Economics 0455 · IGCSE · Employment and unemployment
Employment and unemployment — practice question
In 2018, the US recorded its lowest unemployment rate for 18 years. Cyclical unemployment was very low, and inflation was low too. The US also saw labour productivity rise. Even so, it was less successful at reducing poverty. In 2018, about 12% of Americans were living in poverty.
(a)[2]
Define cyclical unemployment clearly.
(b)[4]
Explain two ways a firm may raise the productivity of its workers.
(c)[6]
Analyse the benefits of a low rate of inflation.
(d)[8]
Discuss whether a fall in a country’s unemployment rate will, or will not, reduce poverty in that country.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Workers who do not have jobs.” …