Employment and Unemployment
117 questions· page 1 of 12
What is likely to improve the occupational mobility of labour?
Options
A a decrease in income tax that increases aggregate demand
B a decrease in unemployment benefit
C an increase in retraining schemes for the unemployed
D more advertising of employment vacancies in the economy
What is a definition of hysteresis unemployment?
Options
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
What is a factor affecting the occupational mobility of labour?
Options
A education and training
B immigration controls
C price of housing
D transport infrastructure
A government decreases interest rates to reduce unemployment but finds this has little effect due to hysteresis.
What causes this hysteresis?
Options
A capital investment increases
B fewer people are encouraged to save
C skills of unemployed workers become outdated
D the money supply increases
What is a definition of hysteresis unemployment?
Options
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
What is a factor affecting the occupational mobility of labour?
Options
A education and training
B immigration controls
C price of housing
D transport infrastructure
What is least likely to increase the natural rate of unemployment?
Options
A a decrease in information about vacancies
B a decrease in trade union power
C an increase in unemployment benefits
D an increase in immigration
What describes a Keynesian measure to reduce cyclical unemployment?
Options
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
What is a likely consequence of an increase in government spending on education?
Options
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
The unemployment rate in an economy may continue to rise even after the economy has recovered from a recession.
Which explanation for this trend is not correct?
Options
A Many foreign businesses have moved out of the country.
B The government has abolished the national minimum wage.
C An increase in net migration of low-skilled workers.
D Workers lose skills, making them less employable.