In country S, frictional unemployment has decreased, but in country T, structural unemployment has increased.
What would be possible explanations for these changes?
Options
| country S | country T | |
|---|---|---|
| A | a reduction in job search times | real wage rates are flexible |
| B | more job vacancy websites | the closure of several large mining firms |
| C | unemployment benefits have decreased | a fall in economic growth |
| D | unemployment benefits have increased | workers' skills do not match available jobs |
An economy’s manufacturing share of real GDP fell from 30% in 1990 to 12% in 2023.
Which type of unemployment would have resulted from this?
Options
A cyclical
B frictional
C structural
D voluntary
What is most likely to cause an unemployed worker to be classified as frictionally unemployed?
Options
A lack of relevant skills for vacant jobs
B lack of up-to-date job vacancy information
C greater use of technology in the production process
D an increase in regional pay inequality
The table shows some labour market statistics.
| million | |
|---|---|
| number of people of working age | 45 |
| number of people unemployed | 2 |
| number of people in the labour force | 40 |
| number of people in the population | 80 |
What is the unemployment rate?
Options
A 2.5%
B 5%
C 6.25%
D 12.5%
A steel producer changes to electrically powered furnaces to reduce emissions of greenhouse gases. This results in a loss of jobs.
Which type of unemployment is caused?
Options
A cyclical
B frictional
C seasonal
D technological
The diagram shows three groups of people with four possible flows between them.
Which flow indicates that people have become discouraged from seeking work?
Options
A flow A on Fig. 16.1
B flow B on Fig. 16.1
C flow C on Fig. 16.1
D flow D on Fig. 16.1
To calculate the unemployment rate, the number unemployed is related to
Options
A the total adult population aged 18–65.
B the number of unemployed who are seeking work.
C the total number in full-time employment.
D the total population in the labour force.
Asha is currently unemployed. She has been offered a job but has decided to decline the offer and search for a better paid job.
Which type of unemployment is this?
Options
A cyclical
B frictional
C seasonal
D structural
A major trading nation, country X, is in equilibrium at the full employment level of real output. There is then a recession in its main international markets.
What are the most likely consequences of this change for country X?
Options
| rate of inflation | unemployment | |
|---|---|---|
| A | decrease | decrease |
| B | decrease | increase |
| C | unchanged | decrease |
| D | unchanged | increase |
An economy experiences rising unemployment due to incomes falling as a result of a virus pandemic.
How would this unemployment be classified?
Options
A cyclical
B frictional
C seasonal
D structural