Economics 2281 · O Level · Employment and unemployment
Employment and unemployment — practice question
In 2019, Russia recorded an unemployment rate of $4.6\%$. Russia has experienced full employment before. The government aims to bring unemployment down further. During 2018, the Russian government reduced spending, which may have pushed poverty higher. In both 2018 and 2019, the government left its income tax rate unchanged. Russia uses a proportional tax rate system.
(a)[2]
Define what is meant by full employment.
(b)[4]
Explain the difference between a proportional income tax system and a progressive income tax system.
(c)[6]
Analyse why a reduction in government spending could raise poverty.
(d)[8]
Discuss whether a drop in a country’s unemployment rate 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” …