Economics 2281 · O Level · Employment and unemployment
Employment and unemployment — practice question
Spain has recorded one of Europe's highest unemployment rates. In addition, by 2015, $3.5$ million of the unemployed had been out of work for at least a year. The Spanish Government has put in place a variety of policy measures, such as higher government spending, to cut unemployment and poverty. It has also attempted to make firms' product supply more elastic.
(a)[2]
Identify two factors that stop a worker from getting employment.
(b)[4]
Explain two costs of long-term unemployment for people who are unemployed.
(c)[6]
Analyse why price elasticity of supply may vary between products.
(d)[8]
Discuss whether higher government spending will reduce poverty.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme.