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2.3 Economic performance

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Question 28

An economy is experiencing four distinct labor market developments:

  1. Specialized steelworkers are laid off permanently following the closure of domestic blast furnaces due to cheaper foreign imports, and they lack the skills required for expanding service sector roles.
  2. Construction workers are temporarily out of work because severe winter weather has halted building projects.
  3. Graduates are currently unemployed for an average of four weeks while they submit applications and attend interviews for entry-level consulting roles.
  4. Automobile assembly workers are laid off because a severe contraction in national income has reduced aggregate demand for new vehicles.

Which option correctly identifies the types of unemployment represented by these developments?

A

Development 1 is frictional, Development 2 is seasonal, and Development 4 is cyclical.

B

Development 1 is structural, Development 3 is frictional, and Development 4 is cyclical.

C

Development 1 is structural, Development 3 is cyclical, and Development 4 is frictional.

D

Development 2 is frictional, Development 3 is structural, and Development 4 is cyclical.

Markscheme

2.3 Economic performance Questions

  1. A Level
  2. /Economics
  3. /2.3 Economic performance

327 exam-style questions on AQA A Level Economics 2.3 Economic performance, covering 2.3.1 Economic growth and the economic cycle, 2.3.2 Employment and unemployment, 2.3.3 Inflation and deflation, and 2.3.4 Possible conflicts between macroeconomic policy objectives. Each one has a worked solution and a mark scheme showing where the marks go.

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