Economics 0455 · IGCSE · Employment and unemployment
Employment and unemployment — practice question
From 2007 to 2017, average wages in China tripled, whereas they declined in Brazil. The increase in average wage in China was especially strong in the tertiary sector. Farm workers experienced a more modest rise. In June 2017, unemployment in China was only 4% compared with 3.5% in Brazil. Although unemployment was lower, China’s inflation rate was below that of Brazil.
(a)[2]
Define tertiary sector and give one example of an industry that operates within the tertiary sector.
(b)[4]
Explain two reasons why farm workers might be low-paid.
(c)[6]
Analyse how a reduction in unemployment may lead to inflation.
(d)[8]
Discuss whether a country with high wage rates will have a high unemployment rate, or not.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “The tertiary sector supplies services” …