Economics 0455 · IGCSE · Employment and unemployment
Employment and unemployment — practice question
During 2019, Russia's unemployment rate stood at 4.6%. Russia had previously reached full employment. Its government wants unemployment to be lower. In 2018, the Russian government reduced spending, and this may have pushed poverty up. In both 2018 and 2019, the government kept its income tax rate unchanged. Russia uses a proportional tax rate system.
(a)[2]
Define full employment in your own words.
(b)[4]
Explain the distinction between a proportional income tax system and a progressive income tax system.
(c)[6]
Analyse why a reduction in government spending could increase poverty.
(d)[8]
Discuss whether a lower unemployment rate in a country always helps workers.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “The minimum possible unemployment level” …