DP Economics Questionbank

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

Explain how an increase in unemployment might lead to a loss of gross domestic product (GDP) and a budget deficit.

Discuss whether the most important consequence of unemployment is a loss of income for individuals.

Discuss the consequences of different types of unemployment.

Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.

Using Table 1, calculate the unemployment rate.

Calculate the unemployment rate in Fairland using Table 1.

Outline two difficulties in measuring unemployment.

Calculate the unemployment rate for 2012 and for 2013. Enter your results in Table 1.

Using the data in Table 1 to support your answer, identify two reasons why many economists would consider Country A’s economy to be performing poorly in 2012.

Explain why measuring unemployment in a country is difficult. 

Table 3 provides information relating to the labour market in the country of Buranda.

Table 3

Calculate the unemployment rate in Buranda.

Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.

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

Evaluate government policies to deal with the different types of unemployment.

Discuss the effectiveness of supply-side policies in reducing unemployment.

To what extent is expansionary fiscal policy the best policy to achieve a reduction in the rate of unemployment?

Define the term structural unemployment indicated in bold in the text (paragraph [4]).

Using an AD/AS diagram to support your answer, explain the mechanism through which monetary policy can help an economy reduce the level of unemployment.

Using an AD/AS diagram, explain how the use of fiscal policy could lower “the high rates of youth unemployment” in South Korea (paragraph [5]).

Evaluate the effectiveness of monetary policy in reducing an economy’s rate of unemployment.

Explain two causes of structural unemployment.

Explain why cyclical (demand-deficient) unemployment may occur in an economy.

Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.