Economics 2281 · O Level · Employment and unemployment
Employment and unemployment — practice question
Romania’s indirect tax rate stood at 19% from 2017 to 2019. A large share of foreign multinational companies (MNCs), especially US MNCs, are based in Romania. MNCs have raised productivity in Romania and cut its unemployment rate. MNCs can also bring advantages to their home countries.
(a)[2]
Define an indirect tax, and include one example.
(b)[4]
Explain two benefits of MNCs for their home countries.
(c)[6]
Analyse how a rise in productivity can influence unemployment.
(d)[8]
Discuss whether a fall in a country’s unemployment rate will reduce poverty.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A levy on goods and services / sales / consumer spending” …