Economics 0455 · IGCSE · Employment and unemployment

Employment and unemployment — practice question

Brazil’s economy faced problems in 2013. Its inflation rate moved above the Central Bank’s target. Over two-thirds of the items used to work out the inflation rate became more expensive. The rate of economic growth fell and fewer jobs were being created. As the labour force expands, additional jobs must be generated to prevent unemployment rising. As free trade expands, wider free trade could improve Brazil’s economic performance.
(a)[2]

Name two causes that increase the size of a country’s labour force.

(b)[4]

Explain how a country’s inflation rate is measured.

(c)[6]

Analyse how free trade may cut firms’ production costs.

(d)[8]

Discuss whether unemployment always harms an economy.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Immigration into the country

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