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CAIE A-Level Economics 9.3 Employment/unemployment Question Bank

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

9.3 Employment/unemployment question 1

[Maximum number: 1]

What is a definition of hysteresis unemployment?

A

people who become temporarily unemployed because it takes a short period of time to find a job after they leave school

B

people who become unemployed when there is a recession but who will find employment as the economy comes out of recession

C

people who become unemployed for a long period of time due to a loss of job skills and work experience while unemployed

D

people who become unemployed when established firms close and new firms are created as technology advances

9.3 Employment/unemployment question 2

[Maximum number: 1]

Which type of unemployment can be classified as voluntary?

A

cyclical

B

frictional

C

structural

D

technological

9.3 Employment/unemployment 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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