Employment and unemployment — Paper 1 · IGCSE Economics 0455

25 What is most likely to happen as unemployment falls? A Economic growth falls. B Inflation falls. C Spending on welfare benefits rises. D Tax revenue rises.

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2004

34 The following extract appeared in an international newspaper. China’s unemployed peasants flock to cities Hundreds of thousands of peasants, fleeing rural poverty and drudgery, have flocked into China’s cities seeking work. What would be the most likely result for the Chinese economy? A a reduction in productivity B a rise in unemployment in the city areas C a rise in the amount of unemployment in rural areas D a rise in the proportion of skilled labour in cities

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2004

38 Chile specialises in the production of copper for export. How would the Chilean economy be affected by a large rise in the supply of copper from other countries? employment economic growth A fall fall B fall rise C rise fall D rise rise

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2004

26 Frictional unemployment occurs when A workers are temporarily between jobs. B there is a general fall in total demand. C certain major industries go into economic decline. D new technology reduces the need for labour.

1 marks

Answer: A

This question in 0455/11 May/June 2007

30 What is likely to lead to a decrease in structural unemployment? A reducing the interest rate B increasing the rate of unemployment benefit C reducing the rate of income tax D increasing labour mobility

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2007

17 What is the most likely reason for a firm to offer higher wages to recruit more staff? A falling incomes B falling output C falling prices D falling unemployment

1 marks

Answer: D

This question in 0455/11 May/June 2008

32 The table gives information on Gross Domestic Product (GDP) growth rates, inflation and the unemployment rates for a number of countries in 2006. country GDP growth inflation unemployment % % rate % Brazil 3.5 4.0 10.4 China 11.3 1.5 4.2 France 1.5 1.9 9.0 India 9.3 7.9 7.3 UK 2.6 2.5 3.0 What can be concluded from the table about 2006? A Any particular product would cost most in India. B Economic growth was highest when unemployment was lowest. C Low inflation always causes low unemployment. D On average, the Chinese people were likely to have had an increase in real income.

1 marks

Answer: D

This question in 0455/11 May/June 2008

30 Which type of unemployment is likely to lead to the most serious regional problems in a country? A cyclical B frictional C residual D structural

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2008

23 What might cause a decline in economic output? A a decrease in income tax B a decrease in sales tax C an increase in company investment D an increase in unemployment

1 marks

Answer: D

This question in 0455/11 May/June 2009

20 The government pays a subsidy for each worker employed by a firm in an area of high unemployment. When would this policy be most successful in reducing unemployment? A when the firm is capital-intensive B when the firm is labour-intensive, requiring mainly unskilled labour C when the firm provides professional services D when the firm requires mainly specialist, skilled labour

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2009

24 As a result of a decrease in the demand for coal, several coal mines were closed. What type of unemployment would this cause? A cyclical B frictional C seasonal D structural

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2009

24 What name is given to the type of unemployment that occurs while people search for new jobs? A cyclical B frictional C residual D structural

1 marks

Answer: B

This question in 0455/11 May/June 2010

22 What name is given to the type of unemployment that occurs while people search for new jobs? A cyclical B frictional C residual D structural

1 marks

Answer: B

This question in 0455/12 May/June 2010

25 The table shows the percentage change in employment over a period for a country with three economic sectors. percentage (%) change economic sector in employment agriculture –6 manufacturing +2 services +4 Which statement must be correct? A Agricultural output fell. B The country became more developed. C The working population stayed constant. D Total employment remained the same.

1 marks

Answer: B

This question in 0455/13 May/June 2011

24 There was a fall in investment spending by businesses in the third quarter of 2008. What would be the likely result of this? A an increase in economic growth B an increase in exports C an increase in incomes D an increase in unemployment

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2011

23 There was a fall in investment spending by businesses in the third quarter of 2008. What would be the likely result of this? A an increase in economic growth B an increase in exports C an increase in incomes D an increase in unemployment

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2011

22 Changes in demand mean that the government of Bangladesh hopes to switch some production from clothes made by low-paid, unskilled workers to medicines produced by highly-trained technicians. Which policies would enable Bangladesh to achieve this switch in employment and production? A close clothes factories and decrease imports B encourage immigration of foreign labour and introduce tariffs on clothing C invest in education and purchase new machines D substitute labour for machines and encourage emigration of workers from Bangladesh

1 marks

Answer: C

This question in 0455/12 May/June 2012

26 What level of unemployment and what distribution of income are often found in developing economies? level of unemployment distribution of income A high evenly distributed B high unequal C low evenly distributed D low unequal

1 marks

Answer: B

This question in 0455/13 May/June 2012

29 Each year, extra cleaning staff were employed by a hotel on a temporary basis during the busy holiday period. They were not employed when the hotel was not busy. What type of unemployment occurred when the hotel was not busy? A cyclical B frictional C seasonal D technological

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2012

24 Each year, extra cleaning staff were employed by a hotel on a temporary basis during the busy holiday period. They were not employed when the hotel was not busy. What type of unemployment occurred when the hotel was not busy? A cyclical B frictional C seasonal D technological

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2012

24 An increase in online banking by customers using home computers has reduced the level of employment in the banking sector of developed countries. What describes this kind of unemployment? A frictional B regional C seasonal D technological

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2012

2 A country is producing at point X on its production possibility curve which shows how it can allocate its production between capital goods and consumer goods. A period of recession then causes some of its factories to close. Which point could represent the country’s new position? A B X capital goods C D O consumer goods

1 marks

Answer: C

This question in 0455/12 May/June 2013

24 In an economic recession, which policy might be adopted to reduce unemployment? A an increase in foreign exchange rates B an increase in interest rates C a reduction in import duty D a reduction in tax rates

1 marks

Answer: D

This question in 0455/12 May/June 2013

30 The table gives information about some economic indicators in a number of countries. inflation interest rates unemployment % % % country W 1.4 3.4 10.2 country X 3.7 8.7 12.3 country Y 3.6 7.3 14.2 country Z 2.1 6.0 7.7 What may be concluded from this information? A Countries with higher inflation have higher interest rates. B Countries with higher interest rates have lower inflation. C The country with the lowest inflation had the highest unemployment. D The country with the lowest unemployment had the highest inflation.

1 marks

Answer: A

This question in 0455/13 May/June 2013

24 Which would best indicate the start of an economic recession? A falling interest rates B fluctuating levels of employment C negative growth of GDP D steadily increasing price levels

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2013

21 It was reported in 2011 that an economy had negative economic growth for six months in a row. What would be evidence for such a situation? A an increase in GDP B an increase in profit levels C an increase in the level of unemployment D an increase in the standard of living

1 marks

Answer: C

This question in 0455/11 May/June 2014

22 The diagram shows the rate of unemployment and the periods of recession in Britain between 1978 and 2012. 12 10 8 key Britain’s unemployment 6 recession years rate % 4 2 0 1980 1990 2000 2010 What can be concluded from the diagram? A Each recession lasted for more than two years. B Recessions occurred at regular intervals. C The unemployment rate peaked in a recession period. D The unemployment rate rose during recession periods.

1 marks

Answer: D

This question in 0455/11 May/June 2014

2 How is an immediate effect of an increase in unemployment illustrated on a production possibility curve diagram? A a movement of the production point closer to the curve B a movement of the production point further inside the curve C a shift of the production possibility curve inwards D a shift of the production possibility curve outwards

1 marks

Answer: B

This question in 0455/12 May/June 2014

20 Which type of unemployment occurs when the total demand for goods and services in the economy falls? A cyclical B frictional C seasonal D structural

1 marks

Answer: A

This question in 0455/12 May/June 2014

13 Between 2009 and 2010 the number of potential jobs for qualified law students fell by 16%. During the same period the total number of applicants for places on law courses increased. What is the most likely explanation for this? A an economic recession and an increase in general unemployment B an increase in crime rates and the possibility of high salaries in the legal profession C an increase in the retirement age for existing lawyers and an increase in law course fees D the merger of law firms and the closure of law courses

1 marks

Answer: A

This question in 0455/13 May/June 2014

17 The diagram shows the rate of unemployment and the periods of recession in Britain between 1978 and 2012. 12 10 8 key Britain’s unemployment 6 recession years rate % 4 2 0 1980 1990 2000 2010 What can be concluded from the diagram? A Each recession lasted for more than two years. B Recessions occurred at regular intervals. C The unemployment rate peaked in a recession period. D The unemployment rate rose during recession periods.

1 marks

Answer: D

This question in 0455/13 May/June 2014

18 It was reported in 2011 that an economy had negative economic growth for six months in a row. What would be evidence for such a situation? A an increase in GDP B an increase in profit levels C an increase in the level of unemployment D an increase in the standard of living

1 marks

Answer: C

This question in 0455/13 May/June 2014

22 The table shows the rate of unemployment and the annual rates of change of gross domestic product (GDP) and consumer prices for four countries in 2012. Which country was experiencing the worst economic recession? unemployment consumer GDP rate prices (% change) (%) (% change) A Greece 22.5 –7.1 +0.2 B Hungary 10.9 –0.8 +5.5 C Italy 10.8 –2.1 +3.2 D Spain 24.8 –1.6 +2.0

1 marks

Answer: A

This question in 0455/12 Oct/Nov 2014

22 The information below relates to selected countries in 2012. consumer prices unemployment rate (annual % change) (%) India +10.0 9.8 Sweden +1.4 8.8 Switzerland –0.4 2.9 Venezuela +22.8 7.4 What can be concluded from this information? A Inflation is a possible cause of unemployment. B Inflation is the only cause of unemployment. C Low unemployment is linked to high inflation. D There is a uniform link between the rate of inflation and unemployment.

1 marks

Answer: A

This question in 0455/13 Oct/Nov 2014

23 The table shows the percentage change (%) in employment over a period for a country with three economic sectors. (%) change in economic sector employment agriculture –6 manufacturing +2 services +4 What could be concluded from this information? A Agricultural output fell. B The country became more developed. C The working population stayed constant. D Total employment remained the same.

1 marks

Answer: B

This question in 0455/13 Oct/Nov 2014

22 The table shows the unemployment rate in three developed economies in June 2013. % United States 7.6 Sweden 8.2 France 10.9 What is the main cause of high rates of unemployment in developed economies in periods of recession? A decreases in total demand B movement of labour between countries C reduced levels of technological change D regional inequalities of wealth

1 marks

Answer: A

This question in 0455/11 May/June 2015

3 The diagram shows production possibility curves (PPC) for a country that can produce agricultural products or manufactured products. Its current PPC passes through points Q and S but the country is currently experiencing unemployment. Q R agricultural products P S O manufactured products If there is now full employment at the same time as new agricultural techniques enable an increase in productivity, what would be the movement on the PPC diagram? A P to R B P to S C Q to R D S to Q

1 marks

Answer: A

This question in 0455/12 May/June 2015

22 In 2014, farmers’ crops were destroyed by two months of bad weather. As a result, in that year, they did not employ as many people at harvest time. What type of unemployment would this cause? A cyclical B frictional C seasonal D structural

1 marks

Answer: C

This question in 0455/13 May/June 2015

22 What is likely to fall when the rate of unemployment in a country falls? A business confidence B consumer spending C government budget deficit D government revenue from taxes

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2015

29 It has been suggested that all countries producing arms should ban the export of weapons and cut production in order to reduce the risk of war. What would happen if this occurred? A The balance of payments on current account of countries exporting weapons would immediately improve. B The price of existing weapons would fall. C There would be a risk of structural unemployment in countries that are major producers of weapons. D There would be no overall effect on the balance of payments as countries would produce their own weapons.

1 marks

Answer: C

This question in 0455/11 May/June 2016

29 It has been suggested that all countries producing arms should ban the export of weapons and cut production in order to reduce the risk of war. What would happen if this occurred? A The balance of payments on current account of countries exporting weapons would immediately improve. B The price of existing weapons would fall. C There would be a risk of structural unemployment in countries that are major producers of weapons. D There would be no overall effect on the balance of payments as countries would produce their own weapons.

1 marks

Answer: C

This question in 0455/12 May/June 2016

29 It has been suggested that all countries producing arms should ban the export of weapons and cut production in order to reduce the risk of war. What would happen if this occurred? A The balance of payments on current account of countries exporting weapons would immediately improve. B The price of existing weapons would fall. C There would be a risk of structural unemployment in countries that are major producers of weapons. D There would be no overall effect on the balance of payments as countries would produce their own weapons.

1 marks

Answer: C

This question in 0455/13 May/June 2016

17 In 2015, 70 000 extra people lost their jobs but total employment rose by 75 000. What could explain this? A Some people may have emigrated. B Some people may have gone back to education. C Some people may have re-entered the labour force. D Some people may have retired early.

1 marks

This question in 0455/12 Oct/Nov 2016

22 In 2010 there was an increase in net emigration from Ireland. What is most likely to have caused this increase? A a decrease in job security abroad B a decrease in wage rates abroad C an increase in Ireland’s real GDP D an increase in unemployment in Ireland

1 marks

This question in 0455/12 Oct/Nov 2016

22 In 2010 there was an increase in net emigration from Ireland. What is most likely to have caused this increase? A a decrease in job security abroad B a decrease in wage rates abroad C an increase in Ireland’s real GDP D an increase in unemployment in Ireland

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2016

2 The diagram shows a production possibility curve for a country. As a result of an increase in demand for manufactured goods it moves from a situation of unemployment to full employment. agriculture E F G H O manufactured goods How would this be represented on this diagram? A by a movement from E to G B by a movement from F to E C by a movement from F to G D by a movement from G to H

1 marks

Answer: C

This question in 0455/12 Feb/March 2017

19 What is most likely to decrease when employment increases? A economic growth B government welfare payments C the price level D the standard of living

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2017

23 What is likely to fall when the rate of unemployment falls? A business confidence B consumer spending C government revenue D government welfare payments

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2017

22 There was a fall in investment spending by businesses in the third quarter of 2015. What would be the likely result of this? A an increase in economic growth B an increase in exports C an increase in incomes D an increase in unemployment

1 marks

Answer: D

This question in 0455/11 May/June 2018

22 There was a fall in investment spending by businesses in the third quarter of 2015. What would be the likely result of this? A an increase in economic growth B an increase in exports C an increase in incomes D an increase in unemployment

1 marks

Answer: D

This question in 0455/12 May/June 2018

22 There was a fall in investment spending by businesses in the third quarter of 2015. What would be the likely result of this? A an increase in economic growth B an increase in exports C an increase in incomes D an increase in unemployment

1 marks

Answer: D

This question in 0455/13 May/June 2018

22 The diagram shows the rate of unemployment and the periods of recession in a country between 1978 and 2012. 12 unemployment 10 rate % 8 key 6 recession years 4 2 0 1980 1990 2000 2010 What can be concluded from the diagram? A Each recession lasted for more than two years. B Recessions occurred at regular intervals. C The unemployment rate peaked in a recession period. D The unemployment rate rose during recession periods.

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2018

23 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 second type of unemployment unemployment (August) (global downturn) A cyclical structural B frictional seasonal C seasonal cyclical D structural frictional

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2018

16 A government aims to reduce unemployment through a supply-side policy measure. Which measure would it use? A It would increase government spending. B It would increase tariffs on imported goods and services. C It would introduce retraining schemes. D It would reduce the rate of interest.

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2018

22 The diagram shows the rate of unemployment and the periods of recession in a country between 1978 and 2012. 12 unemployment 10 rate % 8 key 6 recession years 4 2 0 1980 1990 2000 2010 What can be concluded from the diagram? A Each recession lasted for more than two years. B Recessions occurred at regular intervals. C The unemployment rate peaked in a recession period. D The unemployment rate rose during recession periods.

1 marks

Answer: D

This question in 0455/12 Oct/Nov 2018

23 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 second type of unemployment unemployment (August) (global downturn) A cyclical structural B frictional seasonal C seasonal cyclical D structural frictional

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2018

3 The diagram shows a production possibility curve (PPC) for an economy. output of R W Z Y X O output of S Which change on the diagram could represent an increase in unemployment? A W to X B W to Y C Y to X D Y to Z

1 marks

Answer: B

This question in 0455/13 Oct/Nov 2018

22 The diagram shows the rate of unemployment and the periods of recession in a country between 1978 and 2012. 12 unemployment 10 rate % 8 key 6 recession years 4 2 0 1980 1990 2000 2010 What can be concluded from the diagram? A Each recession lasted for more than two years. B Recessions occurred at regular intervals. C The unemployment rate peaked in a recession period. D The unemployment rate rose during recession periods.

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2018

23 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 second type of unemployment unemployment (August) (global downturn) A cyclical structural B frictional seasonal C seasonal cyclical D structural frictional

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2018

19 Which policy would be most likely to reduce unemployment in the short run? A a programme of privatisation B a reduction in the standard rate of income tax C grants to firms to research new technology D removal of all restrictions on imports into the country

1 marks

Answer: B

This question in 0455/12 Feb/March 2019

22 What is an example of someone who lost their job because of structural unemployment? A Aneesha lost her job as an engineer when her firm had to make redundancies in a recession. B Jamie lost his job as an ice cream seller during the winter months when little ice cream was sold. C Sunjeev decided to stop working and claim benefits when the government increased unemployment benefits. D Sunjit lost his job as a bank worker when the bank replaced his job with a new computer system.

1 marks

Answer: D

This question in 0455/12 Feb/March 2019

19 Why might a government decide to subsidise a high-cost steel industry? A if cheaper imports of steel are improving the balance of payments B if economic growth is increasing due to the success of other industries C if redundant steel workers can easily be retrained D if unemployment in steel producing areas is increasing

1 marks

Answer: D

This question in 0455/12 May/June 2019

22 What describes frictional unemployment? A unemployment caused by a general fall in economic activity B unemployment caused by the time of year C unemployment caused by wages being too high D unemployment caused by workers searching for jobs

1 marks

Answer: D

This question in 0455/12 May/June 2019

17 What is the most likely effect of a government reducing the money supply? A Employment will decrease. B Growth will increase. C Inflation will increase. D Tax rates will decrease.

1 marks

Answer: A

This question in 0455/13 May/June 2019

22 What is most likely to have caused a long-term decrease in the numbers employed in the banking sector of an economy? A frictional unemployment caused by relocating a bank’s headquarters B seasonal unemployment caused by reduced customer demand in the summer C technological unemployment caused by an increase in internet banking D voluntary unemployment caused by a reduction in wage rates

1 marks

Answer: C

This question in 0455/13 May/June 2019

22 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? A The incentive to earn an income is lower for that age group. B Their wages are lower than those of adults. C They lack both work experience and the necessary skills. D They prefer leisure activities to long working hours.

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2019

22 Which type of unemployment is the result of a permanent fall in the demand for the products of an industry? A cyclical B frictional C seasonal D structural

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2019

20 The table provides information about a country’s labour market. population size 2 000 000 labour force size 1 200 000 number of employed 900 000 number of full-time students 100 000 What is the unemployment rate of this country? A 15% B 25% C 50% D 75%

1 marks

This question in 0455/12 Feb/March 2020

20 The table shows selected indicators for the labour market of an economy in 2014 and 2018. 2014 2018 (millions) (millions) total labour force 30 30 employed workers 25 28 long-term unemployed 1 2 employment in manufacturing 4 2 employment in services 13 16 According to the table, what is the most likely type of unemployment in 2018? A cyclical B frictional C seasonal D structural

1 marks

Answer: D

This question in 0455/11 May/June 2020

20 Information about job vacancies on a government website has led to a decrease in short-term unemployment. What is the term for this type of unemployment? A cyclical unemployment B frictional unemployment C structural unemployment D technological unemployment

1 marks

Answer: B

This question in 0455/12 May/June 2020

23 The table gives information about three economic indicators in four countries. rate of rate of rate of inflation interest unemployment % % % country W 1.4 3.4 10.2 country X 3.7 8.7 12.3 country Y 3.6 7.3 14.2 country Z 2.1 6.0 7.7 What may be concluded from this information? A Countries with higher inflation have higher interest rates. B Countries with higher interest rates have lower unemployment. C The country with the lowest inflation had the highest unemployment. D The country with the lowest unemployment had the lowest inflation.

1 marks

Answer: A

This question in 0455/13 May/June 2020

20 Some governments in the European Union are trying to reduce unemployment. What should increase to achieve this? A imports of goods B interest rates C public sector spending D taxation of firms

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2020

20 Which group should not be included in the measurement of unemployment? A redundant unskilled workers seeking alternative work B seasonal agricultural workers in out-of-season periods C students over 18 years continuing with full-time education D those who have left school and cannot get a job

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2020

21 The diagrams show Italy’s unemployment rate and GDP per head. Italy’s unemployment rate Italy’s GDP per head 13 39 000 % $ 38 000 11 37 000 9 36 000 35 000 7 34 000 5 33 000 2000 2005 2010 2015 2000 2005 2010 2015 year year When do Italy’s unemployment rate and GDP per head rise at the same time? A 2000–2001 B 2007–2008 C 2009–2010 D 2014–2015

1 marks

Answer: B

This question in 0455/13 Oct/Nov 2020

22 The table compares the distribution of employment in selected industries in two years. employment in millions industry year 1 year 2 agriculture 4 3 mining 2 2 manufacturing 6 6 retailing 4 4 transport 4 5 total 20 20 How did the distribution of employment change between year 1 and year 2? primary sector secondary sector A fell rose B fell unchanged C rose fell D rose unchanged

1 marks

Answer: B

This question in 0455/11 May/June 2021

23 Which combination of policy measures is most likely to increase the level of employment? A decrease general taxation and decrease the rate of interest B decrease general taxation and increase the rate of interest C increase general taxation and decrease the rate of interest D increase general taxation and increase the rate of interest

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2021

23 Which combination of policy measures is most likely to increase the level of employment? A decrease general taxation and decrease the rate of interest B decrease general taxation and increase the rate of interest C increase general taxation and decrease the rate of interest D increase general taxation and increase the rate of interest

1 marks

Answer: A

This question in 0455/12 Oct/Nov 2021

17 Why might measures to reduce unemployment also make inflation rise? A They encourage cheap imports. B They increase demand. C They reduce firms’ costs. D They require wages to fall.

1 marks

Answer: B

This question in 0455/13 Oct/Nov 2021

21 An economy experiences a recession and moves from full employment to 5% unemployment. Which movement from X to Y on the PPC diagram shows the consequence for the economy? A B capital capital goods goods X X Y Y O consumer goods O consumer goods C D capital capital goods goods X Y Y X O consumer goods O consumer goods

1 marks

Answer: A

This question in 0455/11 May/June 2022

21 The retail trade in a country has unemployed workers in one region and job vacancies in another region. What could explain this? A Costs of employing workers are lower when there is unemployment. B It is more expensive to live in the area where the retail jobs are available. C Retailing demands the same skills everywhere. D The geographical mobility of labour has increased.

1 marks

Answer: B

This question in 0455/12 May/June 2022

21 Why might the macroeconomic aim of full employment conflict with the aim of stable prices? A Full employment leads to higher cost of imports. B Full employment leads to increased income inequality. C Full employment leads to increases in wages. D Full employment leads to lower exports.

1 marks

Answer: C

This question in 0455/13 May/June 2022

21 A shop worker was made redundant due to the introduction of self-service checkouts. Which type of unemployment is this? A cyclical B frictional C seasonal D structural

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2022

21 What is the definition of the unemployment rate? A the benefits and allowances paid by the government to people without a job B the number of people without a job but seeking a job as a percentage of the labour force C the rate of change in the number of people who have not worked over the last year D the total number of people not working when the data was calculated

1 marks

Answer: B

This question in 0455/12 Oct/Nov 2022

23 The table shows changes in economic growth and inflation. Which changes are likely to be the result of rising unemployment? economic inflation growth A falling falling B falling rising C rising falling D rising rising

1 marks

Answer: A

This question in 0455/12 Oct/Nov 2022

21 What is the most likely consequence of increased unemployment? A higher output B higher government budget deficit C higher self-esteem D higher inflation

1 marks

Answer: B

This question in 0455/13 Oct/Nov 2022

23 Which government policy would be most likely to reduce structural unemployment? A a decrease in the rate of interest B a decrease in the tax on goods and services C an increase in spending on education and training D an increase in tariffs on imported goods and services

1 marks

Answer: C

This question in 0455/12 Feb/March 2023

18 Government policy measures can affect economic activity in a country. Which pair of monetary policy measures would be likely to increase employment? A depreciate foreign exchange rates and increase education spending B increase money supply and reduce interest rates C provide subsidies and grants and lower sales tax D reduce income tax and improve infrastructure

1 marks

Answer: B

This question in 0455/11 May/June 2023

22 What is most likely to lead to an increase in structural unemployment in a country? A The country is experiencing a period of negative economic growth. B The country is experiencing a period of positive economic growth. C The country is moving from producing primary sector goods to secondary sector goods. D The country is moving towards more flexible labour markets.

1 marks

Answer: C

This question in 0455/11 May/June 2023

22 What is a likely consequence of a falling level of unemployment? A downward pressure on wage rates B increase in welfare benefit payments C rise in absolute poverty D rise in income tax revenue

1 marks

Answer: D

This question in 0455/12 May/June 2023

23 The diagrams show Italy’s unemployment rate and GDP per head. Italy’s unemployment rate Italy’s GDP per head 13 39 000 % $ 38 000 11 37 000 9 36 000 35 000 7 34 000 5 33 000 2000 2005 2010 2015 2000 2005 2010 2015 year year When do Italy’s unemployment rate and GDP per head rise at the same time? A 2000–2001 B 2007–2008 C 2009–2010 D 2014–2015

1 marks

Answer: B

This question in 0455/12 May/June 2023

22 What is full employment considered to be? A no cyclical unemployment B no frictional unemployment C no private sector unemployment D no seasonal unemployment

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2023

26 The table shows the unemployment rate in three developed economies in one year. unemployment rate % United States 7.6 Sweden 8.2 France 10.9 What is the main cause of high rates of unemployment in developed economies in periods of recession? A decreases in total demand B movement of labour between countries C reduced levels of technological change D regional inequalities of wealth

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2023

18 Why would devaluing the international value of an economy’s currency help reduce unemployment? A Devaluing the currency would increase the cost of production. B Devaluing the currency would increase the confidence of investors. C Devaluing the currency would increase the foreign demand for domestic products. D Devaluing the currency would increase the demand for imports.

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2023

22 Which change to fiscal policy is most likely to reduce cyclical unemployment in an economy? A increasing direct taxation B increasing the budget deficit C increasing the budget surplus D increasing the money supply

1 marks

Answer: B

This question in 0455/12 Oct/Nov 2023

22 Which of these people would be classed as unemployed? A a student who does not work B a person who does not have a job and is actively looking for one C a retired person who does not work D an adult who does not have a job and stays at home to provide childcare

1 marks

Answer: B

This question in 0455/12 Feb/March 2024

17 Why might measures to reduce unemployment also make inflation rise? A They encourage cheap imports. B They increase demand. C They reduce firms’ costs. D They require wages to fall.

1 marks

Answer: B

This question in 0455/13 May/June 2024

22 Which type of unemployment is generally regarded by economists as the least serious for the economy? A cyclical B frictional C regional D structural

1 marks

Answer: B

This question in 0455/13 May/June 2024

22 The table shows selected indicators for the labour market of an economy in year 1 and year 2. year 1 year 2 (millions) (millions) total labour force 30 30 employed workers 25 28 long-term unemployed 1 2 employment in manufacturing 4 2 employment in services 13 16 According to the table, what is the most likely type of unemployment in year 2? A cyclical B frictional C seasonal D structural

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2024

21 What causes cyclical unemployment in a recession? A a permanent decrease in the demand for labour B a permanent decrease in the supply of labour C a temporary decrease in the demand for labour D a temporary decrease in the supply of labour

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2024

22 The table shows government expenditure and revenue in selected years. government tax year expenditure revenue $bn $bn 1 500 500 2 600 400 3 700 300 What might explain the changes in the government’s budget over the period? A a fall in the dependency ratio B a fall in the exchange rate C an increase in cyclical unemployment D an increase in real GDP

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2024

22 What does the labour force survey (LFS) measure? A the number of workers on the national minimum wage B the proportion of women in the labour force C the unemployed population D trade union membership

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2024

21 Which government intervention would increase the geographic mobility of labour? A controlling firms locating in areas of low employment B giving grants to firms moving into areas of high unemployment C providing relocation expenses for workers D subsidising declining industries

1 marks

Answer: C

This question in 0455/12 Feb/March 2025

20 Which supply-side policy measure is most likely to enable a government to achieve its aim of full employment? A decreasing government spending on school buildings B decreasing the number of teachers in schools C increasing taxation on private school fees D increasing the provision of enterprise skills in schools

1 marks

Answer: D

This question in 0455/11 May/June 2025

22 A government uses the labour force survey method to calculate unemployment. What is required under this method for a person to be classified as unemployed? eligible for immediately actively unemployment available seeking work benefits for work A no no yes B no yes yes C yes yes no D yes no no

1 marks

Answer: B

This question in 0455/11 May/June 2025

23 What is most likely to rise when the level of employment falls in a high-income economy? A consumer confidence B government expenditure on state benefits C government revenue from income tax D the rate of growth of real output

1 marks

Answer: B

This question in 0455/11 May/June 2025

22 A government conducted a labour force survey. It only included people of working age in the survey. The results are shown in the table. number of people of working age 10000000 employed 7000000 unemployed 1000000 not seeking work 2000000 Which percentage of working-age people are in the labour force? A 30% B 70% C 80% D 90%

1 marks

Answer: C

This question in 0455/12 May/June 2025

23 A school leaver is unable to find a job immediately after completing their education. Which type of unemployment is this? A cyclical B frictional C regional D structural

1 marks

Answer: B

This question in 0455/12 May/June 2025

18 A country's unemployment rate increased from 3.6% to 4.2% in one year. What might be the consequences for tax revenues and welfare payments? tax revenues welfare payments A decrease decrease B decrease increase C increase decrease D increase increase

1 marks

Answer: B

This question in 0455/13 May/June 2025

22 Factory owners invest in technologically-advanced industrial production by building new large-scale, energy-efficient factories. What is a negative consequence of this for local people? A a large increase in the factory owners’ incomes B a reduction in the rate of inflation C a rise in structural unemployment D lower emissions of carbon gases

1 marks

Answer: C

This question in 0455/13 May/June 2025

23 Country X measures unemployment by counting the number of people claiming unemployment benefit. Why might this method underestimate the level of unemployment? A Some benefit claimants are working unofficially. B Some employees work overtime. C Some jobseekers do not claim benefits. D Some people are unable to work.

1 marks

Answer: C

This question in 0455/13 May/June 2025

3 The diagram shows a country's production possibility curve (PPC). food X Y PPC O machines What would cause a movement from point X to point Y? A decrease in productivity B decrease in unemployment C increase in capital investment D increase in economic growth

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2025

21 An economy operating on its production possibility curve (PPC) enters a recession that causes unemployment. As the recession gets worse some unemployed workers emigrate in search of jobs overseas. How are these effects of the recession shown on a diagram of the economy’s PPC in the short-term and the long-term? short-term effect on long-term effect on the PPC diagram the PPC diagram A movement to a point movement to a point inside the PPC inside the PPC B movement to a point shift of PPC to the left inside the PPC C shift of PPC to the left movement to a point inside the PPC D shift of PPC to the left shift of PPC to the left

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2025

22 Chile specialises in the production of copper for export. In what way is the Chilean economy likely to be affected by a large rise in the supply of copper from other countries? employment economic growth A fall fall B fall rise C rise fall D rise rise

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2025

23 What are the correct definitions of unemployment and employment relative to the number of people of working age? unemployment employment A those who want a job but cannot those who are not in get one at the current wage rate full-time education B those who want a job but cannot those who have a job get one at the current wage rate at the current wage rate C those without a job those who are not in full-time education D those without a job those who have a job at the current wage rate

1 marks

Answer: B

This question in 0455/12 Oct/Nov 2025

23 A country experiences a significant fall in unemployment. What is a possible advantage and a possible disadvantage of such a fall? possible advantage possible disadvantage A fall in government spending fall in labour disputes on unemployment benefits B fall in tax revenue fall in poverty C rise in living standards rise in inflation rate D rise in output rise in labour mobility

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2025