Practise interpreting labour market data, classifying unemployment, and linking mobility or policy choices to employment outcomes.
Which policy is most likely to lead to a reduction in the natural rate of unemployment?
an increase in government expenditure on goods and services
an increase in government expenditure on training schemes to address skill shortages
an increase in the period when the unemployed are eligible for welfare benefits
an increase in the minimum wage
What is a definition of hysteresis unemployment?
people who become temporarily unemployed because it takes a short period of time to find a job after they leave school
people who become unemployed when there is a recession but who will find employment as the economy comes out of recession
people who become unemployed for a long period of time due to a loss of job skills and work experience while unemployed
people who become unemployed when established firms close and new firms are created as technology advances
What is a likely consequence of an increase in government spending on education?
increase in the supply of unskilled labour
increase in occupational mobility
increase in the rate of unemployment
increase in trade union power
The diagram shows selected US labour statistics from 2001 to 2013.
What can be concluded from the diagram?
Between 2004 and 2005, when the number of net new jobs was rising, the percentage employed increased.
Employed as a percentage of the population aged 16 and over declined continuously.
The natural rate of unemployment was achieved only in 2008.
The number of employed workers rose in all except four years.
Which type of unemployment can be classified as voluntary?
cyclical
frictional
structural
technological
