Economics 2281 · O Level · Employment and unemployment
Employment and unemployment — practice question
In 2022, over a quarter of a million workers, doctors included, left Sri Lanka to find jobs in other countries. Economic difficulties were a major cause, including an inflation rate of $50\%$ and fears that unemployment might increase. The Sri Lankan Government raised direct taxation. It also encouraged some public sector workers to go abroad temporarily. People employed overseas often send money back to relatives.
(a)[2]
Identify two kinds of unemployment.
(b)[4]
Explain two ways in which money sent home by relatives working abroad could improve their families’ living standards.
(c)[6]
Analyse how an increase in direct taxation could raise unemployment.
(d)[8]
Discuss whether or not a doctor would gain from working 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: “Frictional unemployment” …