Which of the following is the best definition of unemployment?
Unemployment is the count of jobless people who are between the age of 18 and 65
Unemployment is the count of jobless people in a country who are seeking work but who do not have a job
Unemployment is the count of jobless people in a country
Which of the following is least likely to be a type of underemployment?
Someone who makes entertaining Youtube clips and makes money from advertising
A person driving a taxi who is a qualified doctor
Someone working 5 hours a week on a zero-hours contract who would like to work 30 hours a week
An individual employed by a firm who is given no work to do
Which of the following is not a problem of measuring unemployment?
People who are economically inactive
The amount of frictional unemployment
Regional and demographic disparities in the unemployment rate
Underemployment
Which of the following best describes frictional unemployment?
Occurs because there is low priced foreign competition for a domestic industry
Occurs because there is a mismatch of skills between potential employers and unemployed workers
Occurs because there is a fall in demand for workers in a declining industry
Occurs because there is imperfect communication in the labour market
Which of the following best describes unemployment caused when a business in a declining industry makes employees redundant?
Seasonal unemployment
Structural unemployment
Frictional unemployment
Demand deficient unemployment
Country A’s rate of inflation changes from 2.1% in 2019 to 0.8% in 2020. Which of the following is not true?
Country A is experiencing disinflation
The price level of the economy is increasing in 2019 and 2020
The rate of inflation has fallen from 2019 to 2020
Country A experiences deflation in 2020
Which of the following is least likely to be a problem of measuring inflation?
Price changes can vary in different regions of the country
Groups of consumers with different spending patterns
Improvements in the quality of goods overtime
The price of some goods in the index rise
Which of the following is the most likely to cause demand-pull inflation?
Increase in interest rates
Fall in consumer confidence
Decrease in the minimum wage
Rise in the value of household wealth
Which of the following is least likely to be a cause of cost-push inflation?
Increasing commodity prices
Rise in the minimum wage
Appreciation in a country’s exchange rate
Increase in indirect taxation
Which of the following is the least likely to be a consequence of high inflation in a country?
Falling disposable income for those on fixed incomes
Redistribution of income from borrowers to lenders
Increased risk in the business environment reduces investment
Falling exports and rising imports