Economics 2281 · O Level · Employment and unemployment
Employment and unemployment — practice question
From 2007 to 2017, average wages in China trebled, whereas they declined in Brazil. The increase in China was especially large in the tertiary sector. Farm workers saw a more modest increase. In June 2017, unemployment in China stood at only 4% compared with 13.5% in Brazil. Even though unemployment was lower, China’s inflation rate was below Brazil’s.
(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 may earn low wages.
(c)[6]
Analyse how a fall in unemployment may lead to inflation.
(d)[8]
Discuss whether or not a country with high wage rates will also have a high unemployment rate.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Supplying services” …