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CAIE A-Level Economics AS 4.5 Unemployment Questions

Practise calculating and measuring unemployment, classifying its causes and evaluating effects on workers, firms, government finances, aggregate demand and productive potential.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • calculate the unemployment rate using unemployed people divided by the labour force
  • classify frictional, structural, cyclical, seasonal or technological unemployment from evidence
  • evaluate effects on income, skills, firms' demand, tax receipts, welfare spending and output

Covered syllabus points

4.5.1—Unemployment4.5.2—Measuring unemployment4.5.3—Types of unemployment4.5.4—Consequences of unemployment

Question 1

[Maximum number: 1]

The table shows some labour market statistics.

Table for Question 1 — CAIE A-Level Economics AS

What is the unemployment rate?

A

2.5%

B

5\%

C

6.25\%

D

12.5\%

Question 2

[Maximum number: 1]

Asha is currently unemployed. She has been offered a job but has decided to decline the offer and search for a better paid job.

Which type of unemployment is this?

A

cyclical

B

frictional

C

seasonal

D

structural

Question 3

[Maximum number: 1]

The graph gives the percentage unemployed for all people aged 16 and over, and for young people aged 16-24.

Figure for Question 3 — CAIE A-Level Economics AS

What is the consequence for consumer expenditure on products consumed by the 16-24 age group over the period 2010-2020?

A

a fall in consumer expenditure across the whole period

B

an initial fall in consumer expenditure followed by a rise

C

an initial rise in consumer expenditure followed by a fall

D

a rise in consumer expenditure across the whole period

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