CAIE A-Level Economics A2 9.3 Employment Unemployment Questions

Practise interpreting labour market data, classifying unemployment, and linking mobility or policy choices to employment outcomes.

Syllabus
2026–2028
Course
Economics 9708
Level
A2

Exam points

  • compare unemployment trends from tables or graphs using the overall change between dates
  • distinguish unemployment types from short scenarios, including cyclical, structural and hysteresis
  • link fiscal, supply-side or benefit policies to likely changes in unemployment and mobility

Question 1

[Maximum number: 1]

In 2020 in a country, the unemployment rate of the 16-64 age group seeking work was 4.0 %.
The employment rate for this group in the same period was 76.6 %.
What can be concluded from this?

A

19.4 % of the economy is working illegally.

B

23.4 % of the age group is economically inactive.

C

80.6 % of the age group is economically active.

D

The data is inaccurate.

Question 2

[Maximum number: 1]

Which type of unemployment can be classified as voluntary?

A

cyclical

B

frictional

C

structural

D

technological

Question 3

[Maximum number: 1]

Which policy is most likely to lead to a reduction in the natural rate of unemployment?

A

an increase in government expenditure on goods and services

B

an increase in government expenditure on training schemes to address skill shortages

C

an increase in the period when the unemployed are eligible for welfare benefits

D

an increase in the minimum wage

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