Edexcel A level Economics 2.1.3 Employment and unemployment

The unemployment rate is

• the number of people who are unemployed
• the percentage of the population that is unemployed
• the percentage of the work force that is unemployed
• the number of people in receipt of unemployment benefits

The participation rate is

• the proportion of the labour force that is working.
• the proportion of the population that is participating in the labour force.
• the proportion of the population over 16 years of age that is participating in the labour force.
• the proportion of the population that is working

Inadequate aggregate demand, such as is experienced in the trough of the business cycle, causes

• cyclical unemployment.
• structural unemployment.
• all unemployment

A rise in the rate of unemployment will tend to

• increase govt expenditure on welfare benefits.
• decrease the amount of tax revenue received by the government.
• cause an existing government budget deficit to increase
• all the options are correct

Structural unemployment occurs when

• the skills of part of the workforce do not match those required by industry
• the government changes the structure of the workforce

Underemployment exists when - choose 2 answers

• a person is not working as hard as they can

• the level of unemployment is too high

• Looking for an additional job or actively searching for a new job with longer hours to replace their current (main) job

• They want to work longer hours in their current job (at their basic rate of pay).

Which type of unemployment usually rises in a boom?

• Seasonal

• Cyclical

• Structural

• Frictional

Seth is laid off from work because he is a life guard at the local water park. He is experiencing what kind of unemployment?

• Structural
• Seasonal
• Frictional
• Cyclical

Unemployment caused when a person resigns from their job to start looking for a higher paying job that better suits their skills.

• Structural
• Seasonal
• Frictional
• Cyclical

Someone who works part-time but wants a full-time job is considered 

• a discouraged worker
• unhappy
• underemployed
• overemployed