Economics 9708 · AS & A Level
Unemployment
100 practice questions on Unemployment, with worked solutions and instant marking.
Consider whether the chief cause of economic growth is a rise in population, and therefore in labour supply.
Feb/March 2016
Which combination of factors is most likely to lead to economic growth?
Feb/March 2017
At which point in the business (trade) cycle is an expanding negative output gap most likely to be seen?
Feb/March 2018
What lies at the core of economic growth but is not always part of economic development?
Feb/March 2018
What does the term ‘quantitative easing’ mean?
Feb/March 2019
The diagram illustrates the yearly percentage (%) change in employment and output in the UK private sector from 2000 to 2012. In which year did labour productivity fall by the greatest amount?
Feb/March 2020
What factors might stop a government from achieving a higher rate of growth of real GDP?
Feb/March 2020
Identify from the article one example, other than expansionary monetary policy, of a macroeconomic policy tool that a government could use and analyse how it might affect the economy.
Feb/March 2020
If all other factors stay the same, what is most likely to fall when labour productivity decreases?
Feb/March 2021
How does the very long run differ from the long run?
Feb/March 2021
To strengthen its financial position, a government chose to cut spending on investment in the public sector. Economic growth did not decrease. What was the most likely effect of the government’s action?
Feb/March 2022
Economic growth brings both advantages and disadvantages. In which case would living standards be considered to have definitely risen?
Feb/March 2022
The table presents key macroeconomic indicators for four countries in 2018. What conclusions can be drawn from it?
Feb/March 2022
The table presents GDP indices for a country across a three-year span. Inflation and economic growth are two macroeconomic policy objectives. Which row gives a correct judgement of the country’s success in meeting these two objectives over the period?
Feb/March 2023
Which factor is most likely to make the greatest contribution to sustainable economic growth in a developed economy?
Feb/March 2023
What does the accelerator principle say?
Feb/March 2023
Which source of economic growth would create the lowest cost for both the current and the future generations of a country’s population?
Feb/March 2023
Workers from low-income countries frequently move to high-income countries and obtain employment. In what way would this labour movement be expected to influence economic growth and the pressure for wage increases in the high-income country?
Feb/March 2023
Compare the change in projected real GDP growth of Japan with that in the US between 2022 and 2025, using the information in Table 1.1.
Feb/March 2024
Using an aggregate demand and aggregate supply diagram, explain how a fall in interest rates could generate economic growth and consider whether economic growth will always lead to inflation.
Feb/March 2024
Which policy might raise economic growth without leading to inflation?
Feb/March 2025
Explain what the term optimum population means.
Feb/March 2025
Explain what is meant by economic development in this context.
May/June 2008
In the diagram, AS1 represents an economy’s long-run aggregate supply curve. What would make the aggregate supply curve move from AS1 to AS2?
May/June 2010
The diagram shows AS1 as the economy’s long-run aggregate supply curve. Which change would make the aggregate supply curve move from AS1 to AS2?
May/June 2010
In the diagram, AS1 represents an economy’s long-run aggregate supply curve. What would make the aggregate supply curve shift from AS1 to AS2?
May/June 2010
Which cause of economic growth would place the smallest burden on both the present and the future generations of a country’s population?
May/June 2011
Which factor behind economic growth would impose the lowest cost on both the current and future generations of a country’s population?
May/June 2011
Which cause of economic growth would require the smallest cost for both current and future generations of a country’s population?
May/June 2011
When an economy develops, the relative significance of the different sectors of production alters. Explain, with examples, why the pattern of employment may change as an economy develops.
May/June 2011
As an economy develops, the relative significance of the different sectors of production changes. Explain, with examples, why the pattern of employment may alter as an economy develops.
May/June 2011
In the diagram, curve JK shows a country’s production possibility curve. What might make the curve move to LM?
May/June 2012
The graphs show a country’s economic performance from 2007 to 2010. Which conclusion can be drawn from the graphs?
May/June 2012
The table presents the values of consumption, capital formation and depreciation for four economies, with all amounts expressed in US $. If technology stays the same, which economy is most likely to have economic growth?
May/June 2012
The graphs show a country’s economic performance from 2007 to 2010. Which conclusion can be drawn from the graphs?
May/June 2012
Which change is most likely to raise both economic growth and economic development over the long run?
May/June 2012
What is likely to happen as a consequence of the discovery of oil reserves in a developing economy?
May/June 2012
Which factor is most likely to reduce a country's national output in the short term while raising its potential for long-term growth?
May/June 2012
The table gives the data for consumption, capital formation and depreciation in four economies, with all values expressed in US $. If the state of technology does not change, which economy is most likely to experience economic growth?
May/June 2012
Explain why developing countries often seek to raise economic growth.
May/June 2012
Does this information on the size of the economy (GDP) let you conclude that the average person in Italy is better off than the average person in Ireland? Briefly explain your answer.
May/June 2012
The diagram shows how a rise in the growth rate of national income can bring about a further rise in national income. What should be added to the diagram at points 1, 2 and 3?
May/June 2013
Which measure would be most likely to encourage long-run growth in an economy?
May/June 2013
The diagram shows the way in which a higher growth rate of national income may cause national income to rise again. increase in national income -> growth rate -> operation of ......1...... -> operation of ......3...... -> increase in national income -> change in ......2...... What should be added at positions 1, 2 and 3 in the diagram?
May/June 2013
Discuss the extent to which GDP is a dependable indicator of changes in the standard of living within an economy.
May/June 2013
Explain, with the help of a production possibility curve, the opportunity cost to India of choosing to produce transport facilities rather than education services.
May/June 2014
The graph illustrates the changes, shown as an index, in employment and GDP in the United Kingdom from 2008 to 2012. What conclusion can be drawn from the graph?
May/June 2014
An economic recession causes unemployment to rise. Why might this result in a decrease in an economy’s long-term growth rate?
May/June 2014
What is most likely to lead to a rise in GDP per worker in a developing economy?
May/June 2014
The graph illustrates the changes, shown as an index, in employment and GDP in the United Kingdom from 2008 to 2012. What conclusion can be drawn from the graph?
May/June 2014
Explain what is meant by a country’s national income multiplier and two reasons why the value of the multiplier might fall.
May/June 2014
Table 1 gives GDP at factor cost. What is the distinction between GDP at factor cost and GDP at market prices?
May/June 2014
In 2012 it was reported that consumers should not be encouraged to save more and cut their debts. A rise in saving would create a Keynesian ‘paradox of thrift’ which would not aid economic growth. Instead, consumers should spend money on new purchases. (Source: The Times. 2011) (a) Explain and comment on what is meant by ‘the paradox of thrift’.
May/June 2014
Explain the meaning of a country’s national income multiplier and give two reasons why this multiplier may fall.
May/June 2014
During 2011 to 2013, high street retailers said spending on goods made at home and goods brought in from abroad fell. Consumers were not borrowing money because the economy was in recession. What is the most likely outcome of this?
May/June 2015
In order to raise their economic performance, Eastern European countries have moved away from planned economies towards mixed economies. What is the most likely general result of this change?
May/June 2015
If a country raises its labour productivity in the manufacturing industry, which outcome is least likely to occur?
May/June 2015
Explain how the contribution of each factor of production differs in an agricultural economy from that in an industrialised economy.
May/June 2015
Which factor is most likely to reduce a country's national output in the short run, while increasing its potential for long-term growth?
May/June 2015
An economy is going through economic growth. How will this affect its rate of inflation, its level of unemployment and its current account surplus?
May/June 2015
The diagram illustrates a country’s production possibility curve together with several alternative production points. Which change in the country’s output would be most likely to cause a decrease in potential growth?
May/June 2015
A developing country that gets foreign financial aid is most likely to see economic growth over the long run if it uses the money to
May/June 2015
The graphs illustrate the changes in consumer prices and real GDP in a country from 2000 to 2010. Which conclusion can be inferred from the graphs?
May/June 2015
According to the accelerator principle, what will lead to a decrease in the level of investment?
May/June 2015
A country records a high investment-to-GDP ratio and strong economic growth. If the net capital inflow from abroad is zero, what cost must be incurred for growth of this kind?
May/June 2015
Why might an economy see potential economic growth rise even though net investment stays the same?
May/June 2015
Define economic growth and identify two reasons for India’s decreasing economic growth.
May/June 2015
What is a recession and is it always triggered by weak consumer spending?
May/June 2015
Describe what is meant by economic growth and judge whether it is always beneficial.
May/June 2015
What factors determine the level of investment?
May/June 2015
Labour from developing countries often moves to developed countries and obtains employment. How would this movement of labour most likely influence economic growth and the pressure for wage rises in the developed country?
May/June 2016
The diagram illustrates the yearly percentage (%) change in employment and output in the UK private sector from 2000 to 2012. In which year did labour productivity fall by the greatest amount?
May/June 2016
Which change is most likely to raise both economic growth and economic development in the long term?
May/June 2016
The diagram illustrates the annual percentage change in employment and output in the UK private sector from 2000 to 2012. In which year did labour productivity rise by the greatest amount?
May/June 2016
Explain what is meant by the equilibrium level of national income, and consider whether this equilibrium and unemployment can exist at the same time.
May/June 2016
The diagram illustrates quarterly changes in Japan’s GDP between 2010 and 2015. How many recessions took place in Japan over this period?
May/June 2017
It has been observed that a rise in consumer spending growth leads firms to increase investment. Which principle of macroeconomic theory explains this connection?
May/June 2017
From 2014 to 2015, the Polish economy grew by 3.3%. What must be true as a consequence of this statement?
May/June 2017
The graphs show a country's economic performance from 2011 to 2014. Which conclusion can be drawn from the graphs?
May/June 2017
Which factor has been least closely linked with the rapid expansion of many economies in recent years?
May/June 2017
Explain what is meant by economic growth. Think about why, if all countries are developing, some are described as developed countries.
May/June 2017
What could count as an opportunity cost of economic growth in an economy?
May/June 2018
In an economy, real national output rises more quickly than employment. What might explain this?
May/June 2018
Growth rates may be worked out by using year-to-year changes in the value of GDP. Why is real GDP per head regarded as a better indicator than nominal GDP per head for this calculation?
May/June 2018
According to the accelerator theory, what is the factor that determines this year’s net investment?
May/June 2018
Why could GDP stay unchanged even if labour productivity increases?
May/June 2018
At what point is a rise in national income most likely to lead to higher investment spending?
May/June 2018
Explain the difference between actual growth and potential growth.
May/June 2018
In order to strengthen its financial position, a government chose to cut spending on public sector investment. Even so, economic growth did not decline. What was the most likely result of the government’s decision?
May/June 2019
A country operates a fixed exchange rate. Which pairing of problems would be most likely to lead the country’s government to cut taxation and reduce interest rates?
May/June 2019
Why can the rise in real national output be larger than the rise in labour productivity?
May/June 2019
The table presents the yearly percentage (%) change in China’s GDP, together with the contribution made by some of its component parts, from 2006 to 2012. What conclusions can be drawn about China’s economy over 2006 to 2012?
May/June 2019
Explain the meaning of actual economic growth and potential economic growth.
May/June 2019
What might have led to a 3% decrease in a country's real national income?
May/June 2020
What positive effect could reducing a direct tax on personal income have on an economy's growth in the short run?
May/June 2020
The diagram illustrates the yearly percentage (%) changes in employment and output in the UK private sector from 2000 to 2012. In which year did labour productivity rise the most?
May/June 2020
What is explained by the accelerator principle?
May/June 2020
Which change is most likely to raise both economic growth and economic development over the long term?
May/June 2020
Workers from developing countries often move to developed countries and obtain employment. In what way would this movement of labour be expected to influence economic growth and the pressure for wage increases in the developed country?
May/June 2020
The diagram illustrates the annual percentage (%) change in employment and output in the UK private sector from 2000 to 2012. During which year did labour productivity rise by the largest amount?
May/June 2020