Lesson M2.3.1

M2.3.1 Employment, unemployment and their measurement Quiz: OCR Economics, Unit 7

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson M2.3.1, Employment, unemployment and their measurement: 20 multiple choice questions for the OCR Economics (H460), Unit 7: Economic policy objectives, written with Revision Ninja.

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The 20 questions

  1. Under the ILO definition, how recently must an unemployed person have searched for work?

    • Past 12 weeks
    • Past 6 weeks
    • Past 2 weeks
    • Past 4 weeks

  2. Which measure of unemployment counts individuals receiving state benefits for being unemployed?

    • Labour Force Survey
    • ILO measure
    • Participation Index
    • Claimant Count

  3. Which group makes up the economically active population of a country?

    • Employed and retired
    • Only full-time workers
    • Working-age adults only
    • Employed and unemployed

  4. What term describes workers who are employed part-time but want full-time employment?

    • Discouraged workers
    • Underemployed
    • Economically inactive
    • Frictionally unemployed

  5. What type of unemployment occurs when people are briefly between jobs?

    • Structural unemployment
    • Frictional unemployment
    • Seasonal unemployment
    • Cyclical unemployment

  6. Real wage unemployment is primarily caused by real wages being set where?

    • Below market equilibrium
    • At market equilibrium
    • Above market equilibrium
    • At zero value

  7. How are discouraged workers who have given up job-hunting classified in official statistics?

    • Underemployed
    • Frictionally unemployed
    • Claimant count
    • Economically inactive

  8. Which types of unemployment exist even when the economy is at full capacity?

    • Hidden and demand-deficient
    • Seasonal and cyclical
    • Cyclical and demand-deficient
    • Frictional and structural

  9. If 3 million people are unemployed and 27 million are employed, what is the unemployment rate?

    • 11.1%
    • 9%
    • 10%
    • 8%

  10. If 20 million people are active out of a 40 million working-age population, what is the activity rate?

    • 50%
    • 60%
    • 20%
    • 40%

  11. A coal miner loses their job due to green energy shifts and lacks IT skills. What unemployment is this?

    • Cyclical unemployment
    • Frictional unemployment
    • Structural unemployment
    • Seasonal unemployment

  12. An economy enters a deep recession and consumer demand falls, causing widespread job losses. What unemployment is this?

    • Structural unemployment
    • Real wage unemployment
    • Cyclical unemployment
    • Frictional unemployment

  13. A full-time university student is not working and not looking for work. How are they classified?

    • Unemployed
    • Underemployed
    • Economically inactive
    • Frictionally unemployed

  14. Why is the Labour Force Survey usually higher than the Claimant Count?

    • Compulsory registration
    • Higher wage rates
    • Universal benefit access
    • Ineligible workers exist

  15. How does rising unemployment affect the UK government’s fiscal position?

    • Increases budget surplus
    • Increases budget deficit
    • Reduces welfare spending
    • Has zero impact

  16. What term describes long-term unemployment causing workers to permanently lose skills?

    • Voluntary unemployment
    • Hysteresis
    • Labour flexibility
    • Occupational mobility

  17. Inactive adults starting to actively seek work has what immediate effect on unemployment?

    • Zeroes the rate
    • It increases
    • It decreases
    • No effect

  18. Which policy is most effective at reducing structural unemployment caused by regional industrial decline?

    • Higher welfare benefits
    • Interest rate cuts
    • Retraining programmes
    • Lower income tax

  19. High housing costs in prosperous regions create which barrier to reducing unemployment?

    • Occupational immobility
    • Cyclical immobility
    • Geographical immobility
    • Frictional hysteresis

  20. Under the ILO definition, within how many weeks must an unemployed person be available to start work?

    • 2 weeks
    • 8 weeks
    • 4 weeks
    • 6 weeks

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