Economics 2281 · O Level · Employment and unemployment
Employment and unemployment — practice question
Wales’ unemployment rate decreased from 8.2% in March 2013 to 6.8% in March 2014. One in four workers in Wales works in the public sector. A relatively large share of workers is employed by multinational companies, including a Japanese car producer and a South Korean electronics firm.
(a)[2]
Define ‘unemployment’ in the labour market.
(b)[4]
Explain two benefits that a firm could obtain by producing in another country.
(c)[6]
Using a production possibility curve diagram, analyse how a fall in unemployment affects an economy’s output.
(d)[8]
Discuss whether employment in the public sector or the private sector is preferable.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme.