to K to L

1 marks

Answer: D

This question in 9708/31 May/June 2024

17 What is most likely to result from a decrease in the natural rate of unemployment? A a decrease in government expenditure on goods and services B a decrease in the level of government payments to the unemployed C a decrease in trade union membership D a decrease in interest rates

1 marks

Answer: B

This question in 9708/33 May/June 2024

18 The table gives the percentage (%) rates of youth unemployment and total unemployment in France and the UK in 2001 and 2005. France UK youth total youth total unemployment unemployment unemployment unemployment (%) (%) (%) (%) 2001 19.2 8.7 12.0 5.2 2005 22.1 10.1 12.5 4.8 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.

1 marks

Answer: D

This question in 9708/33 May/June 2024

20 The table shows the relationship between inflation and unemployment in Germany from 2019 to 2022. 2019 2020 2021 2022 inflation: annual –1.9 –1.6 2.7 2.6 variation (%) unemployment 6.4 6.1 5.7 5.2 rate (%) Some theories argue that inflation rates are at their lowest when the rate of unemployment is low. Which year contradicts this expectation to the greatest extent? A 2019 B 2020 C 2021 D 2022

1 marks

Answer: A

This question in 9708/33 May/June 2024

21 The diagram represents the short-run Phillips curves SRPC1 and SRPC2 and the long-run Phillips curve in an economy, where NRU is the natural rate of unemployment. The economy is originally in equilibrium with no inflation. long-run Phillips curve inflation rate P2 J K L P1 SRPC2 M O U2 U1 SRPC1 NRU unemployment rate If the government introduces a fiscal stimulus to reduce unemployment, monetarists predict that there will be a series of movements before long-run equilibrium is restored. Which set of movements illustrates this prediction? A J to K to L B L to K to J C M to K to J D M to K to L

1 marks

Answer: D

This question in 9708/33 May/June 2024

18 What is likely to improve the occupational mobility of labour? A a decrease in income tax that increases aggregate demand B a decrease in unemployment benefit C an increase in retraining schemes for the unemployed D more advertising of employment vacancies in the economy

1 marks

Answer: C

This question in 9708/32 Feb/March 2025