Economics 0455 · IGCSE · Employment and unemployment

Employment and unemployment — practice question

In 2022, over 250,000 workers, doctors among them, moved out of Sri Lanka to take jobs overseas. This mainly stemmed from economic difficulties, such as inflation reaching 50% and worries that unemployment could increase. The Sri Lankan Government raised direct taxation, and it also urged some public-sector employees to go overseas for a temporary period. Workers abroad often transfer money back to their family members at home.
(a)[2]

Identify two kinds of unemployment.

(b)[4]

Explain two ways in which money sent back by relatives working overseas could improve the living standards of their families.

(c)[6]

Analyse how a rise in direct taxation could raise unemployment.

(d)[8]

Discuss whether a doctor would benefit from taking up work in another country.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Unemployment of the frictional type

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