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What is her labour market status?","back":"Employed - paid part-time work counts.","mcqOptions":[{"text":"Employed - paid part-time work counts.","correct":true,"explanation":"Any paid work counts as employment, including work done part-time alongside studying. Labour market status depends on participation in paid work, not on whether the job is full-time or the person is a student."},{"text":"Economically inactive - studying determines status.","correct":false,"explanation":"Being a student does not automatically make someone economically inactive once they have paid work. The correct status is employed because the Saturday job involves supplying labour for pay."},{"text":"Unemployed - part-time work does not count.","correct":false,"explanation":"Unemployment requires having no job while being available for and actively seeking work. A paid Saturday job means the person is employed, even if the hours are limited."},{"text":"Self-employed - any paid work is self-employment.","correct":false,"explanation":"Self-employment involves working for oneself rather than being paid in a job generally described as employment. The correct classification is employed because paid part-time work is sufficient."}]},{"id":"3ca41268-2bf6-419f-bbff-3a392b0b7b81","cardType":"cloze","points":null,"front":"To count as unemployed, a person has no job but is [ ] and [ ].","back":"To count as unemployed, a person has no job but is able and available to work and actively seeking work.","mcqOptions":[{"text":"To count as unemployed, a person has no job but is able and available to work and actively seeking work.","correct":true,"explanation":"The standard definition requires both availability for work and active job seeking. Having no job alone is insufficient, because people who are not seeking or available are economically inactive."},{"text":"To count as unemployed, a person has no job but is registered for benefits and available to work.","correct":false,"explanation":"Receiving benefits or registering with an authority is not essential to the broad definition, while active job seeking and availability are. The correct terms are able and available to work, and actively seeking work."},{"text":"To count as unemployed, a person has no job but is wanting paid work and available to work.","correct":false,"explanation":"Wanting work does not prove that a person is actively seeking it, and being available alone is incomplete. The correct definition requires being able and available to work and actively seeking work."},{"text":"To count as unemployed, a person has no job but is willing to work and receiving benefits.","correct":false,"explanation":"Benefit receipt is not required, and merely being willing does not establish active job seeking. The correct criteria are being able and available to work and actively seeking work."}]},{"id":"11bd926c-5d6f-4bee-ae2d-b742e3930ac3","cardType":"basic","points":1,"front":"Cara studies full-time and is not looking for paid work. What is her labour market status?","back":"Economically inactive.","mcqOptions":[{"text":"Economically inactive.","correct":true,"explanation":"A full-time student who is not seeking paid work is outside the labour force. Without active job seeking or availability for employment, she is economically inactive rather than unemployed."},{"text":"Unemployed.","correct":false,"explanation":"Unemployment requires having no job while actively seeking and being available for work. Since Cara is not looking for paid work, the correct status is economically inactive."},{"text":"Employed.","correct":false,"explanation":"Employment requires paid work or another recognised work arrangement. Studying full-time without looking for paid work does not meet that condition, so Cara is economically inactive."},{"text":"In the labour force.","correct":false,"explanation":"The labour force consists of employed and unemployed people, not a separate student category. A student who is not seeking work is economically inactive."}]},{"id":"d729c60c-f73e-4c1c-a4cd-1aaeb17ab81c","cardType":"cloze","points":null,"front":"The labour force = [ ] + [ ].","back":"The labour force = employed + unemployed.","mcqOptions":[{"text":"The labour force = employed + unemployed.","correct":true,"explanation":"The labour force includes people currently in work and people without work who are actively seeking and available for it. Economically inactive people are excluded from this total."},{"text":"The labour force = employed + economically inactive.","correct":false,"explanation":"Economically inactive people are not part of the labour force because they are neither working nor actively seeking work. The correct components are employed and unemployed."},{"text":"The labour force = working-age population + unemployed.","correct":false,"explanation":"The working-age population includes people outside the labour force, such as some students and carers. The labour force specifically combines employed and unemployed people."},{"text":"The labour force = employed + government spending.","correct":false,"explanation":"Employment is one component, but government spending is not a labour-market status or population group. The correct second component is unemployed people."}]},{"id":"1a1625ce-da2e-4d69-93a1-2229c6cca555","cardType":"cloze","points":null,"front":"Low unemployment usually means more people earning incomes, producing output and paying [ ], reducing pressure on [ ].","back":"Low unemployment usually means more people earning incomes, producing output and paying taxes, reducing pressure on government spending.","mcqOptions":[{"text":"Low unemployment usually means more people earning incomes, producing output and paying taxes, reducing pressure on government spending.","correct":true,"explanation":"With more people working, incomes and taxable activity usually rise, so tax receipts increase. At the same time, fewer people need unemployment-related support, reducing pressure on government spending."},{"text":"Low unemployment usually means more people earning incomes, producing output and paying less tax, reducing pressure on government spending.","correct":false,"explanation":"Low unemployment generally increases tax receipts rather than reducing them, because more people earn taxable incomes. The usual consequence is reduced pressure on government spending, not higher pressure on tax revenue."},{"text":"Low unemployment usually means more people earning incomes, producing output and paying taxes, increasing pressure on government spending.","correct":false,"explanation":"More employment normally reduces welfare claims and therefore eases pressure on government spending. It does not usually reduce tax receipts; greater employment tends to increase taxes paid."},{"text":"Low unemployment usually means more people earning incomes, producing output and paying less tax, increasing pressure on government spending.","correct":false,"explanation":"Low unemployment is associated with higher tax receipts, not lower receipts. The spending effect is usually downward because fewer people require unemployment-related benefits."}]},{"id":"6d8288ba-d35e-440c-9e37-503082f6258c","cardType":"basic","points":1,"front":"What recruitment problem can firms face when unemployment is low?","back":"It can be harder to recruit workers.","mcqOptions":[{"text":"It can be harder to recruit workers.","correct":true,"explanation":"When unemployment is low, fewer people are available and actively seeking work. Firms may therefore have a smaller pool of applicants and find recruitment more difficult."},{"text":"It can be easier to recruit workers.","correct":false,"explanation":"Low unemployment normally makes recruitment harder because fewer unemployed people are available. Easier recruitment is more likely when unemployment is high and the pool of applicants is larger."},{"text":"It can be impossible to recruit workers.","correct":false,"explanation":"Low unemployment does not mean firms cannot recruit anyone; it means recruitment may take more time or require higher wages. The correct problem is that recruitment can be harder."},{"text":"It can be cheaper to recruit workers.","correct":false,"explanation":"Low unemployment may increase wage pressure, but the direct recruitment problem is a smaller supply of available applicants. Firms face harder recruitment rather than automatically cheaper recruitment."}]},{"id":"8c2043d8-a570-41fe-b08c-849b3cdffe6c","cardType":"basic","points":2,"front":"Why is 0% unemployment unrealistic in real economies?","back":"People are always temporarily between jobs, retraining or waiting for seasonal work.","mcqOptions":[{"text":"People are always temporarily between jobs, retraining or waiting for seasonal work.","correct":true,"explanation":"Frictional, structural and seasonal changes mean some people are between jobs, retraining or waiting for work even when the economy is strong. This makes a permanent zero rate unrealistic."},{"text":"People are always permanently unwilling to work.","correct":false,"explanation":"Some people may leave the labour force, but that does not explain why measured unemployment never reaches zero. The relevant issue is that people are temporarily between jobs, retraining or awaiting seasonal work."},{"text":"People are always fully employed in different sectors.","correct":false,"explanation":"A skills shortage can contribute to vacancies, but it is not the general reason unemployment cannot be zero. Normal job changes, retraining and seasonal gaps always leave some people temporarily unemployed."},{"text":"People are always made redundant whenever firms expand.","correct":false,"explanation":"Businesses do not all close during normal economic conditions. Even in a healthy economy, job transitions, retraining and seasonal waiting create temporary unemployment."}]},{"id":"0d220c0a-1814-4ea4-b7d9-3d10dfa01d90","cardType":"cloze","points":null,"front":"The Claimant Count measures people claiming [ ], such as Jobseeker’s Allowance or certain [ ] claimants.","back":"The Claimant Count measures people claiming unemployment-related benefits, such as Jobseeker’s Allowance or certain Universal Credit claimants.","mcqOptions":[{"text":"The Claimant Count measures people claiming unemployment-related benefits, such as Jobseeker’s Allowance or certain Universal Credit claimants.","correct":true,"explanation":"The Claimant Count records people claiming benefits associated with unemployment, including relevant Universal Credit claimants. It is an administrative measure and does not capture every unemployed person."},{"text":"The Claimant Count measures people claiming universal benefits, such as Jobseeker’s Allowance or certain Universal Credit claimants.","correct":false,"explanation":"The measure concerns benefits linked to unemployment, not all welfare payments. The correct first term is unemployment-related benefits, while Universal Credit is the relevant example of the second term."},{"text":"The Claimant Count measures people claiming unemployment-related benefits, such as Jobseeker’s Allowance or certain state pension claimants.","correct":false,"explanation":"Jobseeker’s Allowance is not a pension, and the Claimant Count does not measure pension claims. It measures unemployment-related benefits and includes certain Universal Credit claimants."},{"text":"The Claimant Count measures people claiming employment income, such as Jobseeker’s Allowance or certain Universal Credit claimants.","correct":false,"explanation":"The Claimant Count is based on benefit claims, not employment income. Its correct description refers to unemployment-related benefits and certain Universal Credit claimants."}]},{"id":"97ab2164-5ef4-480e-ba51-67a56d55ff82","cardType":"basic","points":1,"front":"Why is the Claimant Count useful for government monitoring?","back":"It is quick and cheap to collect.","mcqOptions":[{"text":"It is quick and cheap to collect.","correct":true,"explanation":"The Claimant Count is useful because it can be gathered rapidly and at low cost, allowing the government to monitor unemployment regularly."},{"text":"It is accurate and comprehensive to collect.","correct":false,"explanation":"Being highly accurate and comprehensive is not the main advantage of this measure. Its usefulness comes from being quick and cheap to collect."},{"text":"It is useful for measuring lost national output.","correct":false,"explanation":"The Claimant Count does not directly measure the effects of unemployment on output. Its key monitoring advantage is that it is quick and cheap to collect."},{"text":"It is able to include all unemployed people.","correct":false,"explanation":"The measure does not automatically identify every unemployed person. Its practical advantage for government monitoring is that it is quick and cheap to collect."}]},{"id":"0b266e8a-c19e-4f4b-9885-3b62a15bbf14","cardType":"basic","points":2,"front":"Why can the Claimant Count understate true unemployment?","back":"Some unemployed jobseekers do not claim benefits.","mcqOptions":[{"text":"Some unemployed jobseekers do not claim benefits.","correct":true,"explanation":"Some unemployed people do not claim benefits because they are ineligible, do not know about support, or choose not to apply, so the count misses them."},{"text":"Some employed workers claim benefits.","correct":false,"explanation":"People claiming benefits while working would tend to overstate the Claimant Count, not understate unemployment. The understatement occurs when unemployed jobseekers do not claim benefits."},{"text":"Some unemployed jobseekers are counted twice.","correct":false,"explanation":"Counting unemployed people twice could inflate the measured total rather than understate it. The main issue is that some unemployed jobseekers do not claim benefits."},{"text":"Some benefit offices reject every application.","correct":false,"explanation":"A fall in benefit payments does not necessarily explain understatement. The count misses genuine unemployment when some unemployed jobseekers do not claim benefits."}]},{"id":"536a6025-5514-4a6e-b2aa-1e44c7d8d751","cardType":"basic","points":2,"front":"How can benefit rule changes distort the Claimant Count?","back":"They can change claims without matching real unemployment changes.","mcqOptions":[{"text":"They can change claims without matching real unemployment changes.","correct":true,"explanation":"Changes to eligibility or benefit conditions can alter the number of claims even when the actual number of unemployed people has not changed."},{"text":"They can match claims exactly to real unemployment changes.","correct":false,"explanation":"Rule changes do not necessarily make claims move in line with actual unemployment. They can change claims without matching real unemployment changes."},{"text":"They can remove real unemployment without changing claims.","correct":false,"explanation":"Benefit rule changes can affect recorded claims, but they do not automatically eliminate genuine unemployment from the economy. The distortion is a mismatch between claims and reality."},{"text":"They can keep claims unchanged during real unemployment changes.","correct":false,"explanation":"Rules may change recorded claims without any equivalent economic change. They cannot reliably create matching changes in both claims and real unemployment."}]},{"id":"23a000d8-61e6-4de1-9596-e4e09da4d8d1","cardType":"cloze","points":null,"front":"Unemployment rate = [ ] ÷ [ ] × 100.","back":"Unemployment rate = number unemployed ÷ labour force × 100.","mcqOptions":[{"text":"Unemployment rate = number unemployed ÷ labour force × 100.","correct":true,"explanation":"The unemployment rate compares the number unemployed with the labour force, which includes employed and unemployed people, then multiplies by 100."},{"text":"Unemployment rate = number unemployed ÷ number employed × 100.","correct":false,"explanation":"Using the number employed as the denominator excludes unemployed people from the relevant workforce base. The correct denominator is the labour force."},{"text":"Unemployment rate = number unemployed ÷ total population × 100.","correct":false,"explanation":"The total population includes people outside the labour force, such as children and retirees. The unemployment rate uses number unemployed divided by the labour force."},{"text":"Unemployment rate = number employed ÷ labour force × 100.","correct":false,"explanation":"The labour force is the denominator, while employment is not the numerator. The correct formula uses number unemployed divided by labour force, multiplied by 100."}]},{"id":"0a318988-1161-4240-bc0e-a4816ec041a3","cardType":"basic","points":1,"front":"29.4 million employed and 1.6 million unemployed: what is the labour force?","back":"31.0 million.","mcqOptions":[{"text":"31.0 million.","correct":true,"explanation":"The labour force consists of employed and unemployed people: 29.4 million + 1.6 million = 31.0 million."},{"text":"30.0 million.","correct":false,"explanation":"Adding only part of the unemployed population gives 30.0 million, but the whole labour force includes all 1.6 million unemployed people: 31.0 million."},{"text":"27.8 million.","correct":false,"explanation":"Subtracting unemployment from employment is the wrong operation. The labour force adds employed and unemployed people, giving 31.0 million."},{"text":"32.0 million.","correct":false,"explanation":"Adding 29.4 and 1.6 incorrectly as 32.0 produces an arithmetic error. Their correct total is 31.0 million."}]},{"id":"a839a040-75f8-4b7b-b107-8482c62ddd41","cardType":"basic","points":2,"front":"1.6 million unemployed and a 31.0 million labour force: what is the unemployment rate?","back":"5.16%, about 5.2%.","mcqOptions":[{"text":"5.16%, about 5.2%.","correct":true,"explanation":"The rate is calculated as 1.6 ÷ 31.0 × 100 = 5.16%, which rounds to about 5.2%."},{"text":"5.44%, about 5.4%.","correct":false,"explanation":"Dividing unemployment by employment instead of the labour force gives a slightly different figure. The correct calculation is 1.6 ÷ 31.0 × 100, or about 5.2%."},{"text":"0.0516%, about 0.1%.","correct":false,"explanation":"Using 1.6 ÷ 31.0 without multiplying by 100 leaves a decimal rather than a percentage. The correct rate is 5.16%, about 5.2%."},{"text":"5.33%, about 5.3%.","correct":false,"explanation":"Using the total labour force as 30.0 million is an arithmetic or data-reading error. The correct labour force is 31.0 million, producing about 5.2%."}]},{"id":"18138ae5-0609-48bb-bdb2-1ef18e1a48f7","cardType":"basic","points":1,"front":"Unemployment rises from 4% to 6%. What is the increase?","back":"2 percentage points.","mcqOptions":[{"text":"2 percentage points.","correct":true,"explanation":"The increase is found by subtracting the original rate from the new rate: 6% − 4% = 2 percentage points."},{"text":"1 percentage point.","correct":false,"explanation":"One percentage point would describe a rise from 4% to 5%. The change from 4% to 6% is 2 percentage points."},{"text":"4 percentage points.","correct":false,"explanation":"Four percentage points is the original rate, not the change. Subtracting 4% from 6% gives an increase of 2 percentage points."},{"text":"50 percentage points.","correct":false,"explanation":"A 50% increase is the relative percentage change, calculated as 2 ÷ 4 × 100. The question asks for the increase in percentage points: 2."}]},{"id":"4ecacb66-0186-4837-8188-0f90b033ab32","cardType":"cloze","points":null,"front":"UK unemployment has usually [ ] during recessions and [ ] during economic growth.","back":"UK unemployment has usually risen during recessions and fallen during economic growth.","mcqOptions":[{"text":"UK unemployment has usually risen during recessions and fallen during economic growth.","correct":true,"explanation":"Recessions usually reduce demand for goods and services, causing firms to need fewer workers, while growth usually increases demand and employment."},{"text":"UK unemployment has usually fallen during recessions and risen during economic growth.","correct":false,"explanation":"This reverses the usual relationship: recessions generally increase unemployment, while economic growth usually reduces it through stronger demand for labour."},{"text":"UK unemployment has usually stayed constant during recessions and stayed constant during economic growth.","correct":false,"explanation":"Although unemployment can sometimes be stable, the standard cyclical pattern is a rise during recessions and a fall during economic growth."},{"text":"UK unemployment has usually risen during recessions and risen during economic growth.","correct":false,"explanation":"Growth does not usually increase unemployment because expanding output tends to raise demand for workers. The usual pattern is rising unemployment in recessions and falling unemployment in growth."}]},{"id":"4e9af4af-0057-443d-86b4-5df3be3bb179","cardType":"cloze","points":null,"front":"Cyclical unemployment rises when [ ], such as in a [ ].","back":"Cyclical unemployment rises when demand in the whole economy falls, such as in a recession.","mcqOptions":[{"text":"Cyclical unemployment rises when demand in the whole economy falls, such as in a recession.","correct":true,"explanation":"Cyclical unemployment is caused by falling aggregate demand. During a recession, firms experience lower sales and reduce production, so they need fewer workers."},{"text":"Cyclical unemployment rises when demand in the whole economy rises, such as in a recession.","correct":false,"explanation":"Rising economy-wide demand usually encourages firms to increase output and employment. Cyclical unemployment instead rises when demand across the economy falls, particularly during a recession."},{"text":"Cyclical unemployment rises when demand in the whole economy falls, such as in a boom.","correct":false,"explanation":"A boom normally brings stronger demand and falling cyclical unemployment, not rising unemployment. Demand across the economy falls during a recession, causing firms to dismiss workers."},{"text":"Cyclical unemployment rises when demand in one season falls, such as in a summer holiday.","correct":false,"explanation":"Changes at particular times of year cause seasonal unemployment, not cyclical unemployment. Cyclical unemployment rises when economy-wide demand falls, as it does during a recession."}]},{"id":"4740d0cc-295e-4903-b224-125bf2cd6564","cardType":"basic","points":1,"front":"A person is temporarily between jobs. Which unemployment type is this?","back":"Frictional unemployment.","mcqOptions":[{"text":"Frictional unemployment.","correct":true,"explanation":"Frictional unemployment occurs while someone moves between jobs, such as after leaving one position but before beginning another. It is usually temporary."},{"text":"Structural unemployment.","correct":false,"explanation":"Structural unemployment results from a mismatch between workers and available jobs, rather than a temporary job transition. Someone briefly between jobs is frictionally unemployed."},{"text":"Seasonal unemployment.","correct":false,"explanation":"Seasonal unemployment occurs because labour demand varies predictably during the year. A person temporarily moving from one job to another experiences frictional unemployment."},{"text":"Cyclical unemployment.","correct":false,"explanation":"Cyclical unemployment is caused by falling economy-wide demand during a downturn. Temporary unemployment between two jobs is classified as frictional unemployment."}]},{"id":"457c373b-d9ef-4186-b5f1-e9768333aea4","cardType":"basic","points":1,"front":"Demand for workers changes at different times of year. Which unemployment type is this?","back":"Seasonal unemployment.","mcqOptions":[{"text":"Seasonal unemployment.","correct":true,"explanation":"Seasonal unemployment occurs when demand for labour changes predictably at different times of year, affecting industries such as tourism, farming and retail."},{"text":"Frictional unemployment.","correct":false,"explanation":"Frictional unemployment describes people temporarily moving between jobs, not annual changes in labour demand. Predictable employment changes across the year cause seasonal unemployment."},{"text":"Structural unemployment.","correct":false,"explanation":"Structural unemployment arises from mismatched skills, experience or location. When labour demand varies at different times of year, the resulting unemployment is seasonal."},{"text":"Cyclical unemployment.","correct":false,"explanation":"Cyclical unemployment follows changes in total demand over the economic cycle, rather than regular annual patterns. Time-of-year changes in labour demand cause seasonal unemployment."}]},{"id":"bfebaf87-4116-461c-a1e4-aa3bfb6bf7ed","cardType":"cloze","points":null,"front":"Structural unemployment occurs when workers’ [ ] do not match the [ ].","back":"Structural unemployment occurs when workers’ skills, experience or location do not match the jobs available.","mcqOptions":[{"text":"Structural unemployment occurs when workers’ skills, experience or location do not match the jobs available.","correct":true,"explanation":"Structural unemployment results from a mismatch between what workers can offer, including their skills or location, and the requirements or location of available jobs."},{"text":"Structural unemployment occurs when workers’ wage expectations do not match the income preferred.","correct":false,"explanation":"Wages not matching workers’ preferences may affect labour supply, but they do not define structural unemployment. The defining mismatch is between workers’ skills, experience or location and available jobs."},{"text":"Structural unemployment occurs when workers’ hours available do not match the seasonal demand.","correct":false,"explanation":"A mismatch between working hours and seasonal demand is associated with seasonal employment patterns. Structural unemployment concerns workers’ skills, experience or location not matching available jobs."},{"text":"Structural unemployment occurs when workers’ motivation or effort do not match the benefits available.","correct":false,"explanation":"Low willingness to work is not the defining cause of structural unemployment. Structural unemployment occurs because workers’ skills, experience or location do not match available jobs."}]},{"id":"2d6c77a4-e8fa-4d55-a812-eb0426f7ea69","cardType":"basic","points":2,"front":"How can automation create structural unemployment?","back":"Workers’ skills no longer match available jobs, so retraining may be needed.","mcqOptions":[{"text":"Workers’ skills no longer match available jobs, so retraining may be needed.","correct":true,"explanation":"Automation can replace particular tasks and change employers’ skill requirements. Displaced workers may therefore lack the skills demanded by remaining jobs and require retraining."},{"text":"Workers’ skills become suitable for more jobs, so recruitment may be needed.","correct":false,"explanation":"Automation usually reduces demand for workers performing replaced tasks rather than creating more vacancies for them. Structural unemployment occurs when their skills no longer match available jobs."},{"text":"Workers’ skills increase demand for products, so expansion may be needed.","correct":false,"explanation":"Higher consumer demand would generally encourage production and employment, so it does not explain automation-related structural unemployment. The problem is workers’ skills no longer matching available jobs."},{"text":"Workers’ skills still match available jobs, so job searching may be needed.","correct":false,"explanation":"Temporary movement between similar jobs would be frictional unemployment, not structural unemployment. Automation creates a lasting mismatch between displaced workers’ skills and the jobs available."}]},{"id":"04bf30c1-b77f-45b8-a8b4-1492e3ac49e9","cardType":"basic","points":2,"front":"Why can long-term unemployment make future work harder to find?","back":"Employers may think skills are out of date.","mcqOptions":[{"text":"Employers may think skills are out of date.","correct":true,"explanation":"A long period without employment can prevent workers from maintaining or updating their abilities. Employers may consequently regard their skills as outdated and prefer other applicants."},{"text":"Employers may think skills are too advanced.","correct":false,"explanation":"Long-term unemployment does not automatically make skills too advanced. Employers may instead worry that unused skills have become out of date, reducing the applicant’s employability."},{"text":"Employers may think wages are too affordable.","correct":false,"explanation":"Lower wage expectations could make an applicant cheaper to employ rather than harder to hire. The concern is that prolonged unemployment has allowed the applicant’s skills to become out of date."},{"text":"Employers may think workers are too available.","correct":false,"explanation":"Being readily available would normally help an applicant start work sooner. Long-term unemployment can be harmful because employers may suspect that the person’s skills are out of date."}]},{"id":"c11ed5f6-c0b0-44f6-8a18-279c01696f23","cardType":"basic","points":2,"front":"What happens to local shops when regional unemployment is high?","back":"Local spending falls, reducing sales for shops and services.","mcqOptions":[{"text":"Local spending falls, reducing sales for shops and services.","correct":true,"explanation":"High regional unemployment reduces household incomes and purchasing power. Residents therefore spend less in nearby businesses, lowering sales for local shops and service providers."},{"text":"Local spending rises, increasing sales for shops and services.","correct":false,"explanation":"Unemployment usually lowers local household income, so spending does not rise. Local spending falls instead, reducing the revenue earned by nearby shops and services."},{"text":"Local spending stays constant, maintaining sales for shops and services.","correct":false,"explanation":"High unemployment weakens demand rather than leaving local businesses unaffected. Reduced household incomes cause local spending to fall, cutting sales for shops and services."},{"text":"Local spending doubles, expanding sales for shops and services.","correct":false,"explanation":"Unemployed households typically have less disposable income, so they cannot sustain higher consumption. Local spending falls, which reduces sales rather than expanding nearby shops and services."}]},{"id":"fb406718-14d6-4a19-b243-79a31dfd8bc1","cardType":"cloze","points":null,"front":"Unemployment creates a government double cost: [ ] while [ ].","back":"Unemployment creates a government double cost: tax revenue falls while benefit/support spending rises.","mcqOptions":[{"text":"Unemployment creates a government double cost: tax revenue falls while benefit/support spending rises.","correct":true,"explanation":"Unemployed people generally pay less income tax while receiving greater government support. The government therefore collects less revenue at the same time as its expenditure increases."},{"text":"Unemployment creates a government double cost: tax revenue rises while benefit/support spending rises.","correct":false,"explanation":"Unemployment normally reduces income tax receipts because fewer people earn taxable wages. Benefit and support spending does rise, creating the double cost of lower revenue and higher expenditure."},{"text":"Unemployment creates a government double cost: tax revenue falls while benefit/support spending falls.","correct":false,"explanation":"Benefit and support spending generally rises because more people become eligible for assistance. Alongside falling tax revenue, this creates pressure on both sides of the government budget."},{"text":"Unemployment creates a government double cost: tax revenue rises while benefit/support spending falls.","correct":false,"explanation":"This reverses both effects: fewer employed workers means lower tax receipts, while more unemployment claims increase support expenditure. Tax revenue falls while benefit and support spending rises."}]},{"id":"74df1404-ece8-47ea-bf35-cde7c271e97e","cardType":"basic","points":1,"front":"Which unemployment is usually most damaging?","back":"Long-term structural or deep cyclical unemployment.","mcqOptions":[{"text":"Long-term structural or deep cyclical unemployment.","correct":true,"explanation":"These forms can persist for long periods, causing major losses of income, skills and economic output while increasing government spending on welfare benefits."},{"text":"Short-term frictional or predictable seasonal unemployment.","correct":false,"explanation":"These forms are generally brief or predictable, so their economic and social costs are relatively limited. Long-term structural or deep cyclical unemployment is usually most damaging."},{"text":"Temporary search or voluntary unemployment.","correct":false,"explanation":"Job searching and choosing not to work are not normally associated with the most severe lasting harm. Long-term structural or deep cyclical unemployment causes greater damage."},{"text":"Short-term cyclical or seasonal unemployment.","correct":false,"explanation":"A brief downturn or regular seasonal change usually creates only temporary joblessness. Long-term structural or deep cyclical unemployment has more persistent economic and social effects."}]}]}],"examCountdown":{"examDate":"2027-05-13","paperLabel":"Paper 1"},"heading":"3.2 Low unemployment","title":"Low unemployment Flashcards","topbar":{"backHref":"/gcse/economics/ocr/flashcards"},"topicSidebar":"$L37"}]}],"topicId":"4e2701d7-f9a8-54f3-975d-2ca8abadd808","walled":"$L38"}],"$L39","$L3a"]

3.2 Low unemployment Flashcards

3.2 Low unemployment Flashcards