Economics 0455 · IGCSE · Employment and unemployment
Employment and unemployment — practice question
Nigeria operates a mixed economic system. In January 2023, Nigeria recorded unemployment of 33%, creating several costs. Its inflation rate of 22% produced various effects on firms in the country. During 2022 and at the beginning of 2023, Nigerians raised their demand for foreign currency.
(a)[2]
Identify two costs linked to unemployment.
(b)[4]
Explain how the key resource allocation decisions are taken in a mixed economic system.
(c)[6]
Analyse the causes of higher demand for foreign currency.
(d)[8]
Discuss whether inflation is likely to harm a country’s firms.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Reduced output / weaker growth” …