Lesson 2.1.3

2.1.3 Employment and unemployment Quiz: Pearson Edexcel Economics, Unit 2

20 questions

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Lesson 2.1.3, Employment and unemployment: 20 multiple choice questions for the Pearson Edexcel Economics (9EC0), Unit 2: Theme 2: The UK economy – performance and policies, written with Revision Ninja.

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The 20 questions

  1. What does the claimant count measure of unemployment count?

    • Redundant employees
    • All jobless people
    • Underemployed workers
    • Benefit claimants

  2. How many weeks must a person have actively sought work to be counted as ILO unemployed?

    • Six weeks
    • Eight weeks
    • Two weeks
    • Four weeks

  3. What term describes workers who are employed but desire more hours or lower-skilled roles?

    • Inactivity
    • Discouraged workers
    • Unemployment
    • Under-employment

  4. Which term describes working-age people who are neither employed nor actively seeking employment?

    • Frictionally unemployed
    • Under-employed
    • Economically inactive
    • Cyclically unemployed

  5. Which type of unemployment is caused by a long-term mismatch between workers' skills and available jobs?

    • Frictional
    • Seasonal
    • Cyclical
    • Structural

  6. Which type of unemployment occurs when workers are temporarily between jobs?

    • Frictional
    • Seasonal
    • Cyclical
    • Structural

  7. Seasonal unemployment is most commonly found in which sector?

    • Manufacturing
    • Healthcare
    • Tourism
    • Banking

  8. Which type of unemployment is caused by a downturn in aggregate demand during a recession?

    • Structural
    • Cyclical
    • Frictional
    • Seasonal

  9. Unemployment caused by wages staying above the market-clearing equilibrium rate is known as what?

    • Structural mismatch
    • Frictional search
    • Demand deficiency
    • Real wage inflexibility

  10. Net inward migration directly increases which aspect of the macroeconomy?

    • Labour demand
    • Real wage rate
    • Inactivity rate
    • Labour supply

  11. What primary impact does high unemployment have on government finances?

    • Lower budget deficit
    • Lower national debt
    • Higher tax revenue
    • Higher welfare spending

  12. A rise in the unemployment rate from 4% to 5% of a labour force of 30 million means the number of unemployed people has risen by:

    • 300,000
    • 30,000
    • 3,000,000
    • 1,500,000

  13. The employment rate is 75% for a working-age population of 40 million. How many people are in employment?

    • 30 million
    • 10 million
    • 3 million
    • 53 million

  14. A labour force of 32 million has 1.6 million unemployed people. What is the unemployment rate?

    • 20%
    • 1.6%
    • 0.5%
    • 5%

  15. An economy's working-age population is 50 million, the labour force is 35 million and employment is 33 million. What is the economic activity rate?

    • 30%
    • 70%
    • 66%
    • 94%

  16. What term describes unemployed individuals who give up searching for work and become inactive?

    • Under-employed workers
    • Frictional workers
    • Seasonal workers
    • Discouraged workers

  17. What long-term negative impact does prolonged unemployment have on a worker's skills and employability?

    • Higher wage growth
    • Increased job mobility
    • Lower economic inactivity
    • Human capital loss

  18. A permanent decline in local manufacturing leading to unsellable worker skills causes which unemployment type?

    • Frictional
    • Structural
    • Real wage
    • Seasonal

  19. Cutting jobseeker benefits to encourage faster job acceptance directly aims to reduce which unemployment type?

    • Frictional
    • Structural
    • Seasonal
    • Cyclical

  20. What is a major disadvantage of using the Claimant Count to measure unemployment?

    • High survey costs
    • Only measures under-employment
    • Includes part-time workers
    • Excludes non-claimants

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