Economics 0455 · IGCSE · Employment and unemployment
Employment and unemployment — practice question
In some large Canadian cities such as Toronto, Vancouver and Montreal, cyclical unemployment sits below the national average. This may stem from higher government spending and tax cuts in those cities. Even so, productivity is low. There are also worries that structural unemployment could rise because some industries cannot compete with more efficient foreign firms.
(a)[2]
Define the term structural unemployment.
(b)[4]
Explain two reasons why productivity is low.
(c)[6]
Analyse how higher government spending and tax cuts can bring about a fall in cyclical unemployment.
(d)[8]
Discuss whether competition between firms in the same industry is always harmful to workers.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Joblessness brought about by changes in economic structure” …