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Date May 2017 Marks available 10 Reference code 17M.1.HL.TZ2.04
Level Higher level Paper Paper 1 Time zone Time zone 2
Command term Explain Question number 04 Adapted from N/A

Question

Explain the cause of cyclical (demand-deficient) unemployment.

[10]
a.

Discuss the view that the most significant consequence of unemployment is the loss of tax revenue for the government.

[15]
b.

Markscheme

Answers may include:

Marks should be allocated according to the Paper 1 markbands for May 2013 forward, part A.

a.

Answers may include:

Discussion may include: the other economic and personal and social consequences of unemployment, eg loss of GDP, increased cost of unemployment benefits, greater disparities in the distribution of income or an increase in government spending due to falling tax revenues and increased unemployment benefits acting as an automatic stabilizer.

Marks should be allocated according to the Paper 1 markbands for May 2013 forward, part B.

b.

Examiners report

[N/A]
a.
[N/A]
b.

Syllabus sections

Last exams 2021 » Section 2: Macroeconomics » 2.3 Macroeconomic objectives » Low unemployment » Types and causes of unemployment
Last exams 2021 » Section 2: Macroeconomics » 2.3 Macroeconomic objectives » Low unemployment
Last exams 2021 » Section 2: Macroeconomics » 2.3 Macroeconomic objectives
Last exams 2021 » Section 2: Macroeconomics

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