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
Covered syllabus points
Question 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
Which type of unemployment can be classified as voluntary?
A
cyclical
B
frictional
C
structural
D
technological
Question 3
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
Question 4
The diagram shows selected US labour statistics from 2001 to 2013.
What can be concluded from the diagram?
A
Between 2004 and 2005, when the number of net new jobs was rising, the percentage employed increased.
B
Employed as a percentage of the population aged 16 and over declined continuously.
C
The natural rate of unemployment was achieved only in 2008.
D
The number of employed workers rose in all except four years.
Question 5
What is a likely consequence of an increase in government spending on education?
A
increase in the supply of unskilled labour
B
increase in occupational mobility
C
increase in the rate of unemployment
D
increase in trade union power
Question 6
What describes a Keynesian measure to reduce cyclical unemployment?
A
adopting a supply-side policy to retrain unskilled workers
B
allowing the private sector to take over the supply of merit goods
C
increasing the ratio of capital equipment to manual labour in production
D
using fiscal policy to increase effective demand
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